REG - Great Western Mining - Half-year Report
27/09/2023 07:00
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RNS Number : 7356N Great Western Mining Corp. plc 27 September 2023
Great Western Mining Corporation PLC
("Great Western", "GWM" or the "Company")
Half Yearly Report and Unaudited Condensed Financial Statements
Great Western Mining Corporation PLC (AIM - GWMO, Euronext Growth - 8GW),
which is exploring and developing gold, silver and copper targets in Nevada,
announces its unaudited results for the six-months ended 30 June 2023 (the
"Period").
During the Period the Company continued to progress the construction of its
processing mill in anticipation of first production of gold and silver
concentrates this year and continued its drilling, sampling and mapping
programme, providing further evidence of the strength of its precious metals
and copper portfolios.
Financial Highlights:
· Loss for Period €527,985 (30 June 2022: loss of €448,652 and
December 2022: loss of €792,263)
· Basic and diluted loss per share 0.0001 cent (30 June 2022: 0.0001
cent and 31 December 2022: €0.0002 cent)
· Net assets at 30 June 2023: €8,845,494 (30 June 2022:
€9,191,466 and 31 December 2022: €8,618,024)
· Cash balances at 30 June 2023: €410,661 (30 June 2022:
€1,158,053 and 31 December 2022: €145,197)
· Placing of new shares during Period raised €913,242 before
expenses
Operational Highlights:
· Special Use Permit granted to Western Milling joint venture by
Mineral County Commissioners
· Diamond core hole at OMCO Mine confirms extension to the OMCO vein
· Status of copper prospects upgraded by intensive field work and
mapping
Post Period End:
· Western Milling Joint Venture: concrete laid and production due to
start this year
· Placing of new shares raised €581,139 before expenses
· Signing of Western Milling Operating Agreement and Declaration of
Earn-In
· Rhyolite Dome (Olympic Gold project) identified as potential
gold-silver play
Brian Hall, Executive Chairman, commented: "Our portfolio underpins the
Company's strong growth potential and value upside. We are expecting to
commence production of gold and silver concentrates during the second half,
using the significant volumes of material on our claims and, in due course,
material from third parties.
"Exploration work across Great Western's gold and silver prospects continues
to support management's confidence in development opportunities. As well as
precious metals, our copper holdings offer exciting upside and we believe
that, with the right partner, commercial development will unlock significant
long-term value."
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
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat/Harry Davies-Ball +44 203 470 0470
Walbrook PR (PR advisers)
Nick Rome/Joe Walker +44 207 933 8783
Interim Report
For the six months to 30 June 2023
Below are Great Western Mining Corporation PLC's Annual Report and Financial
Statements for the half year ended 30 June 2023.
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 after tax of €527,985 for the half year
ended 30 June 2022 (30 June 2022: €448,652; 31 December 2022: €792,263).
At the end of the period Great Western's net assets were €8,845,494 (30
June 2022: €9,191,466; 31 December 2022: €8,618,024) with no debt apart
from trade creditors in the normal course of business. Net current assets
were €609,925 (30 June 2022: €1,304,459; 31 December 2022: €418,084).
During the half year, Great Western's principal focus has been on the
construction of a mill to process gold and silver concentrates from tailings,
spoil heaps and stockpiles which are present in abundance on the Company's
claims. In parallel, since the start of the work season two geologists have
been working continuously in the field conducting sampling and mapping,
initially over the Olympic Gold Project and subsequently in the Huntoon Valley
area where the emphasis has been on copper prospects. A single hole was
drilled at the OMCO Mine prospect (Olympic Gold Project) with a diamond core
rig. Since the period end an RC rig has been moved to Mineral Jackpot, using
the new mountain road constructed by the Company in 2022, where drilling was
halted for mechanical reasons but will resume as soon as the drill crew is
available. In January the Company conducted a placing of new shares for cash
which raised £800,000 before expenses and since the period end conducted a
further placing to raise £500,000 before expenses.
Process Mill
Great Western is in a 50-50 joint venture with local mining contractor
Muletown Enterprizes LLC. The joint venture is known as Western Milling LLC
and has been set up to establish a milling operation for producing precious
metal concentrates. The project, which is due on production this year, has
faced some strong headwinds during the period and since the period end.
Notably, Nevada faced a severe winter which lasted over two months longer
than the average, including late season heavy snowfalls, followed by heavy
rainfall and mudslides in the spring and, more recently, a severe and unusual
tropical storm. Operationally, environmental regulations call for the
concrete required as a base for the milling plant to be laid in one continuous
pour to prevent possible pollution of the subsoil. It has proved
logistically extremely difficult to achieve this single pour, due to a lack of
material in the area and local labour shortages. However, this concrete pour
was satisfactorily completed in September, allowing for commencement of plant
assembly on site for first production, which can commence once Western Milling
has been issued with a permit from the state environmental authorities. Upon
filing an application early in the year, the joint venture was advised that
there would be a 6-month wait for approval but in August was further notified
that this period would be delayed for 2-3 months due to personnel shortages
and pressure of work at the regulator. Such approval waiting times are beyond
the Company's control, but the joint venture is not aware of any problems with
its application. In the meantime, all steps will be taken to ensure that
producing operations can commence as soon as the approval has been received.
Geology - Field Work and studies
Coinciding with the late start of the work season, two American geologists
joined Great Western's US payroll working under the direction of the Company's
Exploration Manager, Dr. James Blight, with an initial task of carrying out
sampling and mapping over the Company's claims and to achieve a better
understanding of outlying claim areas. This field work will continue until
at least the end of October and a wealth of very interesting new data has
already been acquired for analysis. At the Olympic Gold Project, the large,
undrilled Rhyolite Dome prospect in the south of the claims group is proving
to be of great interest and a potential candidate for geophysical studies
followed by drilling. More recently, extensive sampling and mapping has been
carried out in the Huntoon Valley and at the M4 prospect where only limited
drilling has so far been carried out by Great Western.
Copper Potential
Great Western's claims are rich in a variety of minerals. Recently the
Company's focus has been on the potential of precious metals but in an earlier
era the Company drilled approximately 5,000 feet (1,524 metres) of hole in the
search for copper, mostly on the M2 claims in the Black Mountains Group but to
a limited extent also on the M4 claims and in the Huntoon Valley on the Crown
Point claims. An independent resource study, prepared in compliance with
JORC, was commissioned for the M2 programme and this reported, on a partly
inferred/partly indicated basis, 4.28 million tonnes grading at 0.45% copper,
effectively 19,000 tonnes of copper. While a material quantity, a viable
commercial development requires a greater volume than this which, in the
Company's opinion, can be achieved by drilling over a considerable distance in
both a northwesterly and southeasterly direction from the existing mapped
resource. In addition, there is an area within the existing reported
resource at M2 which was not drilled in the past due to permitting
limitations, now resolved. Away from M2, the field work currently ongoing
provides strong indications, yet to be proved by drilling, of similar sized
potential deposits in the Huntoon Valley and at the M4 prospect.
For ease of understanding, the resource and prospects at M2, the prospect at
M4 and the Huntoon Valley prospect, which are adjacent to one another, have
collectively been designated the 'Huntoon Copper Project' ('HCP'), for
exploration as a single entity, even though linkage between the three has not
been (and may not be) established.
While Great Western may drill electively on the HCP, the scale of its
potential calls for capital are beyond the capability of a company of Great
Western's size to raise in its own right. Great Western has talked to and
hosted several third parties with a view to participating in the HCP but has
yet to secure a partner. The intensive work conducted by the Company this
year, which is ongoing, is aimed at providing a stronger basis for a tie-up
with a third party. In October, a well-reputed consultant specialising in
copper prospects of this nature will visit the HCP to review the work over the
last year and make recommendations for the next steps.
Drilling
In April, a diamond core rig was used to twin the successful RC hole which
identified the OMCO vein in 2022, in an attempt to improve the quality of the
result achieved with an RC rig at the previous hole. The results were
satisfactory and confirmed the discovery, being similar to the original hole
but not improved with the use of diamond core. The next stage of drilling is
likely to be carried out with an RC rig which is less expensive than diamond
core. In July an RC rig was mobilised to Mineral Jackpot on the 14 km access
road constructed by the Company in 2022. There were mechanical issues with
this rig, not previously used by the Company, and work was suspended waiting
on parts and repairs. Drilling will continue once the rig is operational and
a crew is available.
Looking Forward
The Company's immediate objective is to bring the processing mill on to
production this year. Great Western will attempt to capitalise on the
significant work carried out over the HCP this year and once the 2023
programme has been completed, analysed and reviewed, will launch a new
initiative to source a partner for ongoing exploration, appraisal and
potential development. No further drilling is likely to be initiated in 2023
beyond the current programme at Mineral Jackpot but prioritisation of gold and
silver targets will be reviewed during the winter, once the process mill is up
and running.
Unaudited Condensed Consolidated Income Statement
For the six months to 30 June 2023
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2023 30 Jun 2022
31 Dec 2022
€ € €
Continuing operations
Administrative expenses (529,857) (448,860) (951,294)
Finance income 4 1,872 208 527
Loss for the period before tax (527,985) (448,652) (950,767)
Income tax expense 5 - - 158,504
Loss for the financial period (527,985) (448,652) (792,263)
Loss attributable to:
Equity holders of the Company 3 (527,985) (448,652) (792,263)
Loss per share from continuing operations
Basic and diluted loss per share (cent) 6 (0.0001) (0.0001) (0.0002)
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 2023
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2023 30 Jun 2022
31 Dec 2022
€ € €
Loss for the financial period (527,985) (448,652) (792,263)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Currency translation differences (147,608) 630,692 400,861
(147,608) 630,692 400,861
Total comprehensive (expense)/income for the financial
period attributable to equity holders of the Company (675,593) 182,040 (391,402)
Unaudited Condensed Consolidated Statement of Financial Position
For the six months to 30 June 2023
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2023 30 Jun 2022
31 Dec 2022
Assets € € €
Non-current assets
Property, plant and equipment 7 75,225 78,694 76,635
Intangible assets 8 8,424,372 8,236,192 8,462,329
Total non-current assets 8,499,597 8,314,886 8,538,964
Current assets
Trade and other receivables 9 199,264 146,406 272,887
Cash and cash equivalents 10 410,661 1,158,053 145,197
Total current assets 609,925 1,304,459 418,084
Total assets 9,109,522 9,619,345 8,957,048
Equity
Capital and reserves
Share capital 14 457,751 357,751 357,751
Share premium 14 14,385,269 13,572,027 13,572,027
Share based payment reserve 15 386,005 382,416 368,709
Foreign currency translation reserve 772,496 1,149,935 920,104
Retained earnings (7,156,027) (6,270,663) (6,600,567)
Attributable to owners of the Company 8,845,494 9,191,466 8,618,024
Total equity 8,845,494 9,191,466 8,618,024
Liabilities
Current liabilities
Trade and other payables 11 132,974 282,621 207,603
Decommissioning provision 12 131,054 136,295 131,421
Share warrant provision 13 - 8,963 -
Total current liabilities 264,028 427,879 339,024
Total liabilities 264,028 427,879 339,024
Total equity and liabilities 9,109,522 9,619,345 8,957,048
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2023
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 - - - 630,692 (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 Changes in Equity
For the six months to 30 June 2023
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 July 2022 357,751 13,572,027 382,416 1,149,935 (6,270,663) 9,191,466
Comprehensive income for the period
Loss for the period - - - - (343,611) (343,611)
Currency translation differences - - - (229,831) - (229,831)
Total comprehensive income for the period - - - (229,831) (343,611) (573,442)
Transactions with owners, recorded directly in equity
Share warrants terminated - - (13,707) - 13,707 -
Total transactions with owners, recorded
directly in equity - - (13,707) - 13,707 -
Balance at 31 December 2022 357,751 13,572,027 368,709 920,104 (6,600,567) 8,618,024
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2023
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 January 2023 357,751 13,572,027 368,709 920,104 (6,600,567) 8,618,024
Comprehensive income for the period
Loss for the period - - - - (527,985) (527,985)
Currency translation differences - - - (147,608) - (147,608)
Total comprehensive income for the period - - - (147,608) (527,985) (675,593)
Transactions with owners, recorded directly in equity
Shares issued 100,000 813,242 - - (48,184) 865,058
Share warrant terminated - - (20,709) - 20,709 -
Share options charge - - 38,005 - - 38,005
Total transactions with owners, recorded
directly in equity 100,000 813,242 17,296 - (27,475) 903,063
Balance at 30 June 2023 457,751 14,385,269 386,005 772,496 (7,156,027) 8,845,494
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months to 30 June 2023
Notes Unaudited six months ended Unaudited six months ended Audited
period ended
30 Jun 2023 30 Jun 2022
31 Dec 2022
€ € €
Cash flows from operating activities
Loss for the period (527,985) (448,652) (792,263)
Adjustments for:
Depreciation - - -
Interest receivable and similar income (1,872) (208) (527)
Movement in trade and other receivables 12,874 (35,466) (161,947)
Movement in trade and other payables (67,864) 44,668 53,273
Gain on revaluation of share warrants - (87,331) (96,294)
Tax refunded 60,749 - -
Equity settled share-based payment 38,005 63,795 63,795
Net cash flows from operating activities (486,093) (463,194) (933,963)
Cash flow from investing activities
Expenditure on intangible assets (114,595) (455,115) (956,077)
Interest received 1,872 208 527
Net cash from investing activities (112,723) (454,907) (955,550)
Cash flow from financing activities
Proceeds from the issue of new shares 913,242 - -
Commission paid from the issue of new shares (48,184) - -
Net cash from financing activities 865,058 - -
Increase/(Decrease) in cash and cash equivalents 266,242 (918,101) (1,889,513)
Exchange rate adjustment on cash and
cash equivalents (778) 33,607 (7,837)
Cash and cash equivalents at beginning
of the period 10 145,197 2,042,547 2,042,547
Cash and cash equivalents at end of
the period 10 410,661 1,158,053 145,197
Unaudited Notes to the Condensed Financial Statements
For the six months to 30 June 2023
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 2023 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 26 September 2023.
Basis of preparation
The half yearly financial statements for the six months ended 30 June 2023 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 2022
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 2022
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 2022. 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 2023, 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 six months ended 30 June 2023.
Although first revenues from milling operations are anticipated during the
period under review of the forecast, revenues have not been included and an
overall operating loss is expected for the next twelve months. At the
balance sheet date, the Group had cash and cash equivalents amounting to
€0.41 million and the Company raised an additional amount of €0.58 million
(before transactions expenses) through a placing completed in August 2023.
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 will be assisted by the generation of
first revenues from the reprocessing of historical spoil heaps and tailings
and can be further 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 in
recent years, including placings completed in January and August 2023, 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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Exploration activities - Nevada (30,902) (10,828) (31,891)
Corporate activities (497,083) (437,824) (918,876)
Consolidated loss before tax (527,985) (448,652) (950,767)
Segment assets
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Exploration activities - Nevada 8,669,010 8,677,310 8,819,118
Corporate activities 440,512 942,035 137,930
Consolidated total assets 9,109,522 9,619,345 8,957,048
Segment liabilities
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Exploration activities - Nevada 169,800 271,688 173,590
Corporate activities 94,228 156,191 165,434
Consolidated total liabilities 264,028 427,879 339,024
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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Nevada - exploration activities 8,499,597 8,314,886 8,538,964
Republic of Ireland - - -
United Kingdom - - -
8,499,597 8,314,886 8,538,964
4. Finance income
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Bank interest receivable 1,827 208 527
1,827 208 527
5. Income tax
The Group has not provided any tax charge for the six months periods ended 30
June 2023. There was no tax charge for the six months ended 30 June 2022.
For the year ended 31 December 2022, the Group benefited from research and
development corporation tax credits claimed by a subsidiary company amounting
to €158,504, comprising a tax credit of €61,142 for the year ended 31
December 2022 and €97,362 for prior years. 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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Loss for the period (527,985) (448,652) (792,263)
Number of ordinary shares at start of period 3,577,510,005 3,577,510,005 3,577,510,005
Number of ordinary shares issued during the period
1,000,000,000 - -
Number of ordinary shares at end of period 4,577,510,005 3,577,510,005 3,577,510,005
Weighted average number of ordinary shares for the purposes of basic earnings
per share
4,475,359,467 3,577,510,005 3,577,510,005
Basic loss per ordinary share (cent) (0.0001) (0.0001) (0.0002)
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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Cost
Opening cost 99,439 93,644 93,644
Exchange rate adjustment (1,832) 8,465 5,795
97,607 102,109 99,439
Depreciation
Opening depreciation 22,804 21,474 21,474
Charge for period - - -
Exchange rate adjustment (422) 1,941 1,330
22,382 23,415 22,804
Net book value
Closing net book value 75,225 78,694 76,635
Opening net book value 76,635 72,170 72,170
8. Intangible assets
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Cost
Opening cost 8,462,329 7,086,254 7,086,254
Additions 107,830 546,426 963,765
Increase in decommissioning cost 2,051 1,787 445
Exchange rate adjustment (147,838) 601,725 411,865
8,424,372 8,236,192 8,462,329
Amortisation
Opening amortisation - - -
Charge for period - - -
Exchange rate adjustment - - -
- - -
Net book value
Closing net book value 8,424,372 8,236,192 8,462,329
Opening net book value 8,462,329 7,086,254 7,086,254
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 2023. 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, including the potential to reprocess historical spoil heaps and
tailings. 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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Amounts falling due within one year:
Other debtors 84,211 91,820 85,169
Tax refunded 60,749 - 152,398
Prepayments 54,304 54,586 35,320
199,264 146,406 272,887
All amounts above are current and there have been no impairment losses during
the period (30 June 2022: €Nil, 31 December 2022: €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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Cash in bank and in hand 216,132 316,935 97,586
Short term bank deposits 194,529 841,118 47,611
410,661 1,158,053 145,197
11. Trade and other payables
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Amounts falling die within one year:
Trade payables 9,581 74,756 45,716
Accruals 106,739 190,915 146,778
Other taxation and social security 16,654 16,950 15,109
132,974 282,621 207,603
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 2023 30 Jun 2022 year ended
€ € 31 Dec 2022
€
Decommissioning provision 131,054 136,295 131,421
131,054 136,295 131,421
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 2022 670,272,727 96,294
Movement in fair value of warrant liabilities - (87,331)
At 30 June 2022 670,272,727 8,963
Released on exercise of warrants (443,000,000) (47,536)
Movement in fair value of warrant liabilities - 38,573
At 31 December 2022 227,272,727 -
Released on exercise of warrants (227,272,727) -
Movement in fair value of warrant liabilities - -
At 30 June 2023 - -
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. Accordingly the warrants lapsed
in April 2023.
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.
14. Share capital
Number of shares Value of shares
€
Authorised at 1 January 2022 7,000,000,000 700,000
Authorised at 30 June 2022 7,000,000,000 700,000
Authorised at 1 July 2022 7,000,000,000 700,000
Authorised at 1 December 2022 7,000,000,000 700,000
Authorised at 1 January 2023 7,000,000,000 700,000
Increase in authorised share capital 2,000,000,000 200,000
Authorised at 30 June 2023 9,000,000,000 900,000
Number of ordinary shares of €0.0001 each
Share capital Share premium Total capital
€ € €
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
Issued, called up and fully paid:
At 1 July 2022 3,577,510,005 357,751 13,572,027 13,929,778
At 31 December 2022 3,577,510,005 357,751 13,572,027 13,929,778
Issued, called up and fully paid:
At 1 January 2023 3,577,510,005 357,751 13,572,027 13,929,778
Ordinary shares issued 1,000,000,000 100,000 813,242 913,242
At 30 June 2023 4,577,510,005 457,751 14,385,269 14,843,020
The authorised share capital of the company was increased to €200,000,
consisting of 2,000,000,000 ordinary shares of €0.0001 each by an ordinary
resolution at the Company's Annual General Meeting on 13 June 2023.
On 20 January 2023, the Company completed a placing for 1,000,000,000 new
ordinary shares of €0.0001 ("the Placing Share"). Each Placing Share was
issued at a price of £0.0008 (€0.0009) raising gross proceeds of £800,000
(€913,242) and increasing share capital by €100,000. The premium arising
on the issue amounted to €813,242.
Transaction expenses including commission arising on the issue of shares
during the period ended 30 June 2022 amounted to €48,184 (30 June 2022:
€nil and 31 December 2022: €nil).
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:
30 Jan 2023 23 Apr 2022
Fair value at grant date €0.0006 €0.0011
Share price at grant date €0.0009 €0.0016
Exercise price €0.0009 €0.0016
Number of options granted 52,000,000 57,500,000
Vesting conditions Immediate Immediate
Expected volatility 108% 107.8%
Sub-optimal exercise factor 4x 4x
Expected life 7 years 7 years
Expected dividend 0% 0%
Risk free interest rate 2.31% 0.18%
During the period an expense of €38,005 (30 June 2022: €63,795 and 31
December 2022: €63,795) was recognised in the statement of profit and loss
related to share options vesting during the period.
Number of options Average exercise price
Outstanding at 1 January 2022 85,666,667 Stg0.62 p
Granted 57,500,000 Stg0.13 p
Outstanding at 30 June 2022 143,166,667 Stg0.29 p
Granted - -
Outstanding at 31 December 2022 143,166,667 Stg0.29 p
Granted 52,000,000 Stg0.09 p
Outstanding at 30 June 2023 195,166,667 Stg 0.24 p
On 30 June 2023, there were options outstanding over 195,166,667 (30 June
2022: 143,666,667 and 31 December 2022: 143,666,667) 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 30 January 2030.
Equity-settled warrants
No equity-settled warrants were granted in the period ended 30 June 2023.
Equity-settled warrants granted in April 2021 with a two-year warrant life
lapsed in April 2023. The fair value of the warrants amounting to €20,709
has been transferred to retained earnings.
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.
At 30 June 2023, the balance on the share-based payment reserve amounted to
€386,005 (30 June 2022: €382,416 and 31 December 2022: €368,709).
16. 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.
17. Post balance sheet events
On 26 July 2023, the Company announced a Placing Agreement for the issue of
909,090,014 new Ordinary Shares of €0.0001 each at a price of 0.055 pence
each, raising £500,000 (€581,139) before transaction expenses and completed
on 2 August 2023.
There were no other significant post balance sheet events which would require
amendment to or disclosure in the half yearly financial statements.
18. Approval of financial statements
The half yearly financial statements were approved by the Board of Directors
on 26 September 2023.
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