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Wishbone Gold undershoots shipping target

The gold market remains extremely strong in volume terms, it said
picture of gold bullion
Moving from west to east currently

Wishbone Gold PLC (LON:WSBN) shifted 25 kilos of the precious a week in December as demand for the precious metal remained strong in the wake of Donald Trump’s presidential victory.

This was below its target of 100 kilos a week, but in line with its budget said the company.

In a clarification after the original RNS, Wishbone said: “The budget has thus been exceeded while the target was missed by the failure of one supplier to ship on time.

“There is no reason to believe that these shipments will not take place in the future.”

Wishbone is a gold shipper based in Dubai that matches buyers with small producers in Africa and South America.

It began operating in August and shipped 105 kilos (3,380 ounces) in total in December.

India and China are the two largest physical markets for gold such as jewellery, bars and coins.

Richard Poulden, chief executive, said that overall it had been a successful year for Wishbone with volumes good, though changes to India’s import rules had affected the market.

“The gold market remains extremely strong in volume terms which makes us believe that the oft quoted decline in production is failing to monitor the small producers which is our target supplier market.

“The traffic is inexorably east with small premiums over the world spot price appearing from time to time in India and Hong Kong."

Wishbone has supply agreements with miners based in Peru, Ghana, Chile and Colombia.

Subsidiary Black Sand’s management visited Peru and Chile recently, which would provide more opportunities for the company said Poulden while its early stage projects in Honduras and Ghana should move forward.

Wishbone is visiting Ghana in February to discuss other potential opportunities while it is also mulling a move into equipment finances to help deepen its ties with small gold mining companies.

Shares fell 23% to 0.63p.

 

-- Amends for company’s correction to gold shipment target, effect of India, share price --

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