Half-year Report

RNS Number : 0008L

Great Western Mining Corp. plc

28 September 2016

 

Great Western Mining Corporation PLC

("Great Western Mining", "GWM", the "Group" or the "Company")

Half Yearly Report

Great Western Mining, the AIM (AIM: GWMO) and ESM quoted mining company announces its Half Yearly results for the six months to 30 June, 2016.

Highlights:

·     Pre-tax loss of €252,881

·     Basic and diluted loss per share (cent) 0.001

·     M2 technical scoping study commissioned

·     M1 second soil sampling program completed

·     Huntoon mine area co-operation agreement signed

Great Western Mining is currently focused on the continued exploration and appraisal of its prospects in Mineral County, Nevada, and so is not currently generating revenue.  For the six month period ending 30 June 2016, the group reported a loss of €252,881 (30 June 2015: €98,211). As at 30 June 2016, the Company had net current assets of €505,435 (30 June 2015: €1,214,212). GWM continues to tightly control overheads and the Group has no debt as at 30 June 2016.

The Company is working on the development of a heap leach facility on 10 acres of private land which it recently purchased at Marietta, Nevada.  This will enable GWM to commence initial gold and copper production from the M2 discovery area where the Company has previously carried out extensive drilling operations. During the period, the Group commissioned Nevada-based mining engineer Mr. W T Cohan to undertake a JORC Compliant Scoping Study for M2 as part of the application process for a full mining licence.  The first part of the Scoping Study, which will include the mine plans and an updated resource estimate, is expected imminently.

In the spring and early summer of 2016, the Great Western Mining field team conducted a second soil sampling programme on M1 to consolidate the very encouraging results of the previous year. The sampling programmes have revealed widespread anomalous mineralisation, with gold shows of up to 248 parts per billion gold spread over a large area. The results from the 2016 field programme will be available shortly.

Since the end of the reporting period the Group has signed the Huntoon Mine Area Co-operation Agreement with neighbouring claim holder Crown Point Gold & Silver Mining Co. LLC ("Crown"), as announced in August 2016.  This is a significant step in consolidating local operations and gives the Company access to local resources and infrastructure which have not previously been available to the Group.  Crown is actively exploiting its claims and there is now a formal mechanism for sharing the benefits of any productive veins which span the acreage of both parties to the Agreement.  The Agreement is for an initial period of three years and also provides for sharing the benefits of any farm out or sale of acreage which may arise.

Looking to the future, both the heap leach project and the Huntoon Mine Area Cooperation Agreement will help move the group from pure exploration towards commercial exploitation of the resources which it has now established.

As always the Board and management greatly appreciate shareholder support and look forward to reporting on an active programme going forward.

ENQUIRIES:

Great Western Mining Corporation Plc David Fraser, Chief Executive	[phone] (via Walbrook)
Davy (Nomad, ESM Adviser & Joint Broker) John Frain Roland French	[phone] [e-mail] [e-mail]
Beaufort Securities Ltd (Joint Broker) Jon Belliss Elliot Hance	[phone]
Walbrook PR (UK PR and IR) Paul Cornelius Gary Middleton Nick Rome	[phone]   [e-mail]

Important Information

The group's strategic objectives for its principal activities, being the exploration and mining for copper, silver, gold and other minerals, are only achievable if certain risks are managed effectively. The board has overall accountability for determining the type and level of risk it is prepared to take. The principal risks and uncertainties that may affect the group's business remain unchanged from those disclosed on page 7 of the annual report for the year ended 31 December 2015. The principal risks include, but are not limited to exploration risk, currency risk and of commodity price risk.

Certain statements made in this half-yearly report are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from the expected future events or results referred to in these forward-looking statements.

Unaudited Condensed Consolidated Statement of Comprehensive Income

for the six months to 30 June 2016

	Notes		Restated
			(note 3)
		Unaudited	Unaudited	Audited
		6 months ended	6 months ended	Year ended
		30 Jun '16	30 Jun '15	31 Dec '15
		€	€	€
Continuing operations
Administrative expenses		(253,064)	(97,776)	(339,842)
Finance income		231	206	417
Finance costs		(48)	(641)	(1,282)
Loss for the period before tax		(252,881)	(98,211)	(340,707)
Income tax expense	6	-	-	-
Loss for the period		(252,881)	(98,211)	(340,707)
Loss attributable to:
Equity holders of the company	4	(252,881)	(98,211)	(340,707)
Earnings per share
from continuing operations
Basic and Diluted profit/(loss) per share (cent)	5	(0.001)	(0.0003)	(0.001)

Unaudited condensed consolidated statement of other comprehensive income

For the six months to 30 June 2016

	Notes		Restated
			(note 3)
		Unaudited	Unaudited	Audited
		6 months ended	6 months ended	Year ended
		30 Jun '16	30 Jun '15	31 Dec '15
		€	€	€
Loss for the period		(252,881)	(98,211)	(340,707)
Other comprehensive income
Items that are or may be reclassified to profit and loss:
Currency translation differences		(58,445)	(187,201)	268,935
		(58,445)	(187,201)	268,935
Total comprehensive (expense)/income for the financial period attributed to equity holders of the company		(311,236)	88,990	(71,772)

Unaudited Condensed Consolidated Statement of Financial Position

For the six months to 30 June 2016

	Notes		Restated
			(note 3)
		Unaudited	Unaudited	Audited
		6 months ended	6 months ended	Year ended
		30 Jun '16	30 Jun '15	31 Dec '15
		€	€	€
Assets
Non-Current Assets
Intangible assets	7	3,278,207	3,041,518	3,255,602
Total Non-Current Assets		3,278,207	3,041,518	3,255,602
Current Assets
Trade and other receivables		229,861	53,449	174,300
Cash and cash equivalents		461,698	1,312,773	759,381
Total Current Assets		691,559	1,366,222	933,681
Total Assets		3,969,766	4,407,740	4,189,283
Equity
Capital and Reserves
Share capital	8	2,648,238	2,648,238	2,648,238
Share premium		4,630,945	4,630,945	4,630,945
Foreign Currency translation reserve		551,777	528,488	610,222
Retained loss		(4,047,318)	(3,551,941)	(3,794,437)
Attributable to owners of the Company		3,783,642	4,255,730	4,094,968
Total Equity		3,783,642	4,255,730	4,094,968
Liabilities
Current Liabilities
Trade and other payables		186,124	112,010	79,315
Convertible debt	11	-	40,000	15,000
Total current liabilities		186,124	152,010	94,315
Total Liabilities		186,124	152,010	94,315
Total Equity and Liabilities		3,969,766	4,407,740	4,189,283

Unaudited Condensed Consolidated Statement of Changes in Equity

for the six months to 30 June 2016

			Restated
			Foreign
			Currency	Restated
	Share	Share	Translation	Retained
	Capital	Premium	Reserve	Earnings	Total
	€	€	€	€	€
Balance at 1 January 2015	2,648,238	4,630,945	341,287	(3,453,730)	4,166,740
Total comprehensive income for the period
Loss for the period	-	-	-	(98,211)	(98,211)
Currency Translation Differences	-	-	187,201	-	187,201
Total comprehensive income for the period	-	-	187,201	(98,211)	88,990
Balance at 30 June 2015	2,648,238	4,630,945	528,488	(3,551,941)	4,255,730
Balance at 01 July 2015	2,648,238	4,630,945	528,488	(3,551,941)	4,255,730
Total Comprehensive Income for the Period
Loss for the year	-	-	-	(242,496)	(242,496)
Currency Translation Differences	-	-	81,734	-	81,734
Total Comprehensive Income for the period			81,734	(242,496)	(160,762)
Balance at 31 December 2015	2,648,238	4,630,945	610,222	(3,794,437)	4,094,968
Balance at 01 January 2016	2,648,238	4,630,945	610,222	(3,794,437)	4,094,968
Total comprehensive income for the period
Loss for the year	-	-	-	(252,881)	(252,881)
Currency translation differences	-	-	(58,445)	-	(58,445)
Total comprehensive income for the period	-	-	(58,445)	(252,881)	(311,326)
Balance at 30 June 2016	2,648,238	4,630,945	551,777	(4,047,318)	(3,783,642)

Unaudited Condensed Consolidated Statement of Cash Flows

for the six months to 30 June 2016

	Notes		Restated
		Unaudited	Unaudited	Audited
		6 months ended	6 months ended	Year ended
		30 Jun '16	30 Jun '15	31 Dec '15
		€	€	€
Cash flows from operating activities
Loss for the period		(252,881)	(98,211)	(340,707)
Interest payable and similar charges		48	641	1,282
Interest receivable and similar income		(231)	(206)	(417)
Movement in trade and other receivables		(55,561)	60,838	(64,626)
Movement in trade and other payables		106.809	5,458	(27.239)
Exchange rate adjustment		65,878	(135,085)	(100,061)
Cash flows from operating activities		(135,938)	(167,085)	(531,768)
Cash flows from investing activities
Expenditure on intangible assets		(77,136)	(97,710)	(233,149)
Interest paid	11	(48)	(641)	(1,282)
Interest received		231	206	417
Cash used in investing activities		(76,953)	(98,145)	(234,014)
Cash flows from financing activities
Repayment of convertible debt		(15,000)	-	(25,000)
Net cash used in financing activities	11	(15,000)	-	(25,000)
Decrease in cash and cash equivalents		(227,891)	(265,230)	(790,782)
Foreign exchange on cash and cash equivalents		(69,792)	126,462	98,621
Cash and cash equivalents at beginning of period		759,381	1,451,542	1,451,542
Cash and cash equivalents at end of period		461,698	1,312,774	759,381

Notes to the Financial Statements:

http://www.rns-pdf.londonstockexchange.com/rns/0008L_-2016-9-27.pdf

 

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