WISHBONE GOLD PLC

Earnings Release • Oct 16, 2020

National Storage Mechanism | Additional information

RNS Number : 2444C

Wishbone Gold PLC

16 October 2020

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")

16 October 2020

Wishbone Gold Plc

("Wishbone" or the "Company")

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

Interim Results

Chairman's statement

Wishbone Gold has pleasure in announcing its interim results for the period ended 30 June 2020. Shareholders are reminded that these results are unaudited and based on the Company's management accounts.

The six months ended 30 June 2020 saw total sales of US$3.637m, showing a decrease over the same period last year (2019: US$6.562m). As previously announced this trading all took place prior to the COVID-19 lock down and the grounding of Emirates Airlines in March of this year.

On 10 January 2020, the Company passed resolutions at an EGM to consolidate the Company's shares into 28,458,790 shares consisting of 28,458,790 deferred shares and 28,458,790 new ordinary shares. The new ordinary shares were admitted to trading on AIM and AQSE on 21 January 2020. Under the terms of the resolution, the Company acquired the deferred shares on 17 February 2020 and these were returned to authorised but unissued capital.

Given the situation in the trading markets and the uncertainty of the outcome of the COVID-19 crisis the Company reviewed its strategy during the first half of 2020. We concluded that Wishbone should refocus on our exploration properties as our primary activity. This decision was based in part on their location in Australia as against our primary trading markets of Africa. We see Australia as more secure source of physical gold in the future with the uncertainty of COVID 19 continuing to have an influence in the coming years.

On 2 June 2020, the Company appointed Peterhouse Capital Limited as brokers. On the same day, we raised £856,702 consisting of £300,000 in cash and £556,702 in debt and creditor conversions into equity. This was raised at 1.35p per share.

On 20 August 2020, the Company raised £400,000 specifically to focus on expansion of our exploration programs in Australia. This fund raising was at 2p and was accompanied by warrants at 3p issued on a 1 for 2 basis.

On 24 September 2020, the Company announced that 94% of the warrants had been exercised thus raising a further £283,200 at 3p per share.

The net effect of this restructuring and funding has been to leave the Company in a strong position to complete its exploration programs and with cash to pursue additional expansion.

During the period cash increased by US$0.145m leaving a balance of US $0.163m as at 30 June 2020 (30 June 2019: US$0.036m). Taking account of the restructuring and fundraising set out above, on 30 September 2020 the company's net cash was US$0.849m.  Net assets at 30 June 2020 were US$0.89m (30 June 2019 (US$2.13m)). Again, looking at the position on 30 September 2020 net assets were US$1.582m showing the strengthening of the balance sheet post the period.  

On 5 October 2020 we announced the acquisition of an option on three properties in the Haveiron/Telfer area of Western Australia. We have 45 days from that date to exercise the option. This is a very exciting region for exploration at the moment. The Haveiron discovery led to a re-rating of the area and a realisation that there may well be large undiscovered resources remaining. All the initial indications from our due diligence so far are extremely good.

We will update the market as soon as further news is available.

END

For further information, please contact:

Wishbone Gold PLC
Richard Poulden, Chairman	Tel: +971 45 846 284
Beaumont Cornish Limited
(Nominated Adviser and AQUIS Exchange Corporate Adviser)
Roland Cornish/Rosalind Hill Abrahams	Tel: +44 20 7628 3396
Peterhouse Capital Limited
(Broker)
Lucy Williams and Duncan Vasey	Tel: +44 20 7469 0930

Wishbone Gold PLC
Consolidated Income Statement
for the period 1 January 2020 to 30 June 2020
		Unaudited Six Months Ended 30 June 2020	Unaudited Six Months Ended 30 June 2019	Audited Year Ended 31 December 2019
		US$	US$	US$
Sales		3,637,299	6,562,093	10,760,770
Cost of sales		(3,626,893)	(6,530,233)	(10,705,008)
Gross profit		10,406	31,860	55,762
Administration expenses		(355,264)	(555,687)	(939,352)
Operating loss		(344,858)	(523,827)	(883,590)
Write-off of bad debts		-	-	(598,844)
Gain on Settlement of Liabilities		-	-	64,980
Impairment of goodwill		-	-	(561,463)
Impairment of property, plant and equipment		-	-	(150,000)
Foreign exchange gains/(loss)		14,305	(3,315)	(9,539)
Finance costs		(9,177)	(10,595)	(21,093)
Loss on ordinary activities before taxation		(339,730)	(537,737)	(2,159,549)
Tax on loss		-	-	-
Loss for the financial year		(339,730)	(537,737)	(2,159,549)

Wishbone Gold PLC
Consolidated Statement of Financial Position
as at 30 June 2020
		Unaudited Six Months Ended 30 June 2020	Unaudited Six Months Ended 30 June 2019	Audited Year Ended 31 December 2019
		US$	US$	US$
Current assets
Trade and other receivables		127,014	555,936	117,831
Loans		-	199,864	-
Cash and cash equivalents		162,539	36,271	17,179
		289,553	792,071	135,010
Non-current assets
Property, plant and equipment - net		23,125	193,750	25,000
Goodwill		187,154	748,617	187,154
Other intangible assets		388,893	393,874	388,169
Loans		-	-	-
		599,172	1,336,241	600,323
Total assets		888,725	2,128,312	735,333
Current liabilities		103,390	555,407	669,590
Equity
Share capital		3,855,274	3,791,823	3,776,911
Share premium		8,285,046	7,370,895	7,306,550
Share based payment reserve		-	64,355	-
Accumulated losses		(11,145,991)	(9,610,478)	(10,806,261)
Foreign exchange reserve		(208,994)	(43,690)	(211,457)
Total equity and liabilities		888,725	2,128,312	735,333

Wishbone Gold PLC
Consolidated Statement of Cash Flows
for the period from 1 January 2020 to 30 June 2020
		Unaudited Six Months Ended 30 June 2020	Unaudited Six Months Ended 30 June 2019	Audited Year Ended 31 December 2019
		US$	US$	US$
Cash flows from operating activities
Loss before tax		(339,730)	(537,737)	(2,159,549)
Reconciliation to cash generated from operations:
Foreign exchange (gain)/loss		(14,305)	3,315	9,539
Interest expense		9,177	10,595	21,093
Impairment  of goodwill		-	-	561,463
Impairment of property, plant and equipment		-	-	150,000
Write-off of bad debts		-	-	598,844
Write-off of receivables		-	-	126,279
Loan converted into ordinary shares		215,295	-	-
Depreciation		1,875	18,750	37,500
Administrative expenses converted into            ordinary shares		479,181	-	-
Gain on settlement of liabilities		-	-	(64,980)
Operating cash flow before changes in              working capital		351,493	(505,077)	(719,811)
Decrease/(increase) in inventory		-	-	-
Decrease/(increase) in receivables		(9,183)	27,898	81,054
Increase/(decrease) in payables		(566,200)	(307,769)	107,722
Cash outflow from operations		(223,890)	(784,948)	(531,035)
Cash flows from investing activities
Additions of intangible assets		-	-	(16,246)
(Increase)/Decrease in Assets		(724)	(21,951)	-
Net cash flow from investing activities		(724)	(21,951)	(16,246)
Cash flows from financing activities
(Decrease)/Increase in loans payable		9,177	(10,595)	-
Issue of shares for cash		362,383	983,325	500,680
Net cash flow from financing activities		371,560	972,730	500,680
Effects of exchange rates on cash and cash equivalents		(1,586)	(153,988)	39,352
Net increase/(decrease) in cash		145,360	11,843	(7,249)
Cash at bank at 1 Jan		17,179	24,428	24,428
Cash at bank at period end		162,539	36,271	17,179

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR KKPBQNBDDNKD