TIDMGWMO
RNS Number : 4574N
Great Western Mining Corp. plc
30 September 2021
Great Western Mining Corporation PLC
("Great Western", "GWM" or the "Company")
Half Yearly Report and Unaudited Condensed Financial
Statements
Financial Highlights:
-- Loss for period EUR427,590 (30 June 2020: loss of EUR487,441 )
-- Basic and diluted loss per share 0.0001 cent: (30 June 2020: 0.0004 cent)
-- Net assets at 30 June 2021: EUR8,711,124 (30 June 2020: EUR6,449,718)
-- Issue of new shares raised GBP1,085,400 ( EUR1,250,449)
-- Strong cash position at date of this report
Operational Highlights:
-- Completion of first ever drilling at the Rock House Group
o Six holes drilled at the Southern Alteration Zone ("SAZ")
totalling 1,685 feet (515 metres)
-- Completion of first-phase drilling programme for gold and
silver at the Olympic Gold Project
o Eleven holes across four target areas
-- Appointment of Gemma Cryan as a Non-Executive Director
o Adding extensive background in mineral exploration and
geology
-- Test results indicate gravity separation to be a viable
production method for processing material from Mineral Jackpot
spoil heaps
-- 51 spoil heaps now identified covering 14,000m(2)
-- Consultant Metallurgist engaged to prepare specifications and
detailed costing for proposed processing operations
Post period End:
-- Results of Trafalgar Hill and West Ridge drilling programme
o High grade intercepts of up to 8.90 grams/tonne gold
achieved
o Drilling results support the potential for target
expansion
-- Rock House and Olympic Gold Drilling Results
o Major gold breakthrough at Rock House in virgin territory
o Best intercepts of 8.02 grams gold per tonne and 2.29 grams
gold per tonne
o Continuation of OMCO vein mineralisation identified at Olympic
Gold east of faulted zone
Brian Hall, Executive Chairman, commented : "This was an
extremely productive period for the Company as we made significant
progress across a number of our projects, with drilling and
subsequent results highlighting the potential for precious metals
over our large portfolio of assets in Nevada. We are focused on
fast-tracking the exploitation of precious metals to achieve early
gold and silver sales and are well funded both to extend our drill
programme and to finance the first phase of a processing plant for
spoil heap material."
For Further Information:
Great Western Mining Corporation PLC
Brian Hall, Chairman Via Walbrook PR
Max Williams, Finance Director
Davy (NOMAD, Euronext Growth Adviser
& Joint Broker)
John Frain +353 1 679 6363
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
ETX Capital (Joint Broker)
Thomas Smith +44 207 392 1494
Walbrook PR (PR advisers)
Nick Rome/Nicholas Johnson +44 207 933 8783
Interim Report
For the six months to 30 June 2021
Please find herewith Great Western Mining Corporation PLC's half
year, unaudited financial statements for the period ended 30 June
2021. Great Western is a mineral exploration and development
company which is not yet generating revenues and is therefore
reporting a net loss for the period of EUR427,590 (30 June 2020:
EUR487,441; 31 December 2020: EUR852,042), reflecting a reduction
on administrative expenses over the comparative period. The Company
has no borrowings or other debt beyond creditors in the normal
course of business and at the period end, net current assets were
EUR8.7 million.
During the period, the Company raised approximately GBP1.1
million cash through the issue of new shares, providing the
flexibility to extend its exploration activity beyond its firm 2021
drilling programme.
The Company has a land position of approximately 60km(2) in the
prolific Walker-Lane trend in Mineral County, Nevada where it has
already established an inferred copper resource and is currently
focusing its attention on the potential for commercial deposits of
gold and silver. The Covid pandemic has created some challenges,
particularly for Trans-Atlantic travel and availability of local
labour, but the Company has generally been able to meet them
successfully and proceed with its active exploration programme
largely unhindered, with the finance in place to do so.
Drilling Operations
During the year to date, Great Western has completed a 17-hole,
3,000 metre drill programme in pursuit of precious metals, covering
four separate prospects as well as sub-prospects. Although the
Company has previously carried out extensive drilling for copper
and established a copper resource, the 2021 drill programme is the
first that it has undertaken specifically for precious metals and
the results have been very encouraging.
Prospects drilled so far this year are: Trafalgar Hill (Olympic
Gold Project), OMCO Mine Area and OMCO Mine Extension (Olympic Gold
Project), West Hill (Olympic Gold Project) and Southern Alteration
Zone (Rock House Group of Prospects) with best assay results of
8.90 grams/tonne Au at Trafalgar Hill and 8.02grams/tonne Au at the
Southern Alteration Zone. All the prospects that have now been
drilled merit follow-up drilling, plans for which are now firm but
start of which will depend on rig availability in a currently very
tight market.
In 2020, Great Western acquired an option to purchase the
Olympic Gold Project for a total cost of $250,000 payable over 4
years together with a royalty over future production and the
options of (1) prepaying to complete an earlier acquisition or (2)
relinquishing at any time during the 4-year option period. In the
16 months since this agreement was signed, the Company has moved
forward rapidly to explore the area and it has now become a core
component of the asset portfolio, which the Board believes holds
great potential for the Company. In May 2021, the Company paid the
first anniversary option payment of $25,000 to extend the agreement
for another year.
The Rock House Group had never been drilled until this year and
its prospectivity was worked up by the Company's team based on
satellite imagery, followed by soil sampling, trenching and desktop
studies. As such this was quite high a risk venture but yielded
reportable grades of gold in all six holes, with two holes
delivering good grades.
The remaining phase 1 drill projects for this year, at Mineral
Jackpot and the M4 copper prospect, depend on the availability of a
track-mounted reverse circulation rig which the Company has
identified, to overcome access problems.
Processing Operations
At the end of 2020 the Company produced a small doré bar from
spoil heaps at one of the five old, abandoned gold and silver mines
which make up the Mineral Jackpot Group, proving the viability of
recovering precious metals from spoil heaps close to the Mineral
Jackpot group of mines. As a result of further measurements during
2021, the number of spoil heaps identified has been increased to 51
and the estimate of the area covered by those spoil heaps increased
to approximately 14,000m(2). A load of the same material was
air-freighted to a specialised laboratory in the UK for a 4-month
analysis which concluded that precious metals could most
effectively be recovered via a relatively simple gravity processing
method. A consultant metallurgist engaged by the Company has now
provided detailed design and economics for this plant which will
most likely be simplified to produce a concentrate for sale to a
refinery, rather than pouring precious metals in a remote location
with associated high security risks.
Surface samples from the spoil heaps are currently being
analysed in a laboratory to verify the viability of the planned
processing operation. An outstanding issue is the proposed upgrade
of part of a mountain road which will enable a suitable rig to
access the site for exploration drilling and the upgraded road but
which would also enable delivery of material from spoil heaps for
the proposed processing operations.
The Company also has access to significant tailings at the
Olympic Gold Project, left over from producing operations at the
OMCO Mine, together with a stockpile of material which has never
been processed. Again, surface samples from the tailings are
currently being analysed in a laboratory and a two-man portable rig
will be used to drill the tailings in order to obtain more detailed
assay results and to determine the volume of the heap. Initial
indications suggest that a cyanide-leaching procedure could produce
a profitable revenue stream for the Company from the tailings in
the future, while the stockpile of unprocessed material could
potentially be amalgamated with the Mineral Jackpot gravity
separation project.
Gold mines take time to develop but the tailings, spoil heaps
and stockpiles represent materials which have already been mined
and Great Western is seeking to exploit these assets to achieve
early revenues in the most effective and economical way.
Copper Projects
On the Black Mountain group of claims, the Company has already
generated an inferred resource of 4.3 million tonnes copper at a
grade of 0.45%, through approximately 5,000 metres of drilling. The
Board considers that there is potential for a major copper porphyry
on its claims but that it is too large a project for the Company to
carry on its own. It is therefore actively seeking a larger partner
to join this venture, with the financial and technical resources to
take it to the next stage. At East Mine claims, which have been
identified as another potential copper target, the Company is
waiting on contractor availability to conduct an induced
polarisation survey.
Other exploration activities
During the period, the Company completed a magnetometer survey
over the accessible part of Mineral Jackpot and has located a drone
survey company to conduct an aerial magnetometer survey over the
less accessible portion of the acreage. The drone survey, merged
with the land-based magnetometer survey already completed, will
provide a greatly enhanced picture of the various prospects at
Mineral Jackpot.
Corporate
Earlier this month Great Western held an Investor-meet-Company
online session to ensure better shareholder engagement and this
means of communication is expected to be repeated. The session was
based around an updated Company presentation which is available on
www.greatwesternmining.com. The presentation sets out not only the
work currently in progress but also contains an appendix which
describes all the Company's inventory of multiple prospects for
gold, silver and copper, including those on which work has yet to
commence.
The Company is pleased to welcome Ms. Gemma Cryan to the Board
as a non-executive director, an experienced Mineral Exploration
Geologist who serves as Geology Manager at Greatland Gold PLC and
is an executive director at Starvest PLC, a mining investment
company. As the Company has a small team, the strong support of the
non-executive directors is invaluable to management and during the
short time Gemma Cryan has been with the Company, she has already
made an important contribution to its activities.
Looking ahead, the next phase of drilling is ready to start as
soon as suitable rigs become available in the current tight market
post-Covid. Plans will be developed for processing existing mined
materials as soon as possible, with updates being provided as
milestones are reached.
The Board would like to thank shareholders for their continuing
support and will ensure that regular communications are provided
around significant developments.
Unaudited Condensed Consolidated Income Statement
For the six months to 30 June 2021
Notes Unaudited Unaudited Audited
six months six months year
ended ended ended
30 Jun 30 Jun 31 Dec
2021 2020 2020
EUR EUR EUR
Continuing operations
Administrative expenses (427,703) (487,621) (852,270)
Finance income 4 113 180 228
------------------ ------------------ ------------------
Loss for the period before
tax (427,590) (487,441) (852,042)
Income tax expense 5 - - -
------------------ ------------------ ------------------
Loss for the financial period (427,590) (487,441) (852,042)
Loss attributable to:
Equity holders of the Company 3 (427,590) (487,441) (852,042)
================== ================== ==================
Loss per share from continuing
operations
Basic and diluted loss per
share (cent) 6 (0.0001) (0.0004) (0.001)
================== ================== ==================
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 2021
Notes Unaudited Unaudited
six months six months Audited
ended ended year ended
30 Jun 30 Jun 31 Dec
2021 2020 2020
EUR EUR EUR
Loss for the financial period (427,590) (487,441) (852,042)
Other comprehensive income
Items that are or may be reclassified
to profit or loss:
Currency translation differences 183,588 17,507 (512,730)
------------ -------------- ---------------
183,588 17,507 (512,730)
Total comprehensive expense for the
financial period
attributable to equity holders of
the Company (244,002) (469,934) (1,364,772)
============ ============== ===============
Unaudited Condensed Consolidated Statement of Financial
Position
For the six months to 30 June 2021
Notes Unaudited Unaudited
six months six months Audited
ended ended year ended
30 Jun 30 Jun 31 Dec
2021 2020 2020
Assets EUR EUR EUR
Non-current assets
Property, plant and equipment 9 68,781 73,999 66,612
Intangible assets 10 6,448,102 6,159,987 5,898,940
------------- ------------- ---------------
Total non-current assets 6,516,883 6,233,986 5,965,552
Current assets
Trade and other receivables 8 263,982 77,557 99,904
Cash and cash equivalents 9 2,714,948 430,952 2,287,172
------------- ------------- ---------------
Total current assets 2,978,930 508,509 2,387,076
Total assets 9,495,813 6,742,495 8,352,628
============= ============= ===============
Equity
Capital and reserves
Share capital 12 357,751 165,796 307,071
Share premium 12 13,572,027 10,271,969 12,543,606
Share based payment reserve 294,132 515,561 559,420
Foreign currency translation
reserve 204,761 551,410 21,173
Retained earnings (5,717,547) (5,055,018) (5,511,645)
------------- ------------- ---------------
Attributable to owners of
the Company 8,711,124 6,449,718 7,919,625
Total equity 8,711,124 6,449,718 7,919,625
Liabilities
Current liabilities
Trade and other payables 11 784,689 292,777 433,003
------------- ------------- ---------------
Total current liabilities 784,689 292,777 433,003
Total liabilities 784,689 292,777 433,003
Total equity and liabilities 9,495,813 6,742,495 8,352,628
============= ============= ===============
Unaudited Condensed Consolidated Statement of Changes in
Equity
For the six months to 30 June 2021
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 2020 112,205 9,687,151 435,962 533,903 (4,535,134) 6,234,087
Comprehensive
income for
the period
Loss for the period - - - - (487,441) (487,441)
Currency translation
differences - - - 17,507 - 17,507
------------------ ------------------ ------------------ ------------------ ------------------ --------------
Total comprehensive
income for the
period - - - 17,507 (487,441) (469,934)
Transactions with owners,
recorded
directly in equity
Shares issued 53,591 584,818 - - (32,443) 605,966
Share options charge - - 79,599 - - 79,599
Total
transactions
with owners,
recorded
------------------ ------------------ ------------------ ------------------ ------------------ --------------
directly in
equity 53,591 584,818 79,599 - (32,443) 685,565
Balance at 30
June 2020 165,796 10,271,969 515,561 551,410 (5,055,018) 6,449,718
================== ================== ================== ================== ================== ==============
Unaudited Condensed Consolidated Statement of Changes in
Equity
For the six months to 30 June 2021
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 2020 165,796 10,271,969 515,561 551,410 (5,055,018) 6,449,718
Comprehensive
income for
the period
Loss for the period - - - - (364,601) (364,601)
Currency translation
differences - - - (530,237) - (530,237)
------------------ ------------------ ------------------ ------------------ ------------------ -----------------
Total comprehensive
income for the
period - - - (530,237) (364,601) (894,838)
Transactions with owners,
recorded
directly in equity
Shares issued 141,275 2,096,103 - - (108,047) 2,129,331
Share warrants granted - - 25,521 - (25,521) -
Share warrants exercised - 175,534 (11,815) - - 163,719
Share warrants terminated - (41,542) - 41,542 -
Share options charge - - 71,695 - - 71,695
Total
transactions
with owners,
recorded
------------------ ------------------ ------------------ ------------------ ------------------ -----------------
directly in
equity 141,275 2,271,637 43,859 - (92,026) 2,364,745
Balance at 31
December 2020 307,071 12,543,606 559,420 21,173 (5,511,645) 7,919,625
================== ================== ================== ================== ================== =================
Unaudited Condensed Consolidated Statement of Changes in
Equity
For the six months to 30 June 2021
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 2021 307,071 12,543,606 559,420 21,173 (5,511,645) 7,919,625
Comprehensive
income for
the period
Loss for the period - - - - (427,590) (427,590)
Currency translation
differences - - - 183,588 - 183,588
------------------ ------------------ ------------------ ------------------ ------------------ --------------
Total comprehensive
income for the
period - - - 183,588 (427,590) (244,002)
Transactions with owners,
recorded
directly in equity
Shares issued 50,680 1,028,421 - - (69,206) 1,009,895
Share warrants granted - - 20,709 - (20,709) -
Share options exercised - - (4,777) - 4,777 -
Share options reserve
transfer - - (306,826) - 306,826 -
Share options charge - - 25,606 - - 25,606
Total
transactions
with owners,
recorded
------------------ ------------------ ------------------ ------------------ ------------------ --------------
directly in
equity 50,680 1,028,421 (265,288) - 221,688 1,035,501
Balance at 30
June 2021 357,751 13,572,027 294,132 204,761 (5,717,547) 8,711,124
================== ================== ================== ================== ================== ==============
Unaudited Condensed Consolidated Statement of Cash Flows
For the six months to 30 June 2021
Notes Unaudited Unaudited Audited
six months six months period
ended ended ended
30 Jun 30 Jun 31 Dec
2021 2020 2020
EUR EUR EUR
Cash flows from operating
activities
Loss for the period (427,590) (487,441) (852,042)
Adjustments for:
Depreciation - 2,803 3,733
Interest receivable and
similar income (113) (180) (228)
Movement in trade and
other receivables (164,078) 17,386 (4,961)
Movement in trade and
other payables 56,619 (57,657) (72,067)
Equity settled share-based
payment 25,606 79,599 151,294
---------------- ------------------------- ---------------
Net cash flows from operating
activities (509,556) (445,490) (774,271)
Cash flow from investing
activities
Expenditure on intangible
assets (263,497) (35,393) (196,982)
Interest received 113 180 228
---------------- ------------------------- ---------------
Net cash from investing
activities (263,384) (35,213) (196,754)
Cash flow from financing
activities
Proceeds from the issue
of new shares 1,250,449 638,409 3,130,705
Commission paid from the
issue of new shares (69,206) (32,443) (140,490)
---------------- ------------------------- ---------------
Net cash from financing
activities 1,181,243 605,966 2,990,215
Increase in cash and cash
equivalents 408,303 125,263 2,019,190
Exchange rate adjustment
on cash and
cash equivalents 19,473 (986) (38,693)
Cash and cash equivalents
at beginning
of the period 10 2,287,172 306,675 306,675
Cash and cash equivalents
at end of
the period 10 2,714,948 430,952 2,287,172
================ ========================= ===============
Unaudited Notes to the Condensed Financial Statements
For the six months to 30 June 2021
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 2021 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 29 September 2021.
Basis of preparation
The half yearly financial statements for the six months ended 30
June 2021 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 2020 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 2020
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 2020.
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 based payments
-- Note 14 - Share warrants - financial liability
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 7 - Property, plant and equipment; consideration of impairment
-- Note 8 - Intangible asset; consideration of impairment
-- Note 11 - Trade and other payables - 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 2021, 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 half-year ended
30 June 2021. As the Group is not generating revenues, an operating
loss is expected for the next twelve months. However at the balance
sheet date, the Group had cash and cash equivalents amounting to
EUR2.71 million which includes approximately EUR1.18 million raised
in the period which the Board considers will enable the Group to
meet continuing operating expenditure and the planned work
programme.
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
claims interests in Nevada can be assisted if necessary by raising
additional capital or from future revenues. The Directors have
taken into consideration the Company's successful completion of
placings and the exercise of warrants by warrant holders during
2020 and 2021 to provide additional cash resources.
The Directors have concluded that the Group will have sufficient
resources to continue as a going concern for the period of
assessment period of not less than 12 months from the date of
approval of the unaudited condensed consolidated financial
statements without material uncertainties. Accordingly, the
unaudited condensed consolidated financial 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 are disclosed under "Corporate Activities"
which 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.
It is the opinion of the Directors, therefore, that the Group
has only one reportable segment under IFRS 8 'Operating Segments',
which is exploration carried out in Nevada. 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.
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 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Exploration activities -
Nevada (5,382) (8,598) (12,865)
Corporate activities (422,208) (478,843) (839,177)
------------- ------------- --------------
Consolidated loss before
tax (427,590) (487,441) (852,042)
============= ============= ==============
Segment assets
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Exploration activities -
Nevada 6,986,794 6,287,461 6,615,904
Corporate activities 2,509,019 455,034 2,036,724
------------- ------------- --------------
Consolidated total assets 9,495,813 6,742,495 8,352,628
============= ============= ==============
Segment liabilities
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Exploration activities -
Nevada 225,372 4,111 86,571
Corporate activities 559,317 288,666 346,432
------------- ------------- --------------
Consolidated total liabilities 784,689 292,777 433,003
============= ============= ==============
The Group operates in three principal geographical areas -
Republic of Ireland (country of residence of Great Western Mining
Corporation PLC), Nevada, U.S.A. (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 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Nevada - exploration activities 6,516,883 6,233,986 5,965,552
Republic of Ireland - - -
United Kingdom - - -
------------- ------------- --------------
6,516,883 6,233,986 5,965,552
============= ============= ==============
4. Finance income
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Bank interest receivable 113 180 228
------------- ------------- --------------
113 180 228
============= ============= ==============
5. Income tax
The Group has not provided any tax charge for the six months
periods ended 30 June 2021 and 30 June 2020 or the year ended 31
December 2020. 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 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Loss for the period (427,590) (487,441) (852,042)
================ ================ ================
Number of ordinary shares
at start of period 3,070,714,550 1,122,055,459 1,122,055,459
Number of ordinary shares
issued during the period 506,795,455 535,909,091 1,948,659,091
---------------- ---------------- ----------------
Number of ordinary shares
at end of period 3,577,510,005 1,657,964,550 3,070,714,550
================ ================ ================
Weighted average number
of ordinary shares for the
purposes of basic earnings
per share 3,458,536,520 1,365,161,520 1,844,253,806
================ ================ ================
Basic loss per ordinary
share (cent) (0.0001) (0.0004) (0.001)
================ ================ ================
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 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Cost
Opening cost 86,432 94,410 94,410
Exchange rate adjustment 2,814 303 (7,978)
------------- ------------- --------------
89,246 94,713 86,432
Depreciation
Opening depreciation 19,820 17,854 17,854
Charge for period - 2,803 3,733
Exchange rate adjustment 645 57 (1,767)
------------- ------------- --------------
20,465 20,714 19,820
Net book value
------------- ------------- --------------
Opening net book value 66,612 76,556 76,556
Closing net book value 68,781 73,999 66,612
============= ============= ==============
8. Intangible assets
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Cost
Opening cost 5,898,940 6,106,347 6,106,347
Additions 368,557 35,393 196,982
Increase in decommissioning
cost 4,969 - 75,287
Exchange rate adjustment 175,636 18,247 (479,676)
------------- ------------- --------------
6,448,102 6,159,987 5,898,940
Amortisation
Opening amortisation - - -
Charge for period - - -
Exchange rate adjustment - - -
------------- ------------- --------------
- - -
Net book value
------------- ------------- --------------
Opening net book value 5,898,940 6,106,347 6,106,347
Closing net book value 6,448,102 6,159,987 5,898,940
============= ============= ==============
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 the requirements of 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 also considered other factors in assessing
potential impairment including cash available to the Group,
commodity prices and markets, taxation and regulatory regime,
access to equipment and services and the impact of Covid-19
restrictions. The Directors are satisfied that no impairment is
required as at 30 June 2021. 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. 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 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Amounts falling die within
one year:
Other debtors 191,782 30,453 61,399
Prepayments 72,200 47,104 38,505
------------- ------------- --------------
263,982 77,557 99,904
============= ============= ==============
All amounts above are current and there have been no impairment
losses during the period (30 June 2019: EURNil, 31 December 2020:
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 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Cash in bank and in hand 355,498 29,585 307,658
Short term bank deposits 2,359,450 401,367 1,979,514
------------- ------------- --------------
2,714,948 430,952 2,287,172
============= ============= ==============
11. Trade and other payables
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2021 30 Jun 2020 31 Dec 2020
EUR EUR EUR
Amounts falling die within
one year:
Trade payables 50,773 24,439 8,285
Other payables 3,995 755 670
Accruals 196,093 58,267 80,235
Other taxation and social
security 12,880 8,862 12,872
Share warrant provision 440,691 164,396 255,654
Share option provision - 36,058 -
Decommissioning provision 80,257 - 75,287
------------- ------------- --------------
784,689 292,777 433,003
============= ============= ==============
The Group has financial risk management policies in place to
ensure that payables are paid within the pre-agreed credit
terms.
12. Share capital
No of shares Value of shares
EUR
Authorised at 1 January 2020 2,700,000,000 270,000
Authorised at 30 June 2020 2,700,000,000 270,000
============== ================
Authorised at 1 July 2020 2,700,000,000 270,000
Increase in authorised share
capital 2,300,000,000 230,000
-------------- ----------------
Authorised at 1 December 2020 5,000,000,000 500,000
============== ================
Authorised at 1 January 2021 5,000,000,000 500,000
Increase in authorised share
capital 2,000,000,000 200,000
-------------- ----------------
Authorised at 30 June 2021 7,000,000,000 700,000
============== ================
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 2020 1,122,055,459 112,205 9,687,151 9,799,356
Ordinary shares issued 535,909,091 53,591 584,818 638,409
-------------- ---------- ----------- -----------
At 30 June 2020 1,657,964,550 165,796 10,271,969 10,437,765
============== ========== =========== ===========
Issued, called up
and fully paid:
At 1 July 2020 1,657,964,550 165,796 10,271,969 10,437,765
Ordinary shares issued 1,000,000,000 100,000 1,379,386 1,479,386
Ordinary shares issued
on exercise of warrants 412,750,000 41,275 716,717 757,992
Released on exercise
of warrants - - 175,534 175,534
-------------- ---------- ----------- -----------
At 31 December 2020 3,070,714,550 307,071 12,543,606 12,850,677
============== ========== =========== ===========
Issued, called up
and fully paid:
At 1 January 2021 3,070,714,550 307,071 12,543,606 12,850,677
Ordinary shares issued 454,545,455 45,455 916,611 962,066
Ordinary shares issued
on exercise of warrants 46,250,000 4,625 86,203 90,828
Ordinary shares issued
on exercise of options 6,000,000 600 5,591 6,191
Released on exercise
of warrants - - 20,016 20,016
-------------- ---------- ----------- -----------
At 30 June 2021 3,577,510,005 357,751 13,572,027 13,929,778
============== ========== =========== ===========
On 5 February 2020, the Company completed a placing of
12,500,000 new ordinary shares of EUR0.0001 at a price of GBP0.0011
(EUR0.0013) per ordinary share, raising gross proceeds of GBP13,750
(EUR16,283) and increasing share capital by EUR1,250. The premium
arising on the issue amounted to EUR15,033.
On 12 March 2020, the Company completed a placing of 290,909,091
new ordinary shares of EUR0.0001 at a price of GBP0.0011
(EUR0.0012) per ordinary share, raising gross proceeds of
GBP320,000 (EUR361,080) and increasing share capital by EUR29,091.
The premium arising on the issue amounted to EUR331,989.
On 3 June 2020, the Company completed a placing of 217,500,000
new ordinary shares of EUR0.0001 at a price of GBP0.0010
(EUR0.0011) per ordinary share, raising gross proceeds of
GBP217,500 (EUR244,204) and increasing share capital by EUR21,750.
The premium arising on the issue amounted to EUR222,454. In
addition, on 3 June 2020, the Company issued 15,000,000 new
ordinary shares of EUR0.0001 at the placing price of GBP0.0010 for
services provided to the Company. The issue increased share capital
by EUR1,500 and share premium by EUR15,342.
On 30 July 2020, the Company completed a placing of 450,000,000
new ordinary shares of EUR0.0001 at a price of GBP0.0010
(EUR0.0011) per ordinary share, raising gross proceeds of
GBP450,000 (EUR498,516) and increasing share capital by EUR45,000.
The premium arising on the issue amounted to EUR368,519. The share
issue included warrants granted giving the right to acquire
225,000,000 Ordinary shares of EUR0.0001 at an exercise price of
GBP0.0020 with a fair value of EUR84,997. Details of issues of
shares during the period ended 30 June 2021 arising from the
exercise of these warrants are detailed within this note.
On 24 September 2020, the Company completed the issue of
50,000,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in November 2019. The
exercise price was GBP0.0016 (EUR0.0018) per ordinary share,
raising gross proceeds of GBP80,000 (EUR87,692) and increasing
share capital by EUR5,000. The premium arising on the issue
amounted to EUR82,692.
On 28 September 2020, the Company completed the issue of
200,000,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in November 2019. The
exercise price was GBP0.0016 (EUR0.0018) per ordinary share,
raising gross proceeds of GBP320,000 (EUR353,560) and increasing
share capital by EUR20,000. The premium arising on the issue
amounted to EUR333,560.
On 8 October 2020, the Company completed the issue of 27,000,000
new ordinary shares following the exercise of broker warrants
granted in conjunction with the placing in July 2020. The exercise
price was GBP0.0010 (EUR0.0011) per ordinary share, raising gross
proceeds of GBP27,000 (EUR29,659) and increasing share capital by
EUR2,700. The premium arising on the issue amounted to EUR26,959.
In addition the Company issued 10,000,000 new ordinary shares
following the exercise of warrants granted in conjunction with the
placing in July 2020. The exercise price was GBP0.0020 (EUR0.0011)
per ordinary share, raising gross proceeds of GBP20,000 (EUR21,969)
and increasing share capital by EUR1,000. The premium arising on
the issue amounted to EUR20,969.
On 14 October 2020, the Company completed the issue of
25,000,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in July 2020. The exercise
price was GBP0.0020 (EUR0.0022) per ordinary share, raising gross
proceeds of GBP50,000 (EUR55,313) and increasing share capital by
EUR2,500. The premium arising on the issue amounted to
EUR52,813.
On 30 October 2020, the Company completed the issue of
31,250,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in November 2019. The
exercise price was GBP0.0016 (EUR0.0018) per ordinary share,
raising gross proceeds of GBP50,000 (EUR55,427) and increasing
share capital by EUR3,125. The premium arising on the issue
amounted to EUR52,302.
On 3 November 2020, the Company completed the issue of
69,500,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in July 2020. The exercise
price was GBP0.0020 (EUR0.0022) per ordinary share, raising gross
proceeds of GBP139,000 (EUR154,372) and increasing share capital by
EUR6,950. The premium arising on the issue amounted to
EUR147,422.
On 24 November 2020, the Company completed a placing of
550,000,000 new ordinary shares of EUR0.0001 at a price of
GBP0.0020 (EUR0.0022) per ordinary share, raising gross proceeds of
GBP1,100,000 (EUR1,235,788) and increasing share capital by
EUR55,000. The premium arising on the issue amounted to
EUR1,010,867. The share issue included warrants granted giving the
right to acquire 275,000,000 Ordinary shares of EUR0.0001 at an
exercise price of GBP0.0030 with a fair value of EUR169,921, which
remain unexercised at period end 30 June 2021.
On 21 January 2021, the Company completed the issue of
15,000,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in July 2020. The exercise
price was GBP0.0020 (EUR0.0023) per ordinary share, raising gross
proceeds of GBP30,000 (EUR33,850) and increasing share capital by
EUR1,500. The premium arising on the issue amounted to
EUR32,350.
On 12 February 2021, the Company completed the issue of
31,250,000 new ordinary shares following the exercise of warrants
granted in conjunction with the placing in November 2019. The
exercise price was GBP0.0016 (EUR0.0018) per ordinary share,
raising gross proceeds of GBP50,000 (EUR56,978) and increasing
share capital by EUR3,125. The premium arising on the issue
amounted to EUR53,853.
On 15 February 2021, the Company completed the issue of
6,000,000 new ordinary shares following the exercise of options
granted in April 2020. The exercise price was GBP0.0009 (EUR0.0010)
per ordinary share, raising gross proceeds of GBP5,400 (EUR6,191)
and increasing share capital by EUR600. The premium arising on the
issue amounted to EUR5,591.
On 13 April 2021, the Company completed a placing of 454,545,455
new ordinary shares of EUR0.0001 at a price of GBP0.0022
(EUR0.0025) per ordinary share, raising gross proceeds of
GBP1,000,000 (EUR1,153,429) and increasing share capital by
EUR45,455. The premium arising on the issue amounted to EUR916,610.
The share issue included warrants granted giving the right to
acquire 227,272,727 Ordinary shares of EUR0.0001 at an exercise
price of GBP0.0030 with a fair value of EUR191,364, which remain
unexercised at period end 30 June 2021.
Transaction expenses including commission arising on the issue
of new shares amounted to EUR69,206 during the year (30 June 2020:
EUR32,443 and 31 December 2020: EUR140,490). A total of EUR175,534
was released from the share warrant financial liability following
the exercise of warrants during the year ended 31 December
2020.
13. 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.
Options are granted at market price, in accordance with the
rules, with reference to the average closing price for the ten
dealing days prior to the grant of options. Options granted prior
to 2020 vest if the option holder remains in service for three
years from the date of grant. Options granted in 2020 vest
immediately. All options expire at a date seven years after their
date of grant.
Measure of fair values of options
No options were granted In the six months ended 30 June 2021.
The fair values of options granted in the comparative periods in
accordance with the terms of the Share Option Plan 2014 were
calculated using the following inputs into the binomial
option-pricing model:
22 April 2020
Fair value at grant date Stg 0.070
p
Share price at grant date Stg 0.095
p
Exercise price Stg 0.090
p
Number of options granted 47,000,000
Expected volatility 137%
Expected life 7 Years
Expected dividend 0%
Risk free interest rate 0.1%
During the period an expense of EUR25,606 (30 June 2020:
EUR79,599 and 31 December 2020: EUR151,294) was recognised in the
statement of profit and loss related to share options vesting
during the period. An amount of EUR4,777 was released from the
share options reserve to retained earnings on the exercise of
6,000,000 options granted in April 2020. An amount of EUR306,826
was released from the share options reserve to retained earnings on
the termination of certain options.
On 30 June 2021, there were options outstanding over 67,666,67
(30 June 2020: 112,000,000 and 31 December 2020: 112,000,000)
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 22 April 2027.
Equity-settled warrants
In July 2020, the Group granted warrants to Novum Securities
Limited in connection with a share placing. 27,000,000 warrants
were granted exercisable at GBP0.0010 (EUR0.0011) each with
immediate vesting and a contractual life of 2 years.
In November 2020, the Group granted warrants to Monecor (London)
Limited in connection with a share placing. 20,000,000 warrants
were granted exercisable at GBP0.0020 (EUR0.0022) each with
immediate vesting and a contractual life of 2 years.
In April 2021, the Group granted warrants to Novum Securities
Limited in connection with a share placing. 22,727,272 warrants
were granted exercisable at GBP0.0022 (EUR0.0025) each with
immediate vesting and a contractual life of 2 years.
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.
The inputs used in the measurement of the fair values at grant
date of the warrants were as follows:
Apr 2021 Nov 2020 Jul 2020
Fair value at grant date EUR0.0009 EUR0.0007 EUR0.0004
Share price at grant date EUR0.0029 EUR0.0022 EUR0.0014
Exercise price EUR0.0022 EUR0.0022 EUR0.0011
Number of warrants granted 22,727,272 20,000,000 27,000,000
Sub-optimal exercise factor 1.5x 1.5x 1.5x
Expected volatility 109% 112% 120%
Expected life 2 Years 2 Years 2 Years
Expected dividend 0% 0% 0%
Risk free interest rate 0.1% 0.1% 0.1%
In October 2020, the warrants over 27,000,000 shares granted in
July 2020 were exercised and the amount of EUR11,816 released from
the share-based payment reserve to share premium.
In July 2020, warrants granted in July 2017 over 4,687,500
shares lapsed unexercised and an amount of EUR41,542 released from
the share-based payment reserve to retained earnings.
At 30 June 2021, the balance on the share-based payment reserve
amounted to EUR605,735 (30 June 2020: EUR515,561 and 31 December
2020: EUR559,420).
14. Share warrants - financial liability
Warrants granted during the year
In July 2020, the Group granted warrants in connection with a
share placing. 225,000,000 warrants were granted exercisable at
GBP0.0020 each with immediate vesting and a contractual life of 2
years.
In November 2020, the Group granted warrants in connection with
a share placing. 275,000,000 warrants were granted exercisable at
GBP0.0030 each with immediate vesting and a contractual life of 2
years.
In March 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.
No warrants were granted during the period ending 30 June 2020.
In November 2019, the Group granted warrants in connection with a
share placing. 375,000,000 warrants were granted exercisable at
GBP0.0016 (EUR0.0019) each with immediate vesting and a contractual
life of 3 years. The inputs used in the measurement of the fair
values at grant date of the warrants were as follows:
Measure of fair values of warrants
The fair value of the warrants issued has been measured using
the binomial 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.
The inputs used in the measurement of the fair values at grant
date of the warrants were as follows:
Apr 2021 Nov 2020 Jul 2020
Fair value at grant date GBP0.0007 GBP0.0006 GBP0.0004
Share price at grant date GBP0.0025 GBP0.0020 GBP0.0012
Exercise price GBP0.0030 GBP0.0030 GBP0.0020
Number of warrants granted 227,272,727 275,000,000 225,000,000
Sub-optimal exercise factor 1.5x 1.5x 1.5x
Expected volatility 109% 112% 120%
Expected life 2 Years 2 Years 2 Years
Expected dividend 0% 0% 0%
Risk free interest rate 0.1% 0.1% 0.1%
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.
13. 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.
14. Events after the reporting date
There were no significant post balance sheet events which would
require amendment to or disclosure in the half yearly financial
statements.
15. Approval of financial statements
The half yearly financial statements were approved by the Board
of Directors on 29 September 2021.
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 or visit 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.
END
IR BIGDCDDDDGBC
(END) Dow Jones Newswires
September 30, 2021 02:00 ET (06:00 GMT)
Great Western Mining (LSE:GWMO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Great Western Mining (LSE:GWMO)
Historical Stock Chart
From Apr 2023 to Apr 2024
