GoldStone audit process to be concluded soon; Homase production plan under review

19th September 2023

By: Tasneem Bulbulia

Senior Contributing Editor Online


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Aim-listed GoldStone Resources says an audit of its results for its financial year ended December 31, 2022, is ongoing, with the final results and annual report expected to be finalised and published within the next two to three weeks.

It notes that the audit process is taking longer than expected, in part owing to the fact that its new auditor Moore Stephens Audit & Assurance, which started working with GoldStone at the beginning of June, has needed time to on-board the company and its Ghanaian subsidiary.

In addition, an associate firm of Moore Stephens, based in Africa, was required to audit GoldStone’s Ghanaian subsidiary.

In June, GoldStone reported that it would not be in a position to publish the 2022 annual report and accounts by June 30, as its then auditor, DSG Chartered Accountants, was no longer in a position to provide the audit opinion for a gold mining company that is now in production and quoted on the Aim.

GoldStone says the board is also in ongoing discussions with Asia Investment Management Services (Aims) to seek an appropriate extension to its secured gold loan facility, which is currently scheduled to mature and fall due for settlement in full on September 30.

Aims has historically been supportive of the company, and the board says it is therefore confident of obtaining an extension in the coming weeks; however, cautions that there can be no certainty as to the outcome of these discussions and that, if an extension cannot be agreed, security over the company’s primary assets could potentially be enforced.

GoldStone’s ordinary shares will remain suspended from trading until such time as it has satisfied the requirements of Aim Rule 19 with respect to the 2022 annual report.

The company also notes the requirements under Aim Rule 18 with regard to its interim results for the six-month period to June 30, which are required to be published by September 30.

It notes that the interim results are being prepared and are expected to be published shortly after publication of the 2022 full-year results.

GoldStone is focused on developing the Akrokeri-Homase project in south-western Ghana.

On January 27, GoldStone set out its plans to improve production using the proceeds from the issue of its £2.4-million convertible loan note.

The company has subsequently made significant improvements to the existing dry plant to enable it to perform more in line with expectations.

The agglomeration drum for the second dry plant has been completed, the second screen is on order and the additional 30 m of conveyors are to be fabricated.

The company has also bought two second-hand 30 t excavators, two new front-end loaders, a truck crane, a tractor loader backhoe, a tractor and supporting associated accessories.

In line with the enhancements to the dry plant, mining started in Pit 2 of the Homase mine in May, with an initial stripping ratio of 3:1. To date, about 65 300 t of ore have been mined at an inferred grade of 1.1 g/t.

Stacking restarted in June, and plant feed has been maintained at an average of 1 000 t a shift, running on a single-shift basis.

GoldStone reports that, for the third quarter to date, about 652 oz of fine gold has been shipped.

After reconciling mine development and production from 2022, including investigating the issues with the heap leach process, which has been an ongoing problem, and the impact of no stacking on to the heap for the first six months of this year, the company is undertaking a review of its Homase production plan and forecast.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online




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