REG - Great Western Mining - Half-year Report
30/09/2022 07:16
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RNS Number : 2555B Great Western Mining Corp. plc 30 September 2022
Great Western Mining Corporation PLC
("Great Western", "GWM" or the "Company")
Half Yearly Report and Unaudited Condensed Financial Statements
Financial Highlights:
· Loss for period €448,652 (30 June 2021: loss of €427,590 and
December 2021: loss of €535,960)
· Basic and diluted loss per share 0.0001 cent: (30 June 2021:
0.0004 cent and 31 December 2021: €0.001 cent)
· Net assets at 30 June 2022: €9,191,466 (30 June 2021:
€8,711,124 and 31 December 2021: €8,945,631)
Operational Highlights:
· Completed drilling programmes at Rock House ("RH") and Trafalgar
Hill (TH")
o Three holes completed RH totalling 488 m with positive indicators of
alteration
o Three holes drilled at TH with a combined length of 436 m,
· Grab sampling results from 51 spoil heaps at Mineral Jackpot
("MJ")
Post period End:
· OMCO drilling assays received
o Extension to OMCO Mine now established
o Gold recorded over 6.1 metre interval including a best intercept of 8.1
grams/tonne over 1.5 metres
· RH and MJ assay results highlighted strong project dynamics
o High grades of silver at MJ providing potential for shallow drilling and
ore to be produced through milling JV
o Reportable, anomalous gold values were encountered at RH with clear
evidence of a continuing gold mineralising system
o New zone of anomalous copper identified beneath a surface gossan at RH
· Completed OMCO Mine MJ drilling programmes
o Ten holes totalling 1,339 metres drilled in the OMCO Mine area
o Four holes totalling 536 metres drilled in the Mineral Jackpot main
workings area
· Signed a 50-50 joint venture agreement with Muletown Enterprizes
LLC to form Western Milling LLC for construction of a mill to recover gold and
silver from pre-mined material and shallow ore
o Manager appointed and the first stage design of a processing mill for
secondary recovery of gold and silver from mining waste is now complete
Brian Hall, Executive Chairman, commented: "We are very pleased with the
progress made during the period. We set out our stall with an ambitious
drilling programme, completed on time and on budget, with positive results
received to date. Our transition to near-term production of gold and silver
has taken a step closer today following signing of an agreement with Muletown
Enterprizes LLC to create a processing mill in Nevada which will ultimately
process third party material as well as our own.
"We have been able to highlight the strength of our portfolio, which is
proving increasingly prospective, and we continue to believe that our assets
underpin long-term value, while the potential for near-term revenue generation
will help separate us from the crowd."
For Further Information:
Great Western Mining Corporation PLC
Brian Hall, Chairman Via Walbrook PR
Max Williams, Finance Director
Davy (NOMAD, Euronext Growth Listing Sponsor & Joint Broker)
Brian Garrahy +353 1 679 6363
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
Walbrook PR (PR advisers)
Nick Rome/Joe Walker +44 207 933 8783
Interim Report
For the six months to 30 June 2022
Below are Great Western Mining Corporation PLC's Annual Report and Financial
Statements for the half year ended 30 June 2022.
Great Western Mining Corporation PLC ("Great Western" or "the Company")
explores for, appraises and develops mineral resources on its claims in the
state of Nevada, USA but currently has no revenues from its operations.
Accordingly it is reporting a loss of €448,652 for the half year ended 30
June 2022 (30 June 2021: €427,590; 31 December 2021: €535,960). At the
end of the period Great Western's net assets were €9,191,466 (30 June 2021:
€8,711,124; 31 December 2021: €8,945,631) with no debt apart from trade
creditors in the normal course of business.
During the half year, Great Western launched a drilling campaign over four of
its claim groups in Mineral County, Nevada which continued into the second
half, constructed a 14 km mountain road to provide access to its high altitude
Mineral Jackpot group of historic mines and created a provisional joint
venture with a locally-based contractor to process spoil heaps from previous
mining operations, tailings and stockpiles of mined but unprocessed material,
all of which are present on its claims.
Drilling Activities
The four claims groups selected for drilling were the Southern Alteration Zone
at Rock House (SAZ), the Trafalgar Hill prospect at the Olympic Gold Project,
the area around the abandoned OMCO Mine at the Olympic Gold Project and
Mineral Jackpot. Rock House and Trafalgar Hill were drilled during the
period ended 30 June 2022 and the OMCO Mine and Mineral Jackpot were drilled
post period and included in the report for completeness.
Rock House Group: The SAZ was first drilled by Great Western in 2021, having
been identified along with other prospects at Rock House through satellite
imagery and then extensively soil and rock chip sampling. In 2021, two holes
graded vein material of approximately 8 grams/ton Au and 2 grams/ton Au
respectively. Ambitious step out drilling this year aimed to find a
coalescing of several thin veins but this was not achieved. However, assay
results provided evidence of copper which had not been anticipated and
drilling has constructively added to knowledge of the prospects which will be
used in designing future drilling activity.
Trafalgar Hill at the Olympic Gold Group: Three holes were drilled with an
aggregate length of 436 metres at the shallower zone in the southern part of
the Trafalgar Hill claims to follow up the positive results achieved in the
2021 drilling programme. The Company has developed a geological model based on
last year's drilling results and was able to predict the lithology and
alteration features intersected in the three holes with great accuracy.
Assay results for the three holes are pending as the Company has decided to
expand the assay testing to include screen fire assay techniques which will
test for coarse nuggety gold potentially identified within the system.
The OMCO Mine at the Olympic Gold Project: The OMCO Mine produced gold from
shallow depths for roughly four decades before being abandoned during the
Second World War. The principal east-west vein is interrupted by a
north-south fault and one of Great Western's objectives is to find a
continuation of the vein on the eastern side of this fault. Magnetometry and
drilling in 2021 identified mineralisation compatible with the OMCO vein but
did not find a continuation of the vein itself.
Drilling this year has been focused on possible unmined continuations of the
vein on the west side of the fault. This proved successful as hole OMRC015
intercepted compatible vein material, proving up a continuation of the OMCO
vein. OMCR0015 intercepted 6.10 metres from 38.10 metres in the hole grading
at 2.682 grams/ton Au average, including 8.110 grams/ton Au over 1.52 metres
from 39.62 metres and 1.747 grams/ton Au over 1.52 metres from 41.15 metres.
Pursuing this vein will be a primary objective of the next drill campaign.
Mineral Jackpot in the Black Mountain Group: Although the five historic mines
making up Mineral Jackpot produced gold and silver for some years before and
after the turn of the 19th-20th century, access had only been by mule track
and until this year none of the prospects had ever been drilled. Great
Western has carried out soil surveys over the last three years, collected rock
chip samples and conducted magnetometry surveys, on foot where possible and by
specialist drones in the less accessible areas. The new 14 km road was
constructed during the reporting period, with the dual objectives of providing
access for a drill rig and a route for offloading numerous spoil heaps of
mining waste for secondary recovery of gold and silver. Four holes have been
drilled since the end of the period. One hole, MJRC004, intercepted a 7.62
metre zone from 4.57 metres in the hole, grading at 180.94 grams/ton Ag and
0.315 grams/ton Au, contained within which was a high-grade silver zone hosted
in quartz vein of 3.04 metres at 418.00 grams/ton Ag and 0.554 grams/ton Au,
starting at 6.10 meters drilled depth. There is scope for extensive further
drilling all over the Mineral Jackpot claims but the immediate focus is likely
to be on shallow drilling with a small rig in the vicinity of the recent
discovery.
Planned Processing Operations
Over the last two years, Great Western has been researching the optimum means
of processing mining waste for recovery of gold and silver. Originally this
was planned to be a simple gravity separation process for spoil material from
Mineral Jackpot, where there are 51 known spoil heaps. The concept was
expanded once work began in earnest on the newly acquired Olympic Gold Project
option in 2021, where extensive tailings, spoil heaps and a stockpile of
material had been mined but never processed. During the period the Company
concluded a way forward and has now signed a 50-50 joint venture agreement
with Muletown Enterprizes LLC, a Nevada based contractor, to construct a
processing mill on private land owned by Muletown. The joint venture company
will be known as Western Milling LLC.
Copper Projects
In addition to its gold and silver operations, Great Western has already
drilled and established a partly inferred, partly indicated copper resource of
4.3 million tonnes at a grade of 0.45% at its M2 project in the Black
Mountains group. This was a considerable achievement, with the potential to
lead to the discovery of a much larger copper resource. Great Western
believes there is untested potential in both directions along strike, on a
structure of up to 5 km, supported by historical mine workings to the
northeast, and an IP anomaly to the southwest.
Great Western's copper resource at the M2 project is complemented by copper
potential on other claim groups. As referenced above, drilling at Rock House
during the period intercepted a surface gossan with underlying long intercepts
of elevated copper grades. Also, during the period hill-cuts at the M4 project
were chip sampled, resulting in 16 m at 0.2% and 0.28% Cu respectively. An
IP survey was conducted over the Company's Eastside Mine group of claims
revealing IP anomalies with promising copper potential. Further, the Company
has in the past drilled a single hole on the Huntoon claims which assayed at
0.35% Cu over 27.4 metres and this will be followed up in due course. Finally,
there is further copper potential at the Tun Group.
A major copper project is too large an undertaking for a company of Great
Western's size and so a larger partner is being sought. There have been
several expressions of interest so far, but none has met Great Western's
objectives. Although no firm decision has been made, Great Western may
restart a limited drill programme to prove up the copper potential at M2 as
well as reviewing exploration opportunities at the other claim groups to
provide a broader base of copper potential for an incoming industry partner.
Looking Forward
Since 30 June 2022, Great Western has completed drilling activity at OMCO and
Mineral Jackpot as reported above. The Company has also undertaken
significant reclamation work at Rock House, the OMCO Mine, the M2 Project and
Sharktooth to ensure that regulatory commitments are met and to release
permitted acreage ready for further drilling activity in 2023.
Looking forward, in the final quarter of 2022 and early 2023 Great Western
will focus on planning, constructing and operating the proposed process mill
with the objective of transitioning from pure exploration alone to a
combination of exploration and commercial production. This includes the
commissioning of a JORC-compliant resource estimate for the tailings at the
OMCO mine, which is expected to include defined exploration targets for other
available material. The study is currently under way. Finally, the Company
is preparing a shallow drilling programme to follow up on the successful
results at Mineral Jackpot and in the OMCO Mine area. Shareholders will be
kept informed on progress.
Unaudited Condensed Consolidated Income Statement
For the six months to 30 June 2022
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2022 30 Jun 2021
31 Dec 2021
€ € €
Continuing operations
Administrative expenses (448,860) (427,703) (536,178)
Finance income 4 208 113 218
Loss for the period before tax (448,652) (427,590) (535,960)
Income tax expense 5 - - -
Loss for the financial period (448,652) (427,590) (535,960)
Loss attributable to:
Equity holders of the Company 3 (448,652) (427,590) (535,960)
Loss per share from continuing operations
Basic and diluted loss per share (cent) 6 (0.0001) (0.0001) (0.001)
All activities derived from continuing operations. All losses are attributable
to the owners of the Company.
Unaudited Condensed Consolidated Statement of Other Comprehensive Income
For the six months to 30 June 2022
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2022 30 Jun 2021
31 Dec 2021
€ € €
Loss for the financial period (448,652) (427,590) (535,960)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Currency translation differences 630,692 183,588 498,070
630,692 183,588 498,070
Total comprehensive income /(expense) for the financial
period attributable to equity holders of the Company 182,040 (244,002) (37,890)
Unaudited Condensed Consolidated Statement of Financial Position
For the six months to 30 June 2022
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2022 30 Jun 2021
31 Dec 2021
Assets € € €
Non-current assets
Property, plant and equipment 7 78,694 68,781 72,170
Intangible assets 8 8,236,192 6,448,102 7,086,254
Total non-current assets 8,314,886 6,516,883 7,158,424
Current assets
Trade and other receivables 9 146,406 263,982 110,940
Cash and cash equivalents 10 1,158,053 2,714,948 2,042,547
Total current assets 1,304,459 2,978,930 2,153,487
Total assets 9,619,345 9,495,813 9,311,911
Equity
Capital and reserves
Share capital 14 357,751 357,751 357,751
Share premium 14 13,572,027 13,572,027 13,572,027
Share based payment reserve 15 382,416 294,132 318,621
Foreign currency translation reserve 1,149,935 204,761 519,243
Retained earnings (6,270,663) (5,717,547) (5,822,011)
Attributable to owners of the Company 9,191,466 8,711,124 8,945,631
Total equity 9,191,466 8,711,124 8,945,631
Liabilities
Current liabilities
Trade and other payables 11 282,621 263,741 146,642
Decommissioning provision 12 136,295 80,257 123,344
Share warrant provision 13 8,963 440,691 96,294
Total current liabilities 427,879 784,689 366,280
Total liabilities 427,879 784,689 366,280
Total equity and liabilities 9,619,345 9,495,813 9,311,911
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2022
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 January 2021 307,071 12,543,606 559,420 21,173 (5,511,645) 7,919,625
Comprehensive income for the period
Loss for the period - - - - (427,590) (427,590)
Currency translation differences - - - 183,588 - 183,588
Total comprehensive income for the period - - - 183,588 (427,590) (244,002)
Transactions with owners, recorded directly in equity
Shares issued 45,455 916,610 - - (69,206) 892,859
Share warrants granted on issue of shares - - 20,709 - (20,709) -
Share warrants exercised 4,625 106,220 - - - 110,845
Share options exercised 600 5,591 (4,777) - 4,777 6,191
Share options terminated - - (306,826) - 306,826 -
Share options charge - - 25,606 - - 25,606
Total transactions with owners, recorded
directly in equity 50,680 1,028,421 (265,288) - 221,688 1,035,501
Balance at 30 June 2021 357,751 13,572,027 294,132 204,761 (5,717,547) 8,711,124
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2022
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 July 2021 357,751 13,572,027 294,132 204,761 (5,717,547) 8,711,124
Comprehensive income for the period
Loss for the period - - - - (108,370) (108,370)
Currency translation differences - - - 314,482 - 314,482
Total comprehensive income for the period - - - 314,482 (108,370) 206,112
Transactions with owners, recorded directly in equity
Share warrants terminated - - (13,865) - 13,865 -
Share options terminated adjustment - - 9,959 - (9,959) -
Share options charge - - 28,395 - - 28,395
Total transactions with owners, recorded
directly in equity - - 24,489 - 3,906 28,395
Balance at 31 December 2021 357,751 13,572,027 318,621 519,243 (5,822,011) 8,945,631
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2022
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 January 2022 357,751 13,572,027 318,621 519,243 (5,822,011) 8,945,631
Comprehensive income for the period
Loss for the period - - - - (448,652) (448,652)
Currency translation differences - - - 630,692 - 630,692
Total comprehensive income for the period - - - 630,092 (448,652) 182,040
Transactions with owners, recorded directly in equity
Share options charge - - 63,795 - - 63,795
Total transactions with owners, recorded
directly in equity - - 63,795 - - 63,795
Balance at 30 June 2022 357,751 13,572,027 382,416 1,149,935 (6,270,663) 9,191,466
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months to 30 June 2022
Notes Unaudited six months ended Unaudited six months ended Audited
period ended
30 Jun 2022 30 Jun 2021
31 Dec 2021
€ € €
Cash flows from operating activities
Loss for the period (448,652) (427,590) (535,960)
Adjustments for:
Depreciation - - -
Interest receivable and similar income (208) (113) (218)
Movement in trade and other receivables (35,466) (164,078) (11,036)
Movement in trade and other payables 44,668 56,619 13,055
Gain on revaluation of share warrants (87,331) - (330,708)
Equity settled share-based payment 63,795 25,606 54,001
Net cash flows from operating activities (463,194) (509,556) (810,866)
Cash flow from investing activities
Expenditure on intangible assets (455,115) (263,497) (657,727)
Interest received 208 113 218
Net cash from investing activities (454,907) (263,384) (657,509)
Cash flow from financing activities
Proceeds from the issue of new shares - 1,059,085 1,059,085
Proceeds from grant of warrants - 191,364 191,364
Commission paid from the issue of new shares - (69,206) (69,206)
Net cash from financing activities - 1,181,243 1,181,243
(Decrease)/Increase in cash and cash equivalents (918,101) 408,303 (287,132)
Exchange rate adjustment on cash and
cash equivalents 33,607 19,473 42,507
Cash and cash equivalents at beginning
of the period 10 2,042,547 2,287,172 2,287,172
Cash and cash equivalents at end of
the period 10 1,158,053 2,714,948 2,042,547
Unaudited Notes to the Condensed Financial Statements
For the six months to 30 June 2022
1. General information
Great Western Mining Corporation PLC ("the Company") is a company domiciled in
the Republic of Ireland. The Half Yearly Report and Unaudited Condensed
Consolidated Financial Statements ('the half yearly financial statements') of
the Company for the six months ended 30 June 2022 comprise the results and
financial position of company and its subsidiaries ("the Group").
The Group half yearly financial statements were authorised for issue by the
Board of Directors on 29 September 2022.
Basis of preparation
The half yearly financial statements for the six months ended 30 June 2022 are
unaudited. The financial information presented herein does not amount to
statutory financial statements that are required by Chapter 4 part 6 of the
Companies Act 2014 to be annexed to the annual return of the company. The
statutory financial statements for the financial year ended 31 December 2021
were annexed to the annual return and filed with the Registrar of Companies.
The audit report on those financial statements was unqualified.
The Group half yearly financial statements have been prepared in accordance
with International Financial Reporting Standards ("IFRS") as adopted by the
European Union ("EU").
The financial information contained in the half yearly financial statements
have been prepared on the historical cost basis, except for the
decommissioning provision, share-based payments and warrants, which are based
on fair values determined at the grant date. The accounting policies have been
applied consistently in accordance with the accounting policies set out in the
annual report and financial statements for the year ended 31 December 2021
except as outlined below.
Accounting policies
The accounting policies adopted are consistent with those of the annual
Financial Statements for the year ended 31 December 2021. New and amended
standards that became applicable for the Group in the current reporting period
have not resulted in changes to accounting policies or retrospective
adjustments.
Use of estimates and judgements
The preparation of half-yearly financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to
be reasonable under the circumstances, the results of which form the basis of
making judgements about carrying values of assets and liabilities that are not
readily apparent from other sources.
In particular, significant areas of estimation uncertainty in applying
accounting policies that have the most significant effect on the amount
recognised in the financial statements are in the following area:
• Note 13 - Share warrants - financial liability
• Note 15 - Share based payments, including share option
and share warrant valuations
In particular, significant areas of critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in the
financial statements are in the following areas:
• Note 8 - Intangible asset; consideration of impairment
of carrying value of claim groups
• Note 8 - Intangible asset, consideration of impairment
relating to net assets being lower than market capitalisation
• Note 12 - Decommissioning provision
2. Going concern
The financial statements of the Group are prepared on a going concern basis.
In order to assess the appropriateness of the going concern basis in preparing
the financial statements for the six months ended 30 June 2022, the Directors
have considered a time period of at least twelve months from the date of
approval of these financial statements.
The Group incurred an operating loss during the period ended 30 June 2022. As
the Group is not generating revenues, an operating loss is expected for the
next twelve months. However at the balance sheet date, the Group had cash
and cash equivalents amounting to €1.16 million which the Board considers
will enable the Group to meet continuing operating expenditure and the planned
work programme for at least twelve months from the date of approval of these
financial statements.
The future of the Company is dependent on the successful outcome of its
exploration activities and implementation of revenue-generating operations.
The Directors believe that the Group's ability to make additional capital
expenditure on its lode claims in Nevada, including a final investment
decision on the reprocessing of historical spoil heaps and tailings, can be
assisted if necessary by raising additional capital, the deferral of planned
expenditure and other cost saving actions, loan facilities for
revenue-generating operations or from future revenues. The Directors have
taken into consideration the Company's successful completion of placings and
the exercise of warrants and options over the last 24 months to provide
additional cash resources.
The Directors concluded that the Group will have sufficient resources to
continue as a going concern for the future, that is for a period of not less
than 12 months from the date of approval of the condensed consolidated
financial statements.
However, there exists a material uncertainty that may cast significant doubt
over the ability of the Group to continue as a going concern. The Group may
be unable to realise its assets and discharge its liabilities in the normal
course of business if it is unable to raise funds for further exploration on
and development of its exploration assets. The condensed consolidated
statements have been prepared on a going concern basis and do not include any
adjustments that would be necessary if this basis were inappropriate.
3. Segment information
The Group has one principal reportable segment, Nevada, USA, which represents
the exploration for and development of copper, silver, gold and other minerals
in Nevada, USA.
Other operations "Corporate Activities" includes cash resources held by the
Group and other operational expenditure incurred by the Group. These assets
and activities are not within the definition of an operating segment.
In the opinion of the Directors the operations of the Group comprise one class
of business, being the exploration and development of copper, silver, gold and
other minerals. The Group's main operations are located within Nevada, USA.
The information reported to the Group's chief executive officer (the Executive
Chairman), who is the chief operating decision maker, for the purposes of
resource allocation and assessment of segmental performance is particularly
focussed on the exploration activity in Nevada.
Information regarding the Group's results, assets and liabilities is presented
below.
Segment results
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Exploration activities - Nevada (10,828) (5,382) (22,156)
Corporate activities (437,824) (422,208) (513,804)
Consolidated loss before tax (448,652) (427,590) (535,960)
Segment assets
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Exploration activities - Nevada 8,677,310 6,986,794 7,509,296
Corporate activities 942,035 2,509,019 1,802,615
Consolidated total assets 9,619,345 9,495,813 9,311,911
Segment liabilities
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Exploration activities - Nevada 271,688 225,372 159,009
Corporate activities 156,191 559,317 207,271
Consolidated total liabilities 427,879 784,689 366,280
Geographical information
The Group operates in three principal geographical areas - Ireland (country of
residence of Great Western Mining Corporation PLC), Nevada, USA (country of
residence of Great Western Mining Corporation, Inc., a wholly owned subsidiary
of Great Western Mining Corporation PLC) and the United Kingdom (country of
residence of GWM Operations Limited, a wholly owned subsidiary of Great
Western Mining Corporation PLC).
The Group has no revenue. Information about the Group's non-current assets by
geographical location are detailed below:
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Nevada - exploration activities 8,314,886 6,516,883 7,158,424
Republic of Ireland - - -
United Kingdom - - -
8,314,886 6,516,883 7,158,424
4. Finance income
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Bank interest receivable 208 113 218
208 113 218
5. Income tax
The Group has not provided any tax charge for the six months periods ended 30
June 2022 and 30 June 2021 or the year ended 31 December 2021. The Group has
accumulated losses which are expected to exceed profits earned for the
foreseeable future.
6. Loss per share
Basic earnings per share
The basic and weighted average number of ordinary shares used in the
calculation of basic earnings per share are as follows:
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Loss for the period (448,652) (427,590) (535,960)
Number of ordinary shares at start of period 3,577,510,005 3,070,714,550 3,070,714,550
Number of ordinary shares issued during the period
- 506,795,455 506,795,455
Number of ordinary shares at end of period 3,577,510,005 3,577,510,005 3,577,510,005
Weighted average number of ordinary shares for the purposes of basic earnings
per share
3,577,510,005 3,458,536,520 3,460,469,475
Basic loss per ordinary share (cent) (0.0001) (0.0001) (0.001)
Diluted earnings per share
There were no potentially dilutive ordinary shares that would increase the
basic loss per share.
7. Property, plant and equipment
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Cost
Opening cost 93,644 86,432 86,432
Exchange rate adjustment 8,465 2,814 7,212
102,109 89,246 93,644
Depreciation
Opening depreciation 21,474 19,820 19,820
Charge for period - - -
Exchange rate adjustment 1,941 645 1,654
23,415 20,465 21,474
Net book value
Closing net book value 78,694 68,781 72,170
Opening net book value 72,170 66,612 66,612
8. Intangible assets
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Cost
Opening cost 7,086,254 5,898,940 5,898,940
Additions 546,426 368,557 689,252
Increase in decommissioning cost 1,787 4,969 48,056
Exchange rate adjustment 601,725 175,636 450,006
8,236,192 6,448,102 7,086,254
Amortisation
Opening amortisation - - -
Charge for period - - -
Exchange rate adjustment - - -
- - -
Net book value
Closing net book value 8,236,192 6,448,102 7,086,254
Opening net book value 7,086,254 5,898,940 5,898,940
The Directors have reviewed the carrying value of the exploration and
evaluation assets. These assets are carried at historical cost and have been
assessed for impairment in particular with regards to specific requirements as
set out in IFRS 6 'Exploration for and Evaluation of Mineral Resources'
relating to remaining licence or claim terms, likelihood of renewal,
likelihood of further expenditures, possible discontinuation of activities
over specific claims and available data which may suggest that the recoverable
value of an exploration and evaluation asset is less than carrying amount. The
Directors considered other factors in assessing potential impairment including
cash available to the Group, commodity prices and markets, taxation and
regulatory regime, and access to equipment and services. The Directors are
satisfied that no impairment is required as at 30 June 2022. The realisation
of the intangible assets is dependent on the successful identification and
exploitation of copper, silver, gold and other mineral in the Group's licence
area. This is dependent on several variables including the existence of
commercial mineral deposits, availability of finance and mineral prices.
9. Trade and other receivables
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Amounts falling due within one year:
Other debtors 91,820 191,782 81,249
Prepayments 54,586 72,200 29,691
146,406 263,982 110,940
All amounts above are current and there have been no impairment losses during
the period (30 June 2021: €Nil, 31 December 2021: €Nil).
10. Cash and cash equivalents
For the purposes of the consolidated statement of cash flows, cash and cash
equivalents include cash in hand, in bank and bank deposits with maturity of
less than three months.
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Cash in bank and in hand 316,935 355,498 287,170
Short term bank deposits 841,118 2,359,450 1,755,377
1,158,053 2,714,948 2,042,547
11. Trade and other payables
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Amounts falling die within one year:
Trade payables 74,756 50,773 46,140
Other payables - 3,995 12,410
Accruals 190,915 196,093 64,633
Other taxation and social security 16,950 12,880 23,459
282,621 263,741 146,642
The Group has financial risk management policies in place to ensure that
payables are paid within the pre-agreed credit terms.
12. Decommissioning provision
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2022 30 Jun 2021 year ended
€ € 31 Dec 2021
€
Decommissioning provision 136,295 80,257 123,344
136,295 80,257 123,344
The decommissioning provisions relate to undertakings by the Group to carry
our reclamation work after the completion of planned work permitted by the
regulator. The cost of the reclamation work is estimated by the regulator in
advance and the notice permitting operations to be conducted, together with
the associated reclamation work, is effective for two years, subject to
certain variations. As the Group applies for approval of operations to be
conducted within the current year where possible, the cost of decommissioning
provision is treated as a current liability.
13. Share warrants - financial liability
The share warrants have been granted as rights to acquire additional new
ordinary share of €0.0001 in accordance with the terms of placings completed
in 2019, 2020 and 2021.
The warrants are classified and accounted for as financial liabilities using
Level 3 fair value measurement, with any change in fair value recorded in the
Consolidated Income Statement. Level 3 fair value recognises that the inputs
for any asset or liability valuation are not based on observable market data.
Number of warrants Level 3
Fair value
€
At 1 January 2021 489,250,000 255,654
Fair value of warrants at grant 227,272,727 191,364
Released on exercise of warrants (46,250,000) (20,016)
Movement in fair value of warrant liabilities - 13,689
At 30 June 2021 670,272,727 440,691
Movement in fair value of warrant liabilities - (344,397)
At 31 December 2021 670,272,727 96,294
Movement in fair value of warrant liabilities - (87,331)
At 30 June 2022 670,272,727 8,963
In April 2021, the Group granted warrants in connection with a share placing.
227,272,727 warrants were granted exercisable at £0.0030 each with immediate
vesting and a contractual life of 2 years.
Measure of fair values of warrants
The fair value of the warrants issued has been measured using the binomial
lattice option pricing model. There are no service or non-market performance
conditions attached to the arrangement and the warrants are considered to have
vested immediately. Expected volatility has been based on an evaluation of
the historical volatility of the Company's share price. The expected life is
based on the contractual life of the warrants.
In order to revalue the Level 3 fair value, the principal changes to the input
assumptions relate to the expected volatility, which has been recalculated at
the year-end, and the life expected life of each grant, which has been reduced
to the remaining life of each grant from the year-end date. Accordingly the
expected volatility on revaluation has decreased to a range for the grants of
between 10% and 67% and the range of expected life reduced to approximately
one month to ten months. Other input assumptions remained in line with those
at the original date of grant. No sensitivity analysis has been provided as
the results are not deemed material.
The inputs used in the measurement of the fair values at grant date of the
warrants granted in April 2021 were as follows:
Apr 2021
Fair value at grant date €0.0007
Share price at grant date €0.0025
Exercise price €0.0030
Number of warrants granted 227,272,727
Sub-optimal exercise factor 1.5x
Expected volatility 109%
Expected life 2 Years
Expected dividend 0%
Risk free interest rate 0.1%
14. Share capital
Number of shares Value of shares
€
Authorised at 1 January 2021 5,000,000,000 500,000
Increase in authorised share capital 2,000,000,000 200,000
Authorised at 30 June 2021 7,000,000,000 700,000
Authorised at 1 July 2021 7,000,000,000 700,000
Authorised at 1 December 2021 7,000,000,000 700,000
Authorised at 1 January 2022 7,000,000,000 700,000
Authorised at 30 June 2022 7,000,000,000 700,000
Number of ordinary shares of €0.0001 each
Share capital Share premium Total capital
€ € €
Issued, called up and fully paid:
At 1 January 2021 3,070,714,550 307,071 12,543,606 12,850,677
Ordinary shares issued 454,545,455 45,455 916,610 962,065
Ordinary shares issued on exercise of warrants
46,250,000 4,625 86,203 90,828
Ordinary shares issued on exercise of options
6,000,000 600 5,591 6,191
Released on exercise of warrants
- - 20,017 20,017
At 30 June 2021 3,577,510,005 357,751 13,572,027 13,929,778
Issued, called up and fully paid:
At 1 July 2021 3,577,510,005 357,751 13,572,027 13,929,778
At 31 December 2021 3,577,510,005 357,751 13,572,027 13,929,778
Issued, called up and fully paid:
At 1 January 2022 3,577,510,005 357,751 13,572,027 13,929,778
At 30 June 2022 3,577,510,005 357,751 13,572,027 13,929,778
On 21 January 2021, the Company completed the issue of 15,000,000 new ordinary
shares following the exercise of warrants granted in conjunction with the
placing in July 2020. The exercise price was £0.0020 (€0.0023) per ordinary
share, raising gross proceeds of £30,000 (€33,850) and increasing share
capital by €1,500. The premium arising on the issue amounted to €32,350.
On 12 February 2021, the Company completed the issue of 31,250,000 new
ordinary shares following the exercise of warrants granted in conjunction with
the placing in November 2019. The exercise price was £0.0016 (€0.0018) per
ordinary share, raising gross proceeds of £50,000 (€56,978) and increasing
share capital by €3,125. The premium arising on the issue amounted to
€53,853.
On 15 February 2021, the Company completed the issue of 6,000,000 new ordinary
shares following the exercise of options granted in April 2020. The exercise
price was £0.0009 (€0.0010) per ordinary share, raising gross proceeds of
£5,400 (€6,191) and increasing share capital by €600. The premium arising
on the issue amounted to €5,591.
On 13 April 2021, the Company completed a placing for 454,545,455 new ordinary
shares of €0.0001 with 227,272,727 warrants, whereby the placee received one
new ordinary share and, for every two new ordinary shares received, a warrant
giving the right to one additional new ordinary share of €0.0001 ("the
Placing Share"). Each Placing Share was issued at a price of £0.0022
(€0.0025) raising gross proceeds of £1,000,000 (€1,153,429) and
increasing share capital by €45,455. The premium arising on the issue
amounted to €916,610. The warrants were granted with an exercise price of
£0.0030 and a fair value of €191,364.
There were no transaction expenses including commission during the period
ended 30 June 2022 (30 June 2021: €69,206 and 31 December 2021: €69,206).
There was no amount released from the share warrant financial liability during
the period ended 30 June 2022 (30 June 2021: €20,017 and 31 December 2021:
€20,017).
15. Share based payments
Share options
Great Western Mining Corporation PLC operates a share option scheme, "Share
Option Plan 2014", which entitles Directors and employees of Great Western
Mining Corporation PLC and its subsidiary companies to purchase ordinary
shares in the Company at the market value of a share on the award date,
subject to a maximum aggregate of 10% of the issued ordinary share capital of
the Company on that date.
Measure of fair values of options
The fair value of options granted has been measured using the binomial lattice
option pricing method. The input used in the measurement of the fair value at
grant date of the options were as followed:
23 Apr 2022 1 Nov 2021
Fair value at grant date €0.0011 €0.0012
Share price at grant date €0.0016 €0.0017
Exercise price €0.0016 €0.0012
Number of options granted 57,500,000 18,000,000
Vesting conditions Immediate Immediate
Expected volatility 107.8% 107%
Sub-optimal exercise factor 4x 4x
Expected life 7 years 7 years
Expected dividend 0% 0%
Risk free interest rate 0.18% 0.1%
During the period an expense of €63,795 (30 June 2021: €25,606 and 31
December 2021: €54,001) was recognised in the statement of profit and loss
related to share options vesting during the period. An amount of €4,777
was released from the share options reserve to retained earnings on the
exercise of 6,000,000 options granted in April 2020. An amount of €306,826
was released in 2021 from the share options reserve to retained earnings on
the termination of certain options.
Number of options Average exercise price
Outstanding at 1 January 2021 112,000,000 Stg0.64 p
Exercised (6,000,000) Stg0.09 p
Terminated (38,333,333) Stg0.98 p
Outstanding at 30 June 2021 67,666,667 Stg0.64 p
Granted 18,000,000 Stg0.123 p
Outstanding at 31 December 2021 85,666,667 Stg0.62 p
Granted 57,500,000 Stg0.13 p
Outstanding at 30 June 2022 143,166,667 Stg 0.29 p
On 30 June 2022, there were options outstanding over 143,166,667 (30 June
2021: 67,666,667 and 31 December 2021: 85,666,667) Ordinary Shares which are
exercisable at prices ranging from Stg 0.09 pence to Stg 1.6 pence per share
and which expire at various dates up to 23 April 2029.
Equity-settled warrants
No equity-settled warrants were granted in the period ended 30 June 2022. In
April 2021, the Group granted warrants to Novum Securities Limited in
connection with a share placing. 22,727,272 warrants were granted exercisable
at £0.0022 (€0.0025) each with immediate vesting and a contractual life of
2 years.
Measure of fair values of warrants
The fair value of the warrants issued has been measured using the binomial
lattice option pricing model. There are no service or non-market performance
conditions attached to the arrangement and the warrants are considered to have
vested immediately.
The inputs used in the measurement of the fair values at grant date of the
warrants were as follows:
Apr 2021
Fair value at grant date €0.0009
Share price at grant date €0.0029
Exercise price €0.0022
Number of warrants granted 22,727,272
Sub-optimal exercise factor 1.5x
Expected volatility 109%
Expected life 2 Years
Expected dividend 0%
Risk free interest rate 0.1%
At 30 June 2021, the balance on the share-based payment reserve amounted to
€382,416 (30 June 2021: €294,132 and 31 December 2021: €318,621).
13. Related party transactions
In accordance with International Accounting Standards 24 - Related Party
Disclosures, transactions between group entities that have been eliminated on
consolidation are not disclosed.
14. Post balance sheet events
On 28 September 2022, the Company signed a joint venture agreement with
Muletown Enterprizes LLC to create Western Milling LLC, a limited liability
company owned in equal shares. Western Milling LLC has been created for the
recovery of precious metals from pre-mined materials.
There were no other significant post balance sheet events which would require
amendment to or disclosure in the half yearly financial statements.
15. Approval of financial statements
The half yearly financial statements were approved by the Board of Directors
on 29 September 2022.
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