Half-year Report

RNS Number : 3616A
Great Western Mining Corp. plc
29 September 2020
 

 

Great Western Mining Corporation PLC

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

 

Half Yearly Report and Unaudited Condensed Financial Statements

 

Financial Highlights:

· Loss for period €487,441 (30 June 2019: loss of €425,723 )

· Basic and diluted loss per share 0.0004 cent: (30 June 2019: 0.0010 cent)

· Net assets as at 30 June 2020: €6,449,718 (30 June 2019: €6,267,819)

· Issue of new shares raised a total of £566,250 ( €638,409)

· Strong cash position following post-period end share placing plus exercise of 2019 warrants

 

Operational Highlights:

· Acquired option to purchase the Olympic Gold Project in Nevada

· Progressed exploitation of precious metals at Mineral Jackpot and RH Group

· Laboratory sampling indicated doubling of footprint for gold and silver mineralisation at Mineral Jackpot

· Grab sample from Mineral Jackpot yielded an assay of 27.4 g/t Au, 151 g/t Ag and 0.14% Cu

· Soil sampling at RH identified prospective zones of mineralisation

 

Post period End:

· Completed RH Group trenching programme, samples being processed

· First ever gold produced by the Company

· Fully funded to complete 2020 work programme and beyond

· Work commenced on Olympic Gold Project where surface sampling assays up to 21.50 ppm Au and 37.30 ppm Ag in surface dumps and stope material confirm precious metal enrichment potential

· Tests in progress on spoil material at Mineral Jackpot in preparation for leaching

 

Brian Hall, Executive Chairman, commented : The year to date has been a highly productive period for your Company. We added a significant asset to our portfolio during the reporting period and have rapidly progressed the precious metal opportunities on our existing acreage, with an active team on the ground.  Assuming no external factors intervene, we believe that we are on track to fulfil our aim of producing gold and silver in 2020.  It is too early to report gold and silver reserves but internally we are targeting aggregate gold from all our properties in a range of 500,000 ounces to 1,500,000 ounces.  We are evaluating future plans for the considerable copper potential that we have already established on our acreage.  Earlier this month we published a Company presentation which can be found on our site www.greatwesternmining.com"

 

For Further Information:

 

Great Western Mining Corporation PLC

 

Brian Hall, Chairman

Via Walbrook PR

Max Williams, Finance Director

 

 

 

Davy (NOMAD, Euronext Growth Adviser & Joint Broker)

John Frain

 

+353 1 679 6363

 

 

Novum Securities (Joint Broker)

Jon Belliss

 

+44 207 399 9400

 

 

ETX Capital (Joint Broker) 

Thomas Smith

 

+44 207 392 1494

 

 

Walbrook PR (PR advisers)

Nick Rome/Nicholas Johnson

 

+44 207 933 8783

 

Executive Chairman's Report

For the six months to 30 June 2020

 

Below are the unaudited half-year financial results of Great Western Mining Corporation PLC, covering the period ended 30 June 2020.  Great Western is an exploration and development company which is not yet generating revenues and the net loss for the period was €487,441 (30 June 2019: €425,723: 31 December 2019 €815,795).  After adjusting for non-cash share-based payment charges of €117,020 (30 June 2019: €89,517), administrative expenses have remained in line with the comparative period.  The Company has successfully modified its work procedures during the COVID-19 Pandemic to ensure continuity of operations while the fund raisings it has undertaken, during the reporting period and since the period end, place it in a strong position to complete the current work programme and beyond.

 

During the period and since the period end, Great Western has made considerable progress on its mineral projects in the US state of Nevada where it has been concentrating on precious metals - gold and silver.  Early in the year the Company was able to report successful readings of precious metals from soil sampling surveys on both the Mineral Jackpot Group and the Rock House Group ('RH'). 

 

Mineral Jackpot is in the Black Mountain group of claims and includes the old Mineral Jackpot Mine itself, together with the Bass Mine, Silver Moon Mine, Silver Bell Mine and Cabin Rock Mine.  These mines have all successfully produced gold and silver in the past but have long since been abandoned.  Great Western is using modern technology to achieve secondary recovery and to prove up communication between the individual mines which will increase the mineralisation footprint.

 

The RH Group has never previously been mined and potential mineralisation was identified through satellite imagery, followed up by rock sampling and then by soil sampling.  A trenching programme has been conducted since the period end and analysis is in progress.  The purpose of trenching is to establish a continuous vein which will subsequently be drilled.  During summer 2020 a single small sample of rock was crushed and tested, resulting in the production of a high grade gold button, being the first gold ever produced by the Company and an indication of the potential.

 

In May, the Company acquired an option to purchase the Olympic Gold Project ('Olympic'), located approximately 50 miles from Great Western's original concessions.  The purchase consideration of $150,000 is spread over four years during which time Great Western has full rights to all data and to conduct exploration and appraisal work.  Great Western may bring forward the closing of the purchase by early-paying the schedule in full or may exit the project at any time without penalty and without completing the payment schedule.  Work is in progress on several potential prospects over this 800 acre site.

 

During the period the Company conducted two placings of new shares for cash. Since the period end the Company has benefited from a third placing and the exercise of 250 million warrants by warrant holders. In aggregate the net proceeds amount to approximately £1.33 million which is expected to enable the completion of the current work programme.  It is Great Western's objective to produce first gold and silver in 2020 although no certainty of achieving this can be guaranteed, as the Company is dependent on third party contractors and facilities. 

 

As with every other business, Great Western has inevitably been affected by the Pandemic this year and travel between Europe and the United States has not been possible since the working weather season began in the spring.  However, the Company has managed to form a close working cooperation between its personnel in Ireland and the UK and local contractors in Nevada which has worked well in the circumstances. 

 

Earlier this month Great Western published a new Company Presentation on its site ( www.greatwesternmining.com ) which provides an up to date picture of its activities.  The Company has provided guidance on the amount of gold ("Target Gold") it is seeking to identify on its assets, with Target Gold ranging from 500,000 ounces to 1,500,000 ounces.  As well as the Target Gold, Great Western has an independent inferred copper resource of 4.3 million tonnes of 0.45% copper for 19 thousand tonnes of contained copper metal at a 0.2% cut-off grade on the M2 Copper Project on the Black Mountain Group of claims.

 

The support of Great Western's shareholders is much appreciated and the Company will continue to publish updates on a regular basis.

 

Brian Hall

Executive Chairman
 

Unaudited Condensed Consolidated Income Statement

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Unaudited six months ended

30 Jun 2020

 

Unaudited six months ended

30 Jun 2019

 

Audited
year ended
31 Dec 2019

 

 

 

 

 

 

 

 

Continuing operations

 

 

 

 

 

 

 

 

Administrative expenses

 

 

 

  (487,621)

 

  (426,515)

 

  (816,990)

Finance income

 

4

 

  180

 

  792

 

  1,195

Loss for the period before tax

 

 

 

  (487,441)

 

  (425,723)

 

  (815,795)

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

5

 

  -

 

  -

 

  -

Loss for the financial period

 

 

 

  (487,441)

 

  (425,723)

 

  (815,795)

 

 

 

 

 

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

 

 

 

 

Equity holders of the Company

 

3

 

  (487,441)

 

  (425,723)

 

  (815,795)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share from continuing operations

 

 

 

 

 

 

 

Basic and diluted loss per share (cent)

 

6

 

(0.0004)

 

(0.001)

 

(0.001)

 

 

 

Unaudited Condensed Consolidated Statement of Other Comprehensive Income

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Unaudited six months ended

30 Jun 2020

 

Unaudited six months ended

30 Jun 2019

 

Audited
year ended
31 Dec 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the financial period

 

 

 

(487,441)

 

(425,723)

 

(815,795)

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

Items that are or may be reclassified to profit or loss:

 

 

 

 

 

 

Currency translation differences

 

 

 

  17,507

 

  25,884

 

  87,052

 

 

 

 

 

 

  17,507

 

  25,884

 

  87,052

Total comprehensive expense for the financial period

 

 

 

 

 

attributable to equity holders of the Company

 

(469,934)

 

(399,839)

 

(728,743)

 

 

 

Unaudited Condensed Consolidated Statement of Financial Position

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Unaudited six months ended

30 Jun 2020

 

Unaudited six months ended

30 Jun 2019

 

Audited
year ended
31 Dec 2019

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

Intangible assets

 

9

10

 

  73,999

6,159,987

 

 79,136

5,890,940

 

  76,556

6,106,347

 

Total non-current assets

 

 

 

  6,233,986

 

  5,970,076

 

  6,182,903

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

Trade and other receivables

 

8

 

  77,557

 

  62,236

 

  94,943

 

 

Cash and cash equivalents

 

9

 

  430,952

 

  348,570

 

  306,675

 

Total current assets

 

 

 

  508,509

 

  410,806

 

  401,618

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

  6,742,495

 

  6,380,882

 

  6,584,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

 

 

 

 

 

Share capital

 

12

 

  165,796

 

  67,767

 

  112,205

 

 

Share premium

 

12

 

10,271,969

 

  9,491,437

 

  9,687,151

 

 

Share based payment reserve

 

 

 

  515,561

 

  369,256

 

  435,962

 

 

Foreign currency translation reserve

 

 

 

  551,410

 

  472,735

 

  533,903

 

 

Retained earnings

 

 

 

(5,055,018)

 

(4,133,376)

 

(4,535,134)

 

Attributable to owners of the Company

 

 

 

6,449,718

 

6,267,819

 

6,234,087

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

 

6,449,718

 

6,267,819

 

6,234,087

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

11

 

  292,777

 

  113,063

 

  350,434

 

Total current liabilities

 

 

 

  292,777

 

  113,063

 

  350,434

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

  292,777

 

  113,063

 

  350,434

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

 

 

  6,742,495

 

  6,380,882

 

  6,584,521

 

 

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Share
capital

 

Share
premium

 

Share based payment reserve

 

Foreign
currency
translation
reserve

 

Retained
earnings

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2019

 

 

 

  67,767

 

  9,491,437

 

  279,739

 

  446,851

 

(3,707,653)

 

  6,578,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

  -

 

  -

 

  -

 

  -

 

(425,723)

 

(425,723)

 

 

Currency translation differences

 

 

 

  -

 

  -

 

  -

 

  25,884

 

  -

 

25,884

 

Total comprehensive income for the period

 

  -

 

  -

 

  -

 

  25,884

 

(425,723)

 

(399,839)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Share options charge

 

 

 

  -

 

  -

 

  89,517

 

  -

 

  -

 

  89,517

 

Total transactions with owners, recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

directly in equity

 

 

 

 -

 

   -

 

  89,517

 

  -

 

  -

 

  89,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2019

 

 

 

  67,767

 

  9,491,437

 

  369,256

 

  472,735

 

(4,133,376)

 

  6,267,819

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Share
capital

 

Share
premium

 

Share based payment reserve

 

Foreign
currency
translation
reserve

 

Retained
earnings

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2019

 

 

 

  67,767

 

  9,491,437

 

  369,256

 

  472,735

 

(4,133,376)

 

  6,267,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

  -

 

  -

 

  -

 

  -

 

(390,072)

 

(390,072)

 

 

Currency translation differences

 

 

 

  -

 

  -

 

  -

 

  61,168

 

  -

 

  61,168

 

Total comprehensive income for the period

 

  -

 

  -

 

  -

 

  61,168

 

(390,072)

 

(328,904)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued

 

 

 

44,438

 

  371,003

 

  -

 

  -

 

(11,686)

 

  403,755

 

 

Share warrants granted

 

 

 

  -

 

(175,289)

 

 

 

  -

 

-

 

  (175,289)

 

 

Share options charge

 

 

 

  -

 

  -

 

  66,706

 

  -

 

  -

 

  66,706

 

Total transactions with owners, recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

directly in equity

 

 

 

   44,438

 

  195,714

 

  66,706

 

  -

 

  (11,686)

 

  295,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2019

 

 

 

  112,205

 

  9,687,151

 

  435,962

 

  533,903

 

(4,535,134)

 

  6,234,087

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Share
capital

 

Share
premium

 

Share based payment reserve

 

Foreign
currency
translation
reserve

 

Retained
earnings

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2020

 

 

 

  112,205

 

  9,687,151

 

  435,962

 

  533,903

 

(4,535,134)

 

  6,234,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

  -

 

  -

 

  -

 

  -

 

(487,441)

 

(487,441)

 

 

Currency translation differences

 

 

 

  -

 

  -

 

  -

 

  17,507

 

  -

 

  17,507

 

Total comprehensive income for the period

 

  -

 

  -

 

  -

 

  17,507

 

(487,441)

 

(469,934)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued

 

 

 

53,591

 

584,818

 

-

 

-

 

(32,443)

 

605,966

 

 

Share options charge

 

 

 

  -

 

  -

 

  79,599

 

  -

 

  -

 

  79,599

 

Total transactions with owners, recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

directly in equity

 

 

 

  53,591

 

  584,818

 

  79,599

 

  -

 

  (32,443)

 

  685,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2020

 

 

 

  165,796

 

 10,271,969

 

  515,561

 

  551,410

 

(5,055,018)

 

  6,449,718

 

 

Unaudited Condensed Consolidated Statement of Cash Flows

For the six months to 30 June 2020

 

 

 

 

 

 

Notes

 

Unaudited six months ended

30 Jun 2020

 

Unaudited six months ended

30 Jun 2019

 

Audited
period ended
31 Dec 2019

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

(487,441)

 

(425,723)

 

(815,795)

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for:

 

 

 

 

 

 

 

 

 

 

Depreciation

Interest receivable and similar income

 

 

 

2,803

(180)

 

3,588

(792)

 

7,216

(1,195)

 

 

Movement in trade and other receivables

 

 

 

  17,386

 

  60,938

 

  28,231

 

 

Movement in trade and other payables

 

 

 

(57,657)

 

  (204,587)

 

  32,784

 

 

Equity settled share-based payment

 

 

 

  79,599

 

  89,517

 

  156,223

 

Net cash flows from operating activities

 

 

 

(445,490)

 

(477,059)

 

(592,536)

 

 

 

 

 

 

 

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

 

 

 

 

 

Expenditure on intangible assets

 

 

 

(35,393)

 

(51,986)

 

(206,736)

 

 

Interest received

 

 

 

  180

 

  792

 

  1,195

 

Net cash from investing activities

 

 

 

(35,213)

 

(51,194)

 

(205,541)

 

 

 

 

 

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from the issue of new shares

 

 

 

  638,409

 

  -

 

  415,441

 

 

Proceeds from the exercise of share options

 

  -

 

  -

 

  (175,289)

 

 

Commission paid from the issue of new

 

 

 

 

 

 

 

 

 

 

shares

 

 

 

  (32,443)

 

  -

 

(11,686)

 

Net cash from financing activities

 

 

 

  605,966

 

  -

 

  228,466

 

 

 

 

 

 

 

 

 

 

 

Increase/(decrease) in cash and cash

 

 

 

 

 

 

 

 

equivalents

 

 

 

125,263

 

(528,253)

 

(569,611)

 

 

 

 

 

 

 

 

 

 

 

Exchange rate adjustment on cash and

 

 

 

 

 

 

 

 

cash equivalents

 

 

 

(986)

 

(7,629)

 

(8,166)

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning

 

 

 

 

 

 

 

 

of the period

 

10

 

  306,675

 

  884,452

 

  884,452

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of

 

 

 

 

 

 

 

 

the period

 

10

 

  430,952

 

  348,570

 

  306,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Notes to the Condensed Financial Statements

For the six months to 30 June 2020

 

1.  General information

 

Great Western Mining Corporation PLC ("the Company") is a company domiciled in the Republic of Ireland. The Half Yearly Report and Unaudited Condensed Consolidated Financial Statements ('the half yearly financial statements') of the Company for the six months ended 30 June 2020 comprise the results and financial position of company and its subsidiaries ("the Group").

 

The Group half yearly financial statements were authorised for issue by the Board of Directors on 28 September 2020.

 

Basis of preparation

The half yearly financial statements for the six months ended 30 June 2020 are unaudited. The financial information presented herein does not amount to statutory financial statements that are required by Chapter 4 part 6 of the Companies Act 2014 to be annexed to the annual return of the company. The statutory financial statements for the financial year ended 31 December 2019 were annexed to the annual return and filed with the Registrar of Companies. The audit report on those financial statements was unqualified.

 

The Group half yearly financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

 

The financial information contained in the half yearly financial statements have been prepared on the historical cost basis, except for the share-based payments and warrants, which are based on fair values determined at the grant date. The accounting policies have been applied consistently in accordance with the accounting policies set out in the annual report and financial statements for the year ended 31 December 2019 except as outlined below.

 

Accounting policies

The accounting policies adopted are consistent with those of the annual Financial Statements for the year ended 31 December 2019. New and amended standards that became applicable for the Group in the current reporting period have not resulted in changes to accounting policies or retrospective adjustments.

 

Use of estimates and judgements

The preparation of half-yearly 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 13 - Share based payments 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 7 - Property, plant and equipment; consideration of impairment.

Note 8 - Intangible asset; consideration of impairment.

 

 

             Going concern

The financial statements of the Group are prepared on a going concern basis.

 

The Directors have given careful consideration to the Group's ability to continue as a going concern through review of cash flow forecasts prepared by management for the period to 31 December 2021, review of the key assumptions on which these are based and sensitivity analysis.

 

The future of the Company is dependent on the successful outcome of its exploration activities. The Directors believe that the Group's ability to make planned capital expenditure on its claims in Nevada and to fund its ongoing operational expenditure could be assisted if it became necessary by the deferral of planned expenditure or by raising additional capital.

 

The Directors have also considered the continuing impact of Covid-19 on the Company.  The Company has adapted its capital work programme for 2020 and contracted local service providers to overcome current travel restrictions.  In the 2019 Annual Report the Directors also highlighted the potential risk of volatile capital markets impacting the Company's ability to raise new equity funds. The Directors have taken into consideration the completion of a placing in May 2020 during the period under review as well as a further placing in July 2020 and the exercise of warrants in September 2020.  While confident of being able to achieve the Company's objectives, the Directors have concluded that the full impact of Covid-19 on the Group's operations and financial performance cannot yet be determined and will need to be kept under review over the coming months.

 

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 unaudited condensed 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 while the impact of Covid-19 cannot be fully assessed. The impact of Covid-19 may result in the Group being unable to realise its assets and discharge its liabilities in the normal course of business or being able to raise funds to explore further its exploration assets. The unaudited 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.

 

2.  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 are disclosed under "Corporate Activities" which 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, 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.

 

It is the opinion of the Directors, therefore, that the Group has only one reportable segment under IFRS 8 'Operating Segments', which is exploration carried out in Nevada. 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.

 

Information regarding the Group's results, assets and liabilities is presented below.

 

Segment results

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Exploration activities - Nevada

 

(8,598)

 

(3,276)

 

(9,373)

Corporate activities

 

(478,843)

 

(422,447)

 

(806,422)

Consolidated loss before tax

 

(487,441)

 

(425,723)

 

(815,795)

 

 

 

 

 

 

 

 

 

Segment assets

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Exploration activities - Nevada

 

6,287,461

 

6,089,832

 

6,260,174

Corporate activities

 

455,034

 

291,050

 

324,347

Consolidated total assets

 

6,742,495

 

6,380,882

 

6,584,521

 

 

 

 

 

 

 

 

Segment liabilities

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Exploration activities - Nevada

 

4,111

 

25,268

 

52,244

Corporate activities

 

288,666

 

87,795

 

298,190

Consolidated total liabilities

 

292,777

 

113,063

 

350,434

 

 

 

 

 

 

 

 

The Group operates in three principal geographical areas - Republic of Ireland (country of residence of Great Western Mining Corporation PLC), Nevada, U.S.A. (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:

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Nevada - exploration activities

 

6,233,986

 

5,970,076

 

6,182,903

Republic of Ireland

 

-

 

-

 

-

United Kingdom

 

-

 

-

 

-

 

 

6,233,986

 

5,970,076

 

6,182,903

 

 

 

 

 

 

 

3.  Finance income

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Bank interest receivable

 

180

 

792

 

1,195

 

 

180

 

792

 

1,195

 

 

 

 

 

 

 

4.  Income tax

 

The Group has not provided any tax charge for the six months periods ended 30 June 2020 and 30 June 2019 or the year ended 31 December 2019. The Group has accumulated losses which are expected to exceed profits earned for the foreseeable future.

 

5.  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:

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Loss for the period

 

(487,441)

 

(425,723)

 

(815,795)

 

 

 

 

 

 

 

Number of ordinary shares at start of period

 

1,122,055,459

 

677,673,809

 

677,673,809

Number of ordinary shares issued during the period

 

 

535,909,091

 

 

-

 

 

444,381,650

Number of ordinary shares at end of period

 

1,657,964,550

 

677,673,809

 

1,122,055,459

 

 

 

 

 

 

 

Weighted average number of ordinary shares for the purposes of basic earnings per share

 

 

 

1,365,161,520

 

 

 

677,673,809

 

 

 

751,737,417

 

 

 

 

 

 

 

Basic loss per ordinary share (cent)

 

(0.0004)

 

(0.001)

 

(0.001)

 

Diluted earnings per share

There were no potentially dilutive ordinary shares that would increase the basic loss per share.

 

6.  Property, plant and equipment

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

Cost

 

 

 

 

 

 

Opening cost

 

94,410

 

92,629

 

92,629

Additions

 

-

 

-

 

-

Exchange rate adjustment

 

303

 

570

 

1,781

 

 

94,713

 

93,199

 

94,410

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

Opening depreciation

 

17,854

 

10,437

 

10,437

Charge for period

 

2,803

 

3,588

 

7,216

Exchange rate adjustment

 

57

 

38

 

201

 

 

20,714

 

14,063

 

17,854

Net book value

 

 

 

 

 

 

Opening net book value

 

76,556

 

82,192

 

82,192

 

 

 

 

 

 

 

Closing net book value

 

73,999

 

79,136

 

76,556

 

 

7.  Intangible assets

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

Cost

 

 

 

 

 

 

Opening cost

 

6,106,347

 

5,805,973

 

5,805,973

Additions

 

35,393

 

51,986

 

206,736

Exchange rate adjustment

 

18,247

 

32,981

 

93,638

 

 

6,159,987

 

5,890,940

 

6,106,347

 

 

 

 

 

 

 

Amortisation

 

 

 

 

 

 

Opening amortisation

 

-

 

-

 

-

Charge for period

 

-

 

-

 

-

Exchange rate adjustment

 

-

 

-

 

-

 

 

-

 

-

 

-

Net book value

 

 

 

 

 

 

Opening net book value

 

6,106,347

 

5,805,973

 

5,805,973

 

 

 

 

 

 

 

Closing net book value

 

6,159,987

 

5,890,940

 

6,106,347

 

 

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 the requirements of 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 are satisfied that no impairment is required as at 30 June 2020. 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. This is dependent on several variables including the existence of commercial mineral deposits, availability of finance and mineral prices.

 

 

8.  Trade and other receivables

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

Amounts falling die within one year:

 

 

 

 

 

 

Other debtors

 

30,453

 

48,642

 

52,625

Prepayments

 

47,104

 

13,594

 

42,318

 

 

77,557

 

62,236

 

94,943

 

 

 

 

 

 

 

All amounts above are current and there have been no impairment losses during the period (30 June 2019: €Nil, 31 December 2019: €Nil).

 

9.  Cash and cash equivalents

 

For the purposes of 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.

 

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

 

 

 

 

 

 

 

Cash in bank and in hand

 

29,585

 

40,092

 

29,372

Short term bank deposits

 

401,367

 

308,478

 

277,303

 

 

430,952

 

348,570

 

306,675

 

 

 

 

 

 

 

 

10.  Trade and other payables

 

 

Unaudited

6 months ended

30 Jun 2020

 

Unaudited

6 months ended

30 Jun 2019

 

 

Audited

year ended

31 Dec 2019

Amounts falling die within one year:

 

 

 

 

 

 

Trade payables

 

24,439

 

69,092

 

77,642

Other payables

 

755

 

1,020

 

416

Accruals

 

58,267

 

33,446

 

90,439

Other taxation and social security

 

8,862

 

9,505

 

5,632

Share warrant provision

 

164,396

 

-

 

176,305

Share option provision

 

36,058

 

-

 

-

 

 

292,777

 

113,063

 

350,434

 

 

 

 

 

 

 

The Group has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

 

 

11.  Share capital

 

 

 

 

No of shares

 

Value of shares

 

 

 

 

Authorised at 1 January 2019

 

900,000,000

 

90,000

Increase in authorised share capital

 

1,800,000,000

 

180,000

Authorised at 30 June 2019

 

2,700,000,000

 

270,000

 

 

 

 

 

Authorised at 1 July 2019

 

2,700,000,000

 

270,000

Authorised at 1 December 2019

 

2,700,000,000

 

270,000

 

 

 

 

 

Authorised at 1 January 2020

 

2,700,000,000

 

270,000

Authorised at 30 June 2020

 

2,700,000,000

 

270,000

 

 

 

 

 

 

 

 

Number of ordinary shares of €0.0001 each

 

 

 

Share capital

 

 

 

Share premium

 

 

 

Total capital

 

 

 

 

 

 

Issued, called up and fully paid:

 

 

 

 

 

 

 

 

At 1 January 2019

 

677,673,809

 

67,767

 

9,491,437

 

9,559,204

At 30 June 2019

 

677,673,809

 

67,767

 

9,491,437

 

9,559,204

 

 

 

 

 

 

 

 

 

Issued, called up and fully paid:

 

 

 

 

 

 

 

 

At 1 July 2019

 

677,673,809

 

67,767

 

9,491,437

 

9,559,204

Ordinary shares issued

 

444,381,650

 

44,438

 

371,003

 

415,441

Share warrants granted

 

-

 

-

 

(175,289)

 

(175,289)

At 31 December 2019

 

1,122,055,459

 

112,205

 

9,687,151

 

9,799,356

 

 

 

 

 

 

 

 

 

Issued, called up and fully paid:

 

 

 

 

 

 

 

 

At 1 January 2020

 

1,122,055,459

 

112,205

 

9,687,151

 

9,799,356

Ordinary shares issued

 

12,500,000

 

1,250

 

15,033

 

16,283

Ordinary shares issued

 

290,909,091

 

29,091

 

331,989

 

361,080

Ordinary shares issued

 

217,500,000

 

21,750

 

222,454

 

244,204

Ordinary shares issued

 

15,000,000

 

1,500

 

15,342

 

16,842

At 30 June 2020

 

1,657,964,550

 

165,796

 

10,271,969

 

10,437,765

 

 

 

 

 

 

 

 

 

 

12.  Share capital (continued)

 

On 19 November 2019, the Company completed a placing of 444,381,650 new ordinary shares of €0.0001 each at a price of £0.0008 (€0.0009) per ordinary share, raising gross proceeds of £355,505 (€415,441) and increasing share capital by €44,438. The premium arising on the issue amounted to €371,003 before share issue costs of €11,686. The share issue included warrants granted giving the right to acquire 375,000,000 Ordinary shares of €0.0001 at an exercise price of £0.0016 (€0.0019), which remain unexercised at period end 31 December 2019.

 

On 5 February 2020, the Company issued 12,500,000 new ordinary shares of €0.0001 at a price of £0.0011 (€0.0013) per ordinary share, in settlement of certain historic creditors amounting to £13,750 (€16,283) and increasing share capital by €1,250. The premium arising on the issue amounted to €15,033.

 

On 12 March 2020, the Company completed a placing of 290,909,091 new ordinary shares of €0.0001 at a price of £0.0011 (€0.0012) per ordinary share, raising gross proceeds of £320,000 (€361,080) and increasing share capital by €29,091. The premium arising on the issue amounted to €331,989.

 

On 12 June 2020, the Company completed a placing of 217,500,000 new ordinary shares of €0.0001 at a price of £0.0010 (€0.0011) per ordinary share, raising gross proceeds of £217,500 (€244,204) and increasing share capital by €21,750. The premium arising on the issue amounted to €222,454.

 

On 12 June 2020, the Company issued 15,000,000 new ordinary shares of €0.0001 at a price of £0.0010 (€0.0011) per ordinary share, in lieu of fees for services provided to the Company amounting to £15,000 (€16,842) and increasing share capital by €1,500. The premium arising on the issue amounted to €15,342.

 

The authorised share capital of the company was increased to €270,000, consisting of 2,700,000,000 ordinary shares of €0.0001 each by an ordinary resolution at the Company's Annual General Meeting on 16 May 2019.  After 30 June 2020, it has been further increased to €500,000, consisting of 5,000,000,000 ordinary shares of 0.0001 each by an ordinary resolution at the Company's Annual General Meeting on 14 July 2020.

 

12.  Share based payments

 

Share options

Great Western Mining Corporation PLC operates a share option scheme which was established on 17 July 2014 ("the Share Option Plan 2014"). Under the terms of the Share Option Plan 2014, certain Directors and employees of Great Western Mining Corporation PLC and its subsidiary companies are entitled to subscribe for ordinary shares in the Company at the determined in accordance with the rules on the date of the granting of the options, subject to a maximum aggregate of 10% of the issued ordinary share capital of the Company.

 

Options are granted at market price, in accordance with the rules, with reference to the average closing price for the ten dealing days prior to the grant of options. Options granted prior to 2020 vest if the option holder remains in service for three years from the date of grant. Options granted in 2020 vest immediately. All options expire at a date seven years after their date of grant.

 

Measure of fair values of options

The fair values of options granted in the period in accordance with the terms of the Share Option Plan 2014 were calculated using the following inputs into the binomial option-pricing model:

 

 

 

22 April 2020

 

 

 

Fair value at grant date

 

Stg 0.070 p

Share price at grant date

 

Stg 0,095 p

Exercise price

 

Stg 0.090 p

Expected volatility

 

137%

Expected life

 

7 Years

Expected dividend

 

0%

Risk free interest rate

 

0.1%

 

 

During the year an expense of €117,020 (30 June 2019: €89,517 and 31 December 2019: €156,223). was recognised in the statement of profit and loss related to share options granted during the year.

 

On 30 June 2020, there were options outstanding over 112,000,000 (30 June 2019: 65,000,000 and 31 December 2019: 65,000,000) Ordinary Shares which are exercisable at prices ranging from Stg 0.09 pence to Stg 1.6 pence per share and which expire at various dates up to 22 April 2027.

 

13.  Share based payments (continued)

 

Warrants granted during the year

No warrants were granted during the period ending 30 June 2020.  In November 2019, the Group granted warrants in connection with a share placing. 375,000,000 warrants were granted exercisable at £0.0016 (€0.0019) each with immediate vesting and a contractual life of 3 years. The inputs used in the measurement of the fair values at grant date of the warrants were as follows:

 

 

 

13 Nov 2019

 

 

 

Fair value at grant date

 

€0.005

Share price at grant date

 

€0.0013

Exercise price

 

€0.0019

Expected volatility

 

129%

Expected life

 

3 Years

Expected dividend

 

0%

Risk free interest rate

 

1.25%

 

Measure of fair values of warrants

The fair value of the warrants issued has been measured using the binomial option pricing model. There are no service or non-market performance conditions attached to the arrangement and the warrants are considered to have vested immediately.

 

During the period an expense of €Nil (30 June 2019: €Nil and 31 December 2019: €Nil) was recognised directly through retained earnings in the statement of changes in equity related to warrants granted during the period.

 

On 30 June 2020, there were warrants outstanding over 381,612,500 (30 June 2019: 6,612,500 and 31 December 2019: 381,612,500) Ordinary Shares which are exercisable at prices ranging from Stg 0.16 pence to Stg 2.10 pence per share and which expire at various dates up to 13 November 2022.

 

14.  Related party transactions

 

In accordance with International Accounting Standards 24 - Related Party Disclosures, transactions between group entities that have been eliminated on consolidation are not disclosed.

 

15.  Events after the reporting date

 

On 30 July 2020, the Company completed a placing of 450,000,000 new ordinary shares of €0.0001 each at a price of £0.0010 per ordinary share, raising gross proceeds of £450,000. The share issue included warrants granted giving the right to acquire 225,000,000 Ordinary shares of €0.0001 at an exercise price of £0.0020 per ordinary share.

 

On 24 September 2020 and 28 September 2020, the Company issued 50,000,000 and 200,000,000 new ordinary shares of €0.0001 each respectively at a price of £0.0016 following the exercise of warrants granted in November 2019.  In aggregate the exercise of warrants raised £400,000.

 

There were no other significant post balance sheet events which would require amendment to or disclosure in the half yearly financial statements.

 

16.  Approval of financial statements

 

The half yearly financial statements were approved by the Board of Directors on 28 September 2020. 

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