WISHBONE GOLD PLC

Earnings Release • Sep 30, 2019

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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 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
		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

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