TSX Venture Symbol: GWG
CUSIP: 39141Y 10 3
OTCQX: GWMGF
SASKATOON, SK,
Aug. 29, 2012 /PRNewswire/ - Great
Western Minerals Group Ltd. ("GWMG" or the "Company", TSXV: GWG)
today announced its financial results for the 2nd
Quarter of 2012.
GWMG has reported its results under
International Financial Reporting Standards. For the three months
and six months ended June 30, 2012,
GWMG's financial summary and highlights are as follows:
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30/12 |
Three months ended
June 30/11 |
Six months ended
June 30/12 |
Six months ended
June 30/11 |
Revenue |
$ |
3,633,751 |
$ |
5,178,295 |
$ |
8,110,847 |
$ |
9,415,774 |
Gross Margins |
$ |
997,075 |
$ |
1,683,680 |
$ |
2,788,011 |
$ |
2,978,775 |
Earnings (Loss) |
$ |
(3,928,034) |
$ |
(3,121,264) |
$ |
(6,985,811) |
$ |
(7,977,655) |
Earnings (Loss) per share |
$ |
(0.009) |
$ |
(0.002) |
$ |
(0.017) |
$ |
(0.017) |
Less Common Metals Limited ("LCM") results for
Q2 of 2012 include the following highlights:
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|
|
|
|
|
|
|
Three months ended
June 30/12 |
Three months ended
June 30/11 |
Six months ended
June 30/12 |
Six months ended
June 30/11 |
Revenue |
$ |
3,473,062 |
$ |
5,015,006 |
$ |
7,777,761 |
$ |
9,096,011 |
Gross Margins |
$ |
1,205,947 |
$ |
1,775,672 |
$ |
3,108,469 |
$ |
3,188,724 |
EBITDA |
$ |
109,392 |
$ |
874,183 |
$ |
987,541 |
$ |
1,491,377 |
Earnings |
$ |
(112,187) |
$ |
515,554 |
$ |
393,726 |
$ |
899,080 |
GWMG President and Chief Executive Officer
Jim Engdahl said, "We are pleased to
have achieved these financial results given that our Company is
even more actively engaged in the development of the
Steenkampskraal project than it was twelve months ago. LCM results
have been achieved within a rare earth alloy market in which prices
are well below the level of the prior year. This speaks to the
ability of LCM to retain its customer base while working toward
increased production capacity with the addition of the new strip
casting furnace. This expanded capacity creates the platform for
positive revenue impact through the second half of 2012."
Great Western Minerals Group Ltd. is an
integrated rare earth 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 aluminum, 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 an exploration program at
Steenkampskraal, GWMG also holds interests in four active rare
earth exploration and development properties in North America.
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.
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 successful and
timely completion of its preliminary economic assessment and its
results, the construction, commissioning and operation of the
proposed monazite processing facility and separation facility, mine
refurbishment activities, reliance on third parties to meet
projected timelines, commencement of production at Steenkampskraal,
risks related to the receipt of all required approvals including
those relating to the commencement of production at the
Steenkampskraal mine, delays in obtaining permits, licenses and
operating authorities in South
Africa and China,
environmental matters, water and land use risks, 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, uncertainty of estimates and projections
of production, costs and expenses, risks that future
Steenkampskraal and region exploration results may not meet
exploration or corporate objectives, the adequacy of the Company's
financial resources and the availability of additional cash from
operations or from financing on reasonable terms or at all,
political risks inherent in South
Africa and China, risks
associated with the relationship between GWMG and/or its
subsidiaries and communities and governments in South Africa, radioactivity and related
issues, dependence on one mineral project, loss of key personnel,
the factors discussed in the Company's public disclosure record,
and other factors that could cause actions, events or results not
to be as anticipated. 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.
Except as required by law, GWMG does not assume any obligation to
update forward looking statements as set out in this news release.
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 annual information form available
at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.