Audited Final Results for the year ended 31st D...
31 May 2011
GREAT WESTERN MINING CORPORATION PLC.
("Great Western Mining", "GWM" or the "Company")
Audited Final Results for the year ended 31st December 2010
Chairman's Statement
For the past six years Great Western Mining Corporation Plc and its wholly owned Nevada subsidiary
have been accumulating a database of geochemical, geological, aeromagnetic, and most recently NASA Jet
Propulsion Laboratory (NASA-JPL) aerial reconnaissance work relating to the unique physical
characteristics of the Huntoon Valley and the Excelsior Mountain Range in South Central Nevada, known
as the Marietta Project. This work has been augmented by a multi-year program of pit work, trenching,
several hundred samples and laboratory bottle leach testing.
In addition to the statistical database assembled, the Company has tapped into a database of personal
knowledge, experience, and academic expertise relating to the mineral exploration and exploitation of
this region going back several generations. With 85% of the surface area of the State of Nevada
classified as public land, a great deal of geological information is available from public bodies, the
University of Nevada McKay School of Mines, and records of past endeavours.
From the first 21 mineral claims staked in 2006 (approximately 20 acres per claim) the Company now
holds 410 full or fractional claims. At present, some 485 additional mineral claims are being staked.
When completed this will bring the total area under claim to approximately 70 square kilometres.
Next Stage of Development:
Having secured what we believe is a strategic land position in this highly prospective area, your
Management is now shifting gears. The Company commissioned a study of the project area utilising NASA
JPL's ASTER program (Advanced Spaceborne Thermal Emission Reflectance Radiometer) and the resulting
process of target selection is now underway. Generally, a target is chosen if it meets three following
criteria:
1. Alteration appears to be intense, persuasive and/ or concentric occurrences of multiple
minerals,
2. Associates with known faults, lineaments, or circular structures, and
3. Not too huge to correspond to only large lithological units or cultural features.
A number of prospective targets have been identified and an Induced Polarisation ("IP") program has
been contracted to determine core hole drilling locations for the first drill tests.
Having assembled a land position worthy, in the Director's opinion, of a company many times our
present size, the Company is well situated to leverage its regional knowledge base to its advantage at
a time when world metal prices are close to record highs. The demand for metals is likely to continue
strong due to the demand from emerging markets, particularly India and China.
Perhaps equally blessed is to hold this strategic land position in the politically secure and resource
rich state of Nevada, U.S.A.
Application to the Alternative Investment Market
To assist in the broadening and deepening of the market in the Company's shares, and thus its ability
to fund its future plans, your Management and its financial advisors have put in motion the drafting
of an application to admit the Company's shares to trading on the Alternative Investment Market
("AIM") in London.
Sincerely,
Emmett O'Connell
Chairman
Statement of Accounting Policies for the year ended 31 December 2010
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 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 on or before 31 December 2010.
Standards and amendments to existing standards effective 1 January 2010
The following standards, amendments and interpretations which became effective in 2010 are of
relevance to the Group:
Standard Content Applicable for years beginning
on/after
IAS1 Presentation of financial statements 1 January 2010
IAS 36 Impairment of Assets 1 January 2010
IAS 39 Financial Instruments: Recognition 1 January 2010
and Measurement
IFRS 8 Operating Segments 1 January 2010
Standards, amendments and interpretations to existing standards that are not yet effective and have
not been adopted early by the Group
Standard/Interpretation Content Applicable for years beginning
on/after
IFRS 9 Financial Instruments 1 January 2013
IAS 24 * Related party disclosures 1 January 2011
IAS 32 * Classification of rights issues 1 February 2010
IAS 34 * Interim Financial Reporting 1 January 2011
IFRS 1 * Amendment: Limited Exemption from 1 July 2010
Comparative IFRS 7 Disclosures for
First-time Adopters
IFRIC 14 * Amendment: The Limit on a Defined 1 January 2011
Benefit Asset, Minimum Funding
Requirements and their Interaction
IFRIC 19 * Extinguishing financial liabilities 1 July 2010
with equity instruments
IFRS 7 Amendment Disclosures: Transfer of 1 July 2011
financial assets
IFRS 3 * Business Combinations 1 July 2010
IAS 27 * Consolidated and separate financial 1 July 2010
statements
* Not expected to be relevant to the Group, and therefore not to have a material impact on the Group
financial statements.
IFRS 9 'Financial instruments: Classification and measurement'
In November 2009, the IASB issued the first part of IFRS 9 relating to the classification and
measurement of financial assets. IFRS 9 will ultimately replace IAS 29. The standard requires an
entity to classify its financial assets on the basis of the entity's business model for managing the
financial assets and the contractual cash flow characteristics of the financial assets, an
subsequently measures the financial assets as either at amortised cost or fair value. The new standard
is mandatory for annual periods beginning on or after 1 January 2013.
Improvements for IFRS (issued in April 2009 and May 2010)
The improvements project contains numerous amendments to IFRS that the IASB considers non-urgent but
necessary. 'Improvements to IFRS' comprise amendments that result in accounting changes for
presentation, recognition or measurement purposes, as well as terminology or editorial amendments
related to a variety of individual IFRS standards. Most of the amendments are effective for annual
periods beginning on or after 1 January 2010 or 1 January 2011 respectively, with earlier application
permitted. No material changes to accounting policies are expected as a result of these amendments.
In 2010, the Group did not early adopt any new or amended standards and do not plan to early adopt any
of the standards issued but not yet effective.
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 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.
Basis of 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 2010.
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 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 capitalised 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 assets' 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. 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 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.
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 Statement of Comprehensive Income.
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.
Share capital
Incremental costs directly attributable to the issue of ordinary shares and share options are
recognised as a reduction in equity.
Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS
is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by
the weighted average number of ordinary shares outstanding during the period. Diluted EPS is
determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding for the effects of all dilutive potential ordinary
shares.
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
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.
Finance Income
Finance income comprises interest income on funds invested and foreign currency gains. Interest
income is recognised as the interest accrues (using the effective interest rate method) to the net
carrying amount of the financial asset.
Segmental Information
In accordance with IFRS 8: Operating Segments, the Group has one principle reportable segment i.e.
Nevada, U.S.A. which represents the exploration and development of gold and other minerals in Nevada,
U.S.A.
Other operations 'Corporate' includes cash resources held by the Group, interest income earned and
other operational expenditure incurred by the Group. These areas are not within the definition of an
operating segment.
Consolidated Statement of Comprehensive Income for the year ended 31 December 2010
Continuing Operations 2010 2009
Notes EURO EURO
Administrative expenses (325,723) (264,969)
Finance income - 1,527
_________ _________
Loss for the year before tax (325,723) (263,442)
Corporation tax expense (1,535) -
_________ _________
Total Comprehensive Loss for the year (327,258) (263,442)
========= =========
Loss attributable to:
Equity holders of the Company (327,258) (263,442)
_________ _________
(327,258) (263,442)
========= =========
Total Comprehensive Loss attributable to:
Equity holders of the Company (327,258) (263,442)
_________ _________
(327,258) (263,442)
========= =========
Earnings per share
from continuing operations
Basic and Diluted loss per share (cent) 3 (1.16) (0.93)
========= =========
Consolidated Statement of Financial Position as at 31 December 2010
2010 2009
Notes EURO EURO
Assets
Non-Current Assets
Intangible assets 797,657 705,896
_________ _________
Total Non-Current Assets 797,657 705,896
Current Assets
Trade and other receivables - 5,621
Cash and cash equivalents 6,361 59,352
_________ _________
Total Current Assets 6,361 64,973
_________ _________
Total Assets 804,018 770,869
========= =========
Equity
Capital and Reserves
Share capital 282,536 282,536
Share premium 1,602,234 1,602,234
Retained loss (1,474,362) (1,147,104)
_________ _________
Attributable to owners of the company 410,408 737,666
_________ _________
Total Equity 410,408 737,666
_________ _________
Liabilities
Current Liabilities
Trade and other payables 393,610 33,203
_________ _________
Total Liabilities 393,610 33,203
_________ _________
Total Equity and Liabilities 804,018 770,869
========= =========
Consolidated Statement of Changes in Equity as at 31 December 2010
Share Share Retained
Capital Premium Losses Total
EURO EURO EURO EURO
Balance at 1 January 2009 267,520 1,399,810 (883,662) 783,668
_________ _________ _________ _________
Total comprehensive income for the year
Loss for the year - - (263,442) (263,442)
_________ _________ _________ _________
Total comprehensive income for the year - - (263,442) (263,442)
_________ _________ _________ _________
Transactions with owners, recorded directly in equity
Shares issued 15,016 202,424 - 217,440
_________ _________ _________ _________
Total transactions with owners 15,016 202,424 - 217,440
_________ _________ _________ _________
Balance at 31 December 2009 282,536 1,602,234 (1,147,104) 737,666
_________ _________ _________ _________
Balance at 1 January 2010 282,536 1,602,234 (1,147,104) 737,666
_________ _________ _________ _________
Total comprehensive income for the year
Loss for the year - - (327,258) (327,258)
_________ _________ _________ _________
Total comprehensive income for the year - - (327,258) (327,258)
_________ _________ _________ _________
Balance at 31 December 2010 282,536 1,602,234 (1,474,362) 410,408
========= ========= ========= =========
Notes to the Financial Statements for the year ended 31 December 2010
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 2011 through a listing on the
Alternative Investment Market 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 and the Group.
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.
We draw your attention to Note 18 for details of monies raised by the company subsequent to
the year end and prior to the date of the signing of the financial statements.
2. Segment Information
In the opinion of the Directors the operations of the group comprise one class of business being
the exploration and mining for copper, silver, 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.
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
2010 2009 2010 2009
EURO EURO EURO EURO
Exploration - Nevada - - (325,723) (264,969)
_________ _________ _______ _______
Total for continuing operations - - (325,723) (264,969)
========= =========
Investment income - 1,527
_______ _______
Loss before tax (continuing operations) (325,723) (263,442)
_______ _______
Income tax expense (1,535) -
_______ _______
Loss after tax (327,258) (263,442)
======= =======
Segment assets and liabilities
Segment Assets 2010 2009
EURO EURO
Exploration - Nevada 804,018 770,869
_______ _______
Consolidated assets 804,018 770,869
======= =======
Segment Liabilities
Exploration - Nevada 393,610 33,203
_______ _______
Consolidated liabilities 393,610 33,203
======= =======
Other segment information
Depreciation and Additions to
amortisation non-current assets
2010 2009 2010 2009
EURO EURO EURO EURO
Exploration - Nevada - - 91,761 117,860
========= ========= ======= =======
Revenue from major products and services
The Group did not receive any revenue in the year. In the prior year, the only revenue that the
group received related to bank interest, which has been allocated to Ireland.
Geographical information
The Group operates in two principal geographical areas - Republic of Ireland (country of
residence of Great Western Mining Corporation PLC) and Nevada, U.S.A. (country of residence of
Great Western Mining Corporation, a wholly owned subsidiary of Great Western Mining
Corporation PLC).
The Group does not have revenue from external sources. Information about its non-current assets
by geographical location are detailed below:
2010 2009
EURO
Ireland -
Nevada 797,657 705,896
_______ _______
797,657 705,896
======= =======
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:
2010 2009
EURO EURO
(Loss) for the period attributable to equity holders of the parent (327,258) (263,442)
__________ __________
Number of ordinary shares in issue - start of year 28,253,628 26,752,000
Effect of shares issued during the year - 1,501,628
__________ __________
Weighted average number of ordinary shares for the purposes of basic EPS 28,253,628 28,253,628
__________ __________
Basic (loss) per ordinary share (cent) (1.16) (0.93)
========== ==========
Diluted earnings per share
Basic and Diluted EPS are the same as there are no potential ordinary share
4. Post Balance Sheet events
Subsequent to the year end the Company raised £1,015,718 (EURO 1,147,889) by the issue of
9,233,800 new ordinary shares of EURO 0.01 each at a price of £0.11 per share.
5. Other
The information contained in this statement has been extracted from the audited Directors'
Report and Financial Statements for the year ended 31 December 2010, 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 statements:
"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.
Deferred Exploration
In forming our opinion, we considered the adequacy of disclosures made in Note 9 to the
financial statements in relation to the directors' assessment of the carrying value of the
group's deferred exploration costs amounting to EURO 797,657. The realisation of the intangible
assets is dependent on the successful development or disposal of copper, silver, gold and other
minerals in the Group's licence area. Such successful development is dependent on several
variables including the existence of commercial deposits of copper, silver, gold and other
minerals, availability of finance and the price of copper, silver, gold and other minerals. Our
opinion is not qualified in this respect."
The directors do not recommend the payment of a dividend for the year ended 31 December 2010. A
dividend was not paid for the year ended 31 December 2009.
THE DIRECTORS OF THE ISSUER ACCEPT RESPONSIBILITY FOR THE CONTENT OF THIS ANNOUNCEMENT.
Enquiries:
Great Western Mining Corporation plc:
Emmett O'Connell, Chairman Tel: +353 51 565884
Melvyn Quiller, Chief Executive Tel: 07712 899588
SVS Securities plc - PLUS Corporate Advisor
Alexander Brearley Tel: 020 7638 5600
SVS Securities plc - Broker
Ian Callaway/Alexander Mattey Tel: 020 7638 5600
Libertas Capital - Broker
Neil Pidgeon Tel: 020 7569 9678
Financial PR
Nicholas Nelson/Guy McDougall Tel: 020 7245 1100
Great Western Mining Corporation plc
Great Western Mining Corporation plc
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