TIDMGRL
RNS Number : 9815S
Goldstone Resources Ltd
29 June 2018
29 June 2018
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Final Results for the year ended 31 December 2017
and Notice of Annual General Meeting
GoldStone Resources Limited (AIM: GRL), the AIM quoted company
is pleased to announce its final results for the year ended 31
December 2017.
The statements and results below have been extracted from the
Company's audited financial statements which will shortly be
available to view and download in full at the Company's web site
www.goldstoneresources.com. Copies of the Annual Report, together
with the notice of the Company's annual general meeting, will be
posted to shareholders today.
The Company's annual general meeting will be held at the offices
of Faegre Baker Daniels LLP, 7 Pilgrim Street, London EC4V 6LB at
11:30 a.m. on 17 July 2018.
Overview
-- Implementation of updated company strategy with the intention
of delivery first gold production within two years from the
Company's Akrokeri-Homase Gold Project in the Ashanti Region of
Ghana
-- Introduction of two strategic investors, Paracale Gold
Limited and BCM Investments Limited
-- Significant strengthening of both the Board and senior
management team to reflect focus on accelerating development and
achieving first production
-- Highly encouraging results from exploration work at Homase -
which previously produced 52,000 ounces of gold at an at a final
recovered average grade of 2.5g/t:
o Work focussed on expanding the current JORC resource of
602,000oz Au and identifying the optimum route to production
o Extensive field work carried out to extend the 4km strike at
and identify additional high-grade area of mineralisation
o Historic trenching indicates high grade gold mineralisation,
including 15.0 metres @ 6.31 g/t Au which includes 4.5 metres @
18.23 g/t Au from a trench in the Homase North Resource Zone
-- Reassessment and prioritisation of Akrokeri Mine - which
produced 75,000 oz Au underground at a final recovered average
grade of 0.73 ozs/t, equivalent to approximately 24 g/t
o Current work focussed on accessing the mine
GoldStone's Chief Executive Officer, Emma Priestley,
commented:
"The work undertaken in 2017 - both on an operational and
corporate front - has laid the foundations for gold production at
Akrokeri-Homase in the near term. Our strengthened management team
have significant expertise, having planned, built and commissioned
multiple gold mines, and with the full support of our new major
shareholders, GoldStone has accelerated development of our flagship
project towards first gold within two years."
Full financial results will be published on Goldstone Resources
Limited's website.
For further information, please contact:
GoldStone Resources Limited
Emma Priestley Tel: +44 (0)7867 785177 / +233 (0)55
581 8855
Strand Hanson Limited
Richard Tulloch / James Tel: +44 (0)20 7409 3494
Bellman
SI Capital Limited
Nick Emerson Tel: +44 (0)1483 413 500
Citigate Dewe Rogerson
Louise Mason-Rutherford Tel: +44 (0)20 7282 2932
St Brides Partners Ltd
Susie Geliher / Juliet Tel: +44 (0)20 7236 1177
Earl
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.
CHAIRMAN'S REPORT
It gives me great pleasure to present my first statement since
my appointment as Chairman in October 2017, providing me with the
opportunity to share my vision for GoldStone Resources Limited
("GoldStone" or the "Company") in the coming year and longer
term.
My background, spanning 38 years in the gold mining and
engineering industry worldwide, including being closely involved in
the design and construction of 23 gold processing plants as Design
Engineer and Project Manager and also as a plant owner, has
provided me with significant experience and knowledge and I look
forward to using this as we seek to move GoldStone towards
production. I believe strongly that GoldStone's Akrokeri-Homase
Project ("AKHM") is a very exciting project - a project that will
form the foundation of our strategy to build a highly profitable
gold mining company.
Along strike from one of West Africa's largest gold mines,
AngloGold Ashanti's Obuasi Gold Mine which has total historical and
current resource in excess of 70 million ounces of gold, AKHM
covers an area of known mineralisation, two historically producing
mines, Akrokeri and Homase, and has a current JORC Code compliant
resource of 602,000 ounces at an average grade of 1.77g/t of gold.
I have spent these initial months working with the team to identify
the route to production and I believe significant progress has been
made in this regard, as we aim to target production within two
years. In addition the results of recent field work, together with
the review of historic data, has provided us with a much greater
understanding of the potential for AKHM and I believe there is
significant potential for resource expansion around both historic
mines.
2017 saw GoldStone undergo significant corporate change, most
notably through the addition of two major shareholders and various
changes to the Board. The addition of two strategic investors, BCM
Investment Limited ("BCM"), one of Africa's largest private
contract mining groups, and Paracale Gold Limited ("Paracale"), a
mining investment company focused on mineral exploration and mine
development opportunities, have provided significant impetus to
GoldStone and reflects its evolution as it seeks to move from
exploration into being a development and production company.
Following Paracale's investment, I was pleased to join the Board as
Non-executive Chairman in October 2017 and I was pleased to
subsequently welcome both Angela List, following BCM's investment,
and Richard Wilkins as Non-executive Directors, providing
additional strength and depth to the Board's experience.
Similarly, our operational management team was significantly
strengthened by the appointment of Darryl Norton as Chief Operating
Officer in August 2017. Darryl is now based in Ghana full-time, has
been the Technical Director for MAED Ltd for over 30 years and has
personally overseen the development of a number of highly
successful gold plants in West Africa and Asia. Darryl has a
specific mandate to accelerate development activities on the ground
and I am confident that he will advance AKHM and achieve production
within two years.
Outlook
Our significantly strengthened management team, led by CEO Emma
Priestley, has continued to unlock value through its development
activities on the ground at AKHM during 2017, and in the year to
date, and it is the Board's intention, subject to funding, to
continue to accelerate this work during the remainder of 2018.
We look forward to delivering further news in the coming months
as we work to achieve our target of realising production within the
Company, whilst simultaneously proving-up the wider resource
potential of the entire AKHM project in order to establish a
long-term, sustainable gold production project.
W Trew
Chairman
28 June 2018
CHIEF EXECUTIVE OFFICER'S REPORT
2017 saw GoldStone achieve several operational objectives, which
advanced the Company's strategy to commence production at our
flagship Akrokeri-Homase Project in the near term.
Building on the encouraging drilling results announced in 2016,
the Company undertook a review of all of the available historic
data on the existing JORC Code compliant resource for AKHM. This
review has significantly increased confidence of a mineable
resource within the oxide zone of the Homase trend, which runs for
over 8 km (the "Homase Trend") from the historic Akrokeri
underground mine (the "Akrokeri Mine") to the north of the Homase
open pit (the "Homase Pit").
As previously announced, the Company has completed a deep
trenching programme in conjunction with a reverse circulation
("RC") infill drill programme on the known oxide zone of the JORC
Resource to progress the pit definition programme for the proposed
pit, initially identified as AK01 North and South. It consisted of
26 holes for a total of 1,470 metres, to progress to pit modelling.
The assay results from the RC programme, announced on 9 November
2017, exceeded expectations, with the arithmetic average of the
grades being 1.8g/t over a 10.5 metre drilling width (approximately
7 metres true width) within the mineralised zone of the proposed
pit (sample cut-off 0.5g/t) within the Akrokeri licence, south of
the Homase Pit, along strike in the Homase Trend. The continuous
strike length over the proposed pit is approximately 1,500 metres,
compared to the approximately 700 metres strike length of the
Homase Pit which was mined by Ashanti Goldfields Limited ("AGF")
between 2002 and 2003 and produced 52,452oz gold at an average
recovered grade of 2.85g/t.
Preliminary metallurgical testwork was carried out upon the
trenching samples for the proposed pit by The University of Mines
and Technology (UMaT) in Tarkwa, Ghana to assess the amenability of
the oxide mineralisation to processing. The results, announced on
11 December 2017, verified that the oxide zone is extremely
amenable to both the heap leach and to CIL gold recovery processes.
This preliminary test work, also demonstrated that almost 90% of
the recoverable gold via the heap leach method is achieved within
the first 15 days of leaching. Thus indicating that a scale up to
mine operation would be very successful.
These preliminary steps provided the data to initiate the pit
design for the proposed pit and the platform for the scoping study
to proceed towards with an application for a mining permit.
This programme was undertaken in conjunction with the continued
review by the Company of the historical database for the Akrokeri
and Homase licences. It is an extensive database which is growing
as the Company continues to identify and collate historic data from
previous holders of the licences. The additional information,
including from AngloGold Ashanti Limited's archive, provided
GoldStone with the historical production and processing data for
the Homase Pit when they operated it between 2001 to 2003. The
Company also acquired historical data from the Ghanaian Minerals
Commission and British Archives, pertaining to the former Akrokeri
Mine, owned by Akrokeri (Ashanti) Mines Limited, which operated in
the early 1900s.
The review of historical data showed that the Homase Pit,
produced 52,452oz gold, which was significantly in excess of AGF's
original estimate of 35,799oz gold, reported in AGF's Homase Pit
Mining Reconciliation June 2002-03. According to AGF's mining
reconciliation figures, there was a significant increase in tonnage
and minor increases in grade and density compared to the original
estimates. The differences are between the ore reserve model (based
on pre-production drilling) and the grade control model (based on
more closely spaced drilling during production).
One of the features that resulted in the higher recovery of gold
from the Homase Pit was the higher than anticipated widths in the
upper zones of the mineralisation, which caused a mushroom effect,
i.e. near-surface gold mobilisation and re-deposition.
AGF also reported pinching and swelling within the mineralised
structure. This is a consistent feature throughout the
Homase/Obuasi shear system. Ore shoots at the nearby Obuasi mine
are characterised by tight echelon lenses. If these are repeated
within the proposed pit on the Akrokeri licence, there is potential
for increased gold content to continue at depth.
The review of the historic Akrokeri data, indicates that
exploration activity started in the 1890s when two shafts were sunk
at the Akrokeri Mine site. Production started in 1904, and the
underground mine produced some 75,000 ounces of gold from about
104,000 tons of ore, with a recovered grade of about 0.73oz/tonne,
equivalent to 24g/t. However, due to a high inflow of water, the
mine was closed in 1909.
Drilling around the old Akrokeri Mine was undertaken in 1996 by
Birim Goldfields Ltd ("Birim"), comprising nine Diamond Drill
("DD") holes totalling 2,000 metres and subsequently in 2008, Pan
African Resources Plc ("PAR") drilled 10 DD holes totalling some
3,200 metres, these holes have accurate spatial data. These holes
were located north and south of Akrokeri town along the known
quartz vein. Analysis presented that the core from four of the DD
holes drilled by PAR were not assayed and that the logging from
both the Birim and the PAR programmes was incomplete. The Company
has now completed the re-logging and is proceeding to assay these
PAR cores.
Senegal
We are encouraged by the recent acquisition of the raw drill
data from the programme undertaken by Randgold Plc in 2012, on the
Sangola project in Senegal and these results are currently being
reviewed. The title to the licences are maintained and upon a
satisfactory review of data, the Company will apply for the
extension of the exploration licence.
Gabon
Whilst GoldStone maintains the title to the two licences in
Gabon, Oyem and Ngoutou, the Board has agreed, after careful
consideration, due to the expected mandatory expenditure as defined
in the former exploration licence agreement, to rescind these
licences. This takes into account that the licences are at an early
stage with limited value and accordingly, do not fit in with our
focus of seeking to prioritise assets that can be advanced towards
production.
Ghana
Whilst GoldStone has maintained a joint venture agreement with
Asasemu Mining, a Ghanaian company (15% GoldStone: 85% Asasemu
Mining), to develop the Manso Amenfi Prospecting Licence, the Board
has agreed, after careful consideration, due to the expected
mandatory expenditure as defined in the former joint venture
agreement, to rescind the agreement with the licence holder. This
takes into account that the licence is at an early stage with
limited value and accordingly, does not fit in with our focus of
seeking to prioritise assets that can be advanced towards
production.
Former Director Claim
As announced on 13 October 2016, there is an outstanding claim
by a former director of the Company. Legal advice has been sought
and at the current time no estimate is available as to the
likelihood or potential value of damages to the Company in respect
of this claim. The Board believes there is no merit in the claim
and the amount due is not considered to be of significance. The
case will be heard in the South African Labour Court. This has been
disclosed as a contingent liability in the financial
statements.
Working capital management and Funding
During 2017, the Company secured a GBP0.4 million convertible
loan (the "Loan") with Paracale Gold Limited ("Paracale"), on 3
April 2017, of which GBP0.2million was drawn down immediately and
with the approval of the resolutions at the Annual General Meeting
("AGM") held on 2 June 2017, the second tranche of GBP0.2 million
was drawn down in full. Subsequently the Loan plus accrued interest
was converted into 40,352,377 new ordinary shares of 1p each in the
capital of the Company ("Ordinary Shares").
Pursuant to the Loan, the Company issued Paracale warrants to
subscribe for up to 40,352,377 of new Ordinary Shares, exercisable
at a price of 2 pence per share before 10 August 2019.
In September 2017, the Board announced that GoldStone had raised
GBP1.5 million gross by way of a subscription for 100,000,000 new
Ordinary Shares at 1.5 pence per share with new and existing
shareholders. The fundraising welcomed BCM Investment Limited
("BCM") to our shareholder register, with Paracale also
participating and thereby increasing its interest in the Company.
The Board values the support and credentials of both Paracale and
BCM, and remains confident that both will be long-term strategic
investors and stakeholders in the Company, as it moves towards its
goal of achieving production from AKHM within two years.
Risk management
The Board has identified the following as being principal
strategic and operational risks (in no particular order):
Going concern
As at 27 June 2018, the Company had cash of US$730,490. The
directors consider the Company has sufficient funds to meet its
corporate overheads for the next 12 months, but will seek funding
to meet its development aims.
The Board has, therefore, adopted the going concern basis, and
remains confident that it will raise the funding as and when
required. Further details on their assumptions and their conclusion
thereon are included in the statement of going concern included in
note 1b to the financial statements.
Exploration and Development
Exploration and development for natural resources is speculative
and involves significant risk. Drilling and operating risks include
geological, geotechnical, seismic factors, industrial and
mechanical incident, technical failures, labour disputes and
environmental hazards.
The directors are evaluating each stage of the development of
its projects site by site in order to mitigate as far as possible
these risks inherent in exploration. Use of modern technology and
electronic tools assist in reducing risk in this area. Good
employee relations is also key in reducing the exposure to labour
disputes. The Company is committed to following sound environmental
guidelines and practice and is keenly aware of the issues
surrounding each individual project.
Country and political
GoldStone's projects are in Ghana and Senegal. Emerging market
economies could be subject to greater risks including legal,
regulatory, economic and political risks and are potentially
subject to rapid change.
The Board routinely monitors political and regulatory
developments in its countries of interest. Since the elections in
Ghana, in December 2016, the Government have shown positive steps
towards the mining sector, the improved policing of illegal
small-scale mining operations, and improvement of the licence
approval system. The Government are currently reviewing the tax and
royalty rates towards precious metals. In addition, the Company
actively engages in dialogue with relevant Government
representatives in order to keep abreast of all key legal and
regulatory developments applicable to its areas of interest.
GoldStone maintains the internal processes in place to ensure that
it is wholly compliant with all relevant regulations in order to
maintain its licences within each country. These country risks are
further addressed in notes 2(d)(ii) and 3(j) to the financial
statements.
Social, Safety and Environmental
GoldStone's success may depend upon its social, safety and
environmental performance as failures can lead to delays or
suspensions of its activities.
GoldStone takes its responsibilities in these areas seriously
and monitors its performance across these areas on a regular basis.
As AKHM develops through drilling, metallurgical and engineering
studies, we are strengthening our relationships with the
communities living within the concession areas and close to the
projects. The immediate focus has been sanitation and drinking
water for each of the schools within our concession areas and the
Company continues to build on the community relationships in order
to build a co-operative with the smallholder farmers and out-grower
schemes with the communities. These schemes benefit both the
communities in which we will be operating and our investors into
the agricultural programmes.
Well-Positioned to advance AKHM towards production
Following the work undertaken in 2017 and the strengthened
Management and Board appointments, GoldStone is now strongly
positioned to accelerate development at AKHM as we target initial
production from AKHM within two years. We will continue to update
the market throughout the remainder of 2018, detailing our strategy
to achieve near term production, and also report on our operational
successes as we move closer to this goal.
I would like to thank Neil Gardyne who stepped down as
Non-executive Chairman in October 2017. Neil guided the Company
through a period of transition and I wish him well with his
endeavours going forward. I would also like to thank shareholders
for their ongoing support as we move GoldStone towards production
and I look forward to developing the Company with my fellow Board
members, management team and the Company's advisers over the course
of 2018 and into 2019.
Emma Priestley
Chief Executive Officer
28 June 2018
Consolidated statement of financial position
As at 31 December 2017
in united states dollars 2017 2016
--------------------------------- ------------- -------------
assets
non-current assets
property, plant and equipment 5,722 6,809
intangible assets - exploration 3 6,800,827 6,344,127
================================= ============= =============
non-current assets 6,806,549 6,350,936
================================= ============= =============
current assets
trade and other receivables 3,220 239
cash and cash equivalents 1,626,057 135,572
================================= ============= =============
current assets 1,629,277 135,811
================================= ============= =============
total assets 8,435,826 6,486,747
================================= ============= =============
equity
share capital - ordinary
shares 5 3,480,430 1,526,658
share capital - deferred
shares 5 6,077,013 6,077,013
share premium 5 27,219,262 26,495,336
capital contribution
reserve 555,110 555,110
share options reserve 90,650 49,447
accumulated deficit (29,046,364) (28,250,029)
================================= ============= =============
total equity 8,376,101 6,453,535
================================= ============= =============
liabilities
current liabilities
trade and other payables 59,725 33,212
================================= ============= =============
current and total liabilities 59,725 33,212
================================= ============= =============
total equity and liabilities 8,435,826 6,486,747
================================= ============= =============
Consolidated statement of comprehensive income
For the year ended 31 December 2017
year ended year ended
31 December 31 December
in united states dollars 2017 2016
-------------------------------------------- ------------- -------------
continuing operations
other income - 1,758
exploration expenses - (370)
administrative expenses (805,854) (838,127)
============================================ ============= =============
operating loss 5 (805,854) (836,739)
============================================ ============= =============
finance income 410 1,865
============================================ ============= =============
net finance income 410 1,865
============================================ ============= =============
loss before tax (805,444) (834,874)
============================================ ============= =============
tax expense - -
loss for the year from continuing
operations (805,444) (834,874)
============================================ ============= =============
other comprehensive income - -
total comprehensive loss for the
year (805,444) (834,874)
============================================ ============= =============
earnings per share from operations
basic and diluted earnings per share
attributable to the equity holders
of the company during the year (expressed
in US$ per share) 6 (0.005) (0.011)
Consolidated statement of changes in equity
For the year ended 31 December 2017
share share
capital capital capital share
in united states ordinary deferred share contribution options accumulated total
dollars shares shares premium reserve reserve deficit equity
-------------------------- ---------- ---------- ----------- -------------- ---------- ------------- ----------
balance as at I
January 2016 1,008,352 6,077,013 25,717,878 555,110 605,808 (28,011,854) 5,952,307
========================== ========== ========== =========== ============== ========== ============= ==========
total comprehensive
loss for the year - - - - - (834,874) (834,874)
issue of ordinary
shares 518,306 - 777,458 - - - 1,295,764
options expired
or lapsed in the
year - - - - (596,699) 596,699 -
warrants issued
in the year - - - - 40,338 - 40,338
Total transactions
with owners, recognised
directly in equity 518,306 - 777,458 - (556,361) (238,175) 501,228
========================== ========== ========== =========== ============== ========== ============= ==========
balance as at 31
December 2016 1,526,658 6,077,013 26,495,336 555,110 49,447 (28,250,029) 6,453,535
========================== ========== ========== =========== ============== ========== ============= ==========
total comprehensive
loss for the year - - - - - (805,444) (805,444)
issue of ordinary
shares 1,953,772 - 723,926 - - - 2,677,698
options expired
or lapsed in the
year - - - - (9,109) 9,109 -
share warrants
expense for the
year - - - - 50,312 - 50,312
Total transactions
with owners, recognised
directly in equity 1,953,772 - 723,926 - 41,203 (796,335) 1,922,566
========================== ========== ========== =========== ============== ========== ============= ==========
balance as at 31
December 2017 3,480,430 6,077,013 27,219,262 555,110 90,650 (29,046,364) 8,376,101
========================== ========== ========== =========== ============== ========== ============= ==========
Consolidated statement of cash flows
For the year ended 31 December 2017
year ended year ended
31 December 31 December
in united states dollars 2017 2016
------------------------------------------------------------- ------------- -------------
cash flow from operating activities
loss for the year (805,444) (834,874)
adjusted for:
* depreciation 1,087 3,412
* finance income (410) (1,865)
* share based payments 50,312 40,338
changes in working capital:
* (increase) / decrease in trade and other receivables (2,982) 673
* increase in trade and other payables 26,513 24,365
net cash used in operating activities (730,924) (767,951)
============================================================== ============= =============
cash flow from investing activities
finance income 410 1,865
capitalisation of exploration costs (456,700) (637,524)
acquisition of property, plant and
equipment - (1,110)
net cash used in investing activities (456,290) (636,769)
============================================================== ============= =============
cash flow from financing activities
proceeds from short term loan - 250,000
repayment from short term loan - (250,000)
proceeds from issue of ordinary share
capital 2,677,699 1,295,762
net cash generated from financing
activities 2,677,699 1,295,762
============================================================== ============= =============
net increase / (decrease) in cash
and cash equivalents 1,490,485 (108,958)
============================================================== ============= =============
cash and cash equivalents at beginning
of the year 135,572 244,530
============================================================== ============= =============
cash and cash equivalents at end of
the year 1,626,057 135,572
============================================================== ============= =============
Notes to the consolidated financial statements
1. Basis of preparation
(a) statement of compliance and basis of preparation
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS") and IFRIC interpretations (IFRS IC) as adopted by the
European Union applicable to companies reporting under IFRS. The
financial statements have been prepared under the historical cost
convention as modified for financial assets carried at fair
value.
The preparation of consolidated financial statements in
conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting
policies and reported amounts in the financial statements. The
areas involving a higher degree of judgement or complexity, or
areas where assumptions or estimates are significant to the
financial statements, are disclosed in Note 2(d) and Note 3.
(b) going concern
The financial statements have been prepared assuming the Group
and Company will continue as a going concern. In assessing whether
the going concern assumption is appropriate, the directors have
taken into account all available information for the foreseeable
future; in particular for the 12 months from the date of approval
of these financial statements. This assessment included
consideration of future plans, expenditure commitments in place,
cost reduction measures that can be implemented, licence
requirements and the ability of the directors to raise further
funds going forward.
As at 27 June 2018, the Company had cash of US$730,490. The
directors consider the Company has sufficient funds to meet its
corporate overheads for the next 12 months, but will seek funding
to meet its development aims. The Board has, therefore, adopted the
going concern basis, and remains confident that it will raise the
funding as and when required.
Should the Group be unable to continue trading, adjustments
would have to be made to reduce the value of the assets to their
recoverable amounts, to provide for further liabilities which might
arise and to classify fixed assets as current.
2. 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 Group's reportable
segments are:
Exploration and Development: the exploration operating segment
is presented as an aggregation of the Homase and Akrokeri licences
(Ghana) and the Sangola licence (Senegal). 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 2017
in united states dollars exploration corporate total
---------------------------------- ------------ ---------- ----------
reportable segment expenditure - (805,444) (805,444)
=================================== ============ ========== ==========
reportable segment profit/(loss) - (805,444) (805,444)
=================================== ============ ========== ==========
finance income - 410 410
depreciation - (1,087) (1,087)
reportable segment assets 6,847,148 1,588,679 8,435,827
=================================== ============ ========== ==========
reportable segment liabilities - (59,725) (59,725)
=================================== ============ ========== ==========
information about reportable segments for the year ended 31
December 2016
in united states dollars exploration corporate total
---------------------------------- ------------ ---------- ----------
reportable segment expenditure (1,203) (837,294) (838,497)
=================================== ============ ========== ==========
reportable segment profit/(loss) 555 (835,429) (834,874)
=================================== ============ ========== ==========
finance income - 1,865 1,865
depreciation (833) (2,579) (3,412)
reportable segment assets 6,355,291 131,456 6,486,747
=================================== ============ ========== ==========
reportable segment liabilities - (33,212) (33,212)
=================================== ============ ========== ==========
reconciliation of reportable segment revenues, profit or loss,
assets and liabilities, and other material items
in united states dollars year ended year ended
December 2017 December 2016
--------------------------------------- --------------- ---------------
revenues
total revenue for reportable segments - -
consolidated revenue - -
======================================= =============== ===============
loss
total loss for reportable segments (805,444) (834,874)
consolidated loss from continuing
operations (805,444) (834,874)
======================================== =============== ===============
assets
total assets for reportable segments 8,435,827 6,486,747
consolidated total assets 8,435,827 6,486,747
======================================== =============== ===============
liabilities
total liabilities for reportable
segments (59,725) (33,212)
consolidated total liabilities (59,725) (33,212)
======================================== =============== ===============
reconciliation of reportable segment revenues, profit or loss,
assets and liabilities, and other material items
reportable adjustments consolidated
in united states dollars segment total totals
-------------------------- -------------- ------------ -------------
other material items
finance income 410 - 410
depreciation (1,087) - (1,087)
=========================== ============== ============ =============
3. Intangible assets - exploration
The Group's Intangible assets comprise wholly of exploration
assets in respect of the Homase-Akrokeri project in Ghana.
homase and
in united states dollars akrokeri Total
-------------------------------- ----------- ----------
balance as at 31 December 2015 5,706,602 5,706,602
================================= =========== ==========
additions 637,524 637,524
balance as at 31 December 2016 6,344,127 6,344,127
================================= =========== ==========
Additions 456,700 456,700
balance as at 31 December 2017 6,800,827 6,800,827
================================= =========== ==========
Impairment of the above is considered in relation to the
impairment indicators listed within IFRS 6. The key estimate in
relation to the project is in respect of the mineral resources
potential. Details of this potential can be found on
www.goldstoneresources.com/exploration-main/homase-akrokerri-project-main.html.
4. Taxation
(a) current tax
in united states dollars December 2017 December 2016
------------------------------------ -------------- --------------
Current tax:
Current tax on profits for the year - -
Adjustments in respect of prior - -
years
Total current tax - -
==================================== ============== ==============
(b) deferred tax
in united states dollars December 2017 December 2016
-------------------------------------- -------------- --------------
Deferred tax:
Origination and reversal of temporary - -
differences
Total deferred tax - -
====================================== ============== ==============
The Company is subject to Jersey income tax at the rate of 0%.
The Group is also registered for income tax purposes with the South
African Revenue Service. Due to the loss making position of the
Group in all jurisdictions there is no tax charge and no deferred
tax asset has been recognised in the current or prior periods due
to uncertainty of future profits. As a result no reconciliation has
been prepared.
5. Capital and reserves
(a) share capital
2017 2016
---------------------------------------------- -------------- --------------
ordinary shares
called up, allocated and fully paid
249,707,991 ordinary shares of 1 pence
each
(2016: 102,286,363) GBP2,497,080 GBP1,022,864
============================================== ============== ==============
converted to united states dollars
at date of issue $3,480,430 $1,526,658
deferred shares
called up, allocated and fully paid
in issue at 1 January GBP3,730,772 GBP3,730,772
in issue at 31 December - fully paid
414,530,304 (December 2016: 414,530,304)
deferred 0.9 pence shares GBP3,730,772 GBP3,730,772
============================================== ============== ==============
converted to united states dollars
at date of issue $6,077,013 $6,077,013
Authorised
1,000,000,000 (December 2016: 1,000,000,000)
authorised ordinary 1 pence shares GBP10,000,000 GBP10,000,000
================================================ ============== ==============
(a) share capital (continued)
During the year the Company issued the following ordinary 1
pence fully paid shares:
Number of Nominal Share premium
Shares Value
---------------- ---------------------------- ------------ ------------- --------------
1 January 2017 Opening balance 102,286,363 $1,526,658 $26,495,336
8 June 2017 Conversion shares at 1.44p 44,195,272 GBP441,953 GBP22,441
- 1.63p per share
Converted to United States
Dollars at date of issue - $571,710 $29,030
17 July 2017 Conversion shares at 1.45p 848,779 GBP8,488 GBP3,845
per share
Converted to United States
Dollars at date of issue - $11,083 $5,021
8 August 2017 Conversion shares at 1.47p 836,559 GBP8,366 GBP3,967
per share
Converted to United States
Dollars at date of issue - $10,849 $5,145
13 September Conversion shares at 1.53p 801,550 GBP8,016 GBP4,318
2017 per share
Converted to United States
Dollars at date of issue - $10,594 $5,706
27 September Placing shares at 1.5p 100,000,000 GBP1,000,000 GBP500,000
2017 per share
Converted to United States
Dollars at date of issue - $1,339,827 $669,914
9 October 2017 Conversion shares at 1.92p 739,468 GBP7,395 GBP6,938
- 2.08p per share
Converted to United States
Dollars at date of issue - $9,710 $9,111
31 December
2017 Closing balance 249,707,991 $3,480,431 $27,219,262
(b) ordinary shares
Each holder of ordinary shares is entitled to receive dividends
as declared from time to time, and is entitled to one vote per
share at meetings of the Company.
(c) deferred shares
Each holder of deferred shares shall not be entitled to receive
notice of, attend or vote at any meeting of the Company (other than
a meeting of the holder of the Deferred shares), shall not be
entitled to any dividends or other distributions (whether on a
winding up of the Company or otherwise). On a winding up of the
Company, each deferred share shall confer upon its holder the right
to receive an amount equal to the nominal amount paid up on such
deferred share.
(d) issue and consolidation of ordinary shares
During the year, the Company issued a total of 147,421,628
(2016: 40,000,000) new ordinary shares, all of which rank pari
passu with the existing ordinary shares. The shares (which had a
par value of 1.0p each) were issued at a price from 1.44p to 2.08p
per share. The value received for the share issuance was
US$2,677,698 (2016: US$1,295,764).
The Company has not concluded any share repurchases since its
incorporation.
(e) dividends
No dividends were proposed or declared during the period under
review (2016: Nil).
(f) description and purpose of reserves
(i) share capital
Share capital consists of amounts subscribed for share capital
at nominal value.
(ii) share premium
Share premium consists of amounts subscribed for share capital
in excess of nominal value.
(iii) capital contribution reserve
Capital contribution reserve consists of deferred shares
classified as equity.
(iv) share options reserve
Share options and warrants reserve consists of the fair value of
options and warrants outstanding at the year end.
(v) accumulated deficit
Cumulative net gains and losses recognised in the consolidated
statement of comprehensive income.
6. Earnings per share
The calculation of basic and diluted earnings per share at 31
December 2017 was based on the losses attributable to ordinary
shareholders of US$805,444 (2016: US$834,874), and an average
number of ordinary shares in issue of 154,385,042 (2016:
79,832,253).
in united states dollars 2017 2016
-------------------------------------- ------------ -----------
loss attributable to shareholders (805,444) (834,874)
weighted average number of ordinary
shares 154,385,042 79,832,253
basic and diluted earnings per share (0.005) (0.011)
======================================== ============ ===========
The Group has the following instruments which could potentially
dilute basic earnings per share in the future:
in number of shares 2017 2016
--------------------- ----------- -----------
share options - 100,000
warrants 80,352,377 40,000,000
======================= =========== ===========
7. Subsequent events
GoldStone has continued with assessing the former Akrokeri Mine
and accessing the old workings. This has included a review and
re-logging of historic diamond core ("DD") holes drilled under or
adjacent to the former mine. As announced on 7 June 2018, the
review confirmed mineralised intercepts of up to 1.0 metre at 51.01
g/t Au. Two further DD holes identified from 2012 programme,
indicated gold bearing quartz intersections in the footwall of the
mine and the Company is currently assaying four historic DD holes
drilled by Pan African Resources Plc which were not assayed at the
time. These results that have not been previously disclosed to the
market, have assured the Company that the Akrokeri Mine, together
with the Homase Pit, provide two highly prospective targets within
GoldStone's licences
The Company also undertook a soil geochemistry programme to
identify the wider resource potential of AKHM. This was carried out
in combination with a review of the historical geochem and
trenching programmes and has highlighted the Homase Trend, an >8
km gold-in-soil anomaly which runs from the historic Akrokeri Mine
to north of the Homase Pit. The Company has commenced a scoping
study to better define the oxide resource potential of the Homase
Trend to the north and south of the Homase Pit.
The 2018 soil programme also defined a gold in soil anomaly for
2.4 km south of the Akrokeri Mine and delineated parallel
mineralised gold structures which may provide further mineral
resource upside potential following evaluation work.
The Group's financial statements were approved by the directors
on 28 June 2018.
- -
.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR PGUUGQUPRPUR
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