GREAT
WESTERN MINING CORPORATION PLC
("Great
Western" or the "Company")
FINAL
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023
Great Western Mining Corporation PLC
(AIM - GWMO, Euronext Growth - 8GW), which is exploring and
developing multiple early-stage gold, silver and copper targets in
Nevada, USA, announces its results for the year ended 31 December
2023. The Company is in the exploration, appraisal and
development phase and currently has no revenues.
Financial Highlights:
·
Loss for year €952,654 (2022: loss of
€792,263)
·
Basic and diluted loss per share 0.0002 cent:
(2022: 0.0002 cent)
·
Net assets at year-end: €8.8 million (2022: €8.6
million)
·
Cash at 31 December 2023: €0.10 million (2023:
€0.15 million)
Operational Highlights:
·
Mill constructed and production-ready pending
finalisation of environmental permit
·
Granite extrusion with associated porphyry
identified in the Huntoon Valley area materially upgrades copper
potential
o
200 hectare (490 acres) of continguous copper
samples
·
Anomalous gold in soil samples discovered at M5
prospect
o
Over 1 km long trend of anomalous gold (greater
than 10 ppb Au)
o
Several continuous zones of higher grade (greater
than 25 ppb Au)
·
Western Milling Operating Agreement and
Declaration of Earn-In signed
·
£1.3 million new capital raised through placing of new
shares
Post Period End Highlights:
·
Initial permit granted for
removal of pre-mined material from Olympic Gold Project for
delivery to mill site
·
New agreement signed with Crowne
Point Gold & Silver LLC for cooperation in exploring the
western part of the Huntoon Valley
o
Enabling the Company to fast-track drill for
better defining a potentially significant new copper porphyry in
the Walker Lane trend
·
Positive grab and soil results from the West
Huntoon
o
Revealing two bonanza-grade silver results,
multiple other high-grade precious metal occurrences and abundant
copper anomalism
·
Soil sampling results show Rhyolite Dome at
Olympic Gold Project to be high priority gold target
o
Best grades include 61 ppb, 58 ppb and 51 ppb gold
in recent samples and 207 ppb gold in legacy samples
·
Induced polarisation (IP) and resistivity surveys
ongoing at West Huntoon and M5
·
Olympic Gold Project acquisition
completed
·
£700,500 new capital raised before expenses
through placing of new
shares
Great Western Executive Chairman Brian Hall
commented: "Progress during the report
year and subsequent months has been very encouraging and we have
made great strides in proving up the potential of our claims. We
are particularly excited about a significant upgrade in the copper
potential at West Huntoon where the prospect of a major, commercial
copper porphyry on the Company's claims offers the sort of upside
that should be highly interesting to investors in mineral resources
and provide long term value for shareholders.
"Equally, our upcoming transition into a producing company,
once all permits are in place, will be an important milestone for
the Company. We have a busy summer ahead and look forward to
providing updates on further developments as we target a number of
value inflection points."
For further information:
|
Great Western Mining Corporation PLC
|
|
|
Brian Hall, Chairman
|
+44 207 933 8780
|
|
Max Williams, Finance
Director
|
+44 207 933 8780
|
|
|
|
|
Davy (NOMAD, Euronext Growth Listing Sponsor
& Joint Broker)
Brian Garrahy
|
+353 1 679 6363
|
|
|
|
|
SP
Angel (Joint Broker)
Ewan Leggat
|
+44 203 470 0470
|
|
|
|
|
Walbrook PR (PR advisers)
Nick Rome/Joe Walker
|
+44 207 933 8783
|
Executive Chairman's Statement
For the year ended 31
December 2023
Dear Shareholder,
Below are Great Western Mining
Corporation PLC's audited report and financial statements for the
year ended 31 December 2023.
Great Western Mining Corporation PLC
('Great Western' or the 'Company') explores for, appraises and
develops mineral resources on its claims in Nevada, USA but
currently has no revenues from its operations. Accordingly,
it is reporting a loss after tax of €952,654 for the year (2022:
€792,263). At the year end the Company's net assets were
€8,831,416 (2022: €8,618,024).
The highlight of Great Western's
exploration activity in 2023 was the establishment through
intensive fieldwork of a copper porphyry in the Huntoon Valley,
where Great Western holds 760 claims. A granite outcrop
associated with a porphyry, previously and erroneously shown as
tertiary cover on official government maps, was identified and 2
km² (490 acres) of ground was sampled in the immediate vicinity,
resulting in consistent, strong copper readings. An expert
consultant on porphyry systems was invited to the site in October
and spent a week in the field reviewing the porphyry potential,
subsequently confirming it in a formal report which the Company has
published. This is a really significant development for Great
Western and raises the possibility, not yet proven, of
connectivity, across the Huntoon Valley, with both the M2 claims to
the northeast where the Company has already established a copper
resource and the M4 prospects to the east, where the Company's
limited drilling activity has established very promising copper
anomalies. These three main prospect areas, West Huntoon, M2
and M4 have now been internally grouped together and categorised as
the Huntoon Copper Project. An expired agreement with Crowne
Point Resources, owner of land equivalent to six federal claims
around the historic Huntoon Gold Mine, has been novated since the
year end and this land will provide surface and road access for
early drilling. Since the end of the year, the Company has
conducted a geophysical survey to track and measure the
continuation of the porphyry system under tertiary cover, where
data cannot be obtained through grab and soil sampling, initially
yielding positive results.
During the 2023 field season, Great
Western had two geologists working full time in the field, sampling
and mapping a number of prospects, under the direction of the
Company's Exploration Manager, Dr James Blight. The sampling
carried out around the granite extrusion at West Huntoon also
identified unrelated epithermal gold and silver in the same area,
including a bonanza silver result. In addition to the West
Huntoon area, the team also worked extensively on the M5 prospect
in the JS group of claims and on the Rhyolite Dome prospect at the
Olympic Gold Project, both of which look highly prospective for
precious metals.
In April 2024 Great Western
exercised its option to purchase the Olympic Gold project and made
the final option final payment. There is little doubt that
taking an option on Olympic was a good decision in 2020 and the
claims are an excellent, complementary add-on to the Company's
other claim areas, 50 miles away on the other side of Mineral
County. The OMCO Mine produced gold at high grades in the
early part of the last century and Great Western has already
discovered an extension to the OMCO vein. Good intercepts
have already been encountered through drilling at the Trafalgar
Hill prospect in the east of this 800 acre project area and
Rhyolite Dome to the south of the project is potentially large,
interesting and has never been drilled. Large quantities of
pre-mined material at Olympic Gold is of higher quality and is more
accessible than the spoil heaps at the Company's Mineral Jackpot
claims, so will enhance the viability of the Company's milling
joint venture.
Shareholders are urged to read the
more detailed Operations section of this report which provides more
information on all the exploration
activity.
During the year the Company
completed its earn-in as a 50% participant in Western Milling LLC,
a joint venture with Muletown, an established contractor in the
Company's area of operations. Western Milling started the
construction of a process mill to produce precious metal
concentrates from pre-mined material and shallow ore with
construction completed after the year-end. Production from
this mill will mark the Company's first revenues and move it away
from pure exploration, but commissioning of the plant and start-up
of production are now dependent on final environmental consent from
the State of Nevada. The project has been designed and
developed meticulously in line with the regulator's own guidelines
and recommendations, initially for gravity processing for which
approval is being sought but at a second stage for leaching
operations which will require separate approval. The State of
Nevada encourages industrial development in its rural areas but due
to administrative delays caused by staff shortages in the
relevant state department, the Company cannot yet give any firm
assurances on the timing of the permit being granted.
Great Western has a lot of work
ongoing relative to its small size and, although progress may
sometimes seem slow with frustrating delays, in the general life
cycle of mining operations a great deal has been achieved since the
current management took over in late 2019. Few exploration
companies of Great Western's size have created and constructed such
an advanced commercial project as Western Milling LLC, in a time
span of less than 18 months since first heads of terms were
signed. There are multiple precious metals prospects on the
Company's ground which could supply material to the process mill in
the future. Most significantly, the prospect of a major,
commercial copper porphyry on the Company's claims offers the sort
of upside that should be highly interesting to an investor in
mineral resources and provide long term value for
shareholders.
Looking ahead to the remainder of
2024, we expect to begin commercial production during the year even
though precise timing is out of our hands. We will continue
to work on the Huntoon Copper Project this summer while actively
seeking a larger and better-funded industry partner to help take it
to the next stage, confirming that discussions are ongoing with
several interested parties.
The AGM will be held in Dublin on 5
June with a telephone facility to allow shareholders to listen to
the proceedings remotely.
I would like to thank our investors
for their patience and continuing support and our small technical
team for their professionalism, dedication, hard work and positive
results.
Yours sincerely,
Brian Hall
Executive Chairman
Operations Report
For the year ended 31
December 2023
Principal activities, strategy and business
model
The principal activity of Great
Western is to explore for and develop gold, silver, copper and
other minerals, with the aim of increasing shareholder value by the
systematic evaluation and exploitation of its existing assets in
Mineral County, Nevada, USA. Great Western's strategy
is:
· Exploration for gold and silver on existing licensed claims to
establish resources for commercial exploitation.
· Exploitation of previously mined material containing residual
gold and silver to generate revenue.
· Expanding the search for precious metals into new
areas.
· Developing copper potential based on an existing indicated and
inferred resource.
During the year ended 31 December
2023, Great Western held interests in seven claim groups are
categorised into the following projects:
|
|
Claim Group
|
Ownership
|
Projects
|
Target mineral
|
|
1
|
Black Mountain Group
|
100%
|
Mineral Jackpot
|
Silver, Gold
|
|
M2 (HCP)
|
Copper
|
|
2
|
Huntoon
|
100%
|
West Huntoon (HCP)
|
Copper, Gold
|
|
3
|
Jack Springs
|
100%
|
M4 (HCP)
|
Copper, Gold
|
|
M5
|
Gold, Silver, Copper
|
|
4
|
Rock House
|
100%
|
Rock House
|
Gold, Silver, Copper
|
|
5
|
Eastside Mine
|
100%
|
Eastside Mine
|
Copper
|
|
6
|
TUN
|
100%
|
TUN
|
Gold, Silver
|
|
7
|
Olympic Gold
|
100%
(following exercise of option to
purchase)
|
OMCO Mine
|
Gold
|
|
Trafalgar Hill
|
Gold
|
|
West Ridge
|
Gold
|
|
Rhyolite Dome
|
Gold
|
As part of an annual claim renewal
procedure, the Group renewed all its claims with effect from 1
September 2023 and subsequently staked 19 additional claims prior
to the year-end. The land position held by Great Western in Mineral
County currently consists of 760 full and fractional unpatented
claims, covering an area of approximately 61 km².
In addition to exploration
activities, Great Western has created Western Milling LLC, a 50-50
joint venture with a local contractor, to construct a mill at
Sodaville, Nevada, which will process historical mine waste into
precious metal concentrates, including tailings spoil heaps and
stockpiles from Great Western's claims.
EXPLORATION - Precious Metals Projects
Olympic Gold
Project
In 2020, the Company acquired an
option to purchase the Olympic Gold Project, a group of 48 claims
located approximately 50 miles from Great Western's other
concessions and still within Mineral County. In April 2024 Great
Western exercised its option to purchase Olympic Gold and made the
final option payment of the total consideration of $150,000. Work
is in progress on several potential prospects at this 800-acre
site.
The Olympic Gold Project lies on the
northern flanks of the Cedar Mountain Range, on the eastern edge of
Mineral County, within the Walker Lane Fault Belt at the
intersection of two major mineral trends - the Rawhide-Paradise
Peak trend and the Aurora-Round Mountain Trend. The mineral deposit
style at Olympic is low-sulphidation epithermal banded quartz-gold
vein. Production of gold from the Olympic Mine in the interwar
period of 1918 to 1939 totalled approximately 35,000 tonnes at a
grade of 25 grams/ton gold and 30 grams/ton silver. Based on
a review of the historical data, Great Western believes that
faulted offsets of the high-grade Olympic Vein remain to be
discovered and this forms one of the numerous target zones on the
prospect.
During 2023 a single core hole was
drilled as a twin of the successful 2022-hole OMRC015, to
investigate the mineralised intercept in detail. This hole provided
the first core at Olympic and penetrated the mineralised horizon,
but did not improve on the previous intercept. The zone where
mineralisation was expected was highly brecciated and susceptible
to being lost to the core drilling fluids. The unmined portion of
the OMCO vein, as intercepted in OMRC015, remains open along the
edge of the workings.
Considerable interpretive work has
been undertaken for a better understanding of the chemostratigraphy
at Olympic and to identify possible vectors towards mineralisation
in the existing drill data. This resulting predictive model
indicates best potential for gold southeast from the OMCO mine
site, east of the major OMCO fault.
Grab sampling, soil sampling and
mapping were carried out at the as yet undrilled Rhyolite Dome prospect in the south of
the claims group. A total of 147 new soil samples were taken in a
series of northeast trending traverses, resulting in a positive
anomaly for gold (45 samples >10 ppb Au, 7 > 20 ppb Au and 3
> 50 ppb Au), silver and a suite of associated elements,
covering around 50 acres on the northwest side of the dome
structure. The results will assist in the planning of an induced
polarisation (IP) survey and drill targeting at Rhyolite
Dome.
Black
Mountain
The Black Mountain Group ("BM") lies
on a southwest trending spur ridge of the Excelsior Range of
mountains and comprises 249 full and fractional claims covering
20.7km². The BM group contains both Great Western's copper resource
at M2 (see Copper Projects
below) and the Mineral Jackpot prospect, where outcropping veins,
vein workings and spoil heaps contain high-grade gold and
silver. Although the five historic mines
making up Mineral Jackpot produced gold and silver around the turn
of the 19th-20th century, access had only
been by mule track and until 2022 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. Following a successful intercept
in MJRC004, the final hole of 2022, a single follow up hole was
drilled in 2023, aimed at again intersecting the near-surface
mineralised zone. The zone was identified in chips at the expected
position, via alteration and in anomalous assay results, but grades
were subeconomic, highlighting the variability of these vein zones
over relatively short distances along strike. Further planned
drillholes were postponed due to technical issues with the rig. The
next stage of exploration at Mineral Jackpot is being
evaluated.
Rock House
The M7 gold-silver prospect lies
within the Rock House (RH) group of claims. This area is accessible
and lends itself to mining operations but has never been mined in
the past, its potential having only recently been identified
through the interpretation of satellite imagery. It is an
approximately circular structure of around 450 acres associated
with a magnetic low, and is an opening of older rock surrounded by
younger volcanic cover. It is also adjacent to the
prolifically mineralised Golconda thrust fault and 5 km west along
strike from the historically
significant Candelaria silver mining district. The area is
characterised by intense argillic and sericite alteration, along
with silicification and oxidation, within basement siltstones and
slates. Unlike many of Great Western's other prospects, the RH
targets were virgin territory until drilled by the Company in 2021.
While past workings represent an important guide for exploration, a
lack of any previous workings does not rule out mineralisation and
any discovery made in such ground will have the benefit of being
entirely intact as its highest-grade and nearest-surface portions
will not have been removed by previous mining
operations.
Rock House was soil sampled in 2023
to test the value of higher resolution surveys around peaks in the
previous reconnaissance grid in the north of the area. This work
was successful, with a majority of samples matching or exceeding
the previous best values obtained for gold. A follow-up broad
resampling plan halved the grid spacing of soils at Rock House
Northern Shear Zone. This work was underway but incomplete at the
end of the year and all samples will be sent to the lab as one
batch once the resampling is completed during the 2024 work
season.
Complex folding was observed at
surface in the Southern Alteration Zone. A 3D geological model that
takes the effect of folding into account is being developed.
For information on the potential for copper at Rock
House, see Copper Projects
below.
Huntoon
After staking an additional 19
claims during the year, Great Western holds a total of 126 full and
12 fractional claims which surround the workings of the historic
underground Huntoon gold mine and are prospective for gold, silver
and copper mineralisation. The claims are located on the
northwest side of the Huntoon Valley, covering approximately
10km2. The main focus for GWM at this claim group is
copper, and this is covered below under Copper Projects. Huntoon does,
however, contain some high-grade, potentially epithermal, precious
metal veins, which were the target of the old Huntoon mine
workings. In 2023 grabs selectively sampled for their apparent
copper mineralisation, or because they contained quartz veins,
yielded gold grades of 7.29 g/t, 5.53 g/t and 4.51 g/t Au, and
bonanza silver grades of 2,438 g/t, 843 g/t, 108 g/t and 102 g/t
Ag.
Jack Springs
("JS")
The M5 gold prospect lies within the JS
Group in altered siliceous host rock surrounded by Tertiary
volcaniclastics. Gold, arsenic and antimony were all anomalous in
initial reconnaissance samples taken along a northeasterly crest of
the central ridge at M5 during the first years of the Company's
operations in the area. Since that time, due to other priorities M5
has not been further explored and remains undrilled.
During 2023
Great Western returned to the M5 prospect and conducted full follow
up soil sampling. A total of 335 soil samples were taken in two
phases, with 188 samples > 10 ppb Au, 49 samples > 30 ppb,
and 20 samples > 50 ppb. The peak value detected in this
sampling was 395 ppb or 0.395 g/t Au. A zone 1500 m long by 400 m
wide was identified, which contains several corridors of anomalous
gold, open as they reach the edge of surrounding overlying tertiary
lavas. Two disconnected areas of sampling, taken over small
'windows' through the tertiary cover, are also broadly anomalous,
suggesting a more widespread sub-cropping zone.
A total of 19 new selective grab
samples were taken at M5 during soil sampling. These were taken
from outcrops that were mineralised in appearance or otherwise of
interest to the sampling geologist. Two stand-out samples, taken
from a small working which features a copper oxide bearing quartz
vein, returned 5.14 g/t Au, 1,246 g/t Ag (0.125 % Ag) and 0.32% Cu,
and 0.291 g/t Au, 534 g/t Ag, and 0.105% Cu respectively. These
grabs also represents a significant increase in maximum silver
results from M5, the previous most silver-rich samples being 24 g/t
and 18 g/t in grab samples from the crest of the hill taken prior
to 2023. A sample taken from a small pit on the southeastern flank
of the M5 hill returned a grade of 1.247 g/t Au. Two other samples
with notably high-grade copper (5.16 % and 1.09 % Cu) occurred on
the southeast facing flank of the ridge line. These samples feature
sulphide stringers with chalcopyrite and abundant copper
oxides.
The selected high-grade samples
described above indicate that several discrete strongly mineralised
structures reach the surface at M5 and are a likely source of the
soil anomalies.
The M4 Copper-Gold project also lies within
the JS Group and is covered under Copper Projects below.
Tun
The M6 gold-silver prospect lies
within the Tun Group. The M6 prospect is a parallel system of
multiple, oxide and sulphide, gold-silver veins and veinlet
stockworks. Supergene, high-grade ores have been mined in the past
at M6 and the potential remains for deposits of shallow, oxidised
stockworks in the immediate vicinity of the historic
workings. An
initial reconnaissance soil traverse was undertaken at Tun group
early in the year, 32 samples being taken in a single traverse,
with some positive results (14 samples >10 ppb Au, 2 samples
>50 ppb Au). This work was an orientation survey to help
identify optimal sample spacing for a more thorough future
programme.
EXPLORATION - Copper Projects
Great Western has an exciting and
extensive copper portfolio. During the year, the proximity of and
possible connectivity between (1) the existing M2 resource, (2) the
M4 prospect which has already been successfully drilled and (3) the
West Huntoon area led to a re-categorisation of the three projects
into a single area of interest, hereinafter described as the
Huntoon Copper Project (HCP).
The Huntoon Copper Project
At M2 in the Black Mountains Group, Great
Western has discovered and drilled a partly inferred, partly
indicated copper resource of 4.3 million tonnes at a grade of 0.45%
Cu in a skarn setting. This was a considerable achievement, with
the potential to lead to the discovery of a much larger copper
resource. Great Western believes that 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.
The M4 copper target, in the JS group, approximately 4 km from the M2
resource, was identified through
geophysical surveys, soil sampling and mapping of mineralised
structures at surface. The Company has
previously identified copper in drill intercepts at M4 (21.18 m at
0.35% Cu starting at 106.22 m in hole M2_005, including 5.64 m at
0.48% Cu and 0.105 grams/ton Au starting at 106.22 m).
Great Western believes that the breccia zone
intercepted in hole M4_05, along with other such structures mapped
at surface, could be offshoot structures in the roof of a buried
orebody. Porphyry systems often feature breccia pipes in the
upper reaches in 2019 the Group received a drill permit to follow
up on the exciting discovery in hole M4_05. The abundance of highly
prospective targets in the Company's portfolio, combined with rig
availability issues, led to drilling on the JS projects being
deferred in recent years. During 2023
the soil grid east of M4 was extended further to the east with the
aim of filling a gap where the existing soil anomalies are open and
surface showings of copper are present. This work was ongoing at
the end of the field season, and samples will be sent to a lab in
2024, once the planned grid is complete.
At West Huntoon, situated 7 km west of M4,
and 10 km southwest of M2, there is a copper prospect on which
the Company has previously drilled a single hole, assaying at 0.35%
Cu over 27.4 metres, amongst other grading intercepts. West Huntoon
also contains a sizeable copper anomaly in soils, part of which is
coincident with a clear magnetic signature identified on drone
magnetometry conducted in early 2022. Post mineralisation tertiary
lavas obscure both the geochemical anomaly and the southwestern
continuation of the linear anomaly associated with the shear zone.
Significant field work at West Huntoon during 2023 included
mapping, soil sampling and, towards the end of the field season, a
field visit by Dr Lawrence Carter, an independent porphyry expert.
A significant development occurred at the conclusion of the
season's programme with the identification of several granite
exposures not recorded on the US Geological Survey's official map
of the area. These granites contain textures typically
associated with porphyry-linked intrusions, including varying
degrees of mineralisation and alteration. 135 new soil samples were
taken which established a copper anomaly (>75 ppm Cu) of 2
km2 surrounding the granite outcrop, with strong outlier
samples (11 samples >300 ppm, 5 samples > 400 ppm, maximum
value 528 ppm Cu) at several locations.
In 2024 a novated Huntoon Mine
Cooperation Agreement has been signed with the owner of six
patented claims at the core of the West Huntoon area. This
agreement provides GWM with near-term drill access, excellent road
infrastructure and a local water supply located in one of the most
prospective parts of the wider claim group.
Other copper projects
The M8 copper prospect lies within
the Eastside Mine (EM)
claim group, named for the historic Eastside Mine where high-grade
copper-oxide ore was mined from shallow underground workings during
the First World War. Conoco investigated Eastside as a copper
porphyry prospect in the early 1970s, identifying mineralisation
consisting of substantial copper and molybdenum values, within a
northeast trending graben structure. Drilling by Conoco at the
southern end of this structure identified thick successions of
alteration together with copper enrichment, but the results were
not followed up. The Company regards the northerly continuation of
this structure as a strong, untested target for buried copper
mineralisation. During 2021 an IP survey was performed at EM Group and the
results were highly encouraging. The key findings of this work were
fault zones accompanied by high resistivity and chargeability
features, correlating with observed surface stockwork veining,
silicification, copper mineralisation and copper soil halos.
Although no significant activities took place at
the Eastside mine during 2023, there are drill-ready
targets.
Following the identification of
anomalous copper in the final 2022 hole at Rock House, copper oxide has been
identified in surface grabs during soil sampling in the Northern
Shear Zone.
While Tun has in the past been primarily a
gold target, initial orientation soil samples taken there early in
the year showed copper anomalism. Over 32 samples, 15 were >75
ppm Cu, 12 > 100 ppm Cu and 5 > 150 ppm Cu, with a peak value
of 204 ppm Cu.
Seeking Copper JV partner
A major copper project remains too
large an undertaking for a company of Great Western's size and so a
larger industry partner is currently being sought, particularly in
light of the potentially transformative porphyry evidence found
during the year.
Reclamation work
Reclamation work undertaken at OMCO
has been signed off by the Bureau of Land Management and a new
permit issued for planned follow-up drilling and ground disturbance
relating to removing mine waste for processing at the Company's
milling joint venture.
Summary of 2023 Work Programme
· Discovery of granite at the core of the West Huntoon 2
km2 copper anomaly shows porphyry potential and new soil
results strengthen continuity of the anomaly. New grab results
highlight overlapping precious metal potential.
·
A total of 335 new soil samples at M5
establishes a large gold-silver-copper anomaly, previously
suspected but never properly tested at scale.
·
New soil results at Rhyolite Dome in
the Olympic Gold Project are some of the best results for the
entire claim group, including the area of the old OMCO mine, and
indicate the prospectivity of this target.
· Drilling at Mineral Jackpot and Olympic confirms locations of
mineralised horizons previously intercepted.
· Permit granted for removal of first material from Olympic for
processing by the milling joint venture.
· New encouraging soil results at Tun.
· At the end of the year additional soil sampling was underway
at both JS-NE (east of M4) and Rock House. Samples will be
submitted to lab once all planned samples have been
collected.
PROCESSING OPEATIONS - Joint Venture
Planned Processing Operations
Over the last two years, Great
Western has been developing 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, but the concept was expanded once work began on the newly
acquired Olympic Gold Project in 2021, where extensive tailings,
spoil heaps are present and a stockpile of material had been mined
but never processed. A 50-50 joint venture known as Western
Milling LLC was established with local contractor Muletown
Enterprizes to construct a processing mill on land owned by
Muletown. Construction of the processing plant was completed
in early 2024 and start-up of operations is subject only to final
environmental approval from the State of Nevada. Initially
material will be processed through a gravity circuit but the plant
has been built to meet the specifications required for a chemical
leaching project, for which a permit application will be lodged
once gravity processing is operational.
In 2022, an independent
JORC-compliant resource estimate of Great Western's mine waste
material resulted in an Inferred Resource of 31,000 tonnes, grading
1.6 grams/ton Au and 3.0 grams/ton Ag in tailings at Olympic Mine
and several Exploration Targets at the OMCO Mine and Mineral
Jackpot.
Consolidated Income Statement
For the year ended 31
December 2023
|
|
Notes
|
|
2023
€
|
|
2022
€
|
|
Continuing operations
|
|
|
|
|
|
|
Administrative expenses
|
|
|
(994,246)
|
|
(951,294)
|
|
Finance income
|
4
|
|
4,434
|
|
527
|
|
Loss for the year before tax
|
5
|
|
(989,812)
|
|
(950,767)
|
|
|
|
|
|
|
|
|
|
7
|
|
37,158
|
|
158,504
|
|
Loss for the financial year
|
|
|
(952,654)
|
|
(792,263)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
(952,654)
|
|
(792,263)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations
|
|
|
|
|
|
Basic and diluted loss per share
(cent)
|
8
|
|
(0.0002)
|
|
(0.0002)
|
|
|
|
|
|
|
|
All activities are derived from
continuing operations. All losses are attributable to the owners of
the Company.
Consolidated Statement of Other Comprehensive
Income
For the year ended 31
December 2023
|
|
Notes
|
2023
€
|
|
2022
€
|
|
|
|
|
|
|
|
Loss for the financial year
|
|
(952,654)
|
|
(792,263)
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
Items that are or may be
reclassified to profit or loss:
|
|
|
|
|
Currency translation
differences
|
|
(284,325)
|
|
400,861
|
|
|
|
(284,325)
|
|
400,861
|
Total comprehensive expense for the financial
year
|
|
|
|
|
attributable to equity holders of the
Company
|
|
(1,236,979)
|
|
(391,402)
|
|
|
|
|
|
|
Consolidated Statement of Financial Position
For the year ended 31
December 2023
|
|
Notes
|
|
2023
€
|
|
2022
€
|
|
Assets
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
10
|
|
73,972
|
|
76,635
|
|
|
11
|
|
8,603,289
|
|
8,462,329
|
|
Total non-current assets
|
|
|
8,677,261
|
|
8,538,964
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Trade and other
receivables
|
13
|
|
691,870
|
|
272,887
|
Cash and cash equivalents
|
14
|
|
95,306
|
|
145,197
|
|
Total current assets
|
|
|
787,176
|
|
418,084
|
|
|
|
|
|
|
|
|
|
|
|
9,464,437
|
|
8,957,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
Share capital
|
18
|
|
548,660
|
|
357,751
|
|
Share premium
|
18
|
|
14,875,499
|
|
13,572,027
|
|
Share based payment
reserve
|
19
|
|
386,005
|
|
368,709
|
|
Foreign currency translation
reserve
|
|
|
635,779
|
|
920,104
|
|
|
|
|
(7,614,527)
|
|
(6,600,567)
|
|
Attributable to owners of the
Company
|
|
|
8,831,416
|
|
8,618,024
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
8,831,416
|
|
8,618,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
15
|
|
504,150
|
|
207,603
|
|
Decommissioning provision
|
16
|
|
128,871
|
|
131,421
|
|
Share warrant provision
|
17
|
|
-
|
|
-
|
|
Total current liabilities
|
|
|
633,021
|
|
339,024
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
633,021
|
|
339,024
|
|
|
|
|
|
|
|
Total equity and liabilities
|
|
|
9,464,437
|
|
8,957,048
|
Consolidated Statement of Changes in Equity
For the year ended 31
December 2023
|
|
Share
capital
€
|
Share
premium
€
|
Share based payment
reserve
€
|
Foreign
currency
translation
reserve
€
|
Retained
earnings
€
|
Total
€
|
|
Balance at 1 January 2022
|
357,751
|
13,572,027
|
318,621
|
519,243
|
(5,822,011)
|
8,945,631
|
|
Total comprehensive income
|
|
|
|
|
|
|
|
Loss for the year
|
-
|
-
|
-
|
-
|
(792,263)
|
(792,263)
|
|
Currency translation
differences
|
-
|
-
|
-
|
400,861
|
-
|
400,861
|
Total comprehensive income for the year
|
-
|
-
|
-
|
400,861
|
(792,263)
|
(391,402)
|
|
Transactions with owners, recorded directly in
equity
|
|
|
|
|
|
|
|
Share warrants terminated
|
-
|
-
|
(13,707)
|
-
|
13,707
|
-
|
|
Share options charge
|
-
|
-
|
63,795
|
-
|
-
|
63,795
|
Total transactions with owners, recorded directly
in
equity
|
-
|
-
|
50,088
|
-
|
13,707
|
63,795
|
Balance at 31 December
2022
|
357,751
|
13,572,027
|
368,709
|
920,104
|
(6,600,567)
|
8,618,024
|
|
Total comprehensive income
|
|
|
|
|
|
|
|
Loss for the year
|
-
|
-
|
-
|
-
|
(952,654)
|
(952,654)
|
|
Currency translation
differences
|
-
|
-
|
-
|
(284,325)
|
-
|
(284,325)
|
Total comprehensive income
for
the year
|
-
|
-
|
-
|
(284,325)
|
(952,654)
|
(1,236,979)
|
|
Transactions with owners, recorded directly in
equity
|
|
|
|
|
|
|
|
Shares issued
|
190,909
|
1,303,472
|
-
|
-
|
(82,015)
|
1,412,366
|
|
Share warrants terminated
|
-
|
-
|
(20,709)
|
-
|
20,709
|
-
|
|
Share options charge
|
-
|
-
|
38,005
|
-
|
-
|
38,005
|
Total transactions with owners, recorded
directly
in
equity
|
190,909
|
1,303,472
|
17,296
|
-
|
(61,306)
|
1,450,371
|
Balance at 31 December 2023
|
548,660
|
14,875,499
|
386,005
|
635,779
|
(7,614,527)
|
8,831,416
|
|
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows
For the year ended 31
December 2023
|
|
Notes
|
|
2023
€
|
|
2022
€
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Loss for the year
|
|
|
(952,654)
|
|
(792,263)
|
|
|
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
|
|
Depreciation
|
10
|
|
-
|
|
-
|
|
Interest receivable and similar
income
|
4
|
|
(4,434)
|
|
(527)
|
|
Increase in trade and
other receivables
|
|
|
(474,195)
|
|
(161,947)
|
|
Decrease in
trade and other payables
|
|
|
279,750
|
|
53,273
|
|
Gain on revaluation of share
warrants
|
|
|
-
|
|
(96,294)
|
|
Decrease in tax
receivable
|
|
|
55,212
|
|
-
|
|
Equity settled share-based
payment
|
19
|
|
38,005
|
|
63,795
|
|
Net cash flows from operating
activities
|
|
|
(1,058,316)
|
|
(933,963)
|
|
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
|
|
Expenditure on intangible
assets
|
11
|
|
(401,269)
|
|
(956,077)
|
|
|
4
|
|
4,434
|
|
527
|
|
Net cash from investing
activities
|
|
|
(396,835)
|
|
(955,550)
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
Proceeds from the issue of new
shares
|
18
|
|
1,494,381
|
|
-
|
|
Proceeds from grant of
warrants
|
17
|
|
-
|
|
-
|
|
Commission paid from the issue of
new shares
|
18
|
|
(82,015)
|
|
-
|
|
Net cash from financing
activities
|
|
|
1,412,366
|
|
-
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
(42,785)
|
|
(1,889,513)
|
|
Exchange rate adjustment on cash and cash
equivalents
|
|
|
(7,106)
|
|
(7,837)
|
Cash and cash equivalents at beginning of the
year
|
14
|
|
145,197
|
|
2,042,547
|
Cash and cash equivalents at end of the year
|
14
|
|
95,306
|
|
145,197
|
Notes to the Financial Statements
For the year ended 31
December 2023
1. Accounting
policies
Great Western Mining Corporation PLC
("the Company") is a Company domiciled and incorporated in Ireland.
The Company is listed on the Euronext Growth Market in Dublin and
on AIM in London. The Group financial statements consolidate
the individual financial statements of the Company and its
subsidiaries ("the Group").
Basis of preparation
The Group and the Company financial
statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union ("EU").
Statement of compliance
The Group financial statements have
been prepared and approved by the Directors in accordance with
International Financial Reporting Standards and their
interpretations as adopted by the European Union ("EU IFRSs"). The
individual financial statements of the Company have been prepared
and approved by the Directors in accordance with EU IFRSs and as
applied in accordance with the provisions of the Companies Act 2014
which permits a Company that publishes its Company and Group
financial statements together, to take advantage of the exemption
in Section 304 of the Companies Act 2014 from presenting to its
members its Company income statement and related notes that form
part of the approved Company financial statements.
The EU IFRSs applied by the Company
and the Group in the preparation of these financial statements are
those that were effective for accounting periods ending on or
before 31 December 2023.
New
accounting standards and interpretations adopted
Below is a list of standards and
interpretations that were required to be applied in the year ended
31 December 2023. There was no material impact to the financial
statements in the current year from these standards set out
below:
·
IFRS 17 Insurance Contracts - effective 1 January 2023
·
Amendments to IAS 1 and IFRS Practice Statement 2:
Disclosure of Accounting Policies -
effective 1 January
2023
·
Amendments to IAS 8: Definition of Accounting
Estimate - effective 1 January 2023
·
Amendments to IAS 12 Income Taxes: Deferred Tax
Related to Assets and Liabilities Arising from a Single Transaction
- effective 1 January
2023
·
Amendments to IAS 12 Income Taxes: International
Tax Reform - Pillar Two Model Rules - effective 23 May 2023
New
accounting standards and interpretations not
adopted
Standards endorsed by the EU that
are not yet required to be applied but can be early adopted are set
out below. None of these standards have been applied in the current
period. The Group is currently assessing whether these standards
will have a material impact in the financial statements.
•
Amendments to IAS 1: Classification of liabilities
as current or non-current - effective 1 January 2024
•
Amendments to IFRS 16: Lease Liability in a Sale
and Leaseback - effective 1
January 2024
•
Amendments to IAS7 and IFRS 17: Supplier Finance
Arrangements - effective 1
January 2024
•
IFRS 51: General requirements for Disclosure of
Sustainability-related Financial information and IFRS 52
Climate-related Disclosures - effective 1 January 2024
•
Amendments to IAS 21: Lack of Exchangeability -
effective 1 January
2025
The following standards have been
issued by the IASB but have not been endorsed by the EU,
accordingly none of these standards have been applied in the
current period and the Group is currently assessing whether these
standards will have a material impact in the financial
statements.
•
Amendments to IFRS 10 and IAS 28: Sale and
Contribution of Assets between an Investor and its Associate or
Joint Venture - optional
Functional and Presentation Currency
The presentation currency of the
Group and the functional currency of Great Western Mining
Corporation PLC is the Euro ("€") representing the currency of the
primary economic environment in which the Group
operates.
Use
of Estimates and Judgements
The preparation of 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 19 - 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 11 - Intangible asset, consideration of
impairment of carrying value of claim groups.
•
Note 11 - Intangible asset, consideration of
impairment relating to net assets being lower than market
capitalisation.
•
Note 12 - Amounts owed by subsidiary, expected
credit loss.
•
Note 16 - Decommissioning provision.
Basis of Consolidation
The consolidated financial
statements comprise the financial statements of Great Western
Mining Corporation PLC and its subsidiary undertakings for the year
ended 31 December 2023.
Subsidiaries are consolidated from
the date on which control is transferred to the Group and cease to
be consolidated from the date on which control is transferred out
of the Group. Control exists when the Company is exposed to, or has
rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over
the entity. Financial statements of subsidiaries are prepared for
the same reporting year as the parent company.
Upon the loss of control, the Group
derecognises the assets and liabilities of the subsidiary, and no
controlling interests and the other components of equity related to
the subsidiary. Any surplus or deficit arising on the loss of
control is recognised in the income statement. If the Group retains
any interest in the previous subsidiary, then such interest in
measured at fair value at the date control is lost. Subsequently,
it is accounted for an equity-accounted investee or as an available
for sale financial asset, depending on the level of influence
retained.
Intragroup balances and
transactions, including any unrealised gains arising from
intragroup transactions, are eliminated in preparing the Group
financial statements. Unrealised losses are eliminated in the same
manner as unrealised gains except to the extent that there is
evidence of impairment.
Investments in Subsidiaries
In the Company's own statement of
financial position, investments in subsidiaries are stated at cost
less provisions for any impairment.
Intangible Assets - Exploration and Evaluation
Assets
The Directors have designated that
an individual exploration and evaluation asset is a group of claims
which provide separate areas of interest in different geographic
locations. Each group of claims may comprise more than one
area of exploration interest. Exploration expenditure in
respect of properties and licences not in production is capitalised
and is carried forward in the statement of financial position under
intangible assets in respect of each area of interest
where:
(i)
the operations are ongoing in the area of interest
and exploration or evaluation activities have not reached a stage
which permits a reasonable assessment of the existence or otherwise
of economically recoverable reserves; and
(ii)
such costs are expected to be recouped through
successful development and exploration of the area of interest or
alternatively by its realisation.
Exploration costs include licence
costs, survey, geophysical and geological analysis and evaluation
costs, costs of drilling and project-related overheads. Where
the Company undertakes the evaluation and appraisal of historical
waste material at surface, the costs of evaluation are capitalised
in exploration and evaluation assets. Capitalised exploration
and evaluation expenditures are not amortised prior to the
conclusion of exploration and appraisal activity.
Exploration and evaluation assets
will be reclassified to property, plant and equipment as a
cash-generating unit when a commercially viable reserve has been
determined, all approvals and permits have been obtained.
On reclassification, the carrying value of the asset will be
assessed for impairment and, where appropriate, the carrying value
will be adjusted. If, after completion of exploration, evaluation
and appraisal activities the conditions for achieving a
cash-generating unit are not met, the associated expenditures are
written off to the income statement.
Decommissioning Provision
There is uncertainty around the cost
of decommissioning as cost estimates can vary in response to many
factors, including changes to the relevant legal requirements, the
emergence of new technology or experience at other assets. The
expected timing, work scope and amount and currency mix of
expenditure required may also change. Therefore, significant
estimates and assumptions are made in determining the provision for
decommissioning. Provision for environmental clean-up and
remediation costs is based on current legal and contractual
requirements, technology and management's estimate of costs with
reference to current price levels and the estimated costs
calculated by the regulatory authorities.
Impairment
The carrying amounts of the Group's
non-financial assets, other than deferred tax assets, are reviewed
at each reporting date to determine whether there is any indication
of impairment. If any such indication exists, then the amount
recoverable from the assets is estimated. For intangible assets
that have indefinite lives or that are not yet available for use,
the recoverable amount is estimated at each reporting
date.
Under IFRS 6, the following
indicators are set out to determine whether an exploration and
evaluation asset is required to be tested for
impairment:
· the
period for which the entity has the right to explore in the
specific area has expired during the period or will expire in the
near future, and is not expected to be renewed;
· substantive expenditure on further exploration for and
evaluation of mineral resources in the specific area is neither
budgeted nor planned;
· exploration for and evaluation of mineral resources in the
specific area have not led to the discovery of commercially viable
quantities of mineral resources and the entity has decided to
discontinue such activities in the specific area; and
· sufficient data exists to indicate that, although a
development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be
recovered in full from successful development or by
sale.
The list is not exhaustive, and the
Group also considers the following additional tests: current cash
available to the Group and its capacity to raise additional funds;
commodity prices and markets; taxation and the regulatory regime;
access to equipment, materials and services; and the comparison of
the Group's net assets with the market capitalisation of the
Company.
An impairment loss is recognised if
the carrying amount of an asset or its cash-generating unit exceeds
its recoverable amount. A cash-generating unit is the smallest
identifiable asset Group that is expected to generate cash flows
that is largely independent from other assets and Groups of assets.
Impairment losses are recognised in the Statement of Comprehensive
Income. Impairment losses recognised in respect of cash-generating
units are allocated first to reduce the carrying amount of any
goodwill allocated to the units and then to reduce the carrying
amount of the other assets in the unit (group of units) on a pro
rata basis.
The recoverable amount of an asset
or cash generating unit is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the
estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risk specific to the
asset.
Taxation
Income tax expense comprises current
and deferred tax. Income tax expense is recognised in profit and
loss except to the extent that it relates to items recognised in
other comprehensive income or directly in equity, in which case the
tax is also recognised in other comprehensive income or equity
respectively.
Current corporation tax is the
expected tax payable on the taxable income for the year, using tax
rates enacted or substantively enacted at the reporting date, and
any adjustment to tax payable in respect of previous
years.
Special tax deductions for
qualifying expenditure claimed by the Group are in accordance with
the Research and Development Tax Incentive regime in the UK. The
Group accounts for such allowances as tax credits, which reduces
income tax payable and current tax expense.
Deferred tax is recognised using the
liability method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. Deferred tax
is not recognised for the following temporary differences: the
initial recognition of goodwill, the initial recognition of assets
or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit, and
differences relating to investments in subsidiaries to the extent
that they probably will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be
applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted by the
reporting date.
A deferred tax asset is recognised
to the extent that it is probable that future taxable profits will
be available against which temporary difference can be utilised.
Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Additional income taxes that arise
from the distribution of dividends are recognised at the same time
as the liability to pay the related dividends is
recognised.
Employee Benefits
Equity-Settled Share-Based Payments
For equity-settled share-based
payment transactions (i.e. the issuance of share options in
accordance with the Group's share option scheme or share warrants
granted in relation to services provided), the Group measures the
services received by reference to the value of the option or other
financial instrument at fair value at the measurement date (which
is the grant date) using a recognised valuation methodology for the
pricing of financial instruments (the binomial option pricing
model). If the share options granted do not vest until the
completion of a specified period of service, the fair value
assessed at the grant date is recognised in the income statement
over the vesting period as the services are rendered by employees
with a corresponding increase in equity. For options granted with
no vesting period, the fair value is recognised in the income
statement at the date of the grant. For share warrants
granted in relation to services provided, the fair value is an
issue cost and is accordingly recognised in retained earnings. The
fair value of equity-settled share-based payments on exercise is
released to the share premium account. When equity settled
share-based payments which have not been exercised reach the end of
the original contractual life, whether share options or share
warrants, the value is transferred from the share option reserve to
retained earnings.
Foreign Currencies
Transactions in foreign currencies
are recorded at the rate of exchange ruling at the date of the
transaction. Monetary assets and liabilities denominated in a
foreign currency are translated into the functional currency at the
exchange rate ruling at the reporting date, unless specifically
covered by foreign exchange contracts whereupon the contract rate
is used. All translation differences are taken to the income
statement with the exception of foreign currency differences
arising on net investment in a foreign operation. These are
recognised in other comprehensive income.
Results and cash flows of non-Euro
subsidiary undertakings are translated into Euro at average
exchange rates for the year and the related assets and liabilities
are translated at the rates of exchange ruling at the reporting
date. Adjustments arising on translation of the results of non-Euro
subsidiary undertakings at average rates, and on the restatement of
the opening net assets at closing rates, are dealt with in a
separate translation reserve within equity. Proceeds from the issue
of share capital are recognised at the prevailing exchange rate on
the date that the Board of Directors ratifies such issuance; and
foreign exchange movement arising between the date of issue and the
date of receipt of funds is credited or charged to the income
statement.
The principal exchange rates used
for the translation of results, cash flows and balance sheets into
Euro were as follows:
|
|
Average
rate
|
Spot rate at year
end
|
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
|
1 GPD
|
0.8678
|
0.8526
|
0.8691
|
0.8869
|
|
1 USD
|
1.0813
|
1.0530
|
1.1050
|
1.0666
|
On loss of control of a foreign
operation, accumulated currency translation differences are
recognised in the income statement as part of the overall gain or
loss on disposal.
Property, plant and equipment
Property, plant and equipment under
the cost model are stated at historical cost less accumulated
depreciation and any accumulated impairment losses. Historical cost
includes expenditure that is directly attributable to bringing the
asset to the location and condition necessary for it to be capable
of operating in the manner intended by management.
Depreciation is provided on the
following basis:
|
Land and property
|
0%
|
|
Plant & machinery
|
33.33% straight line
|
|
Motor vehicles
|
33.33% straight line
|
On disposal of property, plant and
equipment, the cost and related accumulated deprecation and
impairments are removed from the financial statements and the net
amounts less any proceeds are taken to the income
statement.
The carrying amounts of property,
plant and equipment are reviewed at each balance sheet date to
determine whether there is any indication of impairment. An
impairment loss is recognised whenever the carrying amount of an
asset or its cash generating unit exceeds its recoverable
amount. Impairment losses are recognised in the income
statement.
Subsequent costs are included in an
asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the
replaced item can be measured reliably. All other repair and
maintenance costs are charged to the income statement during the
financial period in which they are incurred.
Financial Instruments
Cash and Cash Equivalents
Cash and cash equivalents in the
Statement of Financial Position comprise cash at bank and in hand
and short-term deposits with an original maturity of three months
or less. Bank overdrafts that are repayable on demand and
form part of the Group's cash management are included as a
component of cash and cash equivalents for the purpose of Statement
of Cash Flows.
Trade and Other Receivables / Payables
Except for the decommissioning
provision and financial liabilities arising on the grant of share
warrants, trade and other receivables and payables are stated at
cost less impairment, which approximates fair value given the
short-dated nature of these assets and liabilities. There are no
expected credit losses on amounts due from subsidiaries and
therefore no expected credit loss provision has been
recognised.
Financial assets - amounts owed by subsidiary
undertakings
Financial assets are classified as
measured at amortised cost when they are held in a business model
the objective of which is to collect contractual cash flows and the
contractual cash flows represent solely payments of principal and
interest. Such assets are carried at amortised cost using the
effective interest method if the time value of money is
significant. Gains and losses are recognised in profit or loss when
the assets are derecognised or impaired and when interest is
recognised using the effective interest rate method. This category
of financial assets includes trade and other receivables and loans
provided to subsidiary undertakings of the Company.
Impairment of financial assets
The expected credit loss model is
applied for recognition and measurement of impairments in financial
assets measured at amortised cost. The loss allowance for the
financial asset is measured at an amount equal to the life-time
expected credit losses. Changes in loss allowances are recognised
in profit and loss.
Share Warrant Provision
The fair value of an equity
classified warrant is measured using the binomial option pricing
model. As the warrant price is in a different currency to the
functional currency of the Company, the share warrant provision
creates a financial liability. The fair value is remeasured
at each period end and any movement charged or credited to the
income statement. The fair value of the liability settled by
the issue of shares is credited to the share premium account.
The fair value on exercise is credited to the share premium
account.
Provisions
Provisions are recognised when the
Group has a present obligation (legal or constructive) as a result
of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of
this obligation. Where the Group expects some or all of a provision
to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any
provision is presented in the Consolidated Statement of
Comprehensive Income net of any reimbursement. If the effect of the
time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the increase
in the provision due to the passage of time is recognised as a
finance cost.
Contingencies
A contingent liability is disclosed
where the existence of an obligation will only be confirmed by
future events or where the amount of the obligation cannot be
measured with reasonable reliability. Contingent assets are not
recognised but are disclosed where an inflow of economic benefit is
probable.
2. Going
concern
The financial statements of the
Group and Parent Company 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 year ended 31 December 2023, 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 year ended 31 December 2023. At the balance sheet
date, the Group had cash and cash equivalents amounting to €0.10
million and the Company raised an additional amount of €0.82
million (before transactions expenses) through a placing completed
in March 2024. 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 will be assisted by the generation of first
revenues from the reprocessing of historical spoil heaps and
tailings. The Directors are seeking a joint venture partner
to provide funding to enable the acceleration of the Group's
Huntoon Copper Project. The Directors also believe that the
Group's cash flow can be further 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 in
recent years, including placings completed in January and August
2023 and March 2024, 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 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
|
|
Revenue
|
Loss
|
|
|
2023
€
|
2022
€
|
2023
€
|
2022
€
|
|
Exploration activities -
Nevada
|
-
|
-
|
(30,061)
|
(31,891)
|
|
|
-
|
-
|
(959,751)
|
(918,876)
|
Consolidated loss before tax
|
-
|
-
|
(989,812)
|
(950,767)
|
|
|
|
|
|
|
Segment assets
|
|
|
|
2023
€
|
2022
€
|
|
Exploration activities -
Nevada
|
|
|
9,274,402
|
8,819,118
|
|
|
|
|
190,035
|
137,930
|
Consolidated total assets
|
|
|
9,464,437
|
8,957,048
|
|
|
|
|
|
|
Segment liabilities
|
|
|
|
2023
€
|
2022
€
|
|
Exploration activities -
Nevada
|
|
|
519,150
|
173,590
|
|
|
|
|
113,871
|
165,434
|
Consolidated total Liabilities
|
|
|
633,021
|
339,024
|
|
|
|
|
|
|
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:
|
|
|
|
2023
€
|
2022
€
|
|
Nevada, USA - exploration
activities
|
|
|
8,677,261
|
8,538,964
|
|
|
|
|
-
|
-
|
|
|
|
|
-
|
-
|
|
|
|
|
8,677,261
|
8,538,964
|
|
|
|
|
|
|
4.
Finance income
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
|
|
4,434
|
527
|
4,246
|
517
|
|
|
4,434
|
527
|
4,426
|
517
|
|
|
|
|
|
|
5.
Statutory and other disclosures
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
|
|
|
|
|
|
|
- Salaries
|
316,105
|
311,335
|
134,452
|
135,434
|
|
- Social security
|
33,759
|
34,101
|
13,087
|
13,165
|
|
- Defined contribution pension scheme
|
-
|
-
|
-
|
-
|
|
- Share based payments
|
28,504
|
43,269
|
28,504
|
43,269
|
|
|
|
|
|
|
|
- Audit of the financial statements
|
30,750
|
30,750
|
27,500
|
27,500
|
|
- Other assurance services
|
-
|
-
|
-
|
-
|
- Other non-audit services
|
-
|
-
|
-
|
-
|
Effects of exchange rate changes on
cash and cash equivalents
|
18,198
|
51,367
|
17,959
|
51,322
|
Effects of revaluation of share
warrants - financial liability
|
-
|
(96,294)
|
-
|
(96,294)
|
|
|
|
|
|
|
6.
Employment
Number of employees
The average number of employees,
including executive Directors, during the year was:
|
|
Group
2023
Number
|
Group
2022
Number
|
Company
2023
Number
|
Company
2022
Number
|
Executive and non-Executive
Directors
|
6
|
6
|
6
|
6
|
|
|
3
|
2
|
-
|
-
|
|
|
1
|
1
|
-
|
-
|
|
|
10
|
9
|
6
|
6
|
|
|
|
|
|
|
Employees costs
The employment costs, including
executive Directors, during the year were charged to the income
statement:
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
|
|
499,167
|
480,197
|
134,452
|
135,434
|
|
|
51,043
|
49,354
|
13,087
|
13,165
|
Defined contribution pension
scheme
|
2,480
|
3,361
|
-
|
-
|
|
|
38,005
|
63,795
|
38,005
|
63,795
|
|
|
590,695
|
596,707
|
185,544
|
212,394
|
|
|
(45,221)
|
-
|
-
|
-
|
|
|
545,474
|
596,707
|
185,544
|
212,394
|
|
|
|
|
|
|
7.
Income tax - expense
|
|
|
|
2023
€
|
2022
€
|
|
Current tax credit
|
|
|
(43,782)
|
(61,142)
|
Adjustment for previous
period
|
|
|
6,624
|
(97,362)
|
|
|
|
|
(37,158)
|
(158,504)
|
The income tax expense for the year
can be reconciled to the accounting loss as follows:
|
|
|
2023
€
|
2022
€
|
|
Loss before tax
|
|
(989,812)
|
(950,767)
|
|
|
|
|
|
|
Income tax calculated at 12.5%
(2022: 12.5%)
|
|
(123,727)
|
(118,846)
|
|
|
|
|
|
|
|
|
|
|
Expenses not deductible for tax
purposes
|
|
16,219
|
21,107
|
|
|
|
-
|
(12,037)
|
|
|
|
107,508
|
109,776
|
Adjustment for UK research and
development tax credit
|
|
(37,158)
|
(158,504)
|
Income tax
(credit)/expense
|
|
(37,158)
|
(158,504)
|
The tax rate used for the year end
reconciliations above is the corporation rate of 12.5% payable by
corporate entities in Ireland on taxable profits under tax law in
the jurisdiction of Ireland.
At the statement of financial
position date, the Group had unused tax losses of €8,390,479 (2022:
€7,616,147) available for offset against future profits. No
deferred tax asset has been recognised due to the unpredictability
of future profit streams. Unused tax losses may be carried forward
indefinitely.
8. 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:
|
|
|
2023
€
|
2022
€
|
|
|
|
|
|
|
Loss for the year attribute to
equity holders of the parent
|
|
(952,654)
|
(792,263)
|
|
|
|
|
|
|
Number of ordinary shares at start
of year
|
|
3,577,510,005
|
3,577,510,005
|
Number of ordinary shares issued
during the year
|
|
1,909,090,914
|
-
|
Number of ordinary shares in issue
at end of year
|
|
5,486,600,919
|
3,577,510,005
|
|
|
|
|
|
|
Weighted average number of ordinary
shares for the purposes of basic earnings per share
|
|
4,905,222,617
|
3,577,510,005
|
|
|
|
|
|
Basic loss per ordinary share
(cent)
|
|
(0.0002)
|
(0.0002)
|
|
|
|
|
|
Diluted earnings per share
There were no potentially dilutive
ordinary shares that would increase the basic loss per
share.
9. Investments
in subsidiaries
|
|
|
|
2023
€
|
2022
€
|
|
|
|
|
|
|
|
Subsidiary undertakings - unlisted
|
|
|
|
|
|
|
|
|
500,001
|
500,001
|
|
|
|
|
500,001
|
500,001
|
|
|
|
|
|
|
The Directors reviewed the
recoverability of the investments and concluded there was no
impairment and that the carrying value of these investments to be
fully recoverable.
At 31 December 2023, the Company had
the following subsidiary undertakings:
|
Name
|
Incorporated in
|
Main activity
|
Holdings
|
|
|
|
|
|
|
Great Western Mining Corporation
Inc.
|
Nevada, U.S.A.
|
Mineral Exploration
|
100%
|
|
GWM Operations Limited
|
UK
|
Service Company
|
100%
|
10. Property, plant and
equipment
|
|
|
|
Property,
plant & equipment
€
|
Total
€
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
At 1 January 2022
|
|
|
93,644
|
93,644
|
|
Additions
|
|
|
-
|
-
|
|
|
|
|
5,795
|
5,795
|
|
At 31 December 2022
|
|
|
99,439
|
99,439
|
|
|
|
|
-
|
-
|
|
|
|
|
(3,457)
|
(3,457)
|
|
|
|
|
|
|
|
|
|
|
95,982
|
95,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2022
|
|
|
21,474
|
21,474
|
Depreciation charge for the
year
|
|
|
-
|
-
|
|
|
|
|
1,330
|
1,330
|
|
|
|
|
22,804
|
22,804
|
Depreciation charge for the
year
|
|
|
-
|
-
|
|
|
|
|
(794)
|
(794)
|
|
|
|
|
|
|
|
|
|
|
22,010
|
22,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73,972
|
73,972
|
|
|
|
|
|
|
|
|
|
|
76,635
|
76,635
|
|
|
|
|
|
|
The net book value of €73,972 at 31
December 2023 (2022: €76,635) relates to the Group's warehouse in
Hawthorne, Nevada, and yard facility at Marietta, Nevada.
Motor vehicles, plant and machinery and were fully depreciated in
the prior year. The Directors have considered the carrying
value of the assets and concluded that there is no
impairment.
11. Intangible
assets
|
|
|
|
Exploration and evaluation assets
€
|
Total
€
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
At 1 January 2022
|
|
|
7,086,254
|
7,086,254
|
|
Additions
|
|
|
963,765
|
963,765
|
|
|
|
|
445
|
445
|
|
Exchange rate adjustment
|
|
|
411,865
|
411,865
|
|
At 31 December 2022
|
|
|
8,462,329
|
8,462,329
|
|
|
|
|
373,815
|
373,815
|
Own employment costs
capitalised
|
|
|
44,251
|
44,251
|
|
|
|
|
2,017
|
2,017
|
|
|
|
|
(279,123)
|
(279,123)
|
|
|
|
|
|
|
|
|
|
|
8,603,289
|
8,603,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,603,289
|
8,603,289
|
|
|
|
|
|
|
|
|
|
|
8,462,329
|
8,462,329
|
|
|
|
|
|
|
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 indicators 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.
The Directors also considered the carrying amount of the Company's
net assets in relation to its market capitalisation. The Directors
are satisfied that no impairment is required as at 31 December
2023. 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, including the
potential to reprocess historical spoil heaps and tailings. This is
dependent on several variables including the existence of
commercial mineral deposits, availability of finance and mineral
prices.
12. Amounts owed by subsidiary
undertakings
|
Company
|
|
|
|
Total
€
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
At 1 January 2022
|
|
|
|
8,626,955
|
|
Advances to subsidiary
undertakings
|
|
|
|
1,176,388
|
|
At 31 December 2022
|
|
|
|
9,803,343
|
Advances to subsidiary
undertakings
|
|
|
|
919,952
|
|
|
|
|
|
|
|
|
|
|
|
10,723,295
|
|
|
|
|
|
|
Provisions for impairment
|
|
|
|
|
|
|
|
|
|
1,703,600
|
|
|
|
|
|
1,607,700
|
|
|
|
|
|
3,311,300
|
|
|
|
|
|
1,468,970
|
|
|
|
|
|
|
|
|
|
|
|
4,780,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,943,025
|
|
|
|
|
|
|
|
|
|
|
|
6,492,043
|
|
|
|
|
|
|
Amounts owed by subsidiary
undertakings are denominated in Euro, interest free and payable on
demand. The Directors do not expect to call for repayment of
these loans in the foreseeable future. The loans are expected
to be repaid from future revenues generated by the Group's mining
interests in Nevada, USA.
In accordance with IFRS 9, the
Company has reviewed the amounts owed by subsidiary undertakings
and calculated an expected credit loss equivalent to the lifetime
expected credit loss. As the loans are interest free and
payable on demand, the Company applies no discount when calculating
the expected credit loss as the effective interest rate is
considered to be 0%. Based on the calculation, the Directors
have made an impairment provision of €1,468,970 as at 31 December
2023 (2022: €1,607,700). The Directors believe the net
carrying value of the amounts owed by subsidiary undertakings to be
fully recoverable.
13. Trade and other receivables
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
Amounts falling due within one year:
|
|
|
|
|
|
|
83,204
|
85,169
|
-
|
-
|
|
|
97,186
|
152,398
|
-
|
-
|
|
|
511,480
|
35,320
|
13,052
|
35,049
|
|
|
691,870
|
272,887
|
13,052
|
35,049
|
|
|
|
|
|
|
All amounts above are current and
there have been no impairment losses during the year (2022:
€Nil).
14. Cash and cash
equivalents
For the purposes 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. The cash and cash equivalents are held with bank and
financial institution counterparties, which are rated BBB+ to
AA-.
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
|
|
|
|
|
|
|
|
37,125
|
97,586
|
21,545
|
67,134
|
|
|
58,181
|
47,611
|
40,224
|
29,100
|
|
|
95,306
|
145,197
|
61,769
|
96,234
|
|
|
|
|
|
|
15. Trade and other
payables
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
Amounts falling due within one year:
|
|
|
|
|
|
|
262,368
|
45,716
|
1,929
|
11,923
|
|
|
-
|
-
|
-
|
-
|
|
|
227,259
|
146,778
|
49,423
|
92,511
|
Other taxation and social
security
|
14,523
|
15,109
|
3,673
|
3,764
|
Amounts payable to subsidiary
undertakings
|
-
|
-
|
67,155
|
61,322
|
|
|
504,150
|
207,603
|
122,180
|
169,520
|
|
|
|
|
|
|
The Group has financial risk
management policies in place to ensure that payables are paid
within the pre-agreed credit terms (see note 22).
16. Decommissioning
provision
|
|
Group
2023
€
|
Group
2022
€
|
Company
2023
€
|
Company
2022
€
|
|
|
|
|
|
|
Decommissioning provision
|
128,871
|
131,421
|
-
|
-
|
|
|
|
|
|
|
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 asset.
17. Share warrants -
financial liability
The share warrants have been granted
as rights to acquire additional new ordinary share of €0.0001 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.
Group and Company
|
|
|
|
Number of
warrants
|
Level 3
Fair value
€
|
|
|
|
|
|
|
|
At 1 January 2022
|
|
|
670,272,727
|
96,294
|
Released on exercise of
warrants
|
|
|
(443,000,000)
|
(47,536)
|
|
Movement in fair value of warrants
liabilities
|
|
|
-
|
(48,758)
|
|
At 31 December 2022
|
|
|
227,272,727
|
-
|
Released on lapse of
warrants
|
|
|
(227,272,727)
|
-
|
Movement in fair value of warrants
liabilities
|
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
-
|
-
|
|
|
|
|
|
|
In April 2021, the Group granted
warrants in connection with a share placing. 227,272,727 warrants
were granted exercisable at £0.0030 each with immediate vesting and
a contractual life of 2 years. These warrants lapsed in April
2023 with the fair value of the warrants having been written down
to nil at 31 December 2022.
18. Share capital
|
|
|
No of
shares
|
Value of
shares
€
|
|
|
|
|
|
|
Authorised at 1 January 2022 and 31 December
2022
|
|
7,000,000,000
|
700,000
|
|
|
|
|
|
|
Authorised at 1 January 2023
|
|
7,000,000,000
|
700,000
|
|
Creation of Ordinary shares
of €0.0001 each
|
|
2,000,000,000
|
200,000
|
|
Authorised at 31 December 2023
|
|
9,000,000,000
|
900,000
|
|
|
|
|
|
|
|
No
of issued shares
|
|
|
|
|
Ordinary shares of €0.0001
each
|
Share
capital
€
|
Share
premium
€
|
Total
capital
€
|
Issued, called up and fully:
|
|
|
|
|
At
1 January and 31 December 2022
|
3,577,510,005
|
357,751
|
13,572,027
|
13,929,778
|
|
|
|
|
|
|
Issued, called up and fully:
|
|
|
|
|
|
|
3,577,510,005
|
357,751
|
13,572,027
|
13,929,778
|
|
|
1,909,090,914
|
190,909
|
1,303,472
|
1,494,381
|
|
|
|
|
|
|
|
|
5,486,600,919
|
548,660
|
14,875,499
|
15,424,159
|
|
|
|
|
|
|
The Company did not issue shares
during the year ended 31 December 2022 and accordingly there were
no transaction expenses.
On 20 January 2023, the Company
completed a placing for 1,000,000,000 new ordinary shares of
€0.0001 ("the Placing Share"). Each Placing Share was issued
at a price of £0.0008 (€0.0009) raising gross proceeds of £800,000
(€913,242) and increasing share capital by €100,000. The premium
arising on the issue amounted to €813,242. The warrants were
granted with an exercise price of £0.0030 and a fair value of
€191,364.
On 2 August 2023, the Company
completed a placing for 909,090,914 new ordinary shares of €0.0001
("the Placing Share"). Each Placing Share was issued at a
price of £0.00055 (€0.00064) raising gross proceeds of £500,000
(€581,139) and increasing share capital by €90,909. The premium
arising on the issue amounted to €490,230.
19. Share based
payments
Share options
The Great Western Mining Corporation
PLC operates a share options scheme, "Share Option Plan 2014",
which entitles directors and employees 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 share capital
of the Company on that date.
Measure of fair values of options
The fair value of the options
granted has been measured using the binomial lattice option pricing
model. The input used in the measurement of the fair value at grant
date of the options were as follows:
|
|
30 Jan 2023
|
23 Feb 2022
|
|
|
|
|
|
Fair value at grant date
|
€0.0006
|
€0.0011
|
|
Share price at grant date
|
€0.0009
|
€0.0016
|
|
|
€0.0009
|
€0.0016
|
Number of options granted
|
52,000,000
|
57,500,000
|
|
Vesting conditions
|
Immediate
|
Immediate
|
|
Expected volatility
|
108%
|
107.8%
|
Sub-optimal exercise
factor
|
4x
|
4x
|
|
Expected life
|
7
years
|
7
years
|
|
|
0%
|
0%
|
|
Risk free interest rate
|
2.31%
|
0.18%
|
|
|
|
|
During the year, the Group
recognised a total expense of €38,005 (2022: €63,795) in the income
statement relating to share options granted during the
year:
|
|
|
Number of
options
|
Average
exercise price
|
|
|
|
|
|
|
Outstanding at 1 January
2022
|
|
85,666,667
|
Stg0.62
p
|
|
Granted
|
|
57,500,000
|
Stg0.13
p
|
|
|
|
|
|
|
Authorised at 31 December
2022
|
|
143,166,667
|
Stg0.29
p
|
|
|
|
52,000,000
|
Stg0.09
p
|
|
|
|
|
|
Outstanding at 31 December 2023
|
|
195,166,667
|
Stg0.24 p
|
Exercisable at 31 December
2022
|
|
195,166,667
|
Stg0.24
p
|
|
Exercisable at 31 December
2022
|
|
143,166,667
|
Stg0.29
p
|
|
|
|
|
|
On 31 December 2023, there were
options over 195,166,667 ordinary shares outstanding (2022:
143,166,667) which are exercisable at prices ranging from Stg0.09
pence to Stg1.6 pence and which expire at various dates up to
February 2029. The weighted average remaining contractual life of
the options outstanding is 4 years 5 months (2022: 4 years 9
months).
Equity-settled warrants
In November 2022, broker warrants
granted in November 2020 over 20,000,000 shares lapsed unexercised
and an amount of €13,707 released from the share-based payment
reserve to retained earnings.
In April 2023, broker warrants
granted in April 2021 over 22,727,272 shares lapsed unexercised and
an amount of €20,709 released from the share-based payment reserve
to retained earnings
At 31 December 2023, the balance on
the share-based payment reserve amounted to €386,005 (2022:
€368,709).
20. Retained
losses
In accordance with Section 304 of
the Companies Act 2014, the Company has not presented a separate
income statement. Of the consolidated loss after taxation, a loss
of €2,008,511 for the financial year ended 31 December 2023 (2022:
loss of €2,039,553) has been dealt with in the Company income
statement of Great Western Mining Corporation PLC.
21. Related party
transactions
Intercompany transactions
In accordance with International
Accounting Standards 24 - Related Party Disclosures, transactions
between Group entities that have been eliminated on consolidation
are not disclosed.
The Company entered in the following
transactions with its subsidiary companies:
|
|
|
2023
€
|
2022
€
|
|
Balances at 31 December:
|
|
|
|
|
Amounts owed by subsidiary
undertakings
|
|
5,943,025
|
6,492,043
|
|
Amounts owed to subsidiary
undertakings
|
|
(67,155)
|
(61,322)
|
|
|
|
|
|
Remuneration of key management personnel
Details of the directors'
remuneration for the year is set out in Note 5. Information about
the remuneration of each director is shown in the Remuneration
Report. The directors are considered to be the Group's key
management personnel.
|
|
|
2023
€
|
2022
€
|
|
Short-term benefits:
|
|
316,105
|
311,335
|
|
Pension contributions
|
|
-
|
-
|
|
Share-based payments
|
|
28,504
|
43,269
|
|
|
|
344,609
|
354,604
|
|
|
|
|
|
The Group also entered into related
party transactions with Andrew Hay Advisory Limited for corporate
finance advice services and Sofabar Consulting Limited for
marketing services which are companies connected with Andrew Hay
and Alastair Ford respectively. The companies each received
€14,946 in the period (2022: €15,245). There was a €nil balance
outstanding with both companies as at 31 December 2023 (2022:
€nil). Details of the directors' interests in the share
capital of the Company are set out in the Directors' Report
.
22. Financial instruments
and financial risk management
Group
A. Accounting classifications and fair
values
The following table shows the
carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. It
does not include fair value information for financial assets and
financial liabilities not measured at fair value if the carrying
amount is a reasonable approximation of fair value. The Group does
not recognise any Level 1 fair value financial assets or
liabilities.
|
31
December 2023
|
FVTPL
|
Financial assets at amortised
cost
|
Other financial
liabilities
|
Carrying amount
total
|
Level 2
Fair value
|
Level 3
Fair value
|
|
|
|
€
|
€
|
€
|
€
|
€
|
€
|
|
|
Financial assets not measured at fair value
|
|
|
|
|
|
|
|
Cash and cash equivalent
|
-
|
95,306
|
-
|
95,306
|
95,306
|
-
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value
|
|
|
|
|
|
|
|
Share warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value
|
|
|
|
|
|
|
|
Decommissioning provision
|
-
|
-
|
(128,871)
|
(128,871)
|
(128,871)
|
-
|
|
Trade and other payables
|
-
|
-
|
(504,150)
|
(504,150)
|
(504,150)
|
-
|
|
|
-
|
-
|
(633,021)
|
(633,021)
|
(633,021)
|
-
|
|
|
|
|
|
|
|
|
|
|
31
December 2022
|
FVTPL
|
Financial assets at amortised
cost
|
Other financial
liabilities
|
Carrying amount
total
|
Level 2
Fair value
|
Level 3
Fair value
|
|
|
€
|
€
|
€
|
€
|
€
|
€
|
|
Financial assets not measured at fair value
|
|
|
|
|
|
|
|
Cash and cash equivalent
|
-
|
145,197
|
-
|
145,197
|
145,197
|
-
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value
|
|
|
|
|
|
|
|
Share warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value
|
|
|
|
|
|
|
|
Decommissioning provision
|
-
|
-
|
(131,421)
|
(131,421)
|
(131,421)
|
-
|
|
Trade and other payables
|
-
|
-
|
(207,603)
|
(207,603)
|
(207,603)
|
-
|
|
|
-
|
-
|
(339,024)
|
(339,024)
|
(339,024)
|
-
|
|
|
|
|
|
|
|
|
Measurement of fair values
A number of the Group's accounting
policies and disclosures require the measurement of fair values,
for both financial and non-financial assets and liabilities.
Significant valuation issues are reported to the Group's audit
committee.
When measuring the fair value of an
asset or a liability, the Group uses observable market data as far
as possible. Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the valuation
techniques as follows.
·
Level
1: quoted prices (unadjusted) in
active markets for identical assets or liabilities.
·
Level
2: inputs other than quoted prices
included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
·
Level
3: inputs for the asset or liability
that are not based on observable market data (unobservable
inputs).
Set out below are the major methods
and assumptions used in estimating the fair values of the financial
assets and liabilities set out in the table above:
Cash and cash equivalents including short-term
deposits
For short-term deposits and cash and
cash equivalents, all of which have a remaining maturity of less
than three months, the nominal value is deemed to reflect the fair
value.
Share warrants
For the financial liabilities from
share warrants, the Level 3 fair value is based on the revaluation
of the warrants at the year-end, including the changes to key input
assumptions for expected volatility and expected exercise
life.
Decommissioning provision
The fair value is based on expected
costs determined in line with estimates provided by the
regulator.
Trade and other payables
For the payables with a remaining
maturity of less than six months or demand balances, the
contractual amount payable less impairment provisions, where
necessary, is deemed to reflect fair value.
B. Financial risk
management
The Board has overall responsibility
for the establishment and oversight of the risk management
framework for each of the risks summarised below. The Board
receives regular reports at board meetings through which it reviews
the effectiveness of the processes put in place and the
appropriateness of the objectives and policies it sets.
The Group's risk management policies
are established to identify and analyse the risks faced by the
Group, to set appropriate risk limits and controls and to monitor
risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions and
the Group's activities. The Group, through its training and
management standards and procedures, aims to maintain a disciplined
and constructive control environment in which all employees
understand their roles and obligations.
The Group has exposure to the
following risks arising from financial instruments:
a) Credit risk
Credit risk is the risk of financial
loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. The
Group's principal credit risk arises on cash and cash equivalents,
including deposits with banks. The cash and cash equivalents
are held with bank and financial institution counterparties, which
are rated BBB+ to AA- by Fitch Ratings.
The carrying amount of financial
assets represents the maximum credit exposure. The maximum credit
exposure to credit risk is:
|
|
|
Group
2023
€
|
Group
2022
€
|
|
Trade and other debtors
|
|
691,870
|
272,887
|
|
Cash and cash equivalents
|
|
95,306
|
145,197
|
|
|
|
787,176
|
418,084
|
|
|
|
|
|
b)
Liquidity risk
Liquidity risk is the risk that the
Group will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Group's objective
when managing liquidity is to ensure, as far as possible, that it
will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group's
reputation. The Group closely monitors and
manages its liquidity risk using both short and long-term cash flow
projections. Cash forecasts are regularly produced, and
sensitivities run for different scenarios including changes to
planned work programmes. To date, the
Group has relied on shareholder funding to finance its
operations. Board approval would be
required for any borrowing facilities and the Group
did not have any bank loan facilities at 31
December 2023 or 31 December 2022.
The expected maturity of the Group's
financial assets (excluding prepayments) as at 31 December 2023 and
31 December 2022 was less than one month.
The following are the contractual
maturities of the financial liabilities including estimated
interest payments and excluding the impact of netting
agreements:
|
31
December 2023
|
Carrying
amount
€
|
Contractual
cashflows
€
|
0-6
months
€
|
6-12
months
€
|
1-2
years
€
|
|
|
|
|
|
|
|
|
|
262,368
|
262,368
|
262,368
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
227,259
|
227,259
|
227,259
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
Decommissioning provision
|
128,871
|
128,871
|
-
|
128,871
|
-
|
|
|
618,498
|
618,498
|
489,627
|
128,871
|
-
|
|
|
|
|
|
|
|
|
31 December 2022
|
Carrying
amount
€
|
Contractual
cashflows
€
|
0-6
months
€
|
6-12
months
€
|
1-2
years
€
|
|
|
|
|
|
|
|
|
|
45,716
|
45,716
|
45,716
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
146,778
|
146,778
|
146,778
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
Decommissioning provision
|
131,421
|
131,421
|
-
|
131,421
|
-
|
|
|
323,915
|
323,915
|
192,494
|
131,421
|
-
|
|
|
|
|
|
|
|
c)
Market risk
Market risk is the risk that changes
in market prices and indices will affect the Group's income or the
value of its holdings of financial instruments. The Group has
two principal types of market risk being foreign currency exchange
rates and interest rates.
The Group's operates in an industry
with financial risks arising from changes in commodity
prices. At present the Group does not have revenue-generating
operations but the Directors keep the requirement for hedging
instruments under review. During the year, the Group did not enter
into any hedging transactions.
Foreign currency
risk
The Group presentational and
functional currency is the Euro. The Group conducts and
manages its business in Euro, US Dollars and GB Pounds in
accordance with liabilities of the parent company and subsidiary
undertakings. The Group therefore routinely purchases on the
spot market the currencies of the countries in which it operates.
From time to time certain transactions are undertaken denominated
in other currencies. The risk is managed wherever possible by
holding currency in Euro, US Dollars and GB Pounds. During
the years ended 31 December 2023 and 31 December 2022, the Group
did not utilise derivatives to manage foreign currency risk.
The Group also recognises translation risk on consolidation as a
foreign currency risk.
The Group's exposure to
transactional foreign currency risk, for amounts included in cash
and cash equivalents and trade and other payables (as shown on the
balance sheet), is as follows:
|
|
GB
Pounds
2023
€
|
US
Dollars
2023
€
|
Euro
2022
€
|
GB
Pounds
2022
€
|
US
Dollars
2022
€
|
Euro
2022
€
|
Cash and cash equivalents
|
42,660
|
18,182
|
-
|
69,150
|
25,683
|
-
|
|
|
-
|
-
|
-
|
(4,422)
|
-
|
-
|
|
|
42,660
|
18,182
|
-
|
64,728
|
25,683
|
-
|
|
|
|
|
|
|
|
|
Sensitivity analysis
A 10% strengthening or weakening in
the value of sterling and the euro against the US dollar, based on
the outstanding financial assets and liabilities at 31 December
2023 (2022: 10%), would have the following impact on the income
statement. This analysis assumes that all other variables, in
particular interest rates, remain constant.
|
|
10%
increase
2023
€
|
10%
decrease
2023
€
|
10%
increase
2022
€
|
10%
decrease
2022
€
|
|
|
|
|
|
|
Cash and cash equivalents
|
6,084
|
(6,084)
|
9,483
|
(9,483)
|
Trade and other creditors
|
-
|
-
|
(888)
|
888
|
|
|
6,084
|
(6,084)
|
8,595
|
(8,595)
|
|
|
-
|
-
|
-
|
-
|
|
|
6,084
|
(6,084)
|
8,595
|
(8,595)
|
|
|
|
|
|
|
Interest rate
risk
The Group's exposure to the risk of
changes in market interest rates relates primarily to the Group and
Company's holdings of cash and short-term deposits. It is the Group
and Company's policy as part of its management of the budgetary
process to place surplus funds on short term deposit from time to
time where interest is earned. The
Group did not have any bank loan facilities at 31 December 2023 or
31 December 2022.
The interest rate profile of the
Group's interest-bearing financial instruments at 31 December 2023
was as follows:
|
|
Fixed
rate
2023
€
|
Floating
rate
2023
€
|
Total
2023
€
|
Fixed
rate
2022
€
|
Floating
rate
2022
€
|
Total
2022
€
|
Cash and cash equivalents
|
-
|
58,181
|
58,181
|
-
|
47,611
|
47,611
|
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
-
|
58,181
|
58,181
|
-
|
47,611
|
47,611
|
|
|
|
|
|
|
|
|
Cash flow sensitivity
analysis
The Company's approach to the
management of financial risk is as set out under the Group
disclosures above. The accounting classification for each class of
the Company's financial assets and financial liabilities, together
with their fair values, is as follows:
An increase of 500 basis points
(2022: 500 basis points) or decrease of 500 basis points (2022: 500
basis point) in interest rates at the reporting date would have had
the following effect on the income statement. This analysis assumes
all other variables, in particular foreign currency, remain
constant.
|
|
500 bps
increase
2023
€
|
500 bps
decrease
2023
€
|
500
bps
increase
2022
€
|
500
bps
decrease
2022
€
|
|
|
|
|
|
|
Cash and cash equivalents
|
291
|
(291)
|
238
|
(238)
|
|
|
-
|
-
|
-
|
-
|
|
|
291
|
(291)
|
238
|
(238)
|
|
|
|
|
|
|
The Group has no interest bearing
loans outstanding at 31 December 2023 and 31 December 2022. As
there are no variable rate loans, there is no potential impact to
profit and loss from a change in interest rates.
Company
A. Accounting classifications and fair
values
The Company's approach to the
management of financial risk is as set out under the Group
disclosures above.
The accounting classification for
each class of the Company's financial assets and financial
liabilities, together with their fair values, is as
follows:
|
31
December 2023
|
FVTPL
|
Financial assets at amortised
cost
|
Other financial
liabilities
|
Carrying amount
total
|
Level 2
Fair value
|
Level 3
Fair value
|
|
|
€
|
€
|
€
|
€
|
€
|
€
|
|
Financial assets
measured at fair value
|
|
|
|
|
|
|
|
Amounts owed by subsidiary
undertakings
|
5,943,025
|
-
|
-
|
5,943,025
|
-
|
5,943,025
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
-
|
61,769
|
-
|
61,769
|
61,769
|
-
|
|
|
|
|
|
|
|
|
Financial liabilities
measured at fair value
|
|
|
|
|
|
|
|
Share warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair
value
|
|
|
|
|
|
|
|
Trade and other payables
|
-
|
-
|
(55,027)
|
(55,027)
|
(55,027)
|
-
|
|
|
|
|
|
|
|
|
|
31
December 2022
|
FVTPL
|
Financial assets at amortised
cost
|
Other financial
liabilities
|
Carrying amount
total
|
Level 2
Fair value
|
Level 3
Fair value
|
|
|
€
|
€
|
€
|
€
|
€
|
€
|
|
Financial assets
measured at fair value
|
|
|
|
|
|
|
|
Amounts owed by subsidiary
undertakings
|
6,492,043
|
-
|
-
|
6,492,043
|
-
|
6,492,043
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
-
|
96,234
|
-
|
96,234
|
96,234
|
-
|
|
|
|
|
|
|
|
|
Financial liabilities
measured at fair value
|
|
|
|
|
|
|
|
Share warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair
value
|
|
|
|
|
|
|
|
Trade and other payables
|
-
|
-
|
(108,198)
|
(108,198)
|
(108,198)
|
-
|
|
|
|
|
|
|
|
|
The Company does not recognise any
Level 1 fair value financial assets or liabilities.
Measurement of fair values
The Company's basis for the
measurement of fair values is as set out under the Group
disclosures above.
Amounts due from subsidiary companies
The amounts due from subsidiary
undertakings are technically repayable on demand and so the
carrying value is deemed to reflect fair value. The estimation of
other fair values is the same, where appropriate, as for the Group
as set out in above.
Risk exposures
The Company's operations expose it
to the risks as set out for the Group above.
This note presents information about
the Company's exposure to credit risk, liquidity risk and market
risk, the Company's objectives, policies and processes for
measuring and managing risk. Unless stated, the policy and process
for measuring risk in the Company is the same as outlined for the
Group above.
Credit risk
The carrying value of financial
assets, net of impairment provisions, represents the Company's
maximum exposure at the balance sheet date.
The maximum credit exposure to credit risk
is:
|
|
|
Company
2023
€
|
Company
2022
€
|
|
|
|
|
|
|
Amounts due from subsidiary
undertakings
|
|
5,943,025
|
6,492,043
|
|
Trade and other debtors
|
|
13,052
|
35,049
|
|
Cash and cash equivalents
|
|
61,769
|
96,234
|
|
|
|
6,017,846
|
6,623,326
|
|
|
|
|
|
At the balance sheet date, there was
deemed to be a reduction in credit risk related to the loans due
from subsidiary undertakings. The loans are expected to be
recovered from future revenues generated by the Group's assets in
Nevada, USA. A lifetime expected credit loss was calculated
and a partial impairment provision of €1,468,970 has been made
against the carrying value of the loans due from subsidiary
undertakings (2022: €1,607,700) (see note 12). The expected
credit loss calculation involved considering the maximum amount
exposed to default, the potential loss arising on default and the
probability of default in the judgement of the
Directors.
The Directors are satisfied that no
further impairment is considered to have occurred.
Liquidity risk
The liquidity risk for the Company
is similar to that for the Group as set out above.
The following are the contractual
maturities of the financial liabilities including estimated
interest payments and excluding the impact of netting
agreements:
|
31
December 2023
|
Carrying
amount
€
|
Contractual
cashflows
€
|
0-6
months
€
|
6-12
months
€
|
1-2
years
€
|
|
|
1,929
|
1,929
|
1,929
|
-
|
-
|
|
|
49,423
|
49,423
|
49,423
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
51,352
|
51,352
|
51,352
|
-
|
-
|
|
|
|
|
|
|
|
|
31 December 2022
|
Carrying
amount
€
|
Contractual
cashflows
€
|
0-6
months
€
|
6-12
months
€
|
1-2
years
€
|
|
|
11,923
|
11,923
|
11,923
|
-
|
-
|
|
|
92,511
|
92,511
|
92,511
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
104,434
|
104,434
|
104,434
|
-
|
-
|
|
|
|
|
|
|
|
Market risk
The market risk for the Company is
similar to that for the Group as set out above. The Company's
exposure to transactional foreign currency risk, including the
associated sensitivities, is the same as the Group's as set out
above.
23. Post balance sheet events
On 11 March 2024, the Company
announced a Placing Agreement for the issue of 1,610,344,827 new
Ordinary Shares of €0.0001 each at a price of 0.0435 pence each,
raising £700,500 (€819,826) before transaction expenses and
completed on 19 March 2024.
On 16 April 2024, the Company
exercised an option to acquire the Olympic Gold Project.
There were no other significant post
balance sheet events.
24.
Approval of financial statements
The financial statements were
approved by the Board on 8 May 2024.