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.