Great Western Minerals Group Releases 1st Quarter 2011 Financial Results
June 30 2011 - 8:00AM
Marketwired
Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX
VENTURE: GWG)(OTCQX: GWMGF) today announced its financial results
for the 1st Quarter of 2011.
GWMG has reported its results under International Financial
Reporting Standards. For the three months ended March 31, 2011,
GWMG's financial summary and highlights are as follows:
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Three months ended Three months ended
March 31/11 March 31/10
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Revenue $ 4,236,890 $ 3,886,651
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Gross Margins $ 1,295,377 $ 1,255,386
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Earnings (Loss) $ (3,229,428) $ (705,662)
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Earnings (Loss) per share $ (0.009) $ (0.003)
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-- Manufacturing / processing revenues from GWMG's wholly owned
subsidiaries Less Common Metals Limited ("LCM") and Great Western
Technologies Inc. represent a 9.0% increase over the first quarter of
2010.
-- Gross margins on manufacturing / processing operations represent a 3.2%
increase over the same period of 2010.
-- The net consolidated loss for the first quarter of 2011 of $3.2 million
($.009/share on a fully diluted basis) includes stock based compensation
of $1.7 million. The GWMG net loss of $0.7 million ($0.003/share) in the
first quarter of 2010 included stock based compensation of nil.
-- GWMG completed the first quarter of 2011 with $14.9 million in cash on
hand compared to $6.1 million as of the same time in 2010.
Less Common Metals Limited results for Q1 of 2011 include the
following highlights:
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Three months ended Three months ended
March 31/11 March 31/10
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Revenue $ 4,077,247 $ 3,601,655
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Gross Margins $ 1,411,736 $ 1,176,471
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EBITDA $ 616,198 $ 471,017
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Earnings $ 382,539 $ 335,422
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-- Gross margins increased 20.0% compared to the first quarter of 2010 and
EBITDA increased 30.8% compared to the first quarter of 2010.
-- Revenues were significantly higher than budgeted figures for the first
quarter of 2011.
GWMG President and Chief Executive Officer Jim Engdahl said,
"Great Western Minerals Group continues to see significant
improvements in revenue and margin performance in our LCM alloy
processing operations. As well, our improved cash position relative
to the same time last year is important given our Company's
aggressive development plans at Steenkampskraal and our expansion
plans for Less Common Metals. The influx of cash from the exercise
of outstanding warrants continues to put our Company in a much
stronger position than has been the case in the past."
Subsequent to quarter end the Company has taken actions as
majority shareholder to complete the purchase of the remainder of
the outstanding Rare Earth Extraction Co. Limited ("Rareco") shares
as provided for under South African law. As of June 6, 2011 the
Company had acquired further shares of Rareco, bringing the
Company's ownership interest to 95.4%.
Great Western Minerals Group Ltd. is an integrated Rare Earths
processor. Its specialty alloys are used in the battery, magnet and
aerospace industries. Produced at the Company's wholly owned
subsidiaries Less Common Metals Limited in Birkenhead, U.K. and
Great Western Technologies Inc. in Troy, Michigan, these alloys
contain aluminium, nickel, cobalt and Rare Earth Elements. As part
of the Company's vertical integration strategy, GWMG has signed an
Off-take Agreement for 100% of the Rare Earth Elements to be
produced at the former producing Steenkampskraal Mine in South
Africa. GWMG holds 95.4% equity ownership in Rare Earth Extraction
Co. Limited, which owns a 74% equity interest in the formerly
producing Steenkampskraal Mine in South Africa. In addition to a
planned exploration program at Steenkampskraal, GWMG also holds
interests in six Rare Earth exploration and development properties
in North America.
Email inquiries should be made to info@gwmg.ca and the company
website is located at www.gwmg.ca. Inquiries by direct mail should
be addressed to Great Western Minerals Group Ltd., 219 Robin
Crescent, Saskatoon, SK S7L 6M8.
Certain information set out in this News Release constitutes
forward-looking information. Forward-looking statements (often, but
not always, identified by the use of words such as "expect", "may",
"could", "anticipate" or "will" and similar expressions) may
describe expectations, opinions or guidance that are not statements
of fact and which may be based upon information provided by third
parties. Forward-looking statements are based upon the opinions,
expectations and estimates of management of GWMG as at the date the
statements are made and are subject to a variety of known and
unknown risks and uncertainties and other factors that could cause
actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. Those
factors include, but are not limited to, the results of the
exploration program, a resource estimate and commencement of
production at Steenkampskraal, satisfaction of the conditions
precedent with respect to GWMG's offtake agreement, receipt of all
required approvals (including those relating to the commencement of
production at the Steenkampskraal mine) and risks, uncertainties
and other factors that are beyond the control of GWMG, risks
associated with the industry in general, commodity prices and
exchange rate changes, operational risks associated with
exploration, development and production operations, delays or
changes in plans, risks associated with the uncertainty of reserve
or resource estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In
light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place
undue reliance upon forward-looking information. Although GWMG
believes that the expectations reflected in the forward-looking
statements set out in this press release or incorporated herein by
reference are reasonable, it can give no assurance that such
expectations will prove to have been correct. The forward-looking
statements of GWMG contained in this News Release, or incorporated
herein by reference, are expressly qualified, in their entirety, by
this cautionary statement and the risk factors contained in GWMG's
current annual information form available at www.sedar.com.
CUSIP: 39141Y 10 3
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Great Western Minerals Group Ltd. Dwight Percy Manager
of Investor Relations (306) 659-4500 info@gwmg.ca www.gwmg.ca
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