TIDMWSBN
RNS Number : 7050D
Wishbone Gold PLC
30 June 2021
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 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ("MAR")
Please click the following link to view the Annual Financial
Report:
https://wishbonegold.com/images/2021/06/RA_WSBN_210630_2020_Annual_Report_01sd.pdf
30 June 2021
Wishbone Gold Plc
("Wishbone" or the "Company")
Wishbone Gold Plc / Index: AIM: WSBN / Sector: Natural Resources
/ AQSE: WSBN
Final Results for the Year ended 31 December 2020
Wishbone Gold Plc (AIM: WSBN, AQSE: WSBN), the precious metals
and gold trading and exploration company announces its final
results for the year end 31 December 2020. The Chaiman's Statement
and Financial Statement are set out below and the full Report and
Accounts is attached and is available in the company's website
www.wishbonegold.com .
Chairman's Statement
Dear Shareholders,
In March 2020 Emirates airlines, the lifeblood of Dubai,
grounded all but a few of its fleet of nearly 300 planes. Overnight
the thriving nexus of trade in Dubai from across the world stopped
as if it had never existed. For us at Wishbone this cut off our
supply of traded gold arriving on daily flights from African
capitals and once our stocks were sold it was over.
Accordingly, during April and May, we restructured the company
taking it back to its exploration roots in Australia. A
recapitalization financing was announced on 2nd June 2020 at 1.35p
giving us a market cap of GBP1.25m. As of writing (June 2021) our
shares are at 18.5p and we have a market cap of GBP31.3m. Just over
one year later, and we see great things for 2021 and beyond.
Wishbone Today
The restructuring which we implemented not only expanded our
operations in Queensland but has also meant that we have added four
new properties in the Pilbara region of Western Australia.
Accordingly, the company now has six exploration properties in
Australia: four in Western Australia (WA) in the Paterson Ranges
area of the Pilbara and two (counting the Wishbone series as one
property) in Queensland.
Figure 1: Wishbone Gold's Wishbone Project in Queensland,
Australia - click PDF link to view
Figure 2: Wishbone Gold's exploration properties in Western
Australia - click PDF link to view
Western Australia
Wishbone now has four exploration tenements in WA comprising the
Red Setter group of three tenements and the Cottesloe tenement.
Red Setter and associated tenements
The major focus in WA is the Red Setter project. This is a 57.4
sq.km tenement, which is the major part of the 67 sq. km. package
acquired in November 2020. Red Setter is located only 13 km
south-west of the Newcrest[1] Mining's Telfer gold mine and about
60km west of Newcrest and Greatland[2] Gold's Havieron[3]
discovery.
For sheer exploration sex appeal, it is hard to conceive of a
better area to be in than the Paterson Ranges in the Pilbara. But
to get a feel for why this whole area is one of the hottest
exploration areas in the world you need to know the Havieron story.
Greatland acquired Havieron towards the end of 2016 for A$250,000
and some contingent payments if they mine it. Havieron had been
drilled previously and abandoned but Greatland's geologists
believed that the drilling had simply not gone deep enough.
Accordingly, they copied an existing hole and simply drilled
deeper. They were right: BANG! Through the Permian cover, at a
depth of about 1km and there it was: massive mineralization which
drove Greatland to over GBP1bil market cap.
When something like this happens, it is a real head smacking
moment for geologists the world over. All the previous models they
have been using turn out to be wrong and there has been a scramble
for properties in that region ever since.
We now employ some of the geologists who worked on Havieron and
we have modelled and analyzed Red Setter which we will be drilling
later this year. The modelling of the original government data
looked promising but the acquisition of new 3D inversion
ultra-detailed magnetics in February 2021 delineated 3 highly
magnetic bodies over an expanded area covering 3km x 1km. The
largest individual priority one magnetic target has a 1500m strike
length with a width of 400m and starts at around 75m from surface.
In addition, this survey revealed that all the magnetic targets are
much shallower than 150m-250m depth previously modelled. The
relatively shallower target depth is strongly advantageous both
from an exploration and future development potential
perspective.
In the RNS which we issued at the time there was this comment
from Simon Beams, the Managing Director and Principal Geologist of
Terra Search: "The detailed magnetic survey substantially expands
and enhances Red Setter. There are some very promising indications
of a large hydrothermal system, with similarities to the new
Havieron gold/copper discovery in the area. The previous drilling
on the main 1.5km long target intersected similar alteration, and
the right pathfinder metal indicators, peripheral to the main
target. We now have multiple untested high-order magnetic targets
across the entire prospect."
In May 2021 a Program of Work was approved by the Western
Australian Government's Department of Mines. This includes a
drilling program for up to 100 drill holes to depths of 300 metres.
These are designed to test for potential gold and copper
mineralization on the multiple magnetic targets.
Cottesloe Project
In March 2021 Wishbone acquired an option on 100% ownership of
the 92.19 sq.km Cottesloe Project which is also in the Patersons
Range region. Cottesloe is located 35km south east of Red Setter
and around 55 km south of Newcrest's Telfer gold mine. Cottesloe
consists of one granted exploration license E45/4543 and is
considered highly prospective for precious and base metals.
We acquired Cottlesloe to give our exploration portfolio a
balance by adding silver and lead: essential minerals for the
manufacture of electric vehicles of all types. There is known
mineralization at Cottesloe at surface and a few historic drilling
results confirm high grades of silver in different parts of the
property.
As with Red Setter we have an approved program of works for
drilling later this year which will give a clearer idea of what we
have here.
Queensland
The Wishbone group of properties
In Queensland we have the Wishbone group of licences in the
highly prospective Mingela area about 80km south of the major
Queensland port city of Townsville. This is situated between two
large producing areas with Charters Towers to the west and
Ravenswood to the east. The latter was recently sold for
approximately A$300 million.
The Wishbone property was recently compared to the 5m oz
Ravenswood gold mine by Dr Simon Beams of Terra Search Australia at
the annual AusIMM conference in June 2021. The presentation
generated a lot of interest as it was again the application of new
technology to existing resources leading to a revised view on the
prospectivity of the region. The presentation was announced in an
RNS and is available on our website.
We have drilling programs planned for later this year.
White Mountains
We will also be continuing exploration at White Mountains where
the Granite Castle deposit on the western boundary has recently
been drilled by others to confirm significant gold and silver in
grades and tonnage of potential economic significance. In addition,
at the centre of White Mountains is an intrusion of an
Ordovician-Silurian granitoid which hosts a trend of deposits,
namely the Diecon Mine (gold); Edwards prospect (antimony) and
Northeast Workings (gold). Grades up to 44 g/t Au (grams per tonne
gold) were returned from NE Workings from stream sediments.
Financial effects of 2020
As a direct result of the COVID crisis and the grounding of
Emirates the Group's revenue fell in 2020 to US$1.5m compared to
US$10.8m in 2019. All of this revenue occurred in the first few
months of 2020. We previously issued a trading update showing
revenues of US$3.64m in the first quarter of 2020, but this has
been restated to US$1.5m reflecting a reclassification of some
trading income to commission only. This led to a commensurate
increase in profits although for the year this is of course well
short of previous performance. Given the effects of the COVID-19
lockdown on our trading business, we have impaired our investment
in Precious Metals International Ltd, the parent company of Black
Sand by a further US$249,114 taking that investment to zero.
During the year, there was depreciation of US$25,000 charged
against the equipment in Honduras. This depreciation takes the book
value of the equipment to zero.
Financial Review and Financing
At the end of the period under review, the accounts show that
Wishbone held cash balances totalling US$2,188,311 (2019:
US$17,179). Administrative costs, excluding interest during year,
were US$ 1,045,475 (2019: US$939,352).
Subsequent to the year end the Company in January 2021, the
Company announced that 98.54% of the warrants issued following the
placing on 10 December 2020 had been exercised raising a further
GBP1,034,662.56. In May 2021, the Company raised a further GBP1.4m
with an additional placing.
The net effect of this restructuring and capital raises has been
to leave the Company in a strong financial position to complete its
planned exploration programs and with cash to pursue additional
expansion.
In conclusion I would like to thank you all: staff, shareholders
and advisers for your hard work and support. We will continue to
announce news as soon as we are allowed by regulations to do
so.
___________________________
R O'D Poulden
Chairman
30 June 2021
For further information, please contact:
Wishbone Gold Plc
Richard Poulden, Chairman Tel: +44 7551 863
830
Beaumont Cornish Limited
(Nominated Adviser and AQUIS Exchange
Corporate Adviser)
Roland Cornish/Rosalind Hill Abrahams Tel: +44 20 7628
3396
Peterhouse Capital Limited
(Broker)
Lucy Williams and Duncan Vasey Tel: +44 20 7469
0930
Consolidated Income Statement
for the year ended 31 December 2020
Notes 2020 2019
US$ US$
Discontinued Operations
Revenue 1,400,729 10,760,770
Cost of sales (1,390,322) (10,705,008)
Gross profit 10,407 55,762
Administration expenses 5 (29,792) (48,250)
Write-off of bad debts 8, 15 (48,804) (598,844)
Loss from discontinued operations (68,189) (591,332)
------------- --------------
Continuing Operations
Other income 64,000 -
Administration expenses 5 (1,015,683) (891,102)
------------- --------------
Operating loss (951,683) (891,102)
Gain on settlement of liability 13 198,772 64,980
Impairment of goodwill 10 (187,154) (561,463)
Impairment of property, plant and
equipment 9 - (150,000)
Foreign exchange gain/(loss) 127,013 (9,539)
Finance costs (9,177) (21,093)
------------- --------------
Loss from continuing operations
- before taxation (822,229) (1,568,217)
Tax on loss - -
------------- --------------
Loss from continuing operations (822,229) (1,568,217)
------------- --------------
Loss for the financial year (890,418) (2,159,549)
------------- --------------
Loss per share:
Basic and diluted (cents) 7 (0.031) (0.077)
------------- --------------
Loss per share:
after capital reorganisation
Basic and diluted (cents) 7 (1.178) (7.707)
------------- --------------
There are no recognised gains or losses other than disclosed
above and there have been no discontinued activities during the
year except for the business operations in Black Sand FZE.
The notes on pages 32 to 53 form part of these financial
statements.
Consolidated Statement of Financial Position
as at 31 December 2020
Notes 2020 2019
US$ US$
Current assets
Trade and other receivables 8 569,102 117,831
Cash and cash equivalents 2,188,311 17,179
2,757,413 135,010
-------------- --------------
Non-current assets
Property, plant and equipment
- net 9 - 25,000
Goodwill 10 - 187,154
Other intangible assets 10 1,394,914 388,169
1,394,914 600,323
-------------- --------------
Total assets 4,152,327 735,333
============== ==============
Current liabilities 13 380,423 669,590
Equity
Share capital 14 3,933,921 3,776,911
Share premium 11,763,959 7,306,550
Foreign exchange reserve (229,297) (211,457)
Accumulated losses (11,696,679) (10,806,261)
3,771,904 65,743
Total equity and liabilities 4,152,327 735,333
============== ==============
The financial statements were approved by the board and
authorised for issue on 30 June 2021 and signed on its behalf
by:
J.C. Harrison R O'D Poulden
Director Director
The notes on pages 32 to 53 form part of these financial
statements.
Company Statement of Financial Position
as at 31 December 2020
Notes 2020 2019
US$ US$
Current assets
Trade and other receivables 8 2,465,628 20,389
Loans 15 1,823,558 1,181,210
Cash and cash equivalents - 4,318
4,289,186 1,205,917
-------------- --------------
Non-current assets
Investments 11 142,192 391,306
142,192 391,306
-------------- --------------
Total assets 4,431,378 1,597,223
============== ==============
Current liabilities 13 206,368 638,856
Equity
Share capital 14 3,933,921 3,776,911
Share premium 14 11,763,959 7,306,550
Accumulated losses (11,526,870) (10,125,094)
-------------- --------------
4,171,010 958,367
Total equity and liabilities 4,431,378 1,597,223
============== ==============
The financial statements were approved by the board and
authorised for issue on 30 June 2021 and signed on its behalf
by:
J.C. Harrison R O'D Poulden
Director Director
The notes on pages 32 to 53 form part of these financial
statements.
Consolidated Statement of Cash Flows
for the year ended 31 December 2020
Notes 2020 2019
US$ US$
Cash flows from operating activities
( 890,418
Loss before tax ) (2,159,549)
Reconciliation to cash generated from
operations:
Foreign exchange (gain)/loss (127,013) 9,539
Interest expense 9,177 21,093
Impairment of goodwill 10 187,154 561,463
Impairment of property, plant and
equipment 9 - 150,000
Write-off of bad debts 8, 15 48,804 598,844
Write-off of receivables 5 14,031 126,279
Depreciation 9 25,000 37,500
Administrative expenses converted
into ordinary shares 14 160,484 -
Gain on settlement of liability 13 (198,772) (64,980)
------------
Operating cash flow before changes
in working capital (771,553) (719,811)
-----------
Decrease in receivables 111,614 81,054
Increase in payables 251,370 107,722
------------
Net cash flows used in operations (408,569) (531,035)
-----------
Cash flows from an investing activity
Additions of intangible assets 10 (520,434) (16,246)
Net cash flows used in investing activities (520,434) (16,246)
-----------
Cash flows from a financing activity
Issue of shares for cash 14 3,113,710 500,680
Net cash flows from financing activities 3,113,710 500,680
-----------
Effects of exchange rates on cash
and cash equivalents, including effects
of foreign exchange reserve (13,575) 39,352
----------- ------------
Net decrease in cash and cash equivalents 2,171,132 (7,249)
Cash and cash equivalents at 1 January 17,179 24,428
----------- ------------
Cash and cash equivalents at 31 December 2,188,311 17,179
=========== ============
The notes on pages 32 to 53 form part of these financial
statements.
Company Statement of Cash Flows
for the year ended 31 December 2020
Notes 2020 2019
US$ US$
Cash flows from operating activities
Loss before tax (1,401,776) (1,656,398)
Reconciliation to cash generated
from operations:
Foreign exchange (gain)/loss (127,013) 8,897
Interest expense 9,177 21,093
Provision for impairment of related
party loans 21 637,726 292,204
Write-off of receivables 5 14,031 126,279
Impairment of investments 10 249,114 561,463
Gain on settlement of liability 13 (198,772) (64,980)
Administrative expenses converted
into ordinary
shares 14 160,484 -
------------
Operating cash flow before changes
in working capital (657,029) (711,442)
Increase in receivables (2,627,313) (1,393)
Increases in payables 162,049 90,853
Net cash flows used in operations (3,122,293) (621,982)
------------ ------------
Cash flows from financing activities
Issue of shares for cash 14 3,113,710 500,680
Collections from related party loans
- net 21 - 126,604
Net cash flow from financing activities 3,113,710 627,284
------------ ------------
Effects of exchange rates on cash
and cash equivalents 4,265 (3,239)
Net (decrease)/ increase in cash
and cash equivalents (4,318) 2,063
Cash and cash equivalents at 1 January 4,318 2,255
------------ ------------
Cash and cash equivalents at 31
December - 4,318
------------ ------------
The notes on pages 32 to 53 form part of these financial
statements.
[1] Newcrest is Australia's largest gold producer and one of the
world's largest gold mining companies. It owns and operates mines
in Australia, Papua New Guinea and Canada. Market Cap is
A$23bil
[2] Greatland Gold plc is an LSE AIM-listed (AIM:GGP) company
with a market Cap of GBP807m
[3] Havieron is Greatland's flagship asset a world class
gold-copper deposit in the Paterson region of Western Australia. It
is held in a joint venture with Newcrest Mining Ltd.
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