Proactive Investors - Run By Investors For Investors

Wishbone Gold to review options for Honduras gold operation

A sale of the company’s stake in the Honduras asset is being considered, as is the possibility of the company taking full control of the joint venture
Gold
Wishbone said it is also investigating potential acquisitions

Wishbone Gold PLC (LON:WSBN) told investors it is reviewing strategic options for its Honduras gold operation amid low recoveries.

In a statement, the AIM-listed company said it has been able to make ‘some shipments’ of gold from the Honduras plant and efforts are being made to improve the quality of the feedstock, including tests being conducted.

READ: Wishbone Gold sees opportunities as strategy pays off

Wishbone noted that it has a remaining capital investment of approximately US$250,000 in the operation. The original investment was US$450,000 but $200,000 of that has been recouped from retained gold shipments.

A sale of the company’s stake in the Honduras asset is being considered, as is the possibility of the company taking full control of the joint venture.

Wishbone also said: “Overall gold trading in the first part of the current financial year has seen volumes increasing (particularly in March and April) compared with the same period last year. Margins remain low as a result of competition and only a modest contribution is being made towards Group overheads.”

It added: “The company is focused on growth and expansion is continuing to be examined in Africa and Asia, with new initiatives under negotiation in Hong Kong which could make up for delays with the Honduran project.”

Wishbone said it is also investigating potential acquisitions.

View full WSBN profile View Profile

Wishbone Gold PLC Timeline

Related Articles

Drilling activity at Kharmagtai Copper-Gold Project in Mongolia
January 14 2019
The now validated data and mineral resource update will be used in an upcoming scoping study.
The main access road to Hexagon and MinRes’ McIntosh Graphite Project in WA
January 31 2019
The MinRes JV partner expects a mineral resource update this quarter ahead of study work.
Lithium Australia aspires to ‘close the loop’ on the energy-metal cycle
March 12 2019
Recent results show high-quality lithium-ion batteries can be generated from mine waste using its process.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use