TIDMGWMO
RNS Number : 2555B
Great Western Mining Corp. plc
30 September 2022
Great Western Mining Corporation PLC
("Great Western", "GWM" or the "Company")
Half Yearly Report and Unaudited Condensed Financial
Statements
Financial Highlights:
-- Loss for period EUR448,652 (30 June 2021: loss of EUR427,590
and December 2021: loss of EUR535,960 )
-- Basic and diluted loss per share 0.0001 cent: (30 June 2021:
0.0004 cent and 31 December 2021: EUR0.001 cent)
-- Net assets at 30 June 2022: EUR9,191,466 (30 June 2021:
EUR8,711,124 and 31 December 2021: EUR8,945,631)
Operational Highlights:
-- Completed drilling programmes at Rock House ("RH") and Trafalgar Hill (TH")
o Three holes completed RH totalling 488 m with positive
indicators of alteration
o Three holes drilled at TH with a combined length of 436 m,
-- Grab sampling results from 51 spoil heaps at Mineral Jackpot ("MJ")
Post period End:
-- OMCO drilling assays received
o Extension to OMCO Mine now established
o Gold recorded over 6.1 metre interval including a best
intercept of 8.1 grams/tonne over 1.5 metres
-- RH and MJ assay results highlighted strong project dynamics
o High grades of silver at MJ providing potential for shallow
drilling and ore to be produced through milling JV
o Reportable, anomalous gold values were encountered at RH with
clear evidence of a continuing gold mineralising system
o New zone of anomalous copper identified beneath a surface
gossan at RH
-- Completed OMCO Mine MJ drilling programmes
o Ten holes totalling 1,339 metres drilled in the OMCO Mine
area
o Four holes totalling 536 metres drilled in the Mineral Jackpot
main workings area
-- Signed a 50-50 joint venture agreement with Muletown
Enterprizes LLC to form Western Milling LLC for construction of a
mill to recover gold and silver from pre-mined material and shallow
ore
o Manager appointed and the first stage design of a processing
mill for secondary recovery of gold and silver from mining waste is
now complete
Brian Hall, Executive Chairman, commented : "We are very pleased
with the progress made during the period. We set out our stall with
an ambitious drilling programme, completed on time and on budget,
with positive results received to date. Our transition to near-term
production of gold and silver has taken a step closer today
following signing of an agreement with Muletown Enterprizes LLC to
create a processing mill in Nevada which will ultimately process
third party material as well as our own.
"We have been able to highlight the strength of our portfolio,
which is proving increasingly prospective, and we continue to
believe that our assets underpin long-term value, while the
potential for near-term revenue generation will help separate us
from the crowd."
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
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
Walbrook PR (PR advisers)
Nick Rome/Joe Walker +44 207 933 8783
Interim Report
For the six months to 30 June 2022
Below are Great Western Mining Corporation PLC's Annual Report
and Financial Statements for the half year ended 30 June 2022.
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 of
EUR448,652 for the half year ended 30 June 2022 (30 June 2021:
EUR427,590; 31 December 2021: EUR535,960). At the end of the period
Great Western's net assets were EUR9,191,466 (30 June 2021:
EUR8,711,124; 31 December 2021: EUR8,945,631) with no debt apart
from trade creditors in the normal course of business.
During the half year, Great Western launched a drilling campaign
over four of its claim groups in Mineral County, Nevada which
continued into the second half, constructed a 14 km mountain road
to provide access to its high altitude Mineral Jackpot group of
historic mines and created a provisional joint venture with a
locally-based contractor to process spoil heaps from previous
mining operations, tailings and stockpiles of mined but unprocessed
material, all of which are present on its claims.
Drilling Activities
The four claims groups selected for drilling were the Southern
Alteration Zone at Rock House (SAZ), the Trafalgar Hill prospect at
the Olympic Gold Project, the area around the abandoned OMCO Mine
at the Olympic Gold Project and Mineral Jackpot. Rock House and
Trafalgar Hill were drilled during the period ended 30 June 2022
and the OMCO Mine and Mineral Jackpot were drilled post period and
included in the report for completeness.
Rock House Group: The SAZ was first drilled by Great Western in
2021, having been identified along with other prospects at Rock
House through satellite imagery and then extensively soil and rock
chip sampling. In 2021, two holes graded vein material of
approximately 8 grams/ton Au and 2 grams/ton Au respectively.
Ambitious step out drilling this year aimed to find a coalescing of
several thin veins but this was not achieved. However, assay
results provided evidence of copper which had not been anticipated
and drilling has constructively added to knowledge of the prospects
which will be used in designing future drilling activity.
Trafalgar Hill at the Olympic Gold Group: Three holes were
drilled with an aggregate length of 436 metres at the shallower
zone in the southern part of the Trafalgar Hill claims to follow up
the positive results achieved in the 2021 drilling programme. The
Company has developed a geological model based on last year's
drilling results and was able to predict the lithology and
alteration features intersected in the three holes with great
accuracy. Assay results for the three holes are pending as the
Company has decided to expand the assay testing to include screen
fire assay techniques which will test for coarse nuggety gold
potentially identified within the system.
The OMCO Mine at the Olympic Gold Project: The OMCO Mine
produced gold from shallow depths for roughly four decades before
being abandoned during the Second World War. The principal
east-west vein is interrupted by a north-south fault and one of
Great Western's objectives is to find a continuation of the vein on
the eastern side of this fault. Magnetometry and drilling in 2021
identified mineralisation compatible with the OMCO vein but did not
find a continuation of the vein itself.
Drilling this year has been focused on possible unmined
continuations of the vein on the west side of the fault. This
proved successful as hole OMRC015 intercepted compatible vein
material, proving up a continuation of the OMCO vein. OMCR0015
intercepted 6.10 metres from 38.10 metres in the hole grading at
2.682 grams/ton Au average, including 8.110 grams/ton Au over 1.52
metres from 39.62 metres and 1.747 grams/ton Au over 1.52 metres
from 41.15 metres. Pursuing this vein will be a primary objective
of the next drill campaign.
Mineral Jackpot in the Black Mountain Group: Although the five
historic mines making up Mineral Jackpot produced gold and silver
for some years before and after the turn of the 19th-20th century,
access had only been by mule track and until this year none of the
prospects had ever been drilled. Great Western has carried out soil
surveys over the last three years, collected rock chip samples and
conducted magnetometry surveys, on foot where possible and by
specialist drones in the less accessible areas. The new 14 km road
was constructed during the reporting period, with the dual
objectives of providing access for a drill rig and a route for
offloading numerous spoil heaps of mining waste for secondary
recovery of gold and silver. Four holes have been drilled since the
end of the period. One hole, MJRC004, intercepted a 7.62 metre zone
from 4.57 metres in the hole, grading at 180.94 grams/ton Ag and
0.315 grams/ton Au, contained within which was a high-grade silver
zone hosted in quartz vein of 3.04 metres at 418.00 grams/ton Ag
and 0.554 grams/ton Au, starting at 6.10 meters drilled depth.
There is scope for extensive further drilling all over the Mineral
Jackpot claims but the immediate focus is likely to be on shallow
drilling with a small rig in the vicinity of the recent
discovery.
Planned Processing Operations
Over the last two years, Great Western has been researching the
optimum means of processing mining waste for recovery of gold and
silver. Originally this was planned to be a simple gravity
separation process for spoil material from Mineral Jackpot, where
there are 51 known spoil heaps. The concept was expanded once work
began in earnest on the newly acquired Olympic Gold Project option
in 2021, where extensive tailings, spoil heaps and a stockpile of
material had been mined but never processed. During the period the
Company concluded a way forward and has now signed a 50-50 joint
venture agreement with Muletown Enterprizes LLC, a Nevada based
contractor, to construct a processing mill on private land owned by
Muletown. The joint venture company will be known as Western
Milling LLC.
Copper Projects
In addition to its gold and silver operations, Great Western has
already drilled and established a partly inferred, partly indicated
copper resource of 4.3 million tonnes at a grade of 0.45% at its M2
project in the Black Mountains group. This was a considerable
achievement, with the potential to lead to the discovery of a much
larger copper resource. Great Western believes there is untested
potential in both directions along strike, on a structure of up to
5 km, supported by historical mine workings to the northeast, and
an IP anomaly to the southwest.
Great Western's copper resource at the M2 project is
complemented by copper potential on other claim groups. As
referenced above, drilling at Rock House during the period
intercepted a surface gossan with underlying long intercepts of
elevated copper grades. Also, during the period hill-cuts at the M4
project were chip sampled, resulting in 16 m at 0.2% and 0.28% Cu
respectively. An IP survey was conducted over the Company's
Eastside Mine group of claims revealing IP anomalies with promising
copper potential. Further, the Company has in the past drilled a
single hole on the Huntoon claims which assayed at 0.35% Cu over
27.4 metres and this will be followed up in due course. Finally,
there is further copper potential at the Tun Group.
A major copper project is too large an undertaking for a company
of Great Western's size and so a larger partner is being sought.
There have been several expressions of interest so far, but none
has met Great Western's objectives. Although no firm decision has
been made, Great Western may restart a limited drill programme to
prove up the copper potential at M2 as well as reviewing
exploration opportunities at the other claim groups to provide a
broader base of copper potential for an incoming industry
partner.
Looking Forward
Since 30 June 2022, Great Western has completed drilling
activity at OMCO and Mineral Jackpot as reported above. The Company
has also undertaken significant reclamation work at Rock House, the
OMCO Mine, the M2 Project and Sharktooth to ensure that regulatory
commitments are met and to release permitted acreage ready for
further drilling activity in 2023.
Looking forward, in the final quarter of 2022 and early 2023
Great Western will focus on planning, constructing and operating
the proposed process mill with the objective of transitioning from
pure exploration alone to a combination of exploration and
commercial production. This includes the commissioning of a
JORC-compliant resource estimate for the tailings at the OMCO mine,
which is expected to include defined exploration targets for other
available material. The study is currently under way. Finally, the
Company is preparing a shallow drilling programme to follow up on
the successful results at Mineral Jackpot and in the OMCO Mine
area. Shareholders will be kept informed on progress.
Unaudited Condensed Consolidated Income Statement
For the six months to 30 June 2022
Notes Unaudited Unaudited Audited
six months six months year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
EUR EUR EUR
Continuing operations
Administrative expenses (448,860) (427,703) (536,178)
Finance income 4 208 113 218
------------------ ------------------ ------------------
Loss for the period before
tax (448,652) (427,590) (535,960)
Income tax expense 5 - - -
------------------ ------------------ ------------------
Loss for the financial period (448,652) (427,590) (535,960)
Loss attributable to:
Equity holders of the Company 3 (448,652) (427,590) (535,960)
================== ================== ==================
Loss per share from continuing
operations
Basic and diluted loss per
share (cent) 6 (0.0001) (0.0001) (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 2022
Notes Unaudited Unaudited
six months six months Audited
ended ended year ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
EUR EUR EUR
Loss for the financial period (448,652) (427,590) (535,960)
Other comprehensive income
Items that are or may be reclassified
to profit or loss:
Currency translation differences 630,692 183,588 498,070
------------ --------------- -------------
630,692 183,588 498,070
Total comprehensive income /(expense)
for the financial
period attributable to equity holders
of the Company 182,040 (244,002) (37,890)
============ =============== =============
Unaudited Condensed Consolidated Statement of Financial
Position
For the six months to 30 June 2022
Notes Unaudited Unaudited
six months six months Audited
ended ended year ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
Assets EUR EUR EUR
Non-current assets
Property, plant and equipment 7 78,694 68,781 72,170
Intangible assets 8 8,236,192 6,448,102 7,086,254
------------- ------------- ---------------
Total non-current assets 8,314,886 6,516,883 7,158,424
Current assets
Trade and other receivables 9 146,406 263,982 110,940
Cash and cash equivalents 10 1,158,053 2,714,948 2,042,547
------------- ------------- ---------------
Total current assets 1,304,459 2,978,930 2,153,487
Total assets 9,619,345 9,495,813 9,311,911
============= ============= ===============
Equity
Capital and reserves
Share capital 14 357,751 357,751 357,751
Share premium 14 13,572,027 13,572,027 13,572,027
Share based payment reserve 15 382,416 294,132 318,621
Foreign currency translation
reserve 1,149,935 204,761 519,243
Retained earnings (6,270,663) (5,717,547) (5,822,011)
------------- ------------- ---------------
Attributable to owners of
the Company 9,191,466 8,711,124 8,945,631
Total equity 9,191,466 8,711,124 8,945,631
Liabilities
Current liabilities
Trade and other payables 11 282,621 263,741 146,642
Decommissioning provision 12 136,295 80,257 123,344
Share warrant provision 13 8,963 440,691 96,294
------------- ------------- ---------------
Total current liabilities 427,879 784,689 366,280
Total liabilities 427,879 784,689 366,280
Total equity and liabilities 9,619,345 9,495,813 9,311,911
============= ============= ===============
Unaudited Condensed Consolidated Statement of Changes in
Equity
For the six months to 30 June 2022
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 45,455 916,610 - - (69,206) 892,859
Share warrants granted
on issue of shares - - 20,709 - (20,709) -
Share warrants exercised 4,625 106,220 - - - 110,845
Share options exercised 600 5,591 (4,777) - 4,777 6,191
Share options terminated - - (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 Changes in
Equity
For the six months to 30 June 2022
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 2021 357,751 13,572,027 294,132 204,761 (5,717,547) 8,711,124
Comprehensive
income for
the period
Loss for the period - - - - (108,370) (108,370)
Currency translation
differences - - - 314,482 - 314,482
------------------ ------------------ ------------------ ------------------ ------------------ ---------------
Total comprehensive
income for
the period - - - 314,482 (108,370) 206,112
Transactions with owners,
recorded
directly in equity
Share warrants terminated - - (13,865) - 13,865 -
Share options terminated
adjustment - - 9,959 - (9,959) -
Share options charge - - 28,395 - - 28,395
Total
transactions
with
owners, recorded
------------------ ------------------ ------------------ ------------------ ------------------ ---------------
directly in
equity - - 24,489 - 3,906 28,395
Balance at 31
December 2021 357,751 13,572,027 318,621 519,243 (5,822,011) 8,945,631
================== ================== ================== ================== ================== ===============
Unaudited Condensed Consolidated Statement of Changes in
Equity
For the six months to 30 June 2022
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 - - - 630,092 (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 Cash Flows
For the six months to 30 June 2022
Notes Unaudited Unaudited Audited
six months six months period
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
EUR EUR EUR
Cash flows from operating
activities
Loss for the period (448,652) (427,590) (535,960)
Adjustments for:
Depreciation - - -
Interest receivable and
similar income (208) (113) (218)
Movement in trade and
other receivables (35,466) (164,078) (11,036)
Movement in trade and
other payables 44,668 56,619 13,055
Gain on revaluation of
share warrants (87,331) - (330,708)
Equity settled share-based
payment 63,795 25,606 54,001
---------------- ------------------------- ----------------
Net cash flows from operating
activities (463,194) (509,556) (810,866)
Cash flow from investing
activities
Expenditure on intangible
assets (455,115) (263,497) (657,727)
Interest received 208 113 218
---------------- ------------------------- ----------------
Net cash from investing
activities (454,907) (263,384) (657,509)
Cash flow from financing
activities
Proceeds from the issue
of new shares - 1,059,085 1,059,085
Proceeds from grant of
warrants - 191,364 191,364
Commission paid from the
issue of new shares - (69,206) (69,206)
---------------- ------------------------- ----------------
Net cash from financing
activities - 1,181,243 1,181,243
(Decrease)/Increase in cash
and cash equivalents (918,101) 408,303 (287,132)
Exchange rate adjustment
on cash and
cash equivalents 33,607 19,473 42,507
Cash and cash equivalents
at beginning
of the period 10 2,042,547 2,287,172 2,287,172
Cash and cash equivalents
at end of
the period 10 1,158,053 2,714,948 2,042,547
================ ========================= ================
Unaudited Notes to the Condensed Financial Statements
For the six months to 30 June 2022
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 2022 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 2022.
Basis of preparation
The half yearly financial statements for the six months ended 30
June 2022 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 2021 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 2021
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 2021.
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 2022, 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 period ended 30
June 2022. 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
EUR1.16 million which the Board considers will enable the Group to
meet continuing operating expenditure and the planned work
programme for at least twelve months from the date of approval of
these financial statements.
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, including a final investment decision on the
reprocessing of historical spoil heaps and tailings, can be
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 and the exercise of warrants and
options over the last 24 months 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 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Exploration activities -
Nevada (10,828) (5,382) (22,156)
Corporate activities (437,824) (422,208) (513,804)
------------- ------------- --------------
Consolidated loss before
tax (448,652) (427,590) (535,960)
============= ============= ==============
Segment assets
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Exploration activities -
Nevada 8,677,310 6,986,794 7,509,296
Corporate activities 942,035 2,509,019 1,802,615
------------- ------------- --------------
Consolidated total assets 9,619,345 9,495,813 9,311,911
============= ============= ==============
Segment liabilities
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Exploration activities -
Nevada 271,688 225,372 159,009
Corporate activities 156,191 559,317 207,271
------------- ------------- --------------
Consolidated total liabilities 427,879 784,689 366,280
============= ============= ==============
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 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Nevada - exploration activities 8,314,886 6,516,883 7,158,424
Republic of Ireland - - -
United Kingdom - - -
------------- ------------- --------------
8,314,886 6,516,883 7,158,424
============= ============= ==============
4. Finance income
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Bank interest receivable 208 113 218
------------- ------------- --------------
208 113 218
============= ============= ==============
5. Income tax
The Group has not provided any tax charge for the six months
periods ended 30 June 2022 and 30 June 2021 or the year ended 31
December 2021. 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 2021 31 Dec 2021
2022 EUR EUR
EUR
Loss for the period (448,652) (427,590) (535,960)
================ ================ ================
Number of ordinary shares
at start of period 3,577,510,005 3,070,714,550 3,070,714,550
Number of ordinary shares
issued during the period - 506,795,455 506,795,455
---------------- ---------------- ----------------
Number of ordinary shares
at end of period 3,577,510,005 3,577,510,005 3,577,510,005
================ ================ ================
Weighted average number
of ordinary shares for the
purposes of basic earnings
per share 3,577,510,005 3,458,536,520 3,460,469,475
================ ================ ================
Basic loss per ordinary
share (cent) (0.0001) (0.0001) (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 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Cost
Opening cost 93,644 86,432 86,432
Exchange rate adjustment 8,465 2,814 7,212
------------- ------------- --------------
102,109 89,246 93,644
Depreciation
Opening depreciation 21,474 19,820 19,820
Charge for period - - -
Exchange rate adjustment 1,941 645 1,654
------------- ------------- --------------
23,415 20,465 21,474
Net book value
------------- ------------- --------------
Closing net book value 78,694 68,781 72,170
============= ============= ==============
Opening net book value 72,170 66,612 66,612
============= ============= ==============
8. Intangible assets
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Cost
Opening cost 7,086,254 5,898,940 5,898,940
Additions 546,426 368,557 689,252
Increase in decommissioning
cost 1,787 4,969 48,056
Exchange rate adjustment 601,725 175,636 450,006
------------- ------------- --------------
8,236,192 6,448,102 7,086,254
Amortisation
Opening amortisation - - -
Charge for period - - -
Exchange rate adjustment - - -
------------- ------------- --------------
- - -
Net book value
------------- ------------- --------------
Closing net book value 8,236,192 6,448,102 7,086,254
============= ============= ==============
Opening net book value 7,086,254 5,898,940 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 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 2022. 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 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Amounts falling due within
one year:
Other debtors 91,820 191,782 81,249
Prepayments 54,586 72,200 29,691
------------- ------------- --------------
146,406 263,982 110,940
============= ============= ==============
All amounts above are current and there have been no impairment
losses during the period (30 June 2021: EURNil, 31 December 2021:
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 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Cash in bank and in hand 316,935 355,498 287,170
Short term bank deposits 841,118 2,359,450 1,755,377
------------- ------------- --------------
1,158,053 2,714,948 2,042,547
============= ============= ==============
11. Trade and other payables
Unaudited Unaudited
6 months 6 months Audited
ended ended year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Amounts falling die within
one year:
Trade payables 74,756 50,773 46,140
Other payables - 3,995 12,410
Accruals 190,915 196,093 64,633
Other taxation and social
security 16,950 12,880 23,459
282,621 263,741 146,642
============= ============= ==============
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 2022 30 Jun 2021 31 Dec 2021
EUR EUR EUR
Decommissioning provision 136,295 80,257 123,344
------------- ------------- --------------
136,295 80,257 123,344
============= ============= ==============
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 2021 489,250,000 255,654
Fair value of warrants at grant 227,272,727 191,364
Released on exercise of warrants (46,250,000) (20,016)
Movement in fair value of warrant
liabilities - 13,689
------------- ------------
At 30 June 2021 670,272,727 440,691
Movement in fair value of warrant
liabilities - (344,397)
------------- ------------
At 31 December 2021 670,272,727 96,294
Movement in fair value of warrant
liabilities - (87,331)
------------- ------------
At 30 June 2022 670,272,727 8,963
============= ============
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.
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. Accordingly the expected
volatility on revaluation has decreased to a range for the grants
of between 10% and 67% and the range of expected life reduced to
approximately one month to ten months. Other input assumptions
remained in line with those at the original date of grant. No
sensitivity analysis has been provided as the results are not
deemed material.
The inputs used in the measurement of the fair values at grant
date of the warrants granted in April 2021 were as follows:
Apr 2021
Fair value at grant date EUR0.0007
Share price at grant date EUR0.0025
Exercise price EUR0.0030
Number of warrants granted 227,272,727
Sub-optimal exercise factor 1.5x
Expected volatility 109%
Expected life 2 Years
Expected dividend 0%
Risk free interest rate 0.1%
14. Share capital
Number of Value of
shares shares
EUR
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
============== =========
Authorised at 1 July 2021 7,000,000,000 700,000
Authorised at 1 December 2021 7,000,000,000 700,000
============== =========
Authorised at 1 January 2022 7,000,000,000 700,000
Authorised at 30 June 2022 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 2021 3,070,714,550 307,071 12,543,606 12,850,677
Ordinary shares issued 454,545,455 45,455 916,610 962,065
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 - - 20,017 20,017
-------------- ---------- ----------- -----------
At 30 June 2021 3,577,510,005 357,751 13,572,027 13,929,778
============== ========== =========== ===========
Issued, called up
and fully paid:
At 1 July 2021 3,577,510,005 357,751 13,572,027 13,929,778
At 31 December 2021 3,577,510,005 357,751 13,572,027 13,929,778
============== ========== =========== ===========
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
============== ========== =========== ===========
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 for
454,545,455 new ordinary shares of EUR0.0001 with 227,272,727
warrants, whereby the placee received one new ordinary share and,
for every two new ordinary shares received, a warrant giving the
right to one additional new ordinary share of EUR0.0001 ("the
Placing Share"). Each Placing Share was issued at a price of
GBP0.0022 (EUR0.0025) 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 warrants
were granted with an exercise price of GBP0.0030 and a fair value
of EUR191,364.
There were no transaction expenses including commission during
the period ended 30 June 2022 (30 June 2021: EUR69,206 and 31
December 2021: EUR69,206). There was no amount released from the
share warrant financial liability during the period ended 30 June
2022 (30 June 2021: EUR20,017 and 31 December 2021: EUR20,017).
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:
23 Apr 2022 1 Nov 2021
Fair value at grant date EUR0.0011 EUR0.0012
Share price at grant date EUR0.0016 EUR0.0017
Exercise price EUR0.0016 EUR0.0012
Number of options granted 57,500,000 18,000,000
Vesting conditions Immediate Immediate
Expected volatility 107.8% 107%
Sub-optimal exercise factor 4x 4x
Expected life 7 years 7 years
Expected dividend 0% 0%
Risk free interest rate 0.18% 0.1%
During the period an expense of EUR63,795 (30 June 2021:
EUR25,606 and 31 December 2021: EUR54,001) 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 in 2021 from the share options reserve to retained
earnings on the termination of certain options.
Number of Average exercise
options price
Outstanding at 1 January 2021 112,000,000 Stg0.64 p
Exercised (6,000,000) Stg0.09 p
Terminated (38,333,333) Stg0.98 p
------------- -----------------
Outstanding at 30 June 2021 67,666,667 Stg0.64 p
Granted 18,000,000 Stg0.123 p
------------- -----------------
Outstanding at 31 December 85,666,667 Stg0.62 p
2021
Granted 57,500,000 Stg0.13 p
------------- -----------------
Outstanding at 30 June 2022 143,166,667 Stg 0.29 p
============= =================
On 30 June 2022, there were options outstanding over 143,166,667
(30 June 2021: 67,666,667 and 31 December 2021: 85,666,667)
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 23 April 2029.
Equity-settled warrants
No equity-settled warrants were granted in the period ended 30
June 2022. 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
Fair value at grant date EUR0.0009
Share price at grant date EUR0.0029
Exercise price EUR0.0022
Number of warrants granted 22,727,272
Sub-optimal exercise factor 1.5x
Expected volatility 109%
Expected life 2 Years
Expected dividend 0%
Risk free interest rate 0.1%
At 30 June 2021, the balance on the share-based payment reserve
amounted to EUR382,416 (30 June 2021: EUR294,132 and 31 December
2021: EUR318,621).
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. Post balance sheet events
On 28 September 2022, the Company signed a joint venture
agreement with Muletown Enterprizes LLC to create Western Milling
LLC, a limited liability company owned in equal shares. Western
Milling LLC has been created for the recovery of precious metals
from pre-mined materials.
There were no other 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 2022.
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END
IR BCGDCGSDDGDC
(END) Dow Jones Newswires
September 30, 2022 02:01 ET (06:01 GMT)
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