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DJ Wishbone Gold PLC Interim Results

TIDMWSBN

RNS Number : 9909N

Wishbone Gold PLC

30 September 2019

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 
 
 Consolidated Income Statement 
 for the period 1 January 
  2019 to 30 June 2019 
 
 
                                              Unaudited      Unaudited           Audited 
                                             Six Months     Six Months        Year Ended 
                                                  Ended          Ended       31 December 
                                                30 June        30 June              2018 
                                                   2019           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        Audited 
                                       Unaudited     Six Months     Year Ended 
                                      Six Months          Ended    31 December 
                                           Ended        30 June           2018 
                                    30 June 2019           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 
 
                                                               Unaudited        Audited 
                                                 Unaudited    Six Months     Year Ended 
                                                Six Months         Ended    31 December 
                                                     Ended       30 June           2018 
                                              30 June 2019          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 

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2019 02:00 ET (06:00 GMT)

DJ Wishbone Gold PLC Interim Results -2-

  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 
                                            --------------  ------------  ------------- 
 

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(END) Dow Jones Newswires

September 30, 2019 02:00 ET (06:00 GMT)