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Share Name Share Symbol Market Type Share ISIN Share Description
Goldstone Resources Limited LSE:GRL London Ordinary Share JE00BRJ8YF63 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.10 1.23% 8.20 8.00 8.40 8.20 8.20 8.20 33,317 08:00:21
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -0.4 -0.1 - 38

Goldstone Resources Ltd Interim Results

30/09/2021 7:00am

UK Regulatory (RNS & others)


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TIDMGRL

RNS Number : 4630N

Goldstone Resources Ltd

30 September 2021

30 September 2021

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Interim Results for the six months ended 30 June 2021

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 2021.

Overview

-- Continued advancement of the Homase Mine in the highly prospective Ashanti Region of Ghana.

-- Formal approval received in February 2021 from the Ghanaian Environmental Protection Authority and the Minerals Commission in respect of the Environmental Permit, Operating Permit and Water Permit, which permitted cyanide use enabling us to stack first ore on the Heap Leach Pad in May 2021.

-- A total of US$4.8 million proceeds received during the period from the exercise of Warrants from supportive existing shareholders.

   --        Net assets increased to US$15.5 million (31 December 2020: US$10.8 million). 

Post Period

-- 20,000,000 Warrants converted at 1.2 pence per Ordinary Share set against the loan provided to the Company by Paracale on 28 December 2018, reducing the balance of the Loan to US$723,669.

   --        First batch of loaded carbon produced from the CIS plant for further processing. 
   --        US$409,000 raised from the exercise of 10,000,000 Warrants at 3 pence per Ordinary Share. 

-- Extension to the maturity date on the US$3 million secured gold loan announced on 22 June 2020 to 31 August 2022, and agreed a repayment schedule.

For further information, please contact:

 
 GoldStone Resources Limited 
 Bill Trew / 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 
 

Chief Executive Officer's Statement

T he advancement to gold production from the Homase Mine within the Company's Akrokeri-Homase Gold Project ("AKHM") in Ghana remains Goldstone's priority, and significant progress was made in this regard during H1 2021.

The Company has been responsible for building and commissioning the heap leach and plant and, once our elution facility has been completed, will commence the smelting of the gold concentrate and delivery of gold doré bars.

With the award of the Environmental Permit by the Environmental Protection Agency in February 2021, shortly followed by the granting of our Operating and Water Permit, mining commenced at the first pit within the Homase Mine in April, following the pre-stripping and clearing.

The mechanical and electrical components, associated with the dry plant for the agglomerated ore, transport and stacking, were assembled and commissioned in March and April, including a screening plant, grasshopper conveyors and an extendable stacker, which was positioned on the Leach-pad for ore stacking.

The first two cells of the heap leach pad, with a combined area of 13,000m(2) , were commissioned on 13 May 2021, and a total of seven cells will complete this initial Leach-pad with an area of approximately 73,000m(2) . The first two cells enabled stacking at an initial rate of 100 tonnes per hour to commence, which is expected to ramp up to a target of 200 tonnes per hour (c.2,500 tonnes per day).

The first ore was stacked on the leach pad on 6 May 2021, and, to date, 87,300 tonnes of ore have been stockpiled, equating to around one month of mine production at full 3,000 tonne per day heap leach capacity.

The Company had a prolonged wait for approval from the Minerals Commission of Ghana to start irrigation and leaching of ore placed on the heap leach pad at the Homase Mine, which was awarded, post period end, on 12 July 2021. In August 2021, the Company successfully commissioned the Carbon in Solution ("CIS") plant on-site, and despite some delays, and some initial commissioning issues with stacking and agglomeration, the Heap Leach Plant is now operating as planned. These issues unfortunately meant that the Company's target production of 25,000

ounces of gold for the   first eight months   of production has been delayed. 

As at 17 September 2021, the Company had mined 133,000 tonnes of ore and 385,700 tonnes of waste from the first four benches of the Krodua Pit within the Homase Mine. All indications are that the grade and tonnes mined to date are within expectations and at a total cash cost, pre-tax, of under US$600 per ounce. These figures have been derived by the Company and the Board believes the cash cost lies within the lower quartile of industry cost standards.

As noted above, 87,300 tonnes of ore have been stacked on the Heap Leach pads and, whilst this is behind our initial forecast schedule, the Company is now stacking the balance of the stockpile at a consistent 120 tonnes per hour. We have temporarily paused further mining whilst the existing stockpile is being depleted and expect to recommence shortly.

The Company is pleased with the initial permeability and dissolution of the leachate, and the CIS plant is operating well and producing loaded carbon at the expected recovery rates. The Company is continuing to make improvements to the CIS plant and investigating further ramping up the speed of stacking and the subsequent processing. The Company has now taken the first batch of loaded carbon out of the CIS plant for further processing, but unfortunately has not yet been able to elute the contained gold.

The Company had been seeking to elute the gold from the loaded carbon at a nearby rented facility, however approval from the Minerals Commission of Ghana for use of this facility has not yet been forthcoming. In light of this, the Company is now accelerating its plans to complete its own elution facility on site, which we are endeavouring to complete in the shortest possible timeframe.

The Company expects to increase the planned gold production from the Company's original guidance of 14,400 ounces, stated in the Definitive Economic Plan ("DEP") announced on 19 June 2019 to around 50,000 ounces of gold per annum within the first year of production, which would represent an increase of more than 300% from the original production schedule.

Whilst the Company is ramping up stacking and production, it has paused the update of the DEP, announced 13 May 2021. The Company expects to complete the update in early 2022.

Corporate Overview

During the period, the Company announced exercise of warrants by the issue of, in aggregate, 126 million new ordinary shares of 1 penny each in the capital of the Company ("Ordinary Shares") (the "Warrant Exercise") for consideration of US$4.8 million. Of this, 102 million warrants were exercised by Asian Investment Management Services Ltd ("AIMS") and Paracale Gold Limited ("Paracale"). In addition, Paracale exercised 20,352,377 warrants at a price of 1.2 pence per Ordinary Share, was set against the related US$1,224,000 loan provided to the Company by Paracale on 28 December 2018, which accrues interest at a daily compound rate of 6% (the "Loan"). Accordingly, the amount due in respect of the Warrant Conversion Exercise being GBP244,229 (c.US$344,362) was satisfied by reducing the total amount of principal and interest outstanding under the Loan to US$1,036,558 on 1 June 2021.

In March 2021, as consideration for the Deferment of the Gold Loan, announced 14 March 2020, 2,000,000 new Ordinary Shares were issued to AIMS.

On 12 July 2021, the Company reached agreement for settlement of its twenty outstanding unsecured bonds of US$50,000 each (the "Bonds") with the holders of the Bonds (the "Bondholders"). The offer was accepted by all Bondholders, who agreed to full and final settlement of the Bonds in exchange for the issue of, in aggregate, 12,000,000 Ordinary Shares (the "Bond Settlement Shares") (the "Bond Settlement Agreement").

Verbal agreement has been received from BCM Investments Limited ("BCM"), which will be allotted its 3,600,000 Bond Settlement Shares immediately following signature of a written Bond Settlement Agreement. A further announcement will be made in due course.

Losses for the six months to 30 June 2021 were approximately US$0.5 million (30 June 2020: Loss of US$0.3 million). The financial statements at the period end show the Group's balance sheet, with net assets standing at US$15.5 million against net assets of US$10.8 million as at 31 December 2020. The net assets increased as result of the funding secured during the period, with warrant exercises.

Having received funding from the Warrants Exercise of US$4.8 million during the H1 2021, to fund the development of the Homase Mine and general working capital, the Company had cash and cash equivalents of approximately US$1.5 million as at 30 June 2021 (30 June 2020: US$0.5 million).

Post period end, on 17 July 2021, Paracale exercised 20 million warrants at a price of 1.2 pence per Ordinary Share, which was set against the related US$1,224,000 Loan provided by Paracale. Accordingly, the balance of the Loan has now been reduced to US$723,669. Interest shall accrue on this outstanding principal balance in accordance with the terms of the Loan Agreement.

In addition, the Company received further Warrant Exercise of 10 million Warrants at a price of 3 pence for consideration of US$409,000.

On 20 September 2021, AIMS agreed to extend the maturity date on the US$3 million secured gold loan announced on 22 June 2020 (the "Gold Loan") to 31 August 2022 (the "Extension"). The Extension restructures the repayment obligations to enable the Company to ramp up production. The Company retains the right to repay the Gold Loan early without penalty.

Interest will continue to accrue at the default rate of 17% until January 2022, then will revert to the original interest rate of 14% until maturity. In conjunction with the Extension, the Company has agreed a repayment schedule for the Gold Loan and accrued and ongoing interest, as set out below:

 
 Month           Gold Loan payments 
                    (in kilos of 
                        gold) 
 October 2021            5 
                ------------------- 
 November 
  2021                   6 
                ------------------- 
 December 
  2021                   8 
                ------------------- 
 January 2022            8 
                ------------------- 
 February 
  2022                   8 
                ------------------- 
 March 2022              8 
                ------------------- 
 April 2022              8 
                ------------------- 
 May 2022                8 
                ------------------- 
 June 2022               8 
                ------------------- 
 July 2022               8 
                ------------------- 
 August 2022            7.4 
                ------------------- 
 

In the event that any payment is not made when due in accordance with the agreed repayment schedule, this will be deemed an event of default. Any interest that is not paid when due will accrue interest at the default rate of 17% until payment.

Other

On 18 January 2021, the Company reached an agreement with a former director of the Company, for full and final settlement of damages awarded by the South African Labour Court in December 2018, pursuant to which 1,800,000 new Ordinary Shares were issued to the former director. This represented full and final settlement of the damages awarded to him by the South African Labour Court and the Company has been indemnified against any future claims by the former director.

Outlook

I look forward to keeping shareholders updated as we move towards production and would like to thank the team, my fellow Board members, and all our stakeholders in Ghana and internationally for their continued support.

Emma Priestley

Chief Executive Officer

Consolidated statement of financial position

as at 30 June 2021

 
                                                30 June       30 June   31 December 
  in united states dollars          notes          2021          2020          2020 
                                              unaudited     unaudited       audited 
Assets 
property, plant and equipment           7    20,926,500       407,198       491,208 
intangible assets - exploration 
 and evaluation                         6             -     9,927,752    14,339,772 
--------------------------------  -------  ------------  ------------  ------------ 
total non-current assets                     20,926,500    10,334,950    14,830,980 
--------------------------------  -------  ------------  ------------  ------------ 
 
trade and other receivables                      85,102     3,380,488     2,145,576 
cash and cash equivalents                     1,537,600       505,462       701,384 
--------------------------------  -------  ------------  ------------  ------------ 
total current assets                          1,622,702     3,885,950     2,846,960 
--------------------------------  -------  ------------  ------------  ------------ 
 
  total assets                               22,549,202    14,220,900    17,677,940 
--------------------------------  -------  ------------  ------------  ------------ 
 
  Equity 
share capital - ordinary 
 shares                                       5,742,974     3,484,580     3,913,963 
share capital - deferred 
 shares                                       6,077,013     6,077,013     6,077,013 
share premium                                31,400,794    27,222,084    28,080,853 
foreign exchange reserve                          6,684      (70,114)      (82,149) 
capital contribution reserve                    555,110       555,110       555,110 
share options reserve                         3,535,197     3,535,197     3,535,197 
accumulated deficit                        (31,783,539)  (30,916,914)  (31,234,911) 
--------------------------------  -------  ------------  ------------  ------------ 
total equity                                 15,534,233     9,886,956    10,845,076 
--------------------------------  -------  ------------  ------------  ------------ 
 
  Liabilities 
provision for rehabilitation            7       901,284             -             - 
borrowings                              8             -     2,368,992     1,300,000 
--------------------------------  -------  ------------  ------------  ------------ 
non-current liabilities                         901,284     2,368,992     1,300,000 
trade and other payables                        593,558       664,952     1,001,998 
borrowings                              8     5,520,127     1,300,000     4,530,866 
--------------------------------  -------  ------------  ------------  ------------ 
current liabilities                           6,113,685     1,964,952     5,532,864 
--------------------------------  -------  ------------  ------------  ------------ 
total liabilities                             7,014,969     4,333,944     6,832,864 
--------------------------------  -------  ------------  ------------  ------------ 
total equity and liabilities                 22,549,202    14,220,900    17,677,940 
--------------------------------  -------  ------------  ------------  ------------ 
 

Consolidated statement of comprehensive income

for the 6 months ended 30 June 2021

 
                                          6 months ended  6 months ended    year ended 
                                            30 June 2021    30 June 2020   31 December 
  in united states dollars         notes                                          2020 
                                               unaudited       unaudited       audited 
continuing operations 
administrative expenses                        (548,628)       (266,156)     (577,153) 
-------------------------------  -------  --------------  --------------  ------------ 
operating loss                                 (548,628)       (266,156)     (577,153) 
-------------------------------  -------  --------------  --------------  ------------ 
finance expense                                        -        (25,942)      (32,942) 
-------------------------------  -------  --------------  --------------  ------------ 
net finance cost                                       -        (25,942)      (32,942) 
-------------------------------  -------  --------------  --------------  ------------ 
 
loss before and after tax 
 from continuing operations            5       (548,628)       (292,098)     (610,095) 
-------------------------------  -------  --------------  --------------  ------------ 
Items that may be reclassified 
 subsequently to profit and 
 loss: 
 foreign exchange translation 
 movement                                         88,833        (18,053)      (30,088) 
-------------------------------  -------  --------------  --------------  ------------ 
 
total comprehensive loss 
 for the period                                (459,795)       (310,151)     (640,183) 
-------------------------------  -------  --------------  --------------  ------------ 
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         (0.002)         (0.001)       (0.002) 
-------------------------------  -------  --------------  --------------  ------------ 
 

Consolidated statement of changes in equity

for the 6 months ended 30 June 2021

 
                      share       share                 foreign 
                    capital     capital                exchange        capital       share 
 in united         ordinary    deferred        share    reserve   contribution     options    accumulated        total 
 states dollars      shares      shares      premium                   reserve     reserve        deficit       equity 
---------------  ----------  ----------  -----------  ---------  -------------  ----------  -------------  ----------- 
 
 balance as at 
  1 January 
  2020            3,484,580   6,077,013   27,222,084   (52,061)        555,110     229,688   (30,624,816)    6,891,598 
 total 
  comprehensive 
  loss 
  for the 
  period                  -           -            -          -              -           -      (292,098)    (292,098) 
 translation 
  movement                -           -            -   (18,053)              -           -              -     (18,053) 
 share warrants 
  granted 
  in period               -           -            -          -              -   3,305,509              -    3,305,509 
---------------  ----------  ----------  -----------  ---------  -------------  ----------  -------------  ----------- 
 balance as at 
  30 June 
  2020            3,484,580   6,077,013   27,222,084   (70,114)        555,110   3,535,197   (30,916,914)    9,886,956 
---------------  ----------  ----------  -----------  ---------  -------------  ----------  -------------  ----------- 
 total loss for 
  the period              -           -            -          -              -           -      (317,997)    (317,997) 
 translation 
  movement                -           -            -   (12,035)              -           -              -     (12,035) 
 share warrants 
  exercised 
  in period         405,084           -      810,168          -              -           -              -    1,215,252 
 share issue in 
  period             24,299           -       48,601          -              -           -              -       72,900 
 balance as at 
  31 December 
  2020            3,913,963   6,077,013   28,080,853   (82,149)        555,110   3,535,197   (31,234,911)   10,845,076 
---------------  ----------  ----------  -----------  ---------  -------------  ----------  -------------  ----------- 
 total loss for 
  the period              -           -            -          -              -           -      (548,628)    (548,628) 
 translation 
  movement                -           -            -     88,833              -           -              -       88,833 
 share warrants 
  exercised 
  in period       1,776,839           -    3,037,133          -              -           -              -    4,813,972 
 share issue in 
  period             52,172           -      282,808          -              -           -              -      334,980 
---------------  ----------  ----------  -----------  ---------  -------------  ----------  -------------  ----------- 
 balance as at 
  30 June 
  2021            5,742,974   6,077,013   31,400,794      6,684        555,110   3,535,197   (31,783,539)   15,534,233 
---------------  ----------  ----------  -----------  ---------  -------------  ----------  -------------  ----------- 
 

Consolidated statement of cash flow

for the 6 months ended 30 June 2021

 
                                            6 months ended     6 months    year ended 
                                                   30 June        ended   31 December 
  in united states dollars                            2021      30 June          2020 
                                                                   2020 
                                                 unaudited    unaudited       audited 
cash flow from operating activities 
operating loss for the period/year               (548,628)    (266,156)     (577,153) 
adjusted for: 
 
        *    depreciation                           12,739        5,152        14,617 
 
        *    foreign exchange differences           88,833     (18,053)      (30,088) 
 
        *    provisions                                  -            -        25,737 
changes in working capital: 
 
        *    trade and other receivables                 -    (125,006)             - 
 
        *    trade and other payables            (408,440)      215,914       329,937 
==========================================  ==============  ===========  ============ 
net cash used in operating activities            (855,496)    (188,149)     (236,950) 
==========================================  ==============  ===========  ============ 
 
cash flow from investing activities 
capitalisation of exploration costs              (746,640)  (1,458,481)   (4,185,534) 
acquisition of property, plant and 
 equipment                                     (2,066,238)    (388,036)     (481,511) 
net cash used in investing activities          (2,812,878)  (1,846,517)   (4,667,045) 
==========================================  ==============  ===========  ============ 
 
cash flow from financing activities 
proceeds from loan                                       -    1,150,000     3,000,000 
repayment of loan                                (344,362)            -             - 
proceeds from bonds                                      -    1,300,000     1,300,000 
redemption of bonds                              (300,000)            -             - 
proceeds from share issue                        5,148,952            -     1,215,251 
net cash received from financing 
 activities                                      4,504,590    2,450,000     5,515,251 
==========================================  ==============  ===========  ============ 
 
net decrease in cash and cash equivalents          836,216      415,334       611,256 
------------------------------------------  --------------  -----------  ------------ 
cash and cash equivalents at beginning 
 of the period/year                                701,384       90,128        90,128 
------------------------------------------  --------------  -----------  ------------ 
cash and cash equivalents at end 
 of the period/year                              1,537,600      505,462       701,384 
------------------------------------------  --------------  -----------  ------------ 
 

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 2021, 30 June 2020 and 31 December 2020.

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 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

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 International Financial Reporting Standards (IFRS) as adopted by the European Union. 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 2020 audited financial statements. Statutory financial statements for the year ended 31 December 2020 were approved by the Board of Directors on 27 June 2021 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 29 September 2021.

There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year commencing 1 January 2021 that would be expected to have a material impact on the Group.

The financial information for the 6 months ended 30 June 2021 and the 6 months ended 30 June 2020 have not been audited.

The business is not subject to seasonal variations. No dividends have been paid in the period (2020: 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 2020 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 2020 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                    2021            2020          2020 
                                         unaudited       unaudited       audited 
loss attributable to shareholders        (548,628)       (292,098)     (610,095) 
weighted average number 
 of ordinary shares                    271,403,038     250,050,253   252,004,667 
==================================  ==============  ==============  ============ 
basic and diluted earnings 
 per share                                 (0.002)         (0.001)       (0.002) 
==================================  ==============  ==============  ============ 
 
   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 Group's reportable segments are:

Exploration and Evaluation: 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 2020

 
 in united states dollars           exploration     corporate         total 
--------------------------------   ------------  ------------  ------------ 
 
 reportable segment expenditure               -     (610,095)     (610,095) 
=================================  ============  ============  ============ 
 
 reportable segment (loss)                    -     (610,095)     (610,095) 
=================================  ============  ============  ============ 
 
 reportable segment assets           14,359,654     3,318,286    17,677,940 
=================================  ============  ============  ============ 
 
 reportable segment liabilities       (504,905)   (6,327,959)   (6,832,864) 
=================================  ============  ============  ============ 
 

information about reportable segments for the period ended 30 June 2020

 
 in united states dollars           exploration     corporate         total 
--------------------------------   ------------  ------------  ------------ 
 
 reportable segment expenditure               -     (292,098)     (292,098) 
=================================  ============  ============  ============ 
 
 reportable segment (loss)                    -     (292,098)     (292,098) 
=================================  ============  ============  ============ 
 
 reportable segment assets           10,601,550     3,619,350    14,220,900 
=================================  ============  ============  ============ 
 
 reportable segment liabilities        (36,130)   (4,297,814)   (4,333,944) 
=================================  ============  ============  ============ 
 

information about reportable segments for the period ended 30 June 2021

 
 in united states dollars           exploration     corporate         total 
--------------------------------   ------------  ------------  ------------ 
 
 reportable segment expenditure               -     (548,628)     (548,628) 
=================================  ============  ============  ============ 
 
 reportable segment (loss)                    -     (548,628)     (548,628) 
=================================  ============  ============  ============ 
 
 reportable segment assets           20,986,537     1,562,665    22,549,202 
=================================  ============  ============  ============ 
 
 reportable segment liabilities     (1,109,658)   (5,905,311)   (7,014,969) 
=================================  ============  ============  ============ 
 
   6.          Intangible assets - exploration and evaluation 

The Group's intangible assets comprise wholly of exploration and evaluation assets in respect of the Homase-Akrokeri project in Ghana.

 
 in united states dollars                         Total 
---------------------------------------   ------------- 
 
 balance as at 31 December 2019               8,256,380 
========================================  ============= 
 
 Additions                                    1,671,372 
 
 balance as at 30 June 2020                   9,927,752 
========================================  ============= 
 
 Additions                                    4,412,020 
 
 balance as at 31 December 2020              14,339,772 
========================================  ============= 
 
 additions                                      746,640 
 
 transfer to assets under construction     (15,086,412) 
 
 balance as at 30 June 2021                           - 
========================================  ============= 
 

Once commercially viable reserves are established and development is sanctioned, exploration and evaluation assets are transferred to assets under construction, see note 7.

   7.          Property, plant and equipment 
 
 
                                                 plant and 
                                                 equipment 
 in united states                                and motor    assets under 
  dollars                        gold samples     vehicles    construction        total 
----------------------------    -------------  -----------  --------------  ----------- 
 Cost 
 1 January 2020                         4,570      282,141               -      286,711 
 additions                                  -      481,511               -      481,511 
------------------------------  -------------  -----------  --------------  ----------- 
 31 December 2020                       4,570      763,652               -      768,222 
 transfers from intangibles                 -            -      15,086,412   15,086,412 
 additions                                  -      255,285       4,205,050    4,460,335 
 increase in provision 
  for rehabilitation                        -            -         901,284      901,284 
 31 June 2021                           4,570    1,018,937      20,192,746   21,216,253 
==============================  =============  ===========  ==============  =========== 
 
 
 
                                             plant and 
                                             equipment 
 in united states                            and motor    assets under 
  dollars                    gold samples     vehicles    construction     total 
-----------------------    --------------  -----------  --------------  -------- 
 Depreciation 
 1 January 2020                         -      262,397               -   262,397 
 charge for the year                    -       14,617               -    14,617 
-------------------------    ------------  -----------  --------------  -------- 
 31 December 2020                       -      277,014               -   277,014 
 charge for the period                  -       12,739               -    12,739 
 31 June 2021                           -      289,753               -   289,753 
=========================    ============  ===========  ==============  ======== 
 
 
 Net Book Value 
 31 December 2020      4,570   486,638            -      491,208 
 31 June 2021          4,570   729,184   20,192,746   20,926,500 
====================  ======  ========  ===========  =========== 
 
   8.          Borrowings 
 
                             6 months ended  6 months ended    year ended 
                                    30 June         30 June   31 December 
  in united states dollars             2021            2020          2020 
                                  unaudited       unaudited       audited 
shareholder loan                          -       1,306,507             - 
gold loan                                 -       1,062,485             - 
bonds                                     -               -     1,300,000 
---------------------------  --------------  --------------  ------------ 
non-current borrowings                    -       2,368,992     1,300,000 
shareholder loan                  1,041,282               -     1,346,642 
gold loan                         3,478,845               -     3,184,224 
bonds                             1,000,000       1,300,000             - 
---------------------------  --------------  --------------  ------------ 
current borrowings                5,520,127       1,300,000     4,530,866 
===========================  ==============  ==============  ============ 
total borrowings                  5,520,127       3,668,992     5,830,866 
===========================  ==============  ==============  ============ 
 

Shareholder loan

The Company entered into a loan agreement with Paracale Gold Limited ("Paracale"), the Company's major shareholder, in December 2018, for a loan of up to US$1.2 million.

The loan accrues interest at 6.0% per annum, compounded daily against the loan's outstanding balance, until it

is repaid.   The loan will be repaid in full on or before 2 June 2022. 

In consideration of entering into the loan agreement, Paracale, were issued with 40,352,377 warrants to subscribe for such number of ordinary shares of 1 penny each in the capital of the Company ("Ordinary Shares") at an exercise price of 1.2p per share, at any time during the period through to 2 June 2022.

Gold Loan

The Company entered into a loan agreement with Asian Investment Management Services Limited ("AIMS") 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.

On 20 September 2021, AIMS agreed to extend the maturity date on the US$3 million secured gold loan announced on 22 June 2020 (the "Gold Loan") to 31 August 2022 (the "Extension"). The Extension restructures the repayment obligations to enable the Company to ramp up production. The Company retains the right to repay the Gold Loan early without penalty.

Interest will continue to accrue at the default rate of 17% until January 2022, then will revert to the original interest rate of 14% until maturity. In conjunction with the Extension, the Company has agreed a repayment schedule for the Gold Loan and accrued and ongoing interest, as set out below:

 
 Month           Gold Loan payments 
                    (in kilos of 
                        gold) 
 October 2021            5 
                ------------------- 
 November 
  2021                   6 
                ------------------- 
 December 
  2021                   8 
                ------------------- 
 January 2022            8 
                ------------------- 
 February 
  2022                   8 
                ------------------- 
 March 2022              8 
                ------------------- 
 April 2022              8 
                ------------------- 
 May 2022                8 
                ------------------- 
 June 2022               8 
                ------------------- 
 July 2022               8 
                ------------------- 
 August 2022            7.4 
                ------------------- 
 

In the event that any payment is not made when due in accordance with the agreed repayment schedule, this will be deemed an event of default. Any interest that is not paid when due will accrue interest at the default rate of 17% until payment.

Bonds

The Company issued twenty six unsecured bond notes of US$50,000 each to certain existing and new investors, raising, in aggregate, US$1.3 million before expenses. Paracale Gold and BCM, the Company's major shareholders, each subscribed for six bonds with a value of, in aggregate, US$0.3 million respectively. During the period, six of the bond notes were redeemed.

In consideration of entering into the Bonds, a total of 52,000,000 warrants were issued to subscribe for such number of Ordinary Shares at the Exercise Price, at any time during the period through to 22 June 2022.

   9.          Availability of interim report 

The interim report is available on the Company's website www.goldstoneresources.com.

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END

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