Last checked at 30 Sep 2019 07:00
30 September 2019
Wishbone Gold Plc ("Wishbone Gold" or the "Company")
Wishbone Gold Plc / Index: AIM: WSBN / Sector: Natural Resources / NEX: WSBN
Interim results
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
Chairman's statement
Wishbone Gold has pleasure in announcing its interim results for the period ended 30th June 2019. Shareholders are reminded that these results are unaudited and based on the Company's management accounts.
The six months ended saw total sales of $6.562m, showing a substantial increase over the same period last year (2018: $3.908m). Volumes processed by the Company during this period were mainly from local trading and from Asia. Gross margins for the period were 0.48%, showing a slight increase from the last full year (0.42%). As the Asian percentage of trading has risen over the last couple of months we have seen margins improve further.
During the period cash increased by $0.012m (period ended 30 June 2018: reduction of $0.20m) and at 30 June 2019 the Company had net cash of $0.036m (30 June 2018: $0.054m). Net assets at 30 June 2019 were $2.13m (30 June 2018 ($2.88m).
With the marked increase in the gold price we have seen an increased interest in holding physical gold. There is also increased activity in cross border trading of physical gold where we are well positioned in Dubai between Asia and Europe.
The Company is seeking to extricate itself from its Honduras operations, to focus on the burgeoning growth in trading in the Middle East. The Australian licences remain in the Company for the time being and the Board are considering strategies to increase opportunities here. The Board look forward to updating shareholders in due course.
We continue our discussions on potential acquisitions and will announce progress when possible.
Many thanks to all our shareholders for their continuing support.
ENDS
For further information, please contact:
Wishbone Gold PLC
Richard Poulden, Chairman Tel: +44 207 812 0645
Beaumont Cornish Limited
(Nominated Adviser and NEX Exchange Corporate Adviser)
Roland Cornish/Rosalind Hill Abrahams Tel: +44 20 7628 3396
Turner Pope Investments (TPI) Limited
(Broker)
Zoe Alexander/ Andy Thacker Tel: +44 20 3657 0050
Damson Communications
(Public Relations)
Abigail Stuart-Menteth Tel: +44 20 7812 0645
Wishbone Gold PLC |
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Consolidated Income Statement |
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for the period 1 January 2019 to 30 June 2019 |
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Unaudited Six Months Ended 30 June 2019 | Unaudited Six Months Ended 30 June 2018 | Audited Year Ended 31 December 2018 | |||||
US$ | US$ | US$ | |||||
Sales | 6,562,093 | 3,908,979 | 10,896,045 | ||||
Cost of sales | (6,530,233) | (3,873,223) | (10,849,774) | ||||
Gross profit | 31,860 | 35,755 | 46,271 | ||||
Administration expenses | (555,687) | (497,834) | (1,064,988) | ||||
Operating loss | (523,827) | (462,079) | (1,018,717) | ||||
Loss on equity sharing agreement | - | - | (797,220) | ||||
Impairment of investments | - | - | - | ||||
Foreign exchange gains | (3,315) | (6,746) | (10,223) | ||||
Finance costs | (10,595) | (58,603) | (64,007) | ||||
Loss on ordinary activities before taxation | (537,737) | (527,428) | (1,890,167) | ||||
Tax on loss on ordinary activities | - | - | - | ||||
Loss for the financial year | (537,737) | (527,428) | (1,890,167) | ||||
Wishbone Gold PLC | ||||
Consolidated Statement of Financial Position | ||||
as at 30 June 2019 | ||||
Unaudited Six Months Ended 30 June 2019 | Unaudited Six Months Ended 30 June 2018 | Audited Year Ended 31 December 2018 | ||
US$ | US$ | US$ | ||
Current assets | ||||
Trade and other receivables | 555,936 | 545,843 | 583,834 | |
Cash and cash equivalents | 36,271 | 54,102 | 24,428 | |
Inventory | - | 27,751 | - | |
Loans | 199,864 | 306,183 | 199,864 | |
792,071 | 933,879 | 808,126 | ||
Non-current assets | ||||
Property, plant and equipment | 193,750 | 250,024 | 212,500 | |
Goodwill | 748,617 | 748,625 | 748,617 | |
Assets | 393,874 | 377,672 | 371,923 | |
Loans | - | 572,278 | - | |
1,336,241 | 1,948,599 | 1,333,040 | ||
Total assets | 2,128,312 | 2,882,478 | 2,141,166 | |
Current liabilities | 555,407 | 1,397,345 | 863,176 | |
Non-current liabilities | - | - | - | |
Equity | ||||
Share capital | 3,791,823 | 1,730,590 | 2,872,843 | |
Share premium | 7,370,895 | 7,115,052 | 7,306,550 | |
Share based payment reserve | 64,355 | 62,908 | 64,355 | |
Accumulated losses | (9,610,478) | (7,710,000) | (9,072,741) | |
Foreign exchange reserve | (43,690) | 286,583 | 106,983 | |
Total equity and liabilities | 2,128,312 | 2,882,478 | 2,141,166 |
Wishbone Gold PLC | ||||
Consolidated Statement of Cash Flows | ||||
for the period from 1 January 2019 to 30 June 2019 |
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Unaudited Six Months Ended 30 June 2019 | Unaudited Six Months Ended 30 June 2018 | Audited Year Ended 31 December 2018 | ||
US$ | US$ | US$ | ||
Cash flows from operating activities | ||||
Loss before tax | (537,737) | (527,428) | (1,890,167) | |
Reconciliation to cash generated from operations: | ||||
Foreign exchange (gain)/loss | 3,315 | 6,745 | 10,223 | |
Interest expense | 10,595 | 58,603 | 64,007 | |
Impairment losses |
| - | - | |
Write-off of loan receivable | - | 107,509 | ||
Losss on equity sharing agreement | - | 797,220 | ||
Depreciation | 18,750 | - | 37,500 | |
Administrative expenses converted into ordinary shares |
| - | 382,950 | |
Operating cash flow before changes in working capital | (505,077) | (462,080) | (490,758) | |
Derease/(increase) in inventory |
| 4 | 27,755 | |
Decrease/(increase) in receivables | 27,898 | 22,553 | (15,437) | |
Increase/(decrease) in payables | (307,769) | 178,036 | (335,012) | |
Cash outflow from operations | (784,948) | (261,487) | (813,452) | |
Cash flows from investing activities | ||||
Increase/(decrease) in fixed assets |
| 34 | - | |
Net movement in investments | - | - | - | |
(Increase)/Decrease in Assets | (21,951) | 9,490 | 15,239 | |
(Increase)/Decrease in Loans | - | 27 | - | |
Other investing activities |
| 108,198 | (116,744) | |
Net cash flow from investing activities | (21,951) | 117,749 | (101,505) | |
Cash flows from financing activities | ||||
(Decrease)/Increase in loans payable | (10,595) | (389,276) | (64,007) | |
Issue of shares for cash | 983,325 | - | 747,289 | |
Interest Paid | - | - | - | |
Net cash flow from financing activities | 972,730 | (389,276) | 683,282 | |
Effects of exchange rates on cash and cash equivalents | (153,988) | 330,260 | (754) | |
Net increase/(decrease) in cash | 11,843 | (202,755) | (232,429) | |
Cash at bank at 1 January | 24,428 | 256,857 | 256,857 | |
Cash at bank at period end | 36,271 | 54,102 | 24,428 |