REG - Great Western Mining - Half-year Report
25/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240925:nRSY5101Fa&default-theme=true
RNS Number : 5101F Great Western Mining Corp. plc 25 September 2024
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 2024 (the
"Period").
Financial Highlights:
· Loss for Period €441,343 (30 June 2023: loss of €527,985 and
December 2023: loss of €952,654)
· Basic and diluted loss per share 0.0001 cent (30 June 2023: 0.0001
cent and 31 December 2023: €0.0002 cent)
· Net assets at 30 June 2024: €9,427,384 (30 June 2023:
€8,845,494 and 31 December 2023: €8,831,416)
· Cash balances at 30 June 2024: €91,003 (30 June 2023: €410,661
and 31 December 2023: €95,306 million)
· Placing of new shares during Period raised £700,500 before
expenses
Operational Highlights:
· Focus on further establishing copper potential in porphyry
settings
o Strengthening case for a copper 'district'
· Continuing discussions with possible joint venture partners to
deliver full potential of the Huntoon Copper Project
· Grab samples from the West Huntoon claims produced strong grades
of copper, gold and silver
· 135 soil samples taken from West Huntoon established a copper
anomaly greater than 75 ppm over 2 km2 (494 acres)
Post Period End:
· Environmental permit for mill operations received and effective
o Enabling commencement of operations - hook-up in progress with emphasis
on ensuring all systems correctly installed in line with mine regulations and
safety directives
o Next steps include testing and working with joint venture partner
Muletown to overcome teething issues
o Focus on monetising Company's stockpiles of material as soon as possible
· Pooling Agreement with Bronco Creek Exploration for developing
the copper potential of the Eastside Mine claims
o Strong indications of a porphyry copper setting over the pooled claims
area
o Aiming for an exploration and option agreement with a future partner to
fund exploration and development
· Placing of new shares raised £500,000 before expenses
During the period the Company continued its dual strategy of enhancing value
through both its exploration activities and its upcoming production
operations. Intensive ongoing field work increasingly emphasises the
significant copper opportunity in the area. The newly signed Pooling Agreement
for the Eastside Mine and continued discussions with potential partners for
the Huntoon Copper Project highlight the Company's growing market presence,
with its data room becoming increasingly attractive.
The planned commencement of production will set Great Western apart from many
of its peers. Development of the mill has taken longer than anticipated, not
untypical for this type of project, but it is clear that the Company has a
visible and tangible path to cash generation. The initial levels of production
through gravity separation are expected to provide a stream of basic income,
with larger production volumes and returns at a second stage through chemical
leaching.
Brian Hall, Executive Chairman, commented: "We are fully committed to creating
a portfolio of assets with short, medium and longer-term inflection points,
proving up the quality of our claims and realising value from our precious
metals and copper opportunities.
"We are focused on achieving our stated goals of generating cash flow from
production, initially quite modest but which will help alleviate the usual
working capital pressures associated with exploration companies, while forging
a path to moving our copper prospects to the next stage. Ongoing discussions
on our copper prospects highlight the demand for quality assets, with copper
fundamentals pointing to rising valuations. We do appreciate the continued
support of our investors and understand that project delays cause frustration
but I would like to reiterate that we continue to forge ahead on all fronts
and are excited by the Company's prospects."
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/Adam Cowl +44 203 470 0470
Walbrook PR (PR advisers)
Nick Rome +44 207 933 8783
Interim Report
For the six months to 30 June 2024
Below are Great Western Mining Corporation PLC's ('Great Western' or the
'Company') unaudited report and financial statements for the half year ended
30 June 2024.
Great Western Mining Corporation PLC explores for, appraises and develops
mineral resources on its claims in the state of Nevada, USA. Great Western
currently has no revenues from its operations and is reporting a loss after
tax of €441,343 for the half year (30 June 2023: €527,985; 31 December
2023: €952,654). At 30 June 2024 the Company's net assets were
€9,427,384 (30 June 2023: €8,845,494; 31 December 2023: €8,831,416).
During the reporting period work continued on finalising construction of the
mill by the Western Milling joint venture in which the Company has a 50%
interest. The project currently being completed is a first stage gravity
separation plant and a second stage of chemical leaching is planned. The
investment to date and construction work carried out includes significant
parts of what will be required for the second phase. An all-important and long
overdue environmental permit for the mill was received after the period end,
enabling work on commissioning the plant to begin. At the time of writing,
the mill is not ready for first production and timelines provided in good
faith by the company have been affected by teething issues, as additional work
has been identified which must be completed before operations can begin.
This is a significant project and it is less than two years since the
Western Milling joint venture agreement was signed. An external adviser with
appropriate expertise has been appointed to assist with completion and a
progress report will be provided in late October. Any delay in commencing
production is disappointing but not unusual when working towards initial
production on a pioneering project. Importantly, this project is breaking new
ground for the Company in a remote area, with the objective of providing
revenues from gold and silver production, which is unusual for a junior
explorer.
The identification of a porphyry setting at West Huntoon in 2023 has focused
the Company's exploration team on the potential for a significant copper play
in the area and for the time being this has taken priority over other
exploration prospects already in the pipeline. Since the spring a geological
team has been working in the field, mapping and sampling this potentially
copper rich area. In April and May an induced polarisation(IP) survey was
carried out to follow leads identified at surface as they disappear under
tertiary cover into the Huntoon Valley, with very encouraging results.
A further IP survey was carried out on the M5 group of claims and the Company
is currently interpreting the data acquired.
In May, Dr. Lawrence Carter, a consulting expert on porphyry systems and
specialist on the nearby Yerington copper district, made a second visit to the
West Huntoon porphyry setting, also visiting the Company's Eastside Mine
claims where, three years ago, Great Western conducted an IP survey
identifying drill targets. Having walked the ground, Dr. Carter advised that
the Eastside Mine has indications of a porphyry system equally as strong as
those at West Huntoon. Although Eastside Mine is some distance from the
Huntoon Valley and as such is not likely to be directly connected, it lies in
the same geographical and geological setting. There is therefore a building
story of a possible new copper 'district' in the area and, if this proves to
be the case, Great Western will be at the centre of it. However, while
surface sampling and geophysical tools continually enhance knowledge of the
area, an extensive drill programme will be required to deliver the full
potential and establish a formal resource, which Great Western on its own will
not be able to achieve. The Company is in contact with a number of potential
joint venture partners but at the time of writing no deal has been concluded
for the Huntoon Copper Project.
The Company has recently reached agreement to reinstate the time-expired
Huntoon Mine Area Cooperation Agreement with Crowne Point Gold & Silver
Mining Co. LLC. Crowne Point owns an area of private land adjacent to Great
Western's claims at West Huntoon with high potential for gold and silver and
direct access to the copper potential of the porphyry area. The application
procedure for drilling on US Forest Service land has already been initiated
but this agreement over private land will enable the Company to carry out
initial drilling whenever it is ready, ahead of a permit from the Forest
Service which may take some time. This should be a major aid in moving the
copper project forward. In parallel with seeking a joint venture partner for
the Huntoon Copper Project, since the period end the Company has signed a
'Pooling Agreement' with Bronco Creek Exploration, Inc. which has claims
adjoining Eastside Mine. Bronco Creek is a division of EMX Royalty
Corporation, a substantial north American company with significant interests
in the USA and all over the world and its team confirms the porphyry potential
of the area. The Pooling Agreement is a means of combining the two
companies' claims, based on approximately the number of claims held by each
party, resulting in a split of GWM 30% and BCE 70%. BCE is the operator of
this agreement and will actively be seeking a drilling partner through its
extensive network of contacts, being in a much stronger position to do this
than Great Western. This is the first time the Company has done a deal with
a third party for its copper potential and is a very encouraging
development.
In September the Company published a short discussion video on its copper
stories at both the Huntoon Copper Project and the Eastside Mine which can be
viewed on the Company's website, www.greatwesternmining.com.
During the reporting period, the Company released two key sets of results from
soil and grab samples taken in 2023 for Huntoon and the Rhyolite Dome on the
Olympic Gold claims.
Ten grab samples were collected from the West Huntoon claims and several
results showed strong grades of copper, gold and silver. Two samples contained
strongly elevated molybdenum which is further evidence of a porphyry system.
The most gold-rich sample contained 7.292 g/t Au and 843 g/t Ag, taken from
host rock near a small granite boss in the southeast of the area mapped in
late 2023. A sample from the main West Huntoon granite graded at 5.531 g/t
Au, 2,438 g/t Ag, and 1.56% Cu. A nearby copper-oxide-bearing granite sample
returned 4.514 g/t Au, 102 g/t Ag and 0.09% Cu. The most copper rich sample
(5.82% Cu) came from an area of abundant copper oxide showings 500 m southwest
of the granite. Another two copper rich samples (4.85% and 3.82% Cu) were
obtained from an old working situated in host rocks 200 m southwest of the
granite. These samples also contained significant silver (55 g/t and 108 g/t
respectively).
The results of 135 new soil samples taken from the West Huntoon claims
established a copper anomaly greater than75 ppm Cu covering 2 km2 (494 acres)
and surrounding the granite outcrop, with strong outlier samples (11 samples
greater than 300 ppm of which 5 samples were greater than 400 ppm, with a
maximum value 528 ppm Cu) at several locations. The results also showed
areas of broad gold enrichment. Of 135 samples taken, 124 are greater than 10
ppb Au and, of these, 47 are greater than 25 ppb Au.
At Rhyolite Dome on the Olympic Gold Project, gold results from sampling were
highly positive. Of the 145 samples taken, 54 were greater than 10 ppb gold,
nine were greater than 20 ppb gold, while three outliers contain 51 ppb, 58
ppb and 61 ppb gold. The best gold results were clustered near the location of
the peak legacy data sample (at 207 ppb gold). Based on these results and
other indicators, the northwest side of Rhyolite Dome appears to be highly
prospective.
In April, following the strong results obtained from Rhyolite Dome, Great
Western exercised its option to acquire ownership of the Olympic Gold Project,
which now formally becomes part of the Company's inventory of claims. As
well as its potential for discovery of gold and silver, Olympic Gold is a
significant source of mining waste which will become feedstock for the
Company's Western Milling joint venture.
In March the Company completed a placing of £700,000 worth of new shares for
cash before expenses and after the period end conducted a further placing of
£500,000 worth of new shares for cash before expenses.
Looking ahead, the Company has a lot to do on its wide spread of claims in the
Walker Lane Belt of Nevada, which offer the potential not only for large scale
copper deposits but also for gold and silver in the vicinity of numerous
historic mining areas. Constructive field work during and since the
reporting period is consolidating work already done and continuously building
a clearer picture of this potential. Initiatives will continue to develop a
partnership for a major drilling campaign to delineate a copper porphyry. At
the Western Milling joint venture, with the all-important environmental permit
now secured, first production of gold and silver concentrates is in sight,
despite some technical delays which are not uncharacteristic for this type of
project and are currently being dealt with. The identification of a second
porphyry setting at Eastside Mine and the recent Pooling Agreement with Bronco
Creek Exploration add a significant new leg to the copper story and help build
the picture of a potential new copper district which, if proved up, will have
Great Western at its heart. Few new major copper mines have been discovered
in recent times and a decarbonising world will become highly dependent on
copper, as electrification progressively replaces hydrocarbons for the world's
energy needs. All Great Western's business activities are interesting, but
the confirmation of a major copper discovery would be of the highest
significance for the Company.
Finally, it is with great sadness that the Board reports the passing of Mr.
Emmett O'Connell, the Company's founder and former chairman and Chief
Executive. The Board of Great Western offers its sincere condolences to the
O'Connell family.
Unaudited Condensed Consolidated Income Statement
For the six months to 30 June 2024
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2024 30 Jun 2023
31 Dec 2023
€ € €
Continuing operations
Administrative expenses (443,005) (529,857) (994,246)
Finance income 4 1,662 1,872 4,434
Loss for the period before tax (441,343) (527,985) (989,812)
Income tax expense 5 - - 37,158
Loss for the financial period (441,343) (527,985) (952,654)
Loss attributable to:
Equity holders of the Company 3 (441,343) (527,985) (952,654)
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 2024
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2024 30 Jun 2023
31 Dec 2023
€ € €
Loss for the financial period (441,343) (527,985) (952,654)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Currency translation differences 271,457 (147,608) (284,325)
271,457 (147,608) (284,325)
Total comprehensive expense for the financial
period attributable to equity holders of the Company (169,886) (675,593) (1,236,979)
Unaudited Condensed Consolidated Statement of Financial Position
For the six months to 30 June 2024
Notes Unaudited six months ended Unaudited six months ended Audited
year ended
30 Jun 2024 30 Jun 2023
31 Dec 2023
Assets € € €
Non-current assets
Property, plant and equipment 7 76,356 75,225 73,972
Intangible assets 8 9,047,352 8,424,372 8,603,289
Investment in joint venture 9 541,262 - -
Total non-current assets 9,664,970 8,499,597 8,677,261
Current assets
Trade and other receivables 10 285,795 199,264 691,870
Cash and cash equivalents 11 91,003 410,661 95,306
Total current assets 376,798 609,925 787,176
Total assets 10,041,768 9,109,522 9,464,437
Equity
Capital and reserves
Share capital 14 709,695 457,751 548,660
Share premium 14 15,534,289 14,385,269 14,875,499
Share based payment reserve 15 340,684 386,005 386,005
Foreign currency translation reserve 907,236 772,496 635,779
Retained earnings (8,064,520) (7,156,027) (7,614,527)
Attributable to owners of the Company 9,427,384 8,845,494 8,831,416
Total equity 9,427,384 8,845,494 8,831,416
Liabilities
Current liabilities
Trade and other payables 12 481,360 132,974 504,150
Decommissioning provision 13 133,024 131,054 128,871
Total current liabilities 614,384 264,028 633,021
Total liabilities 614,384 264,028 633,021
Total equity and liabilities 10,041,768 9,109,522 9,464,437
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2024
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 Changes in Equity
For the six months to 30 June 2024
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 July 2023 457,751 14,385,269 386,005 772,496 (7,156,027) 8,845,494
Comprehensive income for the period
Loss for the period - - - - (424,669) (424,669)
Currency translation differences - - - (136,717) - (136,717)
Total comprehensive income for the period - - - (136,717) (424,669) (561,386)
Transactions with owners, recorded directly in equity
Shares issued 90,909 490,230 - - (33,831) 547,308
Total transactions with owners, recorded
directly in equity 90,909 490,230 - - (33,831) 547,308
Balance at 31 December 2023 548,660 14,875,499 386,005 635,779 (7,614,527) 8,831,416
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six months to 30 June 2024
Notes Share Share Share based payment reserve Foreign Retained Total
capital
premium
currency
earnings
translation
reserve
€ € € € € €
Balance at 1 January 2024 548,660 14,875,499 386,005 635,779 (7,614,527) 8,831,416
Comprehensive income for the period
Loss for the period - - - - (441,343) (441,343)
Currency translation differences - - - 271,457 - 271,457
Total comprehensive income for the period - - - 271,457 (441,353) (169,886)
Transactions with owners, recorded directly in equity
Shares issued 161,035 658,790 - - (53,971) 765,854
Share options reserve transfer - - (45,321) - 45,321 -
Total transactions with owners, recorded
directly in equity 161,035 658,790 (45,321) - (8,650) 765,854
Balance at 30 June 2024 709,695 15,534,289 340,684 907,236 (8,064,520) 9,427,384
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months to 30 June 2024
Notes Unaudited six months ended Unaudited six months ended Audited
period ended
30 Jun 2024 30 Jun 2023
31 Dec 2023
€ € €
Cash flows from operating activities
Loss for the period (441,343) (527,985) (952,654)
Adjustments for:
Depreciation - - -
Interest receivable and similar income (1,662) (1,872) (4,434)
Movement in trade and other receivables (187,509) 12,874 (474,195)
Movement in trade and other payables 33,221 (67,864) 279,750
Tax refunded 52,321 60,749 55,212
Equity settled share-based payment - 38,005 38,005
Net cash flows from operating activities (544,972) (486,093) (1,058,316)
Cash flow from investing activities
Expenditure on intangible assets (236,673) (114,595) (401,269)
Interest received 1,662 1,872 4,434
Net cash from investing activities (235,011) (112,723) (396,835)
Cash flow from financing activities
Proceeds from the issue of new shares 819,825 913,242 1,494,381
Commission paid from the issue of new shares (53,971) (48,184) (82,015)
Net cash from financing activities 765,854 865,058 1,412,366
(Decrease)/Increase in cash and cash equivalents (14,129) 266,242 (42,785)
Exchange rate adjustment on cash and
cash equivalents 9,826 (778) (7,106)
Cash and cash equivalents at beginning
of the period 11 95,306 145,197 145,197
Cash and cash equivalents at end of
the period 11 91,003 410,661 95,306
Unaudited Notes to the Condensed Financial Statements
For the six months to 30 June 2024
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 2024 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 24 September 2024.
Basis of preparation
The half yearly financial statements for the six months ended 30 June 2024 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 2023
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 2023
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 2023 with the addition of
an accounting policy for joint arrangements:
Joint arrangements
A joint arrangement is an arrangement by which two or more parties have joint
control. Joint control is the contractually agreed sharing of control such
that decisions about the relevant activities of the arrangement (those that
significantly affect the companies' returns) require the unanimous consent of
the parties sharing control. The Group has one joint arrangement, which is its
50% equity interest in Western Milling LLC. Because the parties have joint
control of this entity, they have rights to its net assets. The arrangement
constitutes a joint venture and is accounted for using the equity accounting
method. Under the equity method of accounting, the investment in Western
Milling has been initially recognised at cost and will be adjusted thereafter
for the post-acquisition change in the net assets once processing operations
have commenced. The Group's share of profit or loss is included in the
Consolidated Income Statement.
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 16 - 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 13 - 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 2024, 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 2024.
At the balance sheet date, the Group had cash and cash equivalents amounting
to €0.09 million and the Company raised an additional amount of €0.59
million (before transactions expenses) through a placing completed in July
2024. 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. The Company has entered into a Pooling Agreement which
incorporates the Eastside Mine with a company holding neighbouring claims to
enable both companies to attract a larger funding partner to accelerate
further exploration activity. In addition the Directors are seeking a joint
venture partner to provide funding to enable the acceleration of the Group's
Huntoon Copper Project. The Directors also believe that the Group's cash
flow 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 March and July 2024, 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 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 either to enter into joint venture
arrangements or 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 related activities including
development, processing and production 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 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Exploration and related activities - Nevada (4,786) (30,902) (30,061)
Corporate activities (436,557) (497,083) (959,751)
Consolidated loss before tax (441,343) (527,985) (989,812)
Segment assets
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Exploration and related activities - Nevada 9,948,079 8,669,010 9,274,402
Corporate activities 93,689 440,512 190,035
Consolidated total assets 10,041,768 9,109,522 9,464,437
Segment liabilities
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Exploration and related activities - Nevada 472,522 169,800 519,150
Corporate activities 141,862 94,228 113,871
Consolidated total liabilities 614,384 264,028 633,021
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, a wholly owned subsidiary of
Great Western Mining Corporation PLC and Western Milling LLC in which the
Group has a 50% interest) 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 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Exploration and related activities - Nevada 9,664,970 8,499,597 8,677,261
Republic of Ireland - - -
United Kingdom - - -
9,664,970 8,499,597 8,677,261
4. Finance income
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Bank interest receivable 1,662 1,827 4,434
1,662 1,827 4,434
5. Income tax
The Group has not provided any tax charge for the six months periods ended 30
June 2024. There was no tax charge for the six months ended 30 June 2024.
For the year ended 31 December 2023, the Group benefited from research and
development corporation tax credits claimed by a subsidiary company amounting
to €43,782 offset by adjustment for previous periods of €6,624. 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 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Loss for the period (441,343) (527,985) (952,654)
Number of ordinary shares at start of period 5,486,600,919 3,577,510,005 3,577,510,005
Number of ordinary shares issued during the period
1,610,344,827 1,000,000,000 1,909,090,914
Number of ordinary shares at end of period 7,096,945,746 4,577,510,005 5,486,600,919
Weighted average number of ordinary shares for the purposes of basic earnings
per share
6,560,164,137 4,475,359,467 4,905,222,617
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 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Cost
Opening cost 95,982 99,439 99,439
Exchange rate adjustment 3,093 (1,832) (3,457)
99,075 97,607 95,982
Depreciation
Opening depreciation 22,010 22,804 22,804
Charge for period - - -
Exchange rate adjustment 709 (422) (794)
22,719 22,382 22,010
Net book value
Closing net book value 76,356 75,225 73,972
Opening net book value 73,972 76,635 76,635
8. Intangible assets
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Cost
Opening cost 8,603,289 8,462,329 8,462,329
Additions 180,663 107,830 373,815
Own employment costs capitalised - - 44,251
Increase in decommissioning cost - 2,051 2,017
Exchange rate adjustment 263,400 (147,838) (279,123)
9,047,352 8,424,372 8,603,289
Amortisation
Opening amortisation - - -
Charge for period - - -
Exchange rate adjustment - - -
- - -
Net book value
Closing net book value 9,047,352 8,424,372 8,603,289
Opening net book value 8,603,289 8,462,329 8,462,329
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 2024. 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. Investment in joint venture
During the period the Group assumed a 50% equity interest in Western Milling
LLC ("Western Milling"), a processing mill business incorporated in Nevada,
USA, over which it exercises joint control. The costs incurred to date were
transferred from Prepayments to Investment in Joint Venture as at 29 February
2024. Western Milling owns all the assets it uses to provide its services and
is legally responsible for settling its liabilities. Western Milling has not
commenced operations but will provide services to its shareholders and is
expected to provide services to third parties. The Group has concluded that
Western Milling is a joint venture under IFRS 11 - "Joint Arrangements" and
the Group has therefore applied equity accounting for its interest. The
investment was reviewed for indicators of impairment at the period end. No
impairment indicator was identified for the period ended 30 June 2024.
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Reclassification of cost from Prepayments 534,958 - -
Additions 258 - -
Foreign exchange movement 6,046 - -
541,262 - -
10. Trade and other receivables
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Amounts falling due within one year:
Other debtors 98,278 84,211 83,204
Tax refunded 44,865 60,749 97,186
Prepayments 142,652 54,304 511,480
285,795 199,264 691,870
All amounts above are current and there have been no impairment losses during
the period (30 June 2023: €Nil, 31 December 2023: €Nil).
11. 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 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Cash in bank and in hand 45,823 216,132 37,125
Short term bank deposits 45,180 194,529 58,181
91,003 410,661 95,306
12. Trade and other payables
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Amounts falling die within one year:
Trade payables 318,879 9,581 262,368
Other payables 384 - -
Accruals 82,647 106,739 227,259
Other taxation and social security 16,450 16,654 14,523
481,360 132,974 504,150
The Group has financial risk management policies in place to ensure that
payables are paid within the pre-agreed credit terms.
13. Decommissioning provision
Unaudited Unaudited
6 months ended 6 months ended Audited
30 Jun 2024 30 Jun 2023 year ended
€ € 31 Dec 2023
€
Decommissioning provision 133,024 131,054 128,871
133,024 131,054 128,871
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.
14. Share capital
Number of shares Value of shares
€
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
Authorised at 1 July 2023 9,000,000,000 900,000
Authorised at 1 December 2023 9,000,000,000 900,000
Authorised at 1 January 2024 9,000,000,000 900,000
Increase in authorised share capital 2,000,000,000 200,000
Authorised at 30 June 2024 11,000,000,000 1,100,000
Number of ordinary shares of €0.0001 each
Share capital Share premium Total capital
€ € €
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
Issued, called up and fully paid:
At 1 July 2023 4,577,510,005 457,751 14,385,269 14,843,020
Ordinary shares issued 909,090,914 90,909 490,230 581,139
At 31 December 2023 5,486,600,919 548,660 14,875,499 15,424,159
Issued, called up and fully paid:
At 1 January 2024 5,486,600,919 548,660 14,875,499 15,424,159
Ordinary shares issued 1,610,344,827 161,035 658,790 819,825
At 30 June 2024 7,096,945,746 709,695 15,534,289 16,243,984
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 5 June 2024.
On 19 March 2024, the Company completed a placing for 1,610,344,827 new
ordinary shares of €0.0001 ("the Placing Share"). Each Placing Share was
issued at a price of £0.000435 (€0.00051) raising gross proceeds of
£700,500 (€819,825) and increasing share capital by €161,035. The premium
arising on the issue amounted to €658,790.
Transaction expenses including commission arising on the issue of shares
during the period ended 30 June 2024 amounted to €53,971 (30 June 2023:
€48,184 and 31 December 2023: €82,015).
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. At the Annual General Meeting held on 5 June 2024,
the shareholders approved the extension of the Share Option Plan for a further
five years.
During the period no expense was recognised in the statement of profit and
loss related to share options vesting during the period (30 June 2023:
€38,005 and 31 December 2023: €38,005).
On 26 January 2024, 6,666,667 options granted on 26 January 2017 lapsed at the
end of their seven-year life. On 18 April 2024, a further 17,500,000 options
lapsed. An amount of €45,321 relating to the lapsed options has been
transferred from the Share Based Payment Reserve to Retained Earnings.
Number of options Average exercise price
Outstanding at 1 January 2023 143,166,667 Stg0.29 p
Granted 52,000,000 Stg0.09 p
Outstanding at 30 June 2023 195,166,667 Stg0.24 p
Granted - -
Outstanding at 31 December 2023 195,166,667 Stg0.24 p
Lapsed (24,166,667) Stg0.21 p
Outstanding at 30 June 2024 171,000,000 Stg 0.24 p
On 30 June 2024, there were options outstanding over 171,000,000 (30 June
2023: 195,666,667 and 31 December 2023: 195,666,667) 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.
At 30 June 2024, the balance on the share-based payment reserve amounted to
€340,684 (30 June 2023: €386,005 and 31 December 2023: €386,005).
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 1 July 2024, the Company completed a Placing Agreement for the issue of
1,250,000,000 new Ordinary Shares of €0.0001 each at a price of 0.04 pence
each, raising £500,000 (€589,692) before transaction expenses.
In August 2024, the Company entered into a Pooling Agreement with Bronco Creek
Exploration, Inc. ("Bronco Creek"), a division of EMX Royalty Corporation, for
developing the Company's Eastside Mine group of claims together with claims
held by Bronco Creek. Benefits and liabilities will be shared by the parties
to the Pooling Agreement 30% Great Western/70% Bronco Creek, being
approximately the ratio of the claims held by each party. No formal joint
venture is created by the Agreement and each party will continue to own its
own claims.
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 24 September 2024.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BRGDCLSDDGSSRecent news on Great Western Mining
See all newsREG - Great Western Mining - Holding(s) in Company
AnnouncementREG - Great Western Mining - Holding(s) in Company
AnnouncementREG - Great Western Mining - Mill Update
AnnouncementREG - Great Western Mining - Total Voting Rights
AnnouncementREG - Great Western Mining - Holding(s) in Company
Announcement