19 September 2016
GOLDSTONE RESOURCES LIMITED
('GoldStone' or the 'Company')
Interim Results for the six months ended 30 June 2016
GoldStone (AIM: GRL), the AIM quoted company focused on gold in West and Central Africa, is pleased to announce its interim results for the six month period ended 30 June 2016.
Chairman's Statement
It is with pleasure that I present the interim results for GoldStone as Chairman of the Board. I am pleased to report that following the completion of the fundraise in July and with our new CEO, Emma Priestley, firmly in the driving seat, we are confident that we will be able to add value to the Company for the benefit of all shareholders.
Post the period end we raised, in aggregate, £1.0 million (approximately US$1.3 million) through the placing announced on 28 July 2016, and I am pleased to say that the majority of the funds raised came from existing shareholders who demonstrated their support in the Company and its management. The fundraise was to provide, inter alia, funding to advance the Company's principal project, Homase-Akrokerri in Ghana, and we have now completed the 120 hole auger-drilling program and expect to mobilise shortly a multi-purpose reverse circulation ('RC') and diamond drill ('DD') rig to follow up on the extensions to known mineralisation within the Akrokerri licence as identified by the 2015 auger programme.
I do believe that we are finally seeing the bottom of the commodity cycle at last and there is a palpable confidence and enthusiasm in the junior mining sector, which has not been there for the past five years or so. GoldStone is well placed to take advantage of this and we are already seeing a number of opportunities being presented to us, which we will continue to review and assess going forward. Our focus, however, will initially be on adding to the resources we already have in Ghana.
I would like to thank Christopher Hall for the efforts he put into Goldstone during his tenure as Chairman, and we wish him well with his focus now as Chairman of Stratex International Plc, our major shareholder.
I look forward to being able to update you on the results of the recently completed auger and the planned RC/DD drilling programme at Homase-Akrokerri as they become available, and will undertake to keep you and the market fully informed about our progress.
Neil Gardyne
Chairman
Chief Executive Officer's Report
PRINCIPAL ACTIVITIES
The principal activities of the Company during and post the period were focused on concluding essential corporate administrative issues and in recent months the Company has undertaken the successful fundraise of £1.0 million (approximately US$1.3 million) and the recommencing of exploration activities at the Company's principal project, Homase-Akrokerri, in Ghana.
REVIEW OF OPERATIONS
The Company continued to focus its activities on its two key licences in Ghana, namely Homase and Akrokerri. A well-structured programme of early works was undertaken, including rehabilitation of the site access roads, locating and pegging the drill site locations for the auger and RC/DD programmes, crop compensation negotiations, site clearing and procurement of elements for the refurbishment to the camp and certain items of mobile equipment. The Company also continues to be engaged with the local community with the restoration works to the Krodia and Adubriem Schools and the proposed outgrowers scheme involving the local community.
Homase-Akrokerri Licences - Ghana
The Group owns a 90 per cent. interest in the Homase licence and 100 per cent. of the Akrokerri licence. The local 10 per cent. partner in the Homase licence is supportive of the Company's plans.
The 2015 auger drilling programme identified, amongst other targets, a 1,500m gold-in-regolith anomaly at the AK02 prospect on the Akrokerri licence, immediately south-west and along strike of the 602,000 ounce Homase-Akrokerri JORC resource. The Homase-Akrokerri deposit is contiguous with Anglo Gold Ashanti's Obuasi Mine and the geology within Goldstone's Homase-Akrokerri Project is interpreted to be similar to that which hosts the Obuasi mineralisation.
The AK02 prospect has been prioritised for the planned RC drilling programme of up to 2,500m, whilst the auger programme has been designed to evaluate areas of ground between the anomalous zones identified in 2015.
The 120 hole auger programme has now been completed and the multi-purpose RC/DD drill rig is expected to be mobilised on site shortly with drilling expected to commence towards the end of September.
The rig also has the capability to undertake deeper drilling if warranted by the initial results and the DD capability will enable the Company to follow-up on zones of interest identified by the planned RC drilling and to test higher-grade zones of mineralisation beneath the existing resource. These zones have previously been identified as a result of exploration and drill programmes completed over the last 10 years.
Elsewhere in Ghana, minimal work has been undertaken at the Manso Amenfi project.
Gabon and Senegal
The Company continues to identify potential corporate deals for these licences in order to extract their underlying value without actively pursuing significant exploration work ourselves. This may take the form of joint ventures, disposals or other corporate restructuring.
Emma Priestley
Chief Executive Officer
For further information, please visit www.goldstoneresources.com or contact:
GoldStone Resources Limited
Emma Priestley +44 (0)20 7830 9650
Neil Gardyne +27 (0)82 490 4427
Strand Hanson Limited
Richard Tulloch / James Bellman +44 (0)20 7409 3494
SI Capital Limited
Nick Emerson / Andy Thacker +44 (0)1483 413500
|
Consolidated Statement of Financial Position
|
|
|
as at 30 June 2016
|
|
|
|
|
|
In United States dollars
|
30 June
2016
|
31 December
2015
|
30 June
2015
|
|
|
Unaudited
|
Audited
|
Unaudited
|
|
Assets
|
|
|
|
|
Property, plant and equipment
|
10,219
|
9,110
|
21,507
|
|
Non-current assets
|
10,219
|
9,110
|
21,507
|
|
|
|
|
|
|
Trade and other receivables
|
-
|
912
|
7,693
|
|
Cash and cash equivalents
|
79,580
|
244,530
|
749,921
|
|
Current assets
|
79,580
|
245,442
|
757,614
|
|
Total assets
|
89,799
|
254,552
|
779,121
|
|
Equity
|
|
|
|
|
Share capital - ordinary shares
|
1,008,352
|
1,008,352
|
1,008,352
|
|
Share capital - deferred shares
|
6,077,013
|
6,077,013
|
0
|
|
Share premium
|
25,717,878
|
25,717,878
|
25,717,878
|
|
Capital contribution reserve
|
555,110
|
555,110
|
6,632,123
|
|
Share options reserve
|
605,808
|
605,808
|
605,808
|
|
Accumulated deficit
|
(34,153,353)
|
(33,718,456)
|
(33,233,738)
|
|
Total equity
|
(189,192)
|
245,705
|
730,423
|
|
Liabilities
|
|
|
|
|
Trade and other payables
|
28,991
|
8,847
|
48,698
|
|
Short term loan
|
250,000
|
0
|
0
|
|
Current and total liabilities
|
278,991
|
8,847
|
48,698
|
|
Total equity and liabilities
|
89,799
|
254,552
|
779,121
|
|
|
|
|
|
|
|
Consolidated statement of comprehensive income
|
|
|
for the 6 months ended 30 June 2016
|
|
|
|
|
|
in United States dollars
|
6 months ended
30 June
2016
|
year ended
31 December
2015
|
6 months ended
30 June
2015
|
|
|
Unaudited
|
Audited
|
Unaudited
|
|
Continuing operations
|
|
|
|
|
Sundry income
|
1,758
|
27,500
|
14,938
|
|
Exploration expenses
|
(125,389)
|
(525,291)
|
(420,662)
|
|
Other expenses
|
(312,537)
|
(804,366)
|
(409,460)
|
|
Results from operating activities
|
(436,168)
|
(1,302,157)
|
(815,184)
|
|
Finance income
|
1,271
|
4,234
|
1,978
|
|
Net finance cost
|
1,271
|
4,234
|
1,978
|
|
|
|
|
|
|
Loss before tax
|
(434,897)
|
(1,297,923)
|
(813,206)
|
|
Loss from continuing operations
|
(434,897)
|
(1,297,923)
|
(813,206)
|
|
Other comprehensive income
|
0
|
0
|
0
|
|
Total comprehensive loss for the period
|
(434,897)
|
(1,297,923)
|
(813,206)
|
|
Loss per share:
|
|
|
|
|
Basic loss per share
|
(0.007)
|
(0.021)
|
(0.013)
|
|
Diluted loss per share
|
(0.007)
|
(0.021)
|
(0.013)
|
|
|
|
|
|
|
|
Consolidated statement of change in equity
|
|
|
for the 6 months ended 30 June 2016
|
|
|
|
|
|
in United States dollars
|
6 months ended
30 June
2016
|
year ended
31 December
2015
|
6 months ended
30 June
2015
|
|
|
Unaudited
|
Audited
|
Unaudited
|
|
|
|
|
|
|
Share capital - ordinary shares
|
|
|
|
|
- at beginning of period - restated
|
1,008,352
|
1,008,352
|
1,008,352
|
|
- end of period
|
1,008,352
|
1,008,352
|
1,008,352
|
|
|
|
|
|
|
Share capital - deferred shares
|
|
|
|
|
- at beginning of period - restated
|
6,077,013
|
6,077,013
|
0
|
|
- end of period
|
6,077,013
|
6,077,013
|
0
|
|
|
|
|
|
|
Share premium
|
25,717,878
|
25,717,878
|
25,717,878
|
|
|
|
|
|
|
Capital contribution reserve
|
|
|
|
|
- at beginning of period - restated
|
555,110
|
555,110
|
6,632,123
|
|
- end of period
|
555,110
|
555,110
|
6,632,123
|
|
|
|
|
|
|
Share options reserve
|
605,808
|
605,808
|
605,808
|
|
|
|
|
|
|
Accumulated deficit
|
|
|
|
|
- at beginning of period
|
(33,718,456)
|
(32,420,533)
|
(32,420,533)
|
|
- loss for the period
|
(434,897)
|
(1,297,923)
|
(813,206)
|
|
- end of period
|
(34,153,353)
|
(33,718,456)
|
(33,233,738)
|
|
|
|
|
|
|
|
Consolidated statement of cash flow
|
|
|
for the 6 months ended 30 June 2016
|
|
|
|
|
|
in United States dollars
|
6 months ended
30 June
2016
|
year ended
31 December
2015
|
6 months ended
30 June
2015
|
|
|
Unaudited
|
Audited
|
Unaudited
|
|
Cash flow from operating activities
|
|
|
|
|
Loss for the period
|
(434,897)
|
(1,297,923)
|
(813,206)
|
|
adjusted for:
|
|
|
|
|
- depreciation
|
0
|
12,397
|
0
|
|
- interest received
|
(1,271)
|
(4,234)
|
(1,978)
|
|
changes in:
|
|
|
|
|
- trade and other receivables
|
912
|
9,011
|
2,230
|
|
- trade and other payables
|
20,144
|
(42,040)
|
(2,189)
|
|
Net cash used in operating activities
|
(415,112)
|
(1,322,789)
|
(815,142)
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
Interest received
|
1,271
|
4,234
|
1,978
|
|
Acquisition of property, plant and equipment
|
(1,109)
|
0
|
0
|
|
Net cash used in / from investing activities
|
162
|
4,234
|
1,978
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
Proceeds from issue of ordinary share capital
|
0
|
0
|
0
|
|
Increase in short term loans
|
250,000
|
0
|
0
|
|
Net cash from financing activities
|
250,000
|
0
|
0
|
|
|
|
|
|
|
Net (decrease) / increase in cash and cash equivalents
|
(164,950)
|
(1,318,555)
|
(813,164)
|
|
Cash and cash equivalents at beginning of the year
|
244,530
|
1,563,085
|
1,563,085
|
|
Cash and cash equivalents at end of the period
|
79,580
|
244,530
|
749,921
|
|
|
|
|
|
|
Notes to the consolidated financial statement
1. Loss per share
|
in United States dollars
|
6 months ended
30 June
2016
|
year ended
31 December
2015
|
6 months ended
30 June
2015
|
|
|
Unaudited
|
Audited
|
Unaudited
|
|
Loss attributable to shareholders
|
(434,897)
|
(1,297,923)
|
(813,206)
|
|
Weighted average number of shares
|
62,286,363
|
62,286,363
|
62,286,363
|
|
Basic loss per share
|
(0.007)
|
(0.021)
|
(0.013)
|
2. Availability of Interim Report
The Interim Report will shortly be available on the Company's website www.goldstoneresources.com.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR').