Half-year Report

RNS Number : 4723B

Great Western Mining Corp. plc

21 September 2018

 

Great Western Mining Corporation PLC

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

Half Yearly Report and Unaudited Condensed Financial Statements

Results Highlights

·          The Group reports a loss for the period of €393,988 (30 June 2017: €259,674, 31 December 2017: €696,294)

·          Basic and diluted loss per share (cent): €0.001 (30 June 2017: €.0001, 31 December 2017: €0,001)

·          At 30 June 2018 net current assets were €1,610,637 (30 June 2017: €1,802,544, 31 December 2017: €2,766,308)

·          The Group has no debt as at 30 June 2018 (30 June 2017: €Nil, 31 December 2017: €Nil).

Chairman's and Chief Executive's Statement:

Enclosed is Great Western Mining Corporation PLC's Report and Half Year Results for the period ending 30 June 2018. The Group continues to concentrate on the exploration and appraisal of its claims in Mineral County, Nevada so is not yet generating revenue.  The Group reports a loss for the period of €393,988 (30 June 2017: €259,674, 31 December 2017: €696,294). At 30 June 2018 net current assets were €1,610,637 (30 June 2017: €1,802,544, 31 December 2017: €2,766,308). The Group has no debt as at 30 June 2018 (30 June 2017: €Nil, 31 December 2017: €Nil).

The Group is currently drilling on two of its project areas in Nevada: M2 and M4.

1.         M2:  an eight-hole reverse circulation ("RC") drill programme has been carried out in the period to explore and appraise open pit copper mining potential on the west flank of Black Mountain, concurrently with a diamond core drilling programme on the M2-Sharktooth Zone at the centre of the mountain. The target at Sharktooth is a potential deep, high-grade Iron Oxide Copper Gold ("IOCG") deposit and the objective of the current drilling is to intercept the source of the mineralising fluids which have created the current M2 mineral resource area.

Assay results from the eight RC holes have been correlated with 32 RC holes previously drilled by the Company.  The data has been uploaded into geological software packages and is currently being analysed by the Company's geological team and external consultant.

The 2014 M2 resource is relatively shallow, with intercepts to a depth of only 60 metres included in the calculation. However, there is scope for the resource to be increased by including the encouraging intercepts encountered at a greater depth. The M2 open pit potential is also open in all directions and the group is evaluating a further phase of infill and step out drilling, which has the potential to deliver an increase in the quantum of mineral resource and an upgrade of the JORC classification to 'Measured & Indicated'.

2.         M4:  The initial phase is a programme of 6-9 drill holes aggregating up to 1,500 metres of drilling.  The objective is to test the thickness of copper oxide mineralisation, already identified at surface, and to intercept IP anomalies indicated by the Company's Resistivity Report conducted by Zonge Geosciences.  In addition, Great Western's geological field team has undertaken a comprehensive programme of mapping and sampling in the area between M4 and M2 where it is believed that the mineralisation could prove to be continuous, further highlighting the significant potential of the area. 

During the period the Group increased its land position in Mineral County, Nevada with the addition of 66 unpatented claims at M2, 32 unpatented claims at M4 and 10 unpatented claims at M8. These new claims have increased the overall land position held by the Group in Mineral County by approximately 12% to 1,004 unpatented claims, covering a total land area of approximately 82 km².

Since the end of the reporting period the Company has successfully completed a placing of new Ordinary Shares, raising gross proceeds of £1,001,000. The net proceeds are being used to accelerate activity in Nevada.

During the period Great Western successfully applied to the Irish High Court for the authority to cancel the Deferred Shares of €0.0099 each in the share capital of the Company. The Deferred Shares were issued as part of a share capital reorganisation approved by a Special Resolution at the Company's Annual General Meeting ("AGM") on 19 May 2016 and amended by a Special Resolution at the AGM on 18 May 2017.

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 set out in the 2017 Annual Report.  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.

As always, the Board and management greatly appreciate shareholder support and look forward to reporting further results from the M2 and M4 drill programmes.

Enquiries:

Great Western Mining Corporation PLC David Fraser, Chief Executive	[phone] (via Walbrook)
Davy (Nomad, ESM Adviser & Broker) John Frain Matthew De Vere White	[phone]
Walbrook PR (UK PR and IR) Paul Cornelius Nick Rome	[phone]      [e-mail]

 

Unaudited Condensed Consolidated Income Statement

For the six months to 30 June 2018

		Notes		Unaudited		Unaudited
				6 months		6 months		Audited
				ended		ended		year ended
				30 Jun '18		30 Jun '17		31 Dec '17
				€		€		€
Administrative expenses				(395,355)		(269,859)		(707,241)
Finance income		4		1,367		10,185		10,947
Loss for the year before tax				(393,988)		(259,674)		(696,294)
Income tax expense		5		-		-		-
Loss for the financial year				(393,988)		(259,674)		(696,294)
Loss attributable to:
Equity holders of the Company		3		(393,988)		(259,674)		(696,294)
Earnings per share from continuing operations
Basic and diluted loss per
share (cent)		6		(0.001)		(0.001)		(0.001)

 

Unaudited Condensed Consolidated Statement of Other Comprehensive Income

For the six months to 30 June 2018

		Notes		Unaudited		Unaudited
				6 months		6 months		Audited
				ended		ended		year ended
				30 Jun '18		30 Jun '17		31 Dec '17
				€		€		€
Loss for the financial year				(393,988)		(259,674)		(696,294)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Currency translation
differences				74,902		(247,408)		(404,604)
				74,902		(247,408)		(404,604)
Total comprehensive expense for
the financial year attributable to
equity holders of the Company				(319,086)		(507,082)		(1,100,898)

 

Unaudited Condensed Consolidated Statement of Financial Position

For the six months to 30 June 2018

		Notes		Unaudited		Unaudited
				6 months		6 months		Audited
				ended		ended		year ended
				30 Jun '18		30 Jun '17		31 Dec '17
Assets				€		€		€
Non-current assets
Intangible assets		7		4,333,032		3,342,604		3,424,504
Total non-current assets				4,333,032		3,342,604		3,424,504
Current assets
Trade and other receivables		8		135,677		177,340		154,902
Cash and cash equivalents		9		1,677,737		1,801,816		2,678,276
Total current assets				1,813,414		1,979,156		2,833,178
Total assets				6,146,446		5,321,760		6,257,682
Equity
Capital and reserves
Share capital		11		59,267		2,671,648		2,681,023
Share premium		11		8,328,238		6,633,239		8,328,238
Share based payment reserve				290,143		113,730		218,200
Foreign currency translation reserve				381,017		463,311		306,115
Retained earnings				(3,114,996)		(4,736,780)		(5,342,764)
Attributable to owners of the Company				5,943,669		5,145,148		6,190,812
Total equity				5,943,669		5,145,148		6,190,812
Liabilities
Current liabilities
Trade and other payables		10		202,777		176,612		66,870
Total current liabilities				202,777		176,612		66,870
Total liabilities				202,777		176,612		66,870
Total equity and liabilities				6,146,446		5,321,760		6,257,682

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2018

		Share capital		Share premium		Share based payment reserve		Foreign currency translation reserve		Retained earnings		Total
		€		€		€		€		€		€
Balance at 1 January 2017		2,660,738		5,173,692		44,448		710,719		(4,324,615)		4,264,982
Comprehensive income for the period
Loss for the period		-		-		-		-		(259,674)		(259,674)
Currency translation differences		-		-		-		(247,408)		-		(247,408)
Total comprehensive income for the period		-		-		-		(247,408)		(259,674)		(507,082)
Transactions with owners, recorded directly in equity
Shares issued		10,910		1,459,547		-		-		(98,086)		1,372,371
Share warrants charge		-		-		54,405		-		(54,405)		-
Share options charge		-		-		14,877		-		-		14,877
Total transactions with owners, recorded
directly in equity		10,910		1,459,547		69,282		-		(152,491)		1,387,248
Balance at 30 June 2017		2,671,648		6,633,239		113,730		463,311		(4,736,780)		5,145,148

 

Unaudited Condensed Consolidated Statement of Changes in Equity (continued)

For the six months to 30 June 2018

		Share capital		Share premium		Share based payment reserve		Foreign currency translation reserve		Retained earnings		Total
		€		€		€		€		€		€
Balance at 1 July 2017		2,671,648		6,633,239		113,730		463,311		(4,736,780)		5,145,148
Comprehensive income for the period
Loss for the period		-		-		-		-		(436,620)		(436,620)
Currency translation differences		-		-		-		(157,196)		-		(157,196)
Total comprehensive income for the period		-		-		-		(157,196)		(436,620)		(593,816)
Transactions with owners, recorded directly in equity
Shares issued		9,375		1,694,999		-		-		(127,822)		1,576,552
Share warrants charge		-		-		41,542		-		(41,542)		-
Share options charge		-		-		62,928		-		-		62,928
Total transactions with owners, recorded
directly in equity		9,375		1,694,999		104,470		-		(169,364)		1,639,480
Balance at 31 December 2017		2,681,023		8,328,238		218,200		306,115		(5,342,764)		6,190,812

 

Unaudited Condensed Consolidated Statement of Changes in Equity (continued)

For the six months to 30 June 2018

		Share capital		Share premium		Share based payment reserve		Foreign currency translation reserve		Retained earnings		Total
		€		€		€		€		€		€
Balance at 1 January 2018		2,681,023		8,328,238		218,200		306,115		(5,342,764)		6,190,812
Comprehensive income for the period
Loss for the period		-		-		-		-		(393,988)		(393,988)
Currency translation differences		-		-		-		74,902		-		74,902
Total comprehensive income for the period		-		-		-		74,902		(393,988)		(319,086)
Transactions with owners, recorded directly in equity
Cancellation of deferred share capital		(2,621,756)		-		-		-		2,621,756		-
Share options charge		-		-		71,943		-		-		71,943
Total transactions with owners, recorded
directly in equity		(2,621,756)		-		71,943		-		2,621,756		71,943
Balance at 30 June 2018		59,267		8,328,238		290,143		381,017		(3,114,996)		5,943,669

Unaudited Condensed Consolidated Statement of Cash Flows

For the six months to 30 June 2018

		Notes		Unaudited		Unaudited		Audited
				6 months		6 months		year
				ended		ended		ended
				30 Jun '18		30 Jun '17		31 Dec '17
				€		€		€
Cash flows from operating activities
Loss for the year				(393,988)		(259,674)		(696,294)
Adjustments for:
Interest receivable and similar income				(1,367)		(10,185)		(10,947)
Movement in trade and other receivables				19,225		(48,492)		(26,054)
Movement in trade and other payables				135,907		104,176		(5,564)
Equity settled share-based payment				71,943		14,877		77,805
Net cash flows from operating activities				(168,280)		(199,298)		(661,054)
Cash flow from investing activities
Expenditure on intangible assets				(822,761)		(79,589)		(298,261)
Interest received				1,367		10,185		10,947
Net cash from investing activities				(821,394)		(69,404)		(287,314)
Cash flow from financing activities
Proceeds from the issue of new shares				-		1,470,457		3,008,205
Proceeds from the exercise of warrants				-		-		166,626
Commission paid from the issue of new shares				-		(98,086)		(225,908)
Net cash from financing activities				-		1,372,371		2,948,923
(Decrease)/increase in cash and
cash equivalents				(989,674)		1,103,669		2,000,555
Exchange rate adjustment on
cash and cash equivalents				(10,865)		(14,126)		(34,552)
Cash and cash equivalents at
beginning of the year		9		2,678,276		712,273		712,273
Cash and cash equivalents at
end of the year		9		1,677,737		1,801,816		2,678,276

 

Unaudited Notes to the Condensed Financial Statements

For the six months to 30 June 2018

Please click below to view notes to financial statements

http://www.rns-pdf.londonstockexchange.com/rns/4723B_1-2018-9-20.pdf

 

END

 

 

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