GoldStone Resources narrows loss as Ghana development continues

The AIM-traded firm reported exploration expenses for the period of $0.13m, compared woth $0.4m in the first half of 2015, with other expenses narrowing to £0.31m from $0.41m.

Its operating loss was $0.44m, compared with $0.82m a year ago.

GoldStone’s basic and diluted loss per share almost halved to 0.7 US cents, compared with 1.3 cents a year ago and 2.1 cents for the full 2015 year.

Its total assets for the period were also significantly reduced, at $0.09m compared with $0.78m a year ago, mostly as a result of cash plummeting to $0.08m compared with $0.75m.

“Post the period end we raised, in aggregate, £1m through the placing announced on 28 July, and I am pleased to say that the majority of the funds raised came from existing shareholders who demonstrated their support in the company and its management,” said chairman Neil Gardyne.

“The fundraise was to provide, inter alia, funding to advance the company's principal project, Homase-Akrokerri in Ghana, and we have now completed the 120 hole auger-drilling program and expect to mobilise shortly a multi-purpose reverse circulation and diamond drill rig to follow up on the extensions to known mineralisation within the Akrokerri licence as identified by the 2015 auger programme.”

Gardyne said he believes the markets are seeing the bottom of the commodity cycle, with a “palpable confidence and enthusiasm” in the junior mining sector, which has not been there for the past five years.

“GoldStone is well placed to take advantage of this and we are already seeing a number of opportunities being presented to us, which we will continue to review and assess going forward.

“Our focus, however, will initially be on adding to the resources we already have in Ghana.”

At 1003 BST, shares in GoldStone Resources were up 5.77% at 2.75p.