LONDON (Alliance News) - Wishbone Gold PLC on Thursday reported a narrowed pretax loss in 2015 as it booked lower costs than in 2014, and said it has made a good start to 2016.
The precious metals exploration company said its pretax loss in 2015 narrowed to USD1.1 million from USD2.6 million in 2014, as it booked lower abortive acquisition costs and impairment of investments. It does not generate revenue.
"Gold prices gained more than 16% in the first four months of 2016 and tested the USD1,300 per ounce in May 2016. Though they have fallen back a little, the upward trend remains as China, India and Russia continue to shore up reserves," Wishbone said in a statement.
"Margins in the trading business are essentially fixed so a rise in the gold price leads to a corresponding increase in profitability for the trading. This offers Wishbone Gold an increasingly optimistic outlook, as the dual approach of exploration and trading in precious metals offers additional options in terms of achieving profitability and cash flow," the company added.
Shares in Wishbone closed down 4% at 0.600 pence on Thursday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Wishbone (WSBN)