REG - Goldstone Resources - Half-year Report
30/09/2024 07:00
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RNS Number : 1092G Goldstone Resources Ltd 30 September 2024
30 September 2024
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Interim Results for the six months ended 30 June 2024
GoldStone Resources Limited (AIM: GRL), the AIM quoted gold exploration and
development company focused on bringing the Homase Mine within its
Akrokeri-Homase Gold Project ("AKHM") in Ghana into production, announces its
unaudited interim results for the six-month period ended 30 June 2024 (the
"Period").
HIGHLIGHTS
Ramping up gold production at Homase Mine:
· Produced 1,333.81 ounces of gold in H1 2024.
· Significant infrastructure upgrades have enhanced long-term capacity.
· Focus on delivering gold production target of 1,000 ounces of doré a
month from January 2025.
Continued to strengthen position in H1 2024:
· Recovery supported by additional funding and the deferral of a
secured gold loan repayment to December 2025 and a successful fundraising
initiative.
· Board strengthened with the appointment of Campbell Smyth, who brings
over 30 years of experience in fund management, capital markets, and corporate
finance.
· Ramp-up in production comes at an opportune time as the gold market
continues to show resilience and strength.
CHIEF EXECUTIVE'S STATEMENT
I am pleased to report that GoldStone has made significant progress in
advancing its gold projects in Ghana, which span the full development spectrum
from exploration to production.
Our primary focus remains the production from, and exploration of, the Homase
Mine, located within the highly promising Ashanti Gold Belt. While 2023
brought its challenges, particularly in meeting production targets, we have
emerged in 2024 in a much stronger position. This recovery has been supported
by the deferral of our secured gold loan repayment to December 2025 and a
successful fundraising initiative.
At the producing Homase Mine, significant infrastructure upgrades have been
implemented, enhancing the mine's long-term capacity. Accordingly, I am
pleased to report that H1 2024, we produced 1,333.81 ounces of gold (2023:
124.80). Post period end, the Company has continued to produce
approximately 250 troy ounces per month, with latest full month production in
August 2024 being 236 ounces of doré.
Our optimisation strategy at Homase continues to progress well as we look to
deliver 48,000 tonnes of stacked and agglomerated ore by the end of the year.
The Company is currently stacking some 150tph on a single 12 hour shift , and
towards the end of 2024, will be running two shifts, for a 24 hour operation,
as we build up to 48,000 tpcm, which is expected to facilitate production of
approximately 1,000 oz doré per month from the beginning of 2025, based on
the current recovery rate of 68% and at a stacked grade of 1g/t.
The strategy also includes the development of additional heap leach pads,
which are on track and within budget; Pad 5 was completed post period end, and
earthworks for Pads 6 and 7 are underway.
A key pillar of the Company's strategy is to add additional gold resources to
our portfolio. In line with this, we will continue exploration efforts along
the Homase Trend, that will include core infill drilling to explore the deeper
ore zones of Homase, and further explore the parallel zones that have been
identified within the mining lease as announced on 8 July 2024. The Company
does plan for further exploration programmes within the prospecting licences
of Akrokeri and Homase, which enclose the Homase Mine, that includes the
recent consolidation and review of all the historical data, at the former
Akrokeri Underground Mine and its surrounding areas and develop other
underexplored areas that hold potential for further mineral discoveries.
During the period, Bill Trew stepped down from the Board and Campbell Smyth
has joined as a Non-Executive Director. Campbell brings over 30 years of
experience in fund management, capital markets, and corporate finance,
particularly within the venture capital and resource sectors.
Looking ahead, we are optimistic about GoldStone's growth prospects in the
years to come as we improve both production and exploration at the
Akrokeri-Homase project and unlock its full potential. Notably, our production
ramp-up aligns with a gold market that continues to demonstrate remarkable
resilience and strength, supported by diverse factors driving its long-term
success.
The Board would like to thank shareholders for their continued support as we
work towards fully realising the value of our assets and delivering long-term
shareholder returns.
Emma K Priestley
Chief Executive Officer
For further information, please visit www.goldstoneresources.com
(http://www.goldstoneresources.com) or contact:
GoldStone Resources Limited Tel: +44 (0)1534 487 757
Emma Priestley
Strand Hanson Limited Tel: +44 (0)20 7409 3494
James Dance / James Bellman
S. P. Angel Corporate Finance LLP Tel: +44 (0)20 3470 0501
Ewan Leggat / Charlie Bouverat
St Brides Partners Ltd goldstone@stbridespartners.co.uk
Susie Geliher
Consolidated statement of financial position
as at 30 June 2024
30 June 30 June 31 December
in united states dollars notes 2024 2023 2023
unaudited unaudited audited
Assets
property, plant and equipment 6 17,696,604 19,466,506 19,429,551
total non-current assets 17,696,604 19,466,506 19,429,551
inventory 1,385,096 167,246 2,189,375
trade and other receivables 477,817 774,968 407,455
cash and cash equivalents 788,802 265,092 121,432
total current assets 2,651,715 1,207,306 2,718,262
20,348,319 20,673,812 22,147,813
total assets
Equity
share capital - ordinary shares 8,774,897 6,865,393 6,865,393
share capital - deferred shares 6,077,013 6,077,013 6,077,013
share premium 35,218,946 35,218,946 35,218,946
foreign exchange reserve (8,318,013) (6,488,757) (6,910,817)
capital contribution reserve 555,110 555,110 555,110
accumulated deficit (34,998,642) (33,608,471) (32,584,552)
total equity 7,309,311 8,619,234 9,221,093
Liabilities
provision for rehabilitation 1,178,158 821,622 821,622
non-current liabilities 1,178,158 821,622 821,622
trade and other payables 2,992,523 3,882,359 3,972,329
borrowings 7 8,868,327 7,350,597 8,132,769
current liabilities 11,860,850 11,232,956 12,105,098
total liabilities 13,039,008 12,054,578 12,926,720
total equity and liabilities 20,348,319 20,673,812 22,147,813
Consolidated statement of comprehensive income
for the 6 months ended 30 June 2024
6 months ended 6 months ended year ended
30 June 2024 30 June 2023 31 December
in united states dollars notes 2023
unaudited unaudited audited
continuing operations
revenue 2,606,521 245,425 2,197,660
cost of sales (1,346,181) (1,521,157) (936,480)
gross profit 1,260,340 (1,275,732) 1,261,180
expenses (2,267,398) (1,829,101) (2,559,369)
operating loss (1,007,058) (3,104,833) (1,298,189)
finance expense (1,407,032) (606,416) (1,389,141)
loss before and after tax from continuing operations 5 (2,414,090) (3,711,249) (2,687,330)
Items that may be reclassified subsequently to profit and loss: (980,763)
foreign exchange translation movement
(1,407,196) (558,703)
total comprehensive loss for the period (3,821,286) (4,269,952) (3,668,093)
loss per share from operations
basic and diluted earnings per share attributable to the equity holders of the 4 (0.005) (0.010) (0.005)
company during the period (expressed in cent per share)
Consolidated statement of changes in equity
for the 6 months ended 30 June 2024
in united states dollars share capital share capital share premium foreign exchange reserve capital contribution reserve accumulated deficit total equity
ordinary shares deferred shares
balance as at 1 January 2023 6,836,778 6,077,013 35,143,117 (5,930,054) 555,110 (29,897,222) 12,784,742
total loss for the period - - - - - (3,711,249) (3,711,249)
translation movement - - - (558,703) - - (558,703)
share issue in period 28,615 - 75,829 - - - 104,444
balance as at 30 June 2023 6,865,393 6,077,013 35,218,946 (6,488,757) 555,110 (33,608,471) 8,619,234
total gain for the period - - - - - 1,023,919 1,023,919
translation movement - - - (422,060) - - (422,060)
share issue in period - - - - - - -
balance as at 31 December 2023 6,865,393 6,077,013 35,218,946 (6,910,817) 555,110 (32,584,552) 9,221,093
total loss for the period - - - - - (2,414,090) (2,414,090)
translation movement - - - (1,407,196) - - (1,407,196)
share issue in period 1,909,504 - - - - - 1,909,504
balance as at 30 June 2024 8,774,897 6,077,013 35,218,946 (8,318,013) 555,110 (34,998,642) 7,309,311
Consolidated statement of cash flow
for the 6 months ended 30 June 2024
6 months ended 6 months year ended
30 June ended 31 December
in united states dollars 2024 30 June 2023
2023
unaudited unaudited audited
cash flow from operating activities
operating loss for the period/year (2,414,090) (3,711,249) (2,687,330)
adjusted for:
- finance costs 1,407,032 606,417 1,389,141
- depreciation 182,912 100,137 288,653
- gold loan settlement (671,474) - (10,529)
- director and senior management fees - 104,444 104,444
- foreign exchange differences 202,931 465,554 452,145
- changes in working capital 110,647 267,662 (1,287,006)
net cash generated (used in)/by operating activities (1,182,042) (2,167,035) (1,750,482)
cash flow from investing activities
acquisition of property, plant and equipment (65,567) (623,313) (1,183,526)
disposals of property, plant and equipment 5,475 - -
net cash used in investing activities (60,092) (623,313) (1,183,526)
cash flow from financing activities
proceeds from loan notes - 2,942,128 2,942,128
proceeds from share issue 1,909,504 - -
net cash received from financing activities 1,909,504 2,942,128 2,942,128
net decrease in cash and cash equivalents 667,370 151,780 8,120
cash and cash equivalents at beginning of the period/year 121,432 113,312 113,312
cash and cash equivalents at end of the period/year 788,802 265,092 121,432
Notes to the unaudited consolidated financial statement
1. General information
The financial statements present the consolidated results of the Company and
its subsidiaries (the "Group") for each of the periods ending 30 June 2024, 30
June 2023 and 31 December 2023.
As permitted, the Group has chosen not to adopt International Accounting
Standard 34 'Interim Financial Reporting' in preparing these interim financial
statements. The condensed consolidated interim financial statements should
be read in conjunction with the annual financial statements for the year ended
31 December 2023, which have been prepared in accordance with UK-adopted
International Accounting Standards.
The unaudited interim financial information set out above does not constitute
statutory accounts. The information has been prepared on a going concern basis
in accordance with the recognition and measurement criteria of UK-adopted
International Accounting Standards. Except as described below, the accounting
policies applied in preparing the interim financial information are consistent
with those that have been adopted in the Group's 2023 audited financial
statements. Statutory financial statements for the year ended 31 December 2023
were approved by the Board of Directors on 28(th) June 2024 and delivered to
the Registrar of Companies. The report of the auditors on those financial
statements was unqualified. The Directors approved these unaudited condensed
interim financial statements on 28(th) June 2024.
There are no IFRSs or IFRIC interpretations that are effective for the first
time for the financial year commencing 1 January 2024 that would be expected
to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2024 and the 6 months
ended 30 June 2023 have not been audited.
The business is not subject to seasonal variations. No dividends have been
paid in the period (2023: US$ Nil).
2. Risks and uncertainties
The key risks that could affect the Group's short and medium term performance
and the factors that mitigate those risks have not substantially changed from
those set out in the Group's 2023 Annual Report and Financial Statements, a
copy of which is available on the Company's website:
www.goldstoneresources.com (http://www.goldstoneresources.com) .The Group's
key financial risks are the availability of adequate funding and foreign
exchange movements.
3. Critical accounting estimates and judgements
The preparation of the unaudited condensed consolidated interim financial
statements requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the end of the reporting period. Significant items
subject to such estimates are set out in note 2(d) of the Group's 2023 Annual
Report and Financial Statements. The nature and amounts of such estimates have
not changed significantly during the interim period. The unaudited condensed
consolidated interim financial statements have been prepared under the
historical cost convention as modified by the measurement of certain
investments at fair value.
4. Earnings per share
6 months ended 6 months ended year ended
30 June 30 June 31 December
in united states dollars 2024 2023 2023
unaudited unaudited audited
loss attributable to shareholders (in USD)
(2,414,090) (3,711,249) (2,687,330)
weighted average number of ordinary shares 524,811,666 368,618,154 498,744,043
basic and diluted earnings per share (in USD) (0.005) (0.010) (0.005)
5. Operating segments
The Group has two reportable segments, exploration and corporate, which are
the Group's strategic divisions. For each of the strategic divisions, the
Group's CEO, deemed to be the Chief Operating Decision Maker ("CODM"), reviews
internal management reports on at least a monthly basis. The results are
then subsequently shared with the Board. The Group's reportable segments
are:
Exploration, Evaluation and production: the exploration operating segment is
presented as an aggregation of the Homase and Akrokeri licences (Ghana).
Expenditure on exploration activities for each licence is used to measure
agreed upon expenditure targets for each licence to ensure the licence clauses
are met.
Corporate: the corporate segment includes the holding company costs in respect
of managing the Group. There are varying levels of integration between the
corporate segment and the combined exploration activities, which include
resources spent and accounted for as corporate expenses that relate to
furthering the exploration activities of individual licences.
information about reportable segments for the year ended 31 December 2023
in united states dollars exploration corporate total
reportable segment revenue 2,197,660 - 2,197,660
reportable segment cost of sales (936,480) - (936,480)
reportable segment expenditure (1,543,271) (2,405,239) (3,948,510)
reportable segment loss (282,091) (2,405,239) (2,687,330)
reportable segment non-current assets 19,429,551 - 19,429,551
reportable segment assets 2,650,999 67,263 2,718,262
reportable segment liabilities (4,387,551) (8,539,169) (12,926,720)
information about reportable segments for the period ended 30 June 2023
in united states dollars exploration corporate total
reportable segment revenue 245,425 - 245,425
reportable segment cost of sales (1,521,157) - (1,521,157)
reportable segment expenditure (1,026,325) (1,409,192) (2,435,517)
reportable segment loss (2,302,057) (1,409,192) (3,711,249)
reportable segment non-current assets 19,466,506 - 19,466,506
reportable segment assets 983,706 223,600 1,207,306
reportable segment liabilities (4,385,246) (7,669,332) (12,054,578)
information about reportable segments for the period ended 30 June 2024
in united states dollars exploration corporate total
reportable segment revenue 2,606,521 - 2,606,521
reportable segment cost of sales (1,346,181) - (1,346,181)
reportable segment expenditure (1,233,449) (2,440,981) (3,674,430)
reportable segment profit / (loss) 26,891 (2,440,981) (2,414,090)
reportable segment non-current assets 17,696,604 - 17,696,604
reportable segment assets 2,175,523 476,192 2,651,715
reportable segment liabilities (6,716,086) (6,322,922) (13,039,008)
6. Property, plant and equipment
in united states dollars gold samples plant and equipment and motor vehicles total
producing mines
Cost
1 January 2023 4,570 1,413,438 19,170,297 20,588,305
additions - 765,205 418,321 1,183,526
disposals - (107,580) - (107,580)
exchange movement - (76,301) (1,356,608) (1,432,909)
31 December 2023 4,570 1,994,762 18,232,010 20,231,342
additions - 64,232 1,335 65,567
disposals - (6,817) - (6,817)
exchange movement - (164,920) (1,445,207) (1,610,127)
31 June 2024 4,570 1,887,257 16,788,138 18,679,965
in united states dollars gold samples plant and equipment and motor vehicles Total
producing mine
Depreciation
1 January 2023 - 478,118 142,600 620,718
charge for the year - 273,131 15,522 288,653
eliminated (107,580) - (107,580)
31 December 2023 - 643,669 158,122 801,791
charge for the period - 182,912 - 182,912
eliminated - (1,342) - (1,342)
31 June 2024 - 825,239 158,122 983,361
Net Book Value
31 December 2023 4,570 1,351,093 18,073,888 19,429,551
31 June 2024 4,570 1,062,018 16,630,016 17,696,604
7. Borrowings
6 months ended 6 months ended year ended
30 June 30 June 31 December
in united states dollars 2024 2023 2023
unaudited unaudited audited
shareholder loan - - -
gold loan 3,399,853 3,128,766 3,399,853
derivative 2,299,319 1,279,703 1,563,761
loan notes 3,169,155 2,942,128 3,169,155
current borrowings 8,868,327 7,350,597 8,132,769
total borrowings 8,868,327 7,350,597 8,132,769
Gold Loan
The Company entered into a loan agreement with Asian Investment Management
Services Limited ("AIMSL") in June 2020, for a gold loan of up to 2,000 troy
ounces of gold at a price of US$1,500 per troy ounce, equating to a value of
US$3.0 million before expenses. There have been approved extensions to the
Gold Loan, which have culminated in a Standstill Agreement, announced on 3
January 2024, with AIMSL who provided the Company with the potential to defer
repayment of the gold loan until 29 June 2024, this has subsequently been
extended to 31 December 2025.
The outstanding principal of the Gold Loan stands at 1,871.31oz at 30 June
2024, with accrued interest of 440 oz.
As part of the fundraise, in 23 May 2024, AIMSL agreed to convert and settle
the interest accrued to 31 December 2023 by the issue of Ordinary Shares of
£0.01 each in the capital of the Company (the "Conversion Shares"),
52,800,000 Conversion Shares were allotted, representing approximately 300 oz
of the 578.4 oz of gold interest accrued on the Gold Loan to 31 December
2023. This is in order to ensure AIMSL's interest in the Company remains
below 30% of the Company's issued share capital on Admission. The balance of
the Conversion Shares will be issued to AIMSL in due course on the same terms
at such time as this can be achieved without increasing AIMSL's interest in
the Company's Ordinary Shares above 30%.
Loan Note
On 27 January 2023 the parent Company, Goldstone Resources Limited ("GRL"),
issued convertible loan notes to Blue Gold International Limited, ("BGL") in
the nominal amount of £2,400,000 (the "Loan Notes") which are due for
redemption on 30 November 2024. At the election of BGL, the Loan Notes
(together with accrued interest to date) may be converted (in whole or in
part) at any time prior to redemption into new ordinary shares of 1 penny each
in the capital of the Company Ordinary Shares at a conversion price
of £0.0325 per share. BGL also received warrants to subscribe for up to
60,000,000 Ordinary Shares at a price of £0.04 per share exercisable at any
time until 26 January 2025.
8. Post Period End
The Company received funds in respect of its subscription to raise total gross
proceeds of £600,000, and accordingly, issued 57,142,857 subscription
shares. The net proceeds of the fundraising will be used to advance
development at the Homase Mine in Ghana and towards delivering the planned
50,000 tonnes of stacked and agglomerated ore, in able to achieve the Group's
gold-production target of 1,000oz per calendar month from January 2025, and
for general working capital purposes.
9. Availability of interim report
The interim report is available on the Company's website
www.goldstoneresources.com. (http://www.goldstoneresources.com.)
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