Great Western Regulatory News (GWMO)

Great Western Mining Corporation PLC

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

Half Yearly Report and Unaudited Condensed Financial Statements

Great Western Mining Corporation PLC (AIM - GWMO, Euronext Growth - 8GW), which is exploring and developing gold, silver and copper targets in Nevada, announces its unaudited results for the six-months ended 30 June 2023 (the "Period").

During the Period the Company continued to progress the construction of its processing mill in anticipation of first production of gold and silver concentrates this year and continued its drilling, sampling and mapping programme, providing further evidence of the strength of its precious metals and copper portfolios.

Financial Highlights:

· Loss for Period €527,985 (30 June 2022: loss of €448,652 and December 2022: loss of €792,263)

· Basic and diluted loss per share 0.0001 cent (30 June 2022: 0.0001 cent and 31 December 2022: €0.0002 cent)

· Net assets at 30 June 2023: €8,845,494 (30 June 2022: €9,191,466 and 31 December 2022: €8,618,024)

· Cash balances at 30 June 2023: €410,661 (30 June 2022: €1,158,053 and 31 December 2022: €145,197)

· Placing of new shares during Period raised €913,242 before expenses

Operational Highlights:

· Special Use Permit granted to Western Milling joint venture by Mineral County Commissioners

· Diamond core hole at OMCO Mine confirms extension to the OMCO vein

· Status of copper prospects upgraded by intensive field work and mapping

Post Period End:

· Western Milling Joint Venture: concrete laid and production due to start this year

· Placing of new shares raised €581,139 before expenses

· Signing of Western Milling Operating Agreement and Declaration of Earn-In

· Rhyolite Dome (Olympic Gold project) identified as potential gold-silver play

Brian Hall, Executive Chairman, commented: "Our portfolio underpins the Company's strong growth potential and value upside. We are expecting to commence production of gold and silver concentrates during the second half, using the significant volumes of material on our claims and, in due course, material from third parties.

"Exploration work across Great Western's gold and silver prospects continues to support management's confidence in development opportunities. As well as precious metals, our copper holdings offer exciting upside and we believe that, with the right partner, commercial development will unlock significant long-term value."

For Further Information:

Interim Report

For the six months to 30 June 2023

Below are Great Western Mining Corporation PLC's Annual Report and Financial Statements for the half year ended 30 June 2023.

Great Western Mining Corporation PLC ("Great Western" or "the Company") explores for, appraises and develops mineral resources on its claims in the state of Nevada, USA but currently has no revenues from its operations. Accordingly it is reporting a loss after tax of €527,985 for the half year ended 30 June 2022 (30 June 2022: €448,652; 31 December 2022: €792,263). At the end of the period Great Western's net assets were €8,845,494 (30 June 2022: €9,191,466; 31 December 2022: €8,618,024) with no debt apart from trade creditors in the normal course of business. Net current assets were €609,925 (30 June 2022: €1,304,459; 31 December 2022: €418,084).

During the half year, Great Western's principal focus has been on the construction of a mill to process gold and silver concentrates from tailings, spoil heaps and stockpiles which are present in abundance on the Company's claims. In parallel, since the start of the work season two geologists have been working continuously in the field conducting sampling and mapping, initially over the Olympic Gold Project and subsequently in the Huntoon Valley area where the emphasis has been on copper prospects. A single hole was drilled at the OMCO Mine prospect (Olympic Gold Project) with a diamond core rig. Since the period end an RC rig has been moved to Mineral Jackpot, using the new mountain road constructed by the Company in 2022, where drilling was halted for mechanical reasons but will resume as soon as the drill crew is available. In January the Company conducted a placing of new shares for cash which raised £800,000 before expenses and since the period end conducted a further placing to raise £500,000 before expenses.

Process Mill

Great Western is in a 50-50 joint venture with local mining contractor Muletown Enterprizes LLC. The joint venture is known as Western Milling LLC and has been set up to establish a milling operation for producing precious metal concentrates. The project, which is due on production this year, has faced some strong headwinds during the period and since the period end. Notably, Nevada faced a severe winter which lasted over two months longer than the average, including late season heavy snowfalls, followed by heavy rainfall and mudslides in the spring and, more recently, a severe and unusual tropical storm. Operationally, environmental regulations call for the concrete required as a base for the milling plant to be laid in one continuous pour to prevent possible pollution of the subsoil. It has proved logistically extremely difficult to achieve this single pour, due to a lack of material in the area and local labour shortages. However, this concrete pour was satisfactorily completed in September, allowing for commencement of plant assembly on site for first production, which can commence once Western Milling has been issued with a permit from the state environmental authorities. Upon filing an application early in the year, the joint venture was advised that there would be a 6-month wait for approval but in August was further notified that this period would be delayed for 2-3 months due to personnel shortages and pressure of work at the regulator. Such approval waiting times are beyond the Company's control, but the joint venture is not aware of any problems with its application. In the meantime, all steps will be taken to ensure that producing operations can commence as soon as the approval has been received.

Geology - Field Work and studies

Coinciding with the late start of the work season, two American geologists joined Great Western's US payroll working under the direction of the Company's Exploration Manager, Dr. James Blight, with an initial task of carrying out sampling and mapping over the Company's claims and to achieve a better understanding of outlying claim areas. This field work will continue until at least the end of October and a wealth of very interesting new data has already been acquired for analysis. At the Olympic Gold Project, the large, undrilled Rhyolite Dome prospect in the south of the claims group is proving to be of great interest and a potential candidate for geophysical studies followed by drilling. More recently, extensive sampling and mapping has been carried out in the Huntoon Valley and at the M4 prospect where only limited drilling has so far been carried out by Great Western.

Copper Potential

Great Western's claims are rich in a variety of minerals. Recently the Company's focus has been on the potential of precious metals but in an earlier era the Company drilled approximately 5,000 feet (1,524 metres) of hole in the search for copper, mostly on the M2 claims in the Black Mountains Group but to a limited extent also on the M4 claims and in the Huntoon Valley on the Crown Point claims. An independent resource study, prepared in compliance with JORC, was commissioned for the M2 programme and this reported, on a partly inferred/partly indicated basis, 4.28 million tonnes grading at 0.45% copper, effectively 19,000 tonnes of copper. While a material quantity, a viable commercial development requires a greater volume than this which, in the Company's opinion, can be achieved by drilling over a considerable distance in both a northwesterly and southeasterly direction from the existing mapped resource. In addition, there is an area within the existing reported resource at M2 which was not drilled in the past due to permitting limitations, now resolved. Away from M2, the field work currently ongoing provides strong indications, yet to be proved by drilling, of similar sized potential deposits in the Huntoon Valley and at the M4 prospect.

For ease of understanding, the resource and prospects at M2, the prospect at M4 and the Huntoon Valley prospect, which are adjacent to one another, have collectively been designated the 'Huntoon Copper Project' ('HCP'), for exploration as a single entity, even though linkage between the three has not been (and may not be) established.

While Great Western may drill electively on the HCP, the scale of its potential calls for capital are beyond the capability of a company of Great Western's size to raise in its own right. Great Western has talked to and hosted several third parties with a view to participating in the HCP but has yet to secure a partner. The intensive work conducted by the Company this year, which is ongoing, is aimed at providing a stronger basis for a tie-up with a third party. In October, a well-reputed consultant specialising in copper prospects of this nature will visit the HCP to review the work over the last year and make recommendations for the next steps.

Drilling

In April, a diamond core rig was used to twin the successful RC hole which identified the OMCO vein in 2022, in an attempt to improve the quality of the result achieved with an RC rig at the previous hole. The results were satisfactory and confirmed the discovery, being similar to the original hole but not improved with the use of diamond core. The next stage of drilling is likely to be carried out with an RC rig which is less expensive than diamond core. In July an RC rig was mobilised to Mineral Jackpot on the 14 km access road constructed by the Company in 2022. There were mechanical issues with this rig, not previously used by the Company, and work was suspended waiting on parts and repairs. Drilling will continue once the rig is operational and a crew is available.

Looking Forward

The Company's immediate objective is to bring the processing mill on to production this year. Great Western will attempt to capitalise on the significant work carried out over the HCP this year and once the 2023 programme has been completed, analysed and reviewed, will launch a new initiative to source a partner for ongoing exploration, appraisal and potential development. No further drilling is likely to be initiated in 2023 beyond the current programme at Mineral Jackpot but prioritisation of gold and silver targets will be reviewed during the winter, once the process mill is up and running.

Unaudited Condensed Consolidated Income Statement

For the six months to 30 June 2023

All activities derived from continuing operations. All losses are attributable to the owners of the Company.

Unaudited Condensed Consolidated Statement of Other Comprehensive Income

For the six months to 30 June 2023

Unaudited Condensed Consolidated Statement of Financial Position

For the six months to 30 June 2023

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2023

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2023

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2023

Unaudited Condensed Consolidated Statement of Cash Flows

For the six months to 30 June 2023

Unaudited Notes to the Condensed Financial Statements

For the six months to 30 June 2023

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 2023 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 26 September 2023.

Basis of preparation

The half yearly financial statements for the six months ended 30 June 2023 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 2022 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 decommissioning provision, 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 2022 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 2022. 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 warrants - financial liability

• Note 15 - Share based payments, including share option 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 8 - Intangible asset; consideration of impairment of carrying value of claim groups

• Note 8 - Intangible asset, consideration of impairment relating to net assets being lower than market capitalisation

• Note 12 - Decommissioning provision

2. Going concern

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

In order to assess the appropriateness of the going concern basis in preparing the financial statements for the six months ended 30 June 2023, the Directors have considered a time period of at least twelve months from the date of approval of these financial statements. 

The Group incurred an operating loss during the six months ended 30 June 2023. Although first revenues from milling operations are anticipated during the period under review of the forecast, revenues have not been included and an overall operating loss is expected for the next twelve months. At the balance sheet date, the Group had cash and cash equivalents amounting to €0.41 million and the Company raised an additional amount of €0.58 million (before transactions expenses) through a placing completed in August 2023. The future of the Company is dependent on the successful outcome of its exploration activities and implementation of revenue-generating operations. The Directors believe that the Group's ability to make additional capital expenditure on its lode claims in Nevada will be assisted by the generation of first revenues from the reprocessing of historical spoil heaps and tailings and can be further assisted, if necessary, by raising additional capital, the deferral of planned expenditure and other cost saving actions, loan facilities for revenue-generating operations or from future revenues. The Directors have taken into consideration the Company's successful completion of placings in recent years, including placings completed in January and August 2023, to provide additional cash resources. 

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 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. The Group may be unable to realise its assets and discharge its liabilities in the normal course of business if it is unable to raise funds for further exploration on and development of its exploration assets. The 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.

3. 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 "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.

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 (the Executive Chairman), 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.

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

Segment results

Segment assets

Segment liabilities

Geographical information

The Group operates in three principal geographical areas - Ireland (country of residence of Great Western Mining Corporation PLC), Nevada, USA (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:

4. Finance income

5. Income tax

The Group has not provided any tax charge for the six months periods ended 30 June 2023. There was no tax charge for the six months ended 30 June 2022. For the year ended 31 December 2022, the Group benefited from research and development corporation tax credits claimed by a subsidiary company amounting to €158,504, comprising a tax credit of €61,142 for the year ended 31 December 2022 and €97,362 for prior years. The Group has accumulated losses which are expected to exceed profits earned for the foreseeable future.

6. 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: