Wilton Resources Corporation Limited: 1H 2025 Financial Review

Wilton Resources Corporation Limited (“Wilton Resources”) has released its unaudited condensed interim consolidated financial statements for the six months ended 30 June 2025. The report provides insight into the operational and financial challenges faced by the Group, including the impact of environmental disruptions, ongoing strategic reviews, and key financial metrics. Below is a detailed analysis for investors and market watchers.

Key Financial Metrics and Performance Table

Historical Performance Trends

• Revenue: Significant increase YoY, driven by higher gold sales (0.6kg vs. 0.1kg last year) and improved gold prices (average US\$3,110/oz vs. US\$1,995/oz).
• Net Loss: Losses narrowed by 9.7% YoY, reflecting improved gross profit, lower operating expenses, and forex losses, but still substantial due to high finance and administrative costs.
• EPS: Basic and diluted loss per share improved from Rp (28.67) to Rp (20.31).

Exceptional Earnings and Expenses

• Other Income: Jumped to Rp 7.1 billion (from Rp 0.7 billion), mainly due to a Rp 6.5 billion vendor liability waiver.
• Other Expenses: Dropped sharply, reflecting a decrease in foreign exchange losses (Rp 14.1 billion lower YoY).
• Finance Costs: Rose to Rp 20.6 billion (up Rp 4 billion YoY) due to accretion of interest on the Project Financing Liability.
• General and Administrative Expenses: Increased to Rp 37.8 billion (up Rp 15.5 billion YoY), primarily driven by mining management services.

Major Corporate Actions and Events

• Asset Sales: Sale of 300 million shares in PT Wilton Makmur Indonesia Tbk for S\$937,500 as part of a settlement and re-purchase agreements. Effective ownership in PT WMI now at 61.32%.
• Working Capital Loan: Ongoing reliance on an IDR 36 billion facility, with IDR 12 billion still available for drawdown.
• Processing Facility Disruptions: Severe hydrometeorological events (La Nina) caused flash floods, landslides, and operational suspension due to power outages. Electricity supply has been restored, but operations remain suspended pending maintenance and safety checks.
• Project Financing Liability: Ongoing negotiations with Karl Hoffmann Mineral Pte. Ltd.; substantial modifications to repayment terms, with outstanding amounts accruing interest at 9% per annum.

Related-Party Transactions

• Additional advances from a director (Rp 0.2 billion) are unsecured, non-interest bearing, and repayable on demand.
• Rental expense for office premises with a director remains unchanged at Rp 250 million per period.

Cash Flow Analysis

• Operating Cash Flow: Net outflow of Rp 17.5 billion in 1H 2025, mainly due to operating losses and working capital changes.
• Investing Cash Flow: Net inflow of Rp 12.1 billion, reflecting proceeds from partial disposal of interests in a subsidiary.
• Financing Cash Flow: Net inflow of Rp 6.0 billion, mainly from working capital loan proceeds.

Chairman’s Statement

“On behalf of the Board of Directors
Wijaya Lawrence
Executive Chairman and President
Singapore
17 November 2025”

Tone: The statement is factual and neutral, focusing on official confirmation without explicit positive or negative sentiment.

Dividend Information

• No dividend declared or recommended for 1H 2025 or the same period last year, as the Group is loss making.

Events Impacting the Business

• Natural Disaster: La Nina-induced hydrometeorological disaster affected mining operations significantly.
• Legal/Contractual: Ongoing discussions with Karl Hoffmann on project financing liability; no legal disputes reported, but substantial liabilities remain.
• Strategic Review: Professional firms appointed to assist in exploring strategic options for the Group.

Forecast and Outlook

• Gold Price: Gold prices have risen significantly (47% YTD), which could benefit future revenue if operations resume.
• Operational Status: Processing facility remains suspended; efforts are ongoing for maintenance and safety. Plans to resume processing oxide ores in Q4 2025, transitioning to mixed ores subsequently.
• Working Capital Deficit: Deficit widened to Rp 729.8 billion. Company is actively seeking funding arrangements to address working capital and capex needs.

Conclusion and Investor Recommendations

Financial Performance Assessment: Wilton Resources demonstrates some improvements YoY, notably in revenue, gross profit, and narrowing net losses. However, the Group remains in a challenging position with substantial losses, high finance costs, a large working capital deficit, and suspended production due to environmental disruptions. The outlook is neutral to weak unless operational resumption, successful strategic review, or new funding is secured.

Investor Recommendations

• If Currently Holding: Consider holding only if you are risk-tolerant and anticipate operational recovery or strategic turnaround, particularly if gold prices remain high. Otherwise, review your position in light of ongoing operational and financial uncertainties.
• If Not Holding: Wait for further clarity on operational resumption, successful funding, or strategic actions before considering a position. The current risks outweigh the potential upside until the Group demonstrates sustainable progress.

Disclaimer: The above analysis is based solely on the information contained in the company’s latest financial report and does not constitute investment advice. Investors should conduct their own due diligence and consider consulting a licensed financial advisor before making investment decisions.

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