WISHBONE GOLD PLC

Earnings Release • Sep 28, 2018

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RNS Number : 2371C

Wishbone Gold PLC

28 September 2018

28th  September 2018

Wishbone Gold Plc ("Wishbone Gold" or the "Company")

Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources

Interim results

Chairman's statement

Wishbone Gold has pleasure in announcing its interim results for the period ended 30th June 2018. Shareholders are reminded that these results are unaudited and based on the Company's management accounts.

The six months ended saw total sales of $3.908m, showing a small decline over the same period last year (2017: $3.977m). Volumes processed by the Company during this period were mainly from Thailand and supplemented from further African trading. The Company's volumes were constrained by a shortage of trading capital and the board are in the process of resolving this challenge.  Gross margins remained thin at 0.91%, an improvement on the same period last year (0.54%), but a slight decline from the last full year (1.02%).  The Board believes that its strategy of working with artisanal/small-scale miners will improve these margins.

As previously announced Wishbone Gold suffered delays in its Honduras operation coming online due to the failure of our partners to obtain the correct licenses. We moved to remedy this failure earlier in the year and expect the operation to be on stream by the end of the calendar year. Once the Honduras operation is on stream the Board anticipates that its output will significantly boost the Company's profitability. While waiting for the permits to be granted additional equipment is being installed on the site to boost production and improve the percentage of recovered gold to make up for lost time. Once the permits are in place local miners will be able to process more ore, no longer require the use of mercury, and be able to recover more gold.

Videos are available on the Wishbone website showing the progress on the Honduras site.

The rise in administration expenses is due to the expansion of Wishbone's presence in Africa. Discussions to implement artisanal/small scale mining strategies are continuing and will be reported on in due course.

In addition, expenditure has been incurred on Wishbone's new online gold trading initiative which will be announced shortly.

During the period cash reduced by $0.2m (period ended 30 June 2017: reduction of $0.617m) and at 30 June 2018 the Company had net cash of $0.054m (30 June 2017: $0.448m).  Net assets at 30 June 2018 were $2.88m (30 June 2017 ($2.63m).

The major changes in the last few months are moving Honduras to final completion and continued expansion in Africa. The move to a stable government in Zimbabwe is particularly significant as we have been in discussions there since before the elections. We will make announcements shortly.

Many thanks to all our shareholders for their continuing support.

ENDS

For further information, please contact:

Wishbone Gold Plc

Richard Poulden, Chairman and CEO           Tel: +44 207 812 0645

Allenby Capital Limited (Nominated adviser and broker)

Nick Naylor / Nick Harriss                              Tel: +44 20 3328 5656

Damson Communications

Abigail Stuart-Menteth / Amelia Hubert    Tel: +44 207 812 0645

Wishbone Gold PLC
Consolidated Income Statement
for the period 1 January 2018 to 30 June 2018
		Unaudited Six Months Ended 30 June 2018	Unaudited Six Months Ended 30 June 2017	Audited Year Ended 31 December 2017
		US$	US$	US$
Sales		3,908,979	3,977,139	8,240,821
Cost of sales		(3,873,223)	(3,955,630)	(8,156,937)
Gross profit		35,755	21,509	83,884
Administration expenses		(497,834)	(352,544)	(884,602)
Operating loss		(462,079)	(331,035)	(800,718)
Impairment of investments		-	-	(1,568)
Foreign exchange gains		(6,746)	-	(31,730)
Finance costs		(58,603)	-	(79,001)
Loss on ordinary activities before taxation		(527,428)	(331,035)	(913,017)
Tax on loss on ordinary activities		-		-
Loss for the financial year		(527,428)	(331,035)	(913,017)

Wishbone Gold PLC
Consolidated Statement of Financial Position
as at 30 June 2018
		Unaudited Six Months Ended 30 June 2018	Unaudited Six Months Ended 30 June 2017	Audited Year Ended 31 December 2017
		US$	US$	US$
Current assets
Trade and other receivables		545,843	26,111	568,396
Cash and cash equivalents		54,102	447,925	256,857
Inventory		27,751	27,391	27,755
Loans		306,183	308,656	308,656
		933,879	810,083	1,161,664
Non-current assets
Property, plant and equipment		250,024	249,987	250,058
Goodwill		748,625	748,617	748,617
Intangible assets		377,672	312,267	387,162
Loans		572,278	504,600	680,476
		1,948,599	1,815,471	2,066,313
Total assets		2,882,478	2,625,554	3,227,977
Current liabilities		1,397,345	937,996	1,198,188
Non-current liabilities		-	-	-
Equity
Share capital		1,730,590	1,691,824	1,770,406
Share premium		7,115,052	5,912,988	7,278,748
Share based payment reserve		62,908	61,898	64,355
Accumulated losses		(7,710,000)	(6,600,591)	(7,182,574)
Foreign exchange reserve		286,583	621,439	98,854
Total equity and liabilities		2,882,478	2,625,554	3,227,977

Wishbone Gold PLC
Consolidated Statement of Cash Flows
for the period from 1 January 2018 to 30 June 2018
		Unaudited Six Months Ended 30 June 2018	Unaudited Six Months Ended 30 June 2017	Audited Year Ended 31 December 2017
		US$	US$	US$
Cash flows from operating activities
Loss before tax		(527,428)	(331,035)	(913,017)
Reconciliation to cash generated from operations:
Foreign exchange (gain)/loss		6,745	(9,146)	31,730
Interest expense		58,603	6,055	79,001
Impairment losses		-		1,108
Administrative expenses converted into ordinary shares		-	-	204,399
Operating cash flow before changes in working capital		(462,080)	(334,126)	(596,779)
Increase in inventory		4	24,729	(25,093)
Decrease/(increase) in receivables		22,553	4,313,230	3,571,645
Increase/(decrease) in payables		178,036	(3,945,894)	(3,853,477)
Cash outflow from operations		(261,487)	57,939	(903,704)
Cash flows from investing activities
Increase/(decrease) in fixed assets		34	249,987	(250,058)
Net movement in investments		-	1,108	-
(Increase)/Decrease in Intangible Assets		9,490	(280,582)	(46,821)
(Increase)/Decrease in Loans		27	(405,319)	(9,375)
Other investing activities		108,198	-	(680,476)
Net cash flow from investing activities		117,749	(434,806)	(986,730)
Cash flows from financing activities
(Decrease)/Increase in loans payable		(389,276)	24,435	(192,210)
Issue of shares for cash		-	-	1,080,824
Interest Paid		-	1,413	-
Net cash flow from financing activities		(389,276)	25,848	888,614
Effects of exchange rates on cash and cash equivalents		330,260	(266,217)	193,516
Net increase/(decrease) in cash		(202,755)	(617,236)	(808,304)
Cash at bank at 1 January		256,857	1,065,161	1,065,161
Cash at bank at period end		54,102	447,925	256,857

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