Wishbone Gold plc Interim Results
FOR: WISHBONE GOLD PLC
AIM SYMBOL: WSBN
PINKSHEETS SYMBOL: WISHY
September 30, 2014
Wishbone Gold plc Interim Results
LONDON, UNITED KINGDOM--(Marketwired - Sept. 30, 2014) - Wishbone Gold Plc (AIM:WSBN)(PINKSHEETS:WISHY), an
exploration and acquisition company focussed on precious metals, is pleased to announce its results for the
half year ended 30 June 2014.
Highlights
-- Continued exploration on Wishbone.
-- Share exchange with General Resources Investment Trust ("GRIT")
demonstrating institutional support for the strategy.
-- Fully underwritten open offer to shareholders producing US$ 813,475 (GBP
490,444) of further funding.
-- Appointment of Tabarak Investment Bank; a specialist in debt finance for
commodity projects in both trading and mining.
Continuing work on acquisitions
-- The Board has worked closely with Tabarak over the last few months on
various financing structures and are confident in their ability to fund
the right type of project.
-- The Board continues to evaluate various acquisition opportunities.
Existing Tenements
Wishbone Gold have initiated a ground radar survey on White Mountains using a new technology, which can examine
to a far greater depth than anything currently in use in Australia. Depths of 250 metres have been surveyed
using this technology but the actual useable data depends upon conditions.
Mantle Mining, which has tenements adjacent to White Mountains, has recently acquired further tenements
adjoining White Mountains. Their JORC resource on Granite Castle to the west of White Mountains is well
established and we intend to trial the ground radar along strike from Granite Castle on our tenement.
Outlook
The Board remains confident about the prospects for 2014.
Chairman Richard Poulden said:
"Wishbone has made significant strides towards its objectives this half year. We have successfully brought on
board a substantial institutional investor, GRIT, who have confidence in our management team. With the fire
power and back up of both GRIT and Tabarak Investment Bank we are well placed to bring on board both small and
large opportunities. We have been working on our acquisition program and will continue to do so. We carry on
into the remainder of 2014 with great confidence."
Wishbone Gold Plc
Executive Chairman's Statement
Wishbone Gold Plc, an exploration and acquisition company focused on precious metals, is pleased to announce
its results for the half year ended 30 June 2014.
Since we only announced our full year results for 2013 on 30th June this year it is only three months since I
last wrote to you. In that announcement I updated you on what had happened in the first half of 2014 as well as
the results for 2013.
A brief re-cap of the first half of 2014 is as follows:
-- Continued exploration on Wishbone.
-- Share exchange with General Resources Investment Trust ("GRIT")
demonstrating institutional support for our strategy.
-- Fully underwritten open offer to shareholders producing US$ 813,475 (GBP
490,444) of further funding.
-- Appointment of Tabarak Investment Bank; a specialist in debt finance for
commodity projects in both trading and mining.
Continuing work on acquisitions
-- The Board has worked closely with Tabarak over the last few months on
various financing structures and are confident in their ability to fund
the right type of project.
-- The Board continue to evaluate various acquisition opportunities.
Existing Tenements
We have initiated a ground radar survey on White Mountains using a new technology, which can examine to a far
greater depth than anything currently in use in Australia. Depths of up to 250 metres have been surveyed using
this technology but the actual useable data depends upon conditions.
Mantle Mining, which has tenements adjacent to White Mountains, has recently acquired further tenements
adjoining White Mountains. Their JORC resource on Granite Castle to the west of White Mountains is well
established and we intend to trial the ground radar along strike from Granite Castle on our tenement.
The Market for Gold
Gold has recently continued to decline in the short term but many analysts see this as a bottom. The reason for
this is the imminent tapering of the QE programs which have been supporting share prices in the west.
Financial Overview
-- The Group incurred losses of US$ 1,107,714 (30 June 2013: US$ 295,505,
31 December 2013: US$ 662,041) in pursuing the exploration of the
tenements it owns in Queensland, several abortive acquisitions (US$
185,636), general operating expenditures, and also having written down
its investment in GRIT to the market value of their stock at the half
year end at 57.5p.
-- Administrative costs during the half year totalled US$ 366,953 (30 June
2013: US$ 294,588, 31 December 2013: US$ 625,872), which is an
indication of the increased level activities now being undertaken by
Wishbone Gold.
-- At the end of the period under review, Wishbone Gold held cash balances
totalling US$ 115,604 (30 June 2013: US$ 292,842, 31 December 2013: US$
135,074). Some of the proceeds of the placing and open offer were
received after the half year end as explained below.
Wishbone Gold Plc
Executive Chairman's Statement
-- The Company announced a conditional placing and open offer on 4 April
2014 which raised a net of US$ 780,792 (GBP 471,272). A total of
33,677,181 new ordinary shares were admitted to trading on AIM on 28
April 2014, inclusive of the commission shares. The issue was
underwritten by Black Swan FZE, a company in which Richard Poulden has
an interest, and 980,888 commission shares were paid accordingly
representing 3% of the amount underwritten. The Company incurred costs
totalling US$ 32,682 in relation to the issue, and US$ 583,540 was
received after 30 June 2014.
-- The Group incurred losses per share of US$ 0.49 cents (30 June 2013:
0.17 cents, 31 December 2013: US$ 0.37 cents).
-- At the end of the period net assets increased to US$ 1,385,298 (30 June
2013: US$ 191,349, 31 December 2013: US$ 151,801) as the Group has
raised funds to continue to explore its current exploration and
evaluation assets and potential future acquisitions.
-- The conditional agreement with GRIT became unconditional on 7 March 2014
and Wishbone Gold Plc issued 45,772,693 ordinary shares in exchange for
1,031,360 ordinary shares in GRIT, net of transaction costs of US$
34,450. The Company initially recorded the investment in GRIT using the
market value of GBP 0.02 of its own shares issued on the date of the
transaction. During the six month period ending 30 June 2014, an
impairment loss of US$ 549,645 was recognised in the consolidated income
statement in respect of the investment in GRIT.
-- Share options were issued to Clive Hyman, the CFO, on 7 March 2014 over
5 million new ordinary shares in the Company to vest as follows:
2,000,000 immediately on grant, 2,000,000 on 7 March 2015, and 1,000,000
on 7 March 2016. The fair value of the options as at the date of issue
was US$ 44,756, which have been recognised within administrative
expenses in the consolidated income statement.
-- The Company appointed Tabarak Investment Bank as one of its advisors on
2 April 2014.
Outlook
As I said on the 30th of June, Wishbone has made significant strides towards its objectives this half year. We
have successfully brought on board a substantial institutional investor, GRIT, who have confidence in our
management team. With the fire power and back up of both GRIT and Tabarak Investment Bank we are well placed to
bring on board both small and large opportunities.
We have been working on our acquisition program and will continue to do so.
Thank you all for your support.
Richard O'Dell Poulden, Chairman
Wishbone Gold Plc
Consolidated Income Statement
for the half year from 1 January 2014 to 30 June 2014
Unaudited Unaudited
Six Six Audited
months ended months ended Year ended
30 June 30 June 31 December
Notes 2014 2013 2013
US$ US$ US$
Pre-exploration costs
expensed - (917) (19,026)
Abortive acquisition
costs (185,636) - (17,143)
Administrative expenses 2 (366,953) (294,588) (625,872)
-------------- -------------- --------------
Operating loss (552,589) (295,505) (662,041)
-------------- -------------- --------------
Impairment of investments 5 (549,645) - -
Finance costs (5,480) - -
-------------- -------------- --------------
Loss on ordinary activities
before taxation (1,107,714) (295,505) (662,041)
Income tax expense - - -
-------------- -------------- --------------
Loss for the period
attributable to equity
holders of the parent (1,107,714) (295,505) (662,041)
-------------- -------------- --------------
Loss per share: US$ US$ US$
Basic and diluted (cents) 3 (0.49) (0.17) (0.37)
-------------- -------------- --------------
Wishbone Gold Plc
Consolidated Statement of Comprehensive Income
for the half year from 1 January 2014 to 30 June 2014
Unaudited Unaudited
Six Six Audited
months ended months ended Year ended
30 June 30 June 31 December
Notes 2014 2013 2013
US$ US$ US$
Loss for the period (1,107,714) (295,505) (662,041)
-------------- -------------- --------------
Other comprehensive
income/(loss)
Other comprehensive
income/(loss) that are
reclassified to profit or loss
in subsequent periods:
Exchange differences on
translating foreign operations 27,301 (63,298) (66,589)
-------------- -------------- --------------
Other comprehensive
income/(loss) for the period,
net of tax 27,301 (63,298) (66,589)
-------------- -------------- --------------
Total comprehensive loss for the
period attributable to equity
holders of the parent (1,080,413) (358,803) (728,630)
-------------- -------------- --------------
Wishbone Gold Plc
Consolidated Statement of Financial Position
as at 30 June 2014
Unaudited Unaudited Audited
30 June 30 June 31 December
Notes 2014 2013 2013
US$ US$ US$
ASSETS:
Non-current assets
Intangible assets 4 441,793 316,463 408,239
Investments held for
resale 5 981,470 - -
-------------- -------------- --------------
1,423,263 316,463 408,239
-------------- -------------- --------------
Current assets
Trade and other
receivables 355,614 29,526 42,355
Cash and cash equivalents 115,604 292,842 135,074
-------------- -------------- --------------
471,218 322,368 177,429
-------------- -------------- --------------
-------------- -------------- --------------
Total assets 1,894,481 638,831 585,668
-------------- -------------- --------------
EQUITY AND LIABILITIES:
Capital and reserves
Share capital 6 419,146 267,888 286,351
Share premium 3,671,758 1,223,583 1,535,399
Share based payments
reserve 74,205 29,449 29,449
Foreign exchange reserve (72,166) (96,176) (99,467)
Retained earnings (2,707,645) (1,233,395) (1,599,931)
-------------- -------------- --------------
Total equity 1,385,298 191,349 151,801
-------------- -------------- --------------
Current liabilities
Borrowings - 58,717 164,952
Trade payables 509,183 388,765 268,915
-------------- -------------- --------------
509,183 447,482 433,867
-------------- -------------- --------------
-------------- -------------- --------------
Total equity and liabilities 1,894,481 638,831 585,668
-------------- -------------- --------------
Wishbone Gold Plc
Consolidated Statement of Changes in Equity
for the half year from 1 January 2014 to 30 June 2014
Share
Based Foreign
Share Share Payments Exchange Retained Total
Capital Premium Reserve Reserve Earnings Equity
US$ US$ US$ US$ US$ US$
Balance at 1
January 2014 286,351 1,535,399 29,449 (99,467) (1,599,931) 151,801
Shares/options
issued during
the period 132,795 2,136,359 44,756 - - 2,313,910
Retained loss
for the period - - - - (1,107,714) (1,107,714)
Foreign
exchange
differences on
translation - - - 27,301 - 27,301
-------------------------------------------------------------
Balance at 30
June 2014 419,146 3,671,758 74,205 (72,166) (2,707,645) 1,385,298
-------------------------------------------------------------
Share
Based Foreign
Share Share Payments Exchange Retained Total
Capital Premium Reserve Reserve Earnings Equity
US$ US$ US$ US$ US$ US$
Balance at 1
January 2013 267,888 1,223,583 29,449 (32,878) (937,890) 550,152
Retained loss
for the period - - - - (295,505) (295,505)
Foreign
exchange
differences on
translation - - - (63,298) - (63,298)
-------------------------------------------------------------
Balance at 30
June 2013 267,888 1,223,583 29,449 (96,176) (1,233,395) 191,349
-------------------------------------------------------------
Share
Based Foreign
Share Share Payments Exchange Retained Total
Capital Premium Reserve Reserve Earnings Equity
US$ US$ US$ US$ US$ US$
Balance at 1
January 2013 267,888 1,223,583 29,449 (32,878) (937,890) 550,152
Shares/options
issued during
the period 18,463 311,816 - - - 330,279
Retained loss
for the period - - - - (662,041) (662,041)
Foreign
exchange
differences on
translation - - - (66,589) - (66,589)
-------------------------------------------------------------
Balance at 31
December 2013 286,351 1,535,399 29,449 (99,467) (1,599,931) 151,801
-------------------------------------------------------------
Foreign exchange reserve records exchanges differences, which arise on translation of foreign operations with a
functional currency other than US Dollars; principally Pounds Sterling and Australian Dollars.
Wishbone Gold Plc
Consolidated Statement of Cash Flows
for the half year from 1 January 2014 to 30 June 2014
Unaudited Unaudited Six
Six months months Audited
Year ended 31
ended 30 June ended 30 June December
2014 June 2013 2013
Note US$ US$ US$
Cash flows from operating
activities
Operating loss (552,589) (295,505) (662,041)
Reconciliation to cash generated
from operations:
Foreign exchange gain - - 5,482
Interest expense - - 1,234
Administrative expenses
converted into ordinary
shares - - 141,970
Decrease/(increase) in
receivables 23,567 31,552 (17,226)
Increase in payables 240,268 155,108 210,153
Issue of share options 2 44,756 - -
-------------- -------------- --------------
Net cash flow from
operating activities (243,998) (108,845) (320,428)
-------------- -------------- --------------
Cash flows from investing
activities
Expenditure on
exploration activities (33,554) (156,516) (256,165)
Cash flows from financing
activities
Interest paid (5,480) - -
Issue of shares for cash 229,935 - -
Increase in borrowings - - 162,271
-------------- -------------- --------------
Net cash flow from
financing activities 224,455 - 162,271
-------------- -------------- --------------
Effects of exchange rates on
cash and cash equivalents 33,627 (30,913) (39,720)
-------------- -------------- --------------
Net decrease in cash (19,470) (296,274) (454,042)
Cash at bank and in hand less
overdrafts at 1 January 135,074 589,116 589,116
-------------- -------------- --------------
Cash at bank and in hand less
overdrafts at 30 June 115,604 292,842 135,074
-------------- -------------- --------------
Wishbone Gold Plc
Notes to the unaudited interim financial information for the half year from 1 January 2014 to 30 June 2014
1. Basis of preparation
These interim financial statements for the six months ended 30 June 2014 have been prepared in accordance with
IAS 34 'Interim financial reporting'. The interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2013 which have been prepared in accordance with
IFRSs as adopted by the European Union.
The operations of Wishbone Gold Plc are not affected by seasonal variations.
The directors do not recommend the payment of a dividend (30 June 2013: US$ Nil).
Non-statutory accounts
The financial information for the six months ended 30 June 2014 set out in this interim report does not
comprise the Group's statutory accounts.
Audited consolidated financial information for the year ended 31 December 2013 has been extracted from the
consolidated financial information on the Group for the year then ended. Abridged accounts for the Company have
been filed in Gibraltar.
The financial information for the six months ended 30 June 2014 and 30 June 2013 is unaudited.
Segmental Analysis
Management has determined the operating segments by considering the business from both a geographic and product
perspective. For management purposes, the Group is currently organised into one operating division; resource
evaluation. This division is the business segment for which the Group reports its segment information
internally to the Board of Directors. The Group's operations are predominantly in Australia.
2. Administrative expenses
Share options were issued to Clive Hyman, the CFO, on 7 March 2014 over 5 million new ordinary shares in the
Company to vest as follows: 2,000,000 immediately on grant, 2,000,000 on 7 March 2015, and 1,000,000 on 7 March
2016. The fair value of the options as at the date of issue was US$ 44,756, which have been recognised within
administrative expenses in the consolidated income statement.
3. Loss per share
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 ended 30 31 December
June 2014 June 2013 2013
US$ US$ US$
Retained loss attributable
to ordinary shareholders (1,107,714) (295,505) (662,041)
---------------- ---------------- ----------------
Weighted average number of
ordinary shares 224,132,039 170,987,327 176,917,694
---------------- ---------------- ----------------
Basic profit/earnings per
share (cents) (0.49) (0.17) (0.37)
---------------- ---------------- ----------------
Basic loss per share have been calculated by dividing the net results
attributable to ordinary shareholders by the weighted average number of
shares in issue during the period as disclosed in note 6. There are no
dilutive potential ordinary shares as at 30 June 2014 and 31 December
2013.
Wishbone Gold Plc
Notes to the unaudited interim financial information for the half year from 1 January 2014 to 30 June 2014
4. Intangible assets
Exploration and evaluation assets
US$
Cost
Balance at 1 January 2013 187,080
Additions 129,383
--------------------------------------
At 30 June 2013 316,463
Additions 91,776
--------------------------------------
At 31 December 2013 408,239
Additions 33,554
--------------------------------------
At 30 June 2014 441,793
--------------------------------------
5. Investments held for resale
Unaudited Unaudited Audited 31
30 June 30 June December
2014 2013 2013
US$ US$ US$
As at 1 January 1,531,115 - -
Impairments recognised in the
period (549,645) - -
--------------- -------------- --------------
As at end of the period 981,470 - -
--------------- -------------- --------------
Investments held for resale relates to a share for share exchange with
Global Resources Investment Trust as disclosed in note 6. During the half
year, the directors have recognised an impairment loss of US$ 549,645
through the consolidated income statement.
6. Share capital
Unaudited Unaudited Audited 31
30 June 30 June December
2014 2013 2013
US$ US$ US$
Authorised:
1,000,000,000 Ordinary shares
of GBP 0.001 (US$ 0.0016)
each 1,600,000 1,600,000 1,600,000
--------------- --------------- ---------------
Unaudited Unaudited Audited 31
30 June 30 June December
2014 2013 2013
US$ US$ US$
Allotted, called up and fully
paid:
262,551,235 ordinary shares
of GBP 0.001 each (30 June
2013: 170,987,327; 31
December 2013: 183,101,361) 419,146 267,888 286,351
--------------- --------------- ---------------
On 2 July 2013, the Company approved the conversion of GBP 207,222.87 of expenses and debts into 11,841,307
ordinary shares to the Directors at a share price of 1.75p on the day to satisfy debts and expenses incurred on
behalf of the Company.
On 18 December 2013 the Company approved the conversion of GBP 7,500 of expenses into 272,727 shares at the
price of 2.75p.
On 7 March 2014 the Company issued 45,772,693 ordinary shares in exchange for 1,031,360 ordinary shares in
Global Resources Investment Trust, net of issue costs of US$ 34,450.
Wishbone Gold Plc
Notes to the unaudited interim financial information for the half year from 1 January 2014 to 30 June 2014
6. Share capital (continued)
The Company announced a conditional Placing and Open offer on 4 April 2014. A total of new issues, including
commission shares, of 33,677,181 new ordinary shares were admitted to trading AIM on 28 April 2014 which raised
US$ 780,792 net of expenses of US$ 32,682.
7. Distribution of the Interim Report
Copies of this announcement may be obtained from the Company Secretary at the registered office: G1 Haven
Court, 5 Library Ramp, Gibraltar. In addition, an electronic version will be available on the Company's website
- www.wishbonegold.com.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Wishbone Gold plc
Richard Poulden
CEO
+44 7703 412 817
richard.poulden@wishbonegold.com
OR
Wishbone Gold plc
Clive Hyman
CFO
+44 20 7382 8372
+44 78 0263 4163
clive.hyman@wishbonegold.com
OR
Northland Capital Partners Ltd
William Vandyk
+44 20 7382 1100
OR
Northland Capital Partners Ltd
Lauren Kettle
+44 20 7382 1100
OR
Beaufort Securities Limited
Saif Janjua
+ 44 20 7382 8300
OR
Beaufort Securities Limited
Elliot Hance
+ 44 20 7382 8416
OR
Damson PR
Abigail Stuart-Menteth
+44 7855 526550
abigail@damsonpr.com
-0-
Wishbone Gold Plc
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