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Gold miner Wilton Resources sinks deeper into the red with 24.7b rupiah Q4 loss

HIGHER operating and finance expenses sent Catalist-listed gold miner Wilton Resources Corp deeper into the red for its fourth-quarter and full year results. 

For the three months ended June 30, net loss came in at 24.7 billion rupiah (S$2.3 million), from a loss of 14.9 billion rupiah a year earlier. 

This translates to a loss per share (LPS) of 10.12 rupiah (0.1 Singapore cent) for the quarter, from a LPS of 6.1 Indonesian sen (0.06 Singapore cent) last year. 

No dividend has been declared. 

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Revenue for the fourth quarter and the full year came in at 4.3 billion rupiah as the group reported the maiden sale of its gold dore in Q4. A total of 7.7 kg of gold dore was sold at about US$1,274 per ounce, Wilton Resources said. No revenue was reported for the fourth quarter and the full year of fiscal 2017. 

For the 12 months ended June 30, Wilton Resources widened its net loss to 78.8 billion rupiah, from a net loss of 46 billion rupiah in the previous year.  

LPS for the full year stood at 32.35 rupiah (0.32 Singapore cent), versus 19.66 rupiah (0.21 Singapore cent) a year ago. 

In particular, other operating expenses rose by 73.4 per cent, or six billion rupiah in fiscal 2018, mainly due to higher exploration and evaluation expenses, higher amortisation of prepaid land leases, and higher site expenses incurred during the year, Wilton Resources said.

Finance costs of 15.2 billion rupiah was also recorded for the full-year period. This was related to interest expense incurred on the project financing arrangement obtained by the group in October last year to fund a facility at the company's Ciemas Gold Project located in West Java, Indonesia. There was no such cost incurred in FY2017.

According to Wilton Resources, gold price has declined since the beginning of July last year from US$1,229 per ounce to about US1,198 per ounce due to the stronger US dollar. 

Nonetheless, the group said it remains focused on gold production at its Ciemas Gold Project, which "boasts high grades, large and open resources, and low projected costs which help to de-risk the opportunity". 

Looking ahead, the volatility of the foreign exchange for the US dollar against the group's functional currency (Indonesian rupiah) will continue to have a significant impact on its financial results, Wilton Resources said. 

The counter last traded at 3.9 Singapore cents apiece on Aug 27.