Audited Final Results for the year ended 31st D...
28 May 2010
GREAT WESTERN MINING CORPORATION PLC
("Great Western Mining", "GWM" or the "Company")
Audited Final Results for the year ended 31st December 2009
Chairman's Statement
Five years ago the first Great Western Mining claim stakes were hammered into the rocky, barren soil of Bass
Mountain, high above Teels Marsh on its eastern flank and Huntoon Valley on the western flank. The total of 21
claims of approximately 20 acres each were registered that year based on the geological files of an earlier
prospector, Dan Bracket, who had prospected for half a lifetime in the nearby ghost town of Marrietta, Nevada.
At the close of 2009 the area under claim has been extended to 373 full claims and 37 partial claims for a total
of 410 claims covering some 33 square kilometers in all.
This massive increase in land under mineral claim followed extensive surface sampling of trenches, pits and adits
across our area of interest. Such were the results of analytical laboratory testing and resulting geological
modeling, that extending the area under claim took precedence over other considerations. This decision was
validated by the Competent Person's Report of September 2009 and subsequent update in March of this year. It may
even induce your Company to extend acreage further as more test results come available.
Driven by a seemingly insatiable demand from Asia for copper to build out the sinews of an emerging super power,
for uranium to fuel nuclear plants, as well as gold and silver, the unique treasure box of Nevada's geologically
active landscape is drawing-in mineral exploration companies in growing numbers.
At the moment there has been considerable staking activity by Canadian (ESO Uranium Ltd., TSX) and American
exploration groups adjoining or in the vicinity of GWM. Extensive radon testing has been carried out by one of the
groups immediately adjacent to Great Western Claims and overlapping in some cases. The highest radon readings came
from this area.
While surface mapping, sampling and geo-physical surveys may not excite the blood in the way core hole drilling
does, it is nonetheless the most cost effective means of exploration by far. It benefits the Company little if
drilling proves up a valuable resource only to see Canadian or other exploration groups jump in to snap up
adjoining acreage.
Your Directors believe GWM has staked out a significant slice of the cake. The extension of the area under claim
combined with the increasing probability of a silver and copper dominated mineral resource as indicated by
trenching, pit work, and surface testing to date, and with uranium shows on both east and west flanks of the
valley, have opened up a number of new vistas for your Company.
It is our intention to move this project forward to the next level of development during the balance of 2010. This
will involve geophysical ground surveys, core hole testing, laboratory testing and the first attempts of
calculating the depth, extent and value of the mineralization.
In the first instance the programme of geo-physical profiling leading to a multi core-hole drilling campaign will
be the opening gambit to the drafting of a "cartoon", i.e., a series of cigar or banana shaped images on the
surface maps outlining how the mineral deposits are laid out. From this some reasonable estimation as to the
depths and total volumes of the ore-in-place can be cast. Finally, some estimates as to the value of the deposit
can be calculated.
Achieving this level of certainty is an essential step in calculating a profile of valuations that any interested
suitor or joint venture partner would require.
An alternative plan would be to organise an extended bulk sample test of say, 2,000 to 5,000 tons of ore shipped
to an existing smelter, perhaps Yerington, for custom smelting or to enrich a poorer grade mix. In either case,
the dollar value of the minerals extracted would give further credence to the monetary values of our ore body.
With copper at one stage reaching $8,000 a ton and silver recently above $17 an ounce, it is likely that these two
minerals would be the "meat-in-the-sandwich" to deliver early cash-flow in any development. The additional
mineralization of gold and uranium add to the potential upside.
Your Company and its management must embrace this "step-change" from the pure exploration stage of the past four
years, and move on to the "presentation stage" where the alternative choices of joint-venture, acquisition, or
extended bulk-tests, must be examined. The ultimate goal is to extract the highest return to shareholders, and
this target will be persued relentlessly in the coming year.
The year 2010 will, I believe, see your Company move to an exciting stage of development, from pure exploration to
quantifying the value of its discoveries. Your Directors are reviewing alternative avenues for finance for this
development.
Finally, a word of thanks and appreciation to my fellow directors, our consultants in the field and laboratory,
and to you, our shareholders, for the wisdom, and perseverance which has contributed so much to our efforts.
Sincerely
Emmett O'Connell
Chairman
Statement of Accounting Policies for the year ended 31 December 2009
Great Western Mining Corporation Plc ("the Company") is a company incorporated in Ireland. The Group financial
statements consolidate those of the Company and its subsidiary (together referred to as the "Group").
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements.
Statement of Compliance
As permitted by the European Union, the Group financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) and their interpretations issued by the International
Accounting Standards Board (IASB) as adopted by the EU (IFRS). The individual financial statements of the Company
("Company financial statements") have been prepared in accordance with the IFRSs as adopted by the EU and as
applied in accordance with the Companies Acts, 1963 to 2009 which permits a company, that publishes its company
and group financial statements together, to take advantage of the exemption in Section 148(8) of the Companies
Act, 1963, from presenting to its members its Company Statement of Comprehensive Income Statement and related
notes that form part of the approved company financial statements.
The IFRSs adopted by the EU as applied by the Company and the Group in the preparation of these financial
statements are those that were effective at 31 December 2009.
Standards affecting presentation and disclosure
The following provides a brief outline of the likely impact on future financial statements of relevant IFRSs and
interpretations adopted by the EU which are not yet effective and have not been adopted in these financial
statements:
IAS 17 Leases
As part of Improvements to IFRSs (2009) issued in April 2009, the International Accounting Standards Board amended
the requirements of IAS17 Leases regarding the classification of leases of land. Prior to amendment, IAS17
generally required leases of land with an indefinite useful life to be classified as operating leases. This was
inconsistent with the general principals of the Standard, and the relevant guidance has been removed due to
concerns that it could lead to accounting that did not reflect the substance of arrangements. Following the
amendments, leases of land are classified as either 'finance' or 'operating' in accordance with the general
principles of IAS17. These amendments are effective for financial periods beginning on or after 1 January 2010,
and they are applied retrospectively to unexpired leases at 1 January 2010 if the necessary information was
available at the inception of the lease. Otherwise, the revised Standard will be applied based on the facts and
circumstances existing on 1 January 2010 (i.e. the date of adoption of the amendments) and the Group will
recognise assets and liabilities related to land leases newly classified as finance leases at their fair values on
that date; and difference between those fair values will be recognised in retained earnings. The directors
anticipate that these amendments to IAS17 will be adopted in the Group's financial statements for the period
beginning 1 January 2010. The amendment is not expected to have an impact on the Group financial statements.
IFRS 2 Share Based Payment
In June 2009, the IASB issued amendments to IFRS 2 Share-based Payment. These amendments clarify the scope of
IFRS2, as well as the accounting for Group cash-settled share-based payment transactions in the separate (or
individual) financial statements of an entity receiving the goods or services when another group entity or
shareholder has the obligation to settle the award. The directors anticipate that these amendments will be adopted
in the Group's financial statements for the period beginning 1 January 2010. The amendment is not expected to have
an impact on the Group financial statements.
IFRS 3 Business Combinations (Revised 2008)
This standard is applicable for business combinations occurring in reporting periods beginning on or after 1 July
2009 and will be applied prospectively. The new standard introduces changes to the accounting requirements for
business combinations, but still requires use of the purchase method, and will have a significant effect on
business combinations occurring in reporting periods beginning on or after 1 July 2009. Management does not expect
the standard to have a material effect on the Group's financial statements.
IAS 27 Consolidated and Separate Financial Statements
The revised standard introduces changes to the accounting requirements for the loss of control of a subsidiary and
for changes in the Group's interest in subsidiaries. This standard is effective from 1 July 2009. Management does
not expect the standard to have a material effect on the Group's financial statements.
Basis of Preparation
The Group and Company financial statements are prepared on the historical cost basis. The accounting policies have
been applied consistently by Group entities.
Functional and Presentation Currency
The consolidated financial statements are presented in Euro (EURO), which is the Company's functional currency.
Use of Estimates and Judgements
The preparation of financial statements in conformity with EU 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 and 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:
- Measurement of the impairment of intangible assets
- Utilisation of tax losses
Revenue Recognition - Interest revenue
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset's net carrying amount.
Consolidation
The consolidated financial statements comprise the financial statements of Great Western Mining Corporation Plc
and its subsidiary undertaking for the year ended 31 December 2009.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or
indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken
into account. Subsidiaries are fully consolidated from the date that control commences until the date that control
ceases. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Intragroup balances and any unrealised gains or losses or income or expenses arising from intragroup transactions
are eliminated in preparing the Group financial statements.
In the Company's own balance sheet, investments in subsidiaries are stated at cost less provisions for any
permanent diminution in value.
Intangible Fixed Assets (Deferred Exploration Costs)
In accordance with International Financial Reporting Standard 6 - Exploration for and Evaluation of Mineral
Resources, the Group uses the cost method of recognition. Exploration costs include licence costs, survey,
geophysical and geological analysis and evaluation costs, costs of drilling and project-related overheads.
Exploration expenditure in respect of properties and licences not in production is deferred and is carried forward
in the balance sheet 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; or
(ii) such costs are expected to be recouped through successful development and exploration of the area of interest
or alternatively by its realisation.
When the directors decide that no further expenditure on an area of interest is worthwhile, the related
expenditure is written off or down to an amount which it is considered represents the residual value of the
Group's interest therein.
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
asset's recoverable amount is estimated. For intangible assets that have indefinite lives or that are not yet
available for use, recoverable amount is estimated at each reporting date.
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 largely are independent from other assets and groups. Impairment losses are recognised in the
Statement of Comprehensive Income statement. 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
Current 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.
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.
Foreign Currencies
Monetary assets and liabilities denominated in a foreign currency are translated into Euro at the exchange rate
ruling at the balance sheet date, unless specifically covered by foreign exchange contracts whereupon the contract
rate is used. Revenues, costs and non monetary assets are translated at the exchange rates ruling at the dates of
the transactions. All exchange differences are dealt with through the income statement.
On consolidation, the assets and liabilities of overseas subsidiary companies are translated into Euro at the
rates of exchange prevailing at the balance sheet date. Exchange differences arising from the restatement of the
opening balance sheets of these subsidiary companies are dealt with through reserves. The operating results of
overseas subsidiary companies are translated into Euro at the average rates applicable during the year.
Group companies
The results and financial position of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are translated
into the presentation currency as follows:
- monetary assets and liabilities for each balance sheet presented are presented at the closing rate at the date
of that balance sheet. Non-monetary items are measured at the exchange rate in effect at the historical
transaction date and are not translated at each balance sheet date.
- income and expenses for each income statement are translated at average exchange rates (unless this average is
not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the dates of the transaction): and
- all resulting exchange differences are recognised as a separate component of equity. On consolidation,
exchange differences arising from the translation of monetary items receivable from foreign subsidiaries for which
settlement is neither planned nor likely to occur in the foreseeable future are taken to shareholders equity. When
a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain
or loss on sale.
Share Capital
Issue expenses are written off against the premium arising on the issue of share capital.
Cash & 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.
Finance Income
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the
effective interest rate method.
Consolidated Statement of Comprehensive Income for the year ended 31 December 2009
Continuing Operations 2009 2008
Notes EURO
EURO
Administrative expenses (264,969) (410,694)
Finance Revenue 1,527 18,425
_________ _________
Loss for the year before tax (263,442) (392,269)
Corporation tax expense - -
_________ _________
Total Comprehensive Loss for the year (263,442) (392,269)
========= =========
Loss attributable to:
Equity holders of the Company (263,442) (392,269)
_________ _________
(263,442) (392,269)
========= =========
Total Comprehensive Loss attributable to:
Equity holders of the Company (263,442) (392,269)
_________ _________
(263,442) (392,269)
========= =========
Earnings per share
from continuing operations
Basic and Diluted loss per share 3 (0.93) (1.47)
========= =========
Consolidated Statement of Financial Position as at 31 December 2009
31/12/09 31/12/08
Notes EURO
EURO
Assets
Non-Current Assets
Intangible assets 705,896 588,036
_________ _________
Total Non-Current Assets 705,896 588,036
Current Assets
Trade and other receivables 5,621 13,041
Cash and cash equivalents 59,352 251,490
_________ _________
Total Current Assets 64,973 264,531
_________ _________
Total Assets 770,869 852,567
========= =========
Equity and Liabilities
Capital and Reserves
Called up share capital 282,536 267,520
Share premium account 1,602,234 1,399,810
Foreign currency translation reserve - -
Retained loss (1,147,104) (883,662)
_________ _________
Attributable to owners of the company 737,666 783,668
_________ _________
Total Equity 737,666 783,668
_________ _________
Liabilities
Current Liabilities
Trade and other payables 33,203 68,899
_________ _________
Total Liabilities 33,203 68,899
_________ _________
Total Equity and Liabilities 770,869 852,567
========= =========
Notes to the Financial Statements for the year ended 31 December 2009
1. Going concern
The financial statements have been prepared on the going concern basis, which assumes that Great Western
Mining Corporation Plc will continue in operational existence for the foreseeable future.
The validity of this assumption depends on the following:
The Directors intend to raise additional finance during 2010 to fund an expanded exploration
programme.
This additional funding will be used to continue the exploration programme and to fund the
administrative expenses of the Company.
The financial statements do not include any adjustments that would result if the additional capital is not
raised. Whilst taking into consideration the uncertainties described above, the Directors believe that
it is appropriate for the financial statements to be prepared on a going concern basis.
2. Segment Information
Adoption of IFRS 8 Operating Segments
The Group has adopted IFRS 8 Operating Segments with effect from 1 April 2009. IFRS 8 requires
operating segments to be identified on the basis of internal reports about components of the Group that are
regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and
to assess their performance. In contrast, the predecessor Standard (IAS14 Segment Reporting) required an
entity to identify two sets of segments (business and geographical), using a risk and returns approach,
with the entity's 'system of internal financial reporting to key management personnel' serving only as a
starting point for the identification of such segments. As a result, following the adoption of IFRS 8,
the identification of the Group's reportable segments has changed.
In the prior period, in the opinion of the Directors the operations of the group comprise one class
of business being the exploration and development of gold and other minerals. The group's main operations
are located within Nevada. The information reported to the Group's chief operating decision maker for
the purposes of resource allocation and assessment of segment is specifically focussed on the
exploration areas in Nevada. In the opinion of the Directors the Group has only one reportable segment under
IFRS 8 which is exploration carried out in Nevada.
Information regarding the Group's reportable segments is presented below. Amounts reported for the prior
period have been restated to conform to the requirements of IFRS 8.
Segment Revenues and Results
The following is an analysis of the Group's revenue and results from continuing operations by reportable
segment.
Segment Revenue Segment Loss
2009 2008 2009 2008
EURO EURO EURO EURO
Exploration - Nevada - - (264,969) (410,694)
_________ _________ _________ _________
Total for continuing operations - - (264,969) (410,694)
========= =========
Investment revenue 1,527 18,425
______________________
Loss before tax (continuing operations) (263,442) (392,269)
======================
Segment Information - continued
Segment assets and liabilities
Segment Assets 2009 2008
EURO EURO
Exploration - Nevada 770,869 852,567
______________________
Consolidated assets 770,869 852,567
======================
Segment Liabilities
Exploration - Nevada 33,203 68,899
______________________
Consolidated liabilities 33,203 68,899
======================
Other segment information
Depreciation and Additions to
amortisation non-current assets
2009 2008 2009 2008
EURO EURO EURO EURO
Exploration - Nevada - - 117,860 91,100
========= ========= ========= =========
Revenue from major products and services
The only revenue that the group received during the period related to bank interest, which has been
allocated to Ireland.
Geographical information
The Group operates in two principal geographical areas - Ireland (Country of residence of Great Western
Mining PLC) and Nevada (Country of residence of Great Western Mining Limited).
The Group does not have revenue from external customers. Information about its non-current assets by
geographical location are detailed below:
Non-Current Assets
2009 2008
EURO EURO
Ireland - -
Nevada 705,896 588,036
_________ _________
705,896 588,036
========= =========
3. 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:
2009 2008
EURO EURO
(Loss) for the period attributable to equity holders of the parent (263,442)
(392,269)
_________ _________
Number of ordinary shares in issue - start of year 26,752,000 26,752,000
Effect of shares issued during the year 1,501,628 -
_________ _________
Weighted average number of ordinary shares
for the purposes of basic earning per share 28,253,628 26,752,000
_________ _________
Basic (loss) per ordinary share (0.93)
(1.47)
========= =========
Diluted earnings per share
Basic and Diluted EPS are the same as there are no potential ordinary shares
4. Other
The information contained in this statement has been extracted from the audited Directors' Report and
Financial Statements for the year ended 31 December 2009, which contain an unqualified audit report. The
Independent Auditors' Report to the Shareholders of Great Western Mining Corporation Plc in the Report &
Accounts contains the following statement:
"Emphasis of Matter - Going Concern
In forming our opinion, we have considered the adequacy of the disclosures made in the financial statements
as detailed in Note 1 concerning the preparation of the financial statements on the going concern basis for
the period under review. In view of the significance of this matter we feel that this should be brought to
your attention. Our opinion is not qualified in this respect."
The directors do not recommend the payment of a dividend for the year ended 31 December 2009. A dividend
was not paid for the year ended 31 December 2008.
The Directors of the Company accept responsibility for this announcement.
---ENDS---
CONTACT DETAILS:
Great Western Mining Corporation plc.
Emmett O'Connell, Chairman. Tel: +353 51 565844
Fax: +353 51 565 884
Email: emmett@iol.ie
Liam McGrattan, Director. Tel: 087 274 5427
Melvyn Quiller, U.K. Director. Tel: 0771 289 9588
SVS Securities Plc - PLUS Corporate Adviser. Tel: 020 7638 5600
Peter Ward / Alexander Brearley.
SVS Securities Plc - Broker. Tel: 020 7638 5600
Ian Callaway / Alexander Mattey.
ABOUT GREAT WESTERN MINING CORPORATION PLC.
1. GWM is an Irish exploration company with rights over approximately 33 square kilometers of mineral claims in
Nevada. U.S.A.
2. GWM's shares are admitted to trading on PLUS-quoted in London, trading symbol GWMO.
3. Website: www.greatwesternmining.com
Great Western Mining Corporation plc
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