TIDMGWMO
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 EUR527,985 (30 June 2022: loss of EUR448,652
and December 2022: loss of EUR792,263 )
-- Basic and diluted loss per share 0.0001 cent (30 June 2022:
0.0001 cent and 31 December 2022: EUR0.0002 cent)
-- Net assets at 30 June 2023: EUR8,845,494 (30 June 2022:
EUR9,191,466 and 31 December 2022: EUR8,618,024)
-- Cash balances at 30 June 2023: EUR410,661 (30 June 2022:
EUR1,158,053 and 31 December 2022: EUR145,197)
-- Placing of new shares during Period raised EUR913,242 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 EUR581,139 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 EUR527,985 for the half year ended 30 June 2022 (30
June 2022: EUR448,652; 31 December 2022: EUR792,263). At the end of
the period Great Western's net assets were EUR8,845,494 (30 June
2022: EUR9,191,466; 31 December 2022: EUR8,618,024) with no debt
apart from trade creditors in the normal course of business. Net
current assets were EUR609,925 (30 June 2022: EUR1,304,459; 31
December 2022: EUR418,084).
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 GBP800,000 before expenses and
since the period end conducted a further placing to raise
GBP500,000 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 Unaudited Audited
six months six months year
ended ended ended
30 Jun 30 Jun 31 Dec
2023 2022 2022
EUR EUR EUR
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 Unaudited
six months six months Audited
ended ended year ended
30 Jun 30 Jun 31 Dec
2023 2022 2022
EUR EUR EUR
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 Unaudited
six months six months Audited
ended ended year ended
30 Jun 30 Jun 31 Dec
2023 2022 2022
Assets EUR EUR EUR
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 Foreign
based currency
Share Share payment translation Retained
capital premium reserve reserve earnings Total
EUR EUR EUR EUR EUR EUR
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 Foreign
based currency
Share Share payment translation Retained
capital premium reserve reserve earnings Total
EUR EUR EUR EUR EUR EUR
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 Foreign
based currency
Share Share payment translation Retained
capital premium reserve reserve earnings Total
EUR EUR EUR EUR EUR EUR
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 Unaudited Audited
six months six months period
ended ended ended
30 Jun 30 Jun 31 Dec
2023 2022 2022
EUR EUR EUR
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 EUR0.41 million
and the Company raised an additional amount of EUR0.58 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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 EUR158,504,
comprising a tax credit of EUR61,142 for the year ended 31 December
2022 and EUR97,362 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 6 months Audited
ended ended year ended
30 Jun 30 Jun 2022 31 Dec 2022
2023 EUR EUR
EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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: EURNil, 31 December 2022:
EURNil).
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 6 months Audited
ended ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
EUR EUR EUR
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 EUR0.0001 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 Level 3
warrants Fair value
EUR
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
GBP0.0030 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 Value of
shares shares
EUR
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 Share Share Total
EUR0.0001 capital premium capital
each
EUR EUR EUR
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
EUR200,000, consisting of 2,000,000,000 ordinary shares of
EUR0.0001 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 EUR0.0001 ("the Placing
Share"). Each Placing Share was issued at a price of GBP0.0008
(EUR0.0009) raising gross proceeds of GBP800,000 (EUR913,242) and
increasing share capital by EUR100,000. The premium arising on the
issue amounted to EUR813,242.
Transaction expenses including commission arising on the issue
of shares during the period ended 30 June 2022 amounted to
EUR48,184 (30 June 2022: EURnil and 31 December 2022: EURnil).
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 EUR0.0006 EUR0.0011
Share price at grant date EUR0.0009 EUR0.0016
Exercise price EUR0.0009 EUR0.0016
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 EUR38,005 (30 June 2022:
EUR63,795 and 31 December 2022: EUR63,795) was recognised in the
statement of profit and loss related to share options vesting
during the period.
Number of Average exercise
options 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 143,166,667 Stg0.29 p
2022
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 EUR20,709 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 EUR386,005 (30 June 2022: EUR382,416 and 31 December
2022: EUR368,709).
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 EUR0.0001 each at a
price of 0.055 pence each, raising GBP500,000 (EUR581,139) 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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END
IR BLGDCUBDDGXL
(END) Dow Jones Newswires
September 27, 2023 02:00 ET (06:00 GMT)
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