Great Western Minerals Group Releases 2nd Quarter 2011 Financial Results
August 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 2nd Quarter of 2011.
GWMG now reports its results under International Financial
Reporting Standards. For the three months and the six months ended
June 30, 2011, GWMG's financial summary and highlights are as
follows:
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Three months Three months Six months Six months
ended June ended June ended June ended June
30/11 30/10 30/11 30/10
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Revenue $ 5,178,295 $ 3,179,788 $ 9,415,774 $ 7,234,553
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Gross Margins $ 1,683,680 $ 931,541 $ 2,978,775 $ 2,247,502
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Earnings (Loss) $ (3,613,712) $ (1,501,730) $ (6,843,468) $ (2,207,392)
----------------------------------------------------------------------------
Earnings (Loss)
per share $ (0.010) $ (0.005) $ (0.019) $ (0.008)
----------------------------------------------------------------------------
-- Manufacturing / processing revenues from GWMG's wholly owned
subsidiaries Less Common Metals Limited ("LCM") and Great Western
Technologies Inc. for the 2nd Quarter of 2011 represent a 63% increase
over the 2nd Quarter of 2010.
-- Gross margins on manufacturing / processing operations for the 2nd
Quarter 2011 represent an increase of 81% over the same period of 2010.
-- The net consolidated loss for the 2nd Quarter of 2011 of $3.6 million
($.010/share on a fully diluted basis), which includes stock based
compensation of $1.7 million and the write-off of the Chaleur
exploration property in the amount of $165,359, compares to $.005/ share
in the 2nd Quarter of 2010.
-- GWMG completed the 2nd Quarter of 2011 with $10.2 million in cash on
hand compared to $4.1 million as of the same time in 2010.
Also of note was the fact that LCM achieved Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA") of
$944,267 in Q2 of 2011 compared to $528,621 in the same time frame
last year, an increase of 79%.
GWMG President and Chief Executive Officer Jim Engdahl said,
"Great Western Minerals Group experienced exceptional growth in
revenue and margin performance in the second quarter of 2011. With
this type of positive performance, combined with a much stronger
cash position than was the case at the same point last year, GWMG
is well positioned to continue its development. I am very pleased
with our team's ability to execute at this level as we add the
final components of our plan to become a fully integrated rare
earth producer."
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 also holds
100% equity ownership in Rare Earth Extraction Co. Limited, which
owns a 74% equity interest in the Steenkampskraal Mine. In addition
to a planned exploration program at Steenkampskraal, GWMG also
holds interests in four active Rare Earth exploration and
development properties in North America.
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 Great Western
Minerals Group Ltd. 219 Robin Crescent Saskatoon, SK S7L 6M8
www.gwmg.ca
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