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
or contact:
|
GoldStone Resources Limited
Emma Priestley
|
Tel: +44 (0)1534 487
757
|
|
Strand Hanson Limited
James Dance / James Bellman
|
Tel: +44 (0)20 7409
3494
|
|
S. P. Angel Corporate Finance LLP
Ewan Leggat / Charlie Bouverat
|
Tel: +44 (0)20 3470
0501
|
|
St Brides Partners Ltd
Susie Geliher
|
goldstone@stbridespartners.co.uk
|
Consolidated
statement of financial position
as at 30 June
2024
|
in united
states dollars
|
notes
|
30 June
2024
|
30 June
2023
|
31
December
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
|
|
total
assets
|
|
20,348,319
|
20,673,812
|
22,147,813
|
|
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
|
in united
states dollars
|
notes
|
6 months ended
30 June 2024
|
6 months
ended
30 June
2023
|
year ended
31
December
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:
foreign exchange translation movement
|
|
(1,407,196)
|
(558,703)
|
(980,763)
|
|
|
|
|
|
|
|
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 company during the period
(expressed in cent per share)
|
4
|
(0.005)
|
(0.010)
|
(0.005)
|
Consolidated
statement of cash flow
for the 6
months ended 30 June 2024
|
in united
states dollars
|
6 months ended
30 June
2024
|
6 months
ended
30 June
2023
|
year ended
31
December
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 28th 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
28th 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.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
|
in united
states dollars
|
6 months ended
30 June
2024
|
6 months
ended
30 June
2023
|
year ended
31
December
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
|
producing
mines
|
total
|
|
Cost
|
|
|
|
|
|
|
|
1 January
2023
|
|
|
4,570
|
1,413,438
|
19,170,297
|
20,588,305
|
|
additions
disposals
exchange movement
|
|
|
-
-
-
|
765,205
(107,580)
(76,301)
|
418,321
-
(1,356,608)
|
1,183,526
(107,580)
(1,432,909)
|
|
31 December
2023
|
|
|
4,570
|
1,994,762
|
18,232,010
|
20,231,342
|
|
additions
disposals
exchange movement
|
|
|
-
-
-
|
64,232
(6,817)
(164,920)
|
1,335
-
(1,445,207)
|
65,567
(6,817)
(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
|
producing
mine
|
Total
|
|
Depreciation
|
|
|
|
|
|
|
|
1 January
2023
|
|
|
-
|
478,118
|
142,600
|
620,718
|
|
charge for the year
eliminated
|
|
|
-
|
273,131
(107,580)
|
15,522
-
|
288,653
(107,580)
|
|
31 December
2023
|
|
|
-
|
643,669
|
158,122
|
801,791
|
|
charge for the period
eliminated
|
|
|
-
-
|
182,912
(1,342)
|
-
-
|
182,912
(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
|
in united
states dollars
|
6 months ended
30 June
2024
|
6 months
ended
30 June
2023
|
year ended
31
December
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.