Wishbone Gold PLC (LON:WSBN) increased precious metals trading revenues 30% last year and hailed the valuation of its exploration assets in Australia at higher than their carrying value.
A third party valuation of the Wishbone II and White Mountains exploration permits in Queensland gave a valuation range of AU$575,000 to AU$1.86mln, compared to a book cost of AU$527,867 based on the historic cost of exploration expenditure.
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Wishbone said one of the reasons it commissioned the valuation of the properties was “as a marketing tool for discussion with joint venture partners”.
Having doubled revenues the year before, the AIM- and NEX-listed group continued the growh of its gold trading business with revenue increasing to US$10.9mln from US$8.2mln.
This was despite continuing problems with a Honduras joint venture, which are expected to be resolved favourably soon, while the focus on Africa is set to continue in 2019, with “initiatives” in Tanzania and South Africa planned for the second half, while in the nearer term new gold trading operations in Hong Kong are expected to see first shipments in July.
Gross profits declined to £46,271 from £83,884 and losses before tax were £1.9mln from £913,017 the previous year due mainly to a one-off £0.8mln loss on an equity sharing agreement, which has since been exited.
Cash in the bank totalled US$24,428 at the December year end, though this did not take account of a £300,000 placing and the repayment of a £258,500 loan that month, which will be reflected in the following period.
Gold prices drifted to a low of US$1,173 last August before rebounding to its current level of around US$1,410.
Chairman and chief executive Richard Poulden: “Throughout the year, the continued build of gold holdings by China, Russia and India continued. I believe the ongoing acquisition of gold will continue in these countries and with continued political uncertainty should extend the recent price recovery.”