Wishbone Gold PLC (AIM: WSBN, AQSE: WSBN) has delivered one of AIM’s most eye-catching turnarounds in 2025. From the depths of a regulatory suspension in January to a fourfold share price gain in August, the company has re-established itself as a retail favourite.
The spark came from drilling progress at Red Setter in Western Australia’s Patersons Range, close to Greatland Resources’ Telfer operation, and the nearby Havieron discovery. Proximity to such established assets has always carried weight with retail investors, and the latest results have brought that narrative back to the surface.
The rally has reignited debate over Wishbone’s future. Could Red Setter evolve into a Havieron-style story, or is it still best viewed as a speculative play in the volatile world of AIM exploration? To answer that, it is worth revisiting the company’s journey through 2025, the strategic importance of Red Setter, and the risks that come with high-stakes exploration.
From suspension to reset
The year began with corporate uncertainty. On 23 January 2025, Wishbone requested a suspension after signing heads of terms for a potential reverse takeover. This created months of limbo, with little clarity about the company’s future. By mid-March, the proposed deal had been terminated, allowing Wishbone to focus once more on its exploration portfolio and, more importantly for shareholders, start trading again.
The next step was corporate housekeeping. In April, Wishbone completed the reorganisation of its Western Australian subsidiary, Wishbone Gold WA Pty Ltd, having cleared all legal liabilities. The move restored full ownership and operational control of its Red Setter and Cottesloe projects. Management was also strengthened with the appointment of veteran geologist Edward Mead to head Western Australian operations, marking a pivot back towards exploration progress and new strategy rather than corporate manoeuvring.
Financing was the other half of the reset. A £1.75 million placing in June gave the company a strengthened balance sheet. For retail investors, these moves showed that Wishbone had the funds to drill again. In a market where dilution, although not liked, is expected, the timing and scale of the raise were critical, providing enough runway to deliver meaningful results without excessive equity issuance.
Red Setter: the catalyst
All of this groundwork set the stage for Red Setter. Located just 15 kilometres southwest of Newmont’s Telfer mine, Red Setter has always carried the aura of potential. The 2024 annual report described it as the company’s priority project, and by August 2025, the focus was squarely on delivering drilling results.
The sequence of updates began with confirmation that drilling had commenced in late July. A matter of days later, a progress report confirmed that operations were on track. The turning point came on 18 August, when Wishbone announced that drilling had intersected a breccia pipe. Breccia pipes are significant because they can provide conduits for mineralising fluids, a common feature in major deposits.
On 23 August, the company followed up with news that the interval had expanded, reinforcing confidence that the geological model was holding up. These announcements coincided with a sharp move in the share price, from 0.35 pence in mid-August to 1.45 pence a week later.
Retail attention was amplified by coverage from the likes of our very own Share Talk. Longtime commentators like Zak Mir also highlighted the news, reminding retail audiences that Red Setter had been on their radar for some time. In a thinly traded stock, this mix of newsflow and commentary was enough to ignite a surge.
The Greatland Gold comparison
Whenever a junior explorer drills in the Patersons Range, comparisons with Greatland Gold are inevitable. The Havieron discovery, made in 2018, took Greatland from the status of a small AIM explorer to a multi-billion-pound company, eventually leading to a joint venture with Newcrest and then integration into Newmont’s global portfolio before Greatland acquired Telfer outright in December 2024. It is one of the most dramatic transformations AIM investors have witnessed in recent years.
Wishbone’s market capitalisation, at around £37.6 million in late August, is a fraction of Greatland’s current £34.7 billion valuation. That gap explains much of the excitement. Retail investors look at Red Setter’s location, just a short distance from Havieron and Telfer, and wonder if lightning could strike twice. The proximity narrative is powerful, particularly when combined with early signs such as the breccia pipe intersections, which fuel speculation that Red Setter may share geological characteristics with Havieron.
But geology is never that simple. Greatland’s rise was built on years of systematic drilling, the de-risking effect of a major joint venture partner, and eventually the scale required to underpin commercial development. For Wishbone, Red Setter is still at the very start of that journey. Until assays confirm grade and continuity, the project remains highly speculative. For retail investors, the lesson is that while Red Setter may offer Havieron-style potential, the pathway from first intercepts to a tier-one discovery is long, expensive, and uncertain.
Beyond Red Setter
Although the spotlight is firmly on Red Setter, Wishbone has other assets in both Western Australia and Queensland. These include Cottesloe, where sediment-hosted base metals are the target, Anketell, Wishbone II, IV and VI, and White Mountain. Earlier in the year, new gold targets were outlined at Mosquito Creek, supported by the appointment of Apex Geoscience to advance exploration.
The 2024 annual report makes clear that Red Setter remains the priority, but the wider portfolio provides optionality. Should Red Setter disappoint, other projects could take on greater significance. Conversely, if Red Setter delivers, these assets provide the pipeline that can sustain growth.
Financial position as at 31 December 2024
The annual report to 31 December 2024 shows Wishbone debt-free, with modest cash reserves. As a pre-revenue explorer, the company reported losses consistent with ongoing exploration and administrative costs. Since year-end, the company has improved liquidity through a £1.75 million placing in June and a smaller equity issue in July.
For retail investors, the key message is that Wishbone is currently funded for its immediate drilling programme at Red Setter. Dilution is always a feature of AIM exploration, but it does not automatically mean share price weakness. The June raise was completed at a time when the stock was trading near historic lows, yet just weeks later the Red Setter breccia pipe announcements ignited a surge that lifted the price more than fourfold. That sequence underlines a critical point: if on-the-ground news is strong enough, the market can easily absorb additional equity and still re-rate the stock.
The risk, of course, is that further capital will be needed for a step-up in drilling or to advance satellite projects such as Cottesloe or Mosquito Creek. If market sentiment is positive, future raises could be absorbed at higher levels. If sentiment turns, the same raises could be more punitive. The balance between operational progress and market timing is therefore central to how Wishbone’s capital structure will evolve.
Risks and opportunities
The upside case is straightforward. If drilling at Red Setter confirms continuity and grade within the breccia pipe system, the company’s valuation could rise sharply. Investors have already seen how quickly sentiment can shift based on geological indicators. Further positive news could trigger another wave of retail buying.
The risks are equally stark. Breccias are complex, and many fail to deliver economic mineralisation. Market enthusiasm can fade as quickly as it builds, and in a stock with thin liquidity, declines can be as exaggerated as rallies. Until assays are delivered and continuity proven, Red Setter remains a high-risk, high-reward play.
Retail psychology and AIM volatility
The August rally also illustrates the psychology of AIM investing. Many retail holders were drawn to Wishbone by its location near Telfer and Havieron, with the “next Greatland” narrative never far from investor chat rooms. The breccia pipe updates provided the immediate spark, but it was retail momentum that transformed those announcements into a fourfold gain in little more than a week.
This volatility cuts both ways. Retail enthusiasm can propel shares sharply higher on relatively modest news, but the same dynamic can drive steep corrections if expectations are not met. For investors, the key is to recognise the pattern and use it to their advantage. Those comfortable with the rollercoaster can benefit from the bursts of momentum that AIM stocks generate.
The lesson from August is that when geology and retail excitement align, even a small-cap explorer like Wishbone can suddenly command market attention on a scale far beyond its £37 million market cap. The comparison with Greatland Gold’s early days is instructive: Havieron’s first drill results ignited a series of retail-led rallies long before Newcrest stepped in, creating the liquidity and visibility that allowed Greatland to scale up. If Red Setter can continue to deliver encouraging intercepts, Wishbone could benefit from the same self-reinforcing cycle of news flow, retail momentum, and institutional attention.
Outlook
Wishbone Gold has re-emerged as one of AIM’s most dynamic exploration stories. From the uncertainty of January’s suspension to the excitement of August’s fourfold rally, the company has shown how quickly sentiment can shift when tangible exploration progress meets a compelling narrative.
For existing holders, patience will be required as drilling continues and assays are released, with volatility along the way almost guaranteed. For new investors, the decision is whether to treat Wishbone as a short-term trading opportunity driven by news flow or a longer-term bet on Red Setter maturing into a discovery of scale.
Either way, Wishbone is firmly back on the map. The next phase of results will determine whether August’s surge marks the first chapter of a Havieron-style growth story or simply another reminder of the risks that come with AIM exploration. For now, the mix of geological promise, retail momentum, and renewed corporate focus makes Wishbone one of the most closely watched juniors in the sector.
Disclaimer: The information presented in this article represents the views and analysis of the author and is provided for informational purposes only. It should not be interpreted as financial, investment, or legal advice. Investors should conduct their own due diligence and consult a qualified adviser before making investment decisions. Investing in AIM-listed companies involves risk, and past performance is not indicative of future results.
