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