REG - Great Western Mining - Final Results
09/05/2024 07:00
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RNS Number : 6854N Great Western Mining Corp. plc 09 May 2024
GREAT WESTERN MINING CORPORATION PLC
("Great Western" or the "Company")
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023
Great Western Mining Corporation PLC (AIM - GWMO, Euronext Growth - 8GW),
which is exploring and developing multiple early-stage gold, silver and copper
targets in Nevada, USA, announces its results for the year ended 31 December
2023. The Company is in the exploration, appraisal and development phase and
currently has no revenues.
Financial Highlights:
· Loss for year €952,654 (2022: loss of €792,263)
· Basic and diluted loss per share 0.0002 cent: (2022:
0.0002 cent)
· Net assets at year-end: €8.8 million (2022: €8.6
million)
· Cash at 31 December 2023: €0.10 million (2023:
€0.15 million)
Operational Highlights:
· Mill constructed and production-ready pending
finalisation of environmental permit
· Granite extrusion with associated porphyry identified
in the Huntoon Valley area materially upgrades copper potential
o 200 hectare (490 acres) of continguous copper samples
· Anomalous gold in soil samples discovered at M5
prospect
o Over 1 km long trend of anomalous gold (greater than 10 ppb Au)
o Several continuous zones of higher grade (greater than 25 ppb Au)
· Western Milling Operating Agreement and Declaration of
Earn-In signed
· £1.3 million new capital raised through placing of new
shares
Post Period End Highlights:
· Initial permit granted for removal of pre-mined material
from Olympic Gold Project for delivery to mill site
· New agreement signed with Crowne Point Gold & Silver LLC
for cooperation in exploring the western part of the Huntoon Valley
o Enabling the Company to fast-track drill for better defining a
potentially significant new copper porphyry in the Walker Lane trend
· Positive grab and soil results from the West Huntoon
o Revealing two bonanza-grade silver results, multiple other high-grade
precious metal occurrences and abundant copper anomalism
· Soil sampling results show Rhyolite Dome at Olympic
Gold Project to be high priority gold target
o Best grades include 61 ppb, 58 ppb and 51 ppb gold in recent samples
and 207 ppb gold in legacy samples
· Induced polarisation (IP) and resistivity surveys
ongoing at West Huntoon and M5
· Olympic Gold Project acquisition completed
· £700,500 new capital raised before expenses through
placing of new shares
Great Western Executive Chairman Brian Hall commented: "Progress during the
report year and subsequent months has been very encouraging and we have made
great strides in proving up the potential of our claims. We are particularly
excited about a significant upgrade in the copper potential at West Huntoon
where the prospect of a major, commercial copper porphyry on the Company's
claims offers the sort of upside that should be highly interesting to
investors in mineral resources and provide long term value for shareholders.
"Equally, our upcoming transition into a producing company, once all permits
are in place, will be an important milestone for the Company. We have a busy
summer ahead and look forward to providing updates on further developments as
we target a number of value inflection points."
For further information:
Great Western Mining Corporation PLC
Brian Hall, Chairman +44 207 933 8780
Max Williams, Finance Director +44 207 933 8780
Davy (NOMAD, Euronext Growth Listing Sponsor & Joint Broker)
Brian Garrahy
+353 1 679 6363
SP Angel (Joint Broker)
Ewan Leggat +44 203 470 0470
Walbrook PR (PR advisers)
Nick Rome/Joe Walker +44 207 933 8783
Executive Chairman's Statement
For the year ended 31 December 2023
Dear Shareholder,
Below are Great Western Mining Corporation PLC's audited report and financial
statements for the year ended 31 December 2023.
Great Western Mining Corporation PLC ('Great Western' or the 'Company')
explores for, appraises and develops mineral resources on its claims in
Nevada, USA but currently has no revenues from its operations. Accordingly,
it is reporting a loss after tax of €952,654 for the year (2022:
€792,263). At the year end the Company's net assets were €8,831,416
(2022: €8,618,024).
The highlight of Great Western's exploration activity in 2023 was the
establishment through intensive fieldwork of a copper porphyry in the Huntoon
Valley, where Great Western holds 760 claims. A granite outcrop associated
with a porphyry, previously and erroneously shown as tertiary cover on
official government maps, was identified and 2 km² (490 acres) of ground was
sampled in the immediate vicinity, resulting in consistent, strong copper
readings. An expert consultant on porphyry systems was invited to the site
in October and spent a week in the field reviewing the porphyry potential,
subsequently confirming it in a formal report which the Company has
published. This is a really significant development for Great Western and
raises the possibility, not yet proven, of connectivity, across the Huntoon
Valley, with both the M2 claims to the northeast where the Company has already
established a copper resource and the M4 prospects to the east, where the
Company's limited drilling activity has established very promising copper
anomalies. These three main prospect areas, West Huntoon, M2 and M4 have now
been internally grouped together and categorised as the Huntoon Copper
Project. An expired agreement with Crowne Point Resources, owner of land
equivalent to six federal claims around the historic Huntoon Gold Mine, has
been novated since the year end and this land will provide surface and road
access for early drilling. Since the end of the year, the Company has
conducted a geophysical survey to track and measure the continuation of the
porphyry system under tertiary cover, where data cannot be obtained through
grab and soil sampling, initially yielding positive results.
During the 2023 field season, Great Western had two geologists working full
time in the field, sampling and mapping a number of prospects, under the
direction of the Company's Exploration Manager, Dr James Blight. The
sampling carried out around the granite extrusion at West Huntoon also
identified unrelated epithermal gold and silver in the same area, including a
bonanza silver result. In addition to the West Huntoon area, the team also
worked extensively on the M5 prospect in the JS group of claims and on the
Rhyolite Dome prospect at the Olympic Gold Project, both of which look highly
prospective for precious metals.
In April 2024 Great Western exercised its option to purchase the Olympic Gold
project and made the final option final payment. There is little doubt that
taking an option on Olympic was a good decision in 2020 and the claims are an
excellent, complementary add-on to the Company's other claim areas, 50 miles
away on the other side of Mineral County. The OMCO Mine produced gold at
high grades in the early part of the last century and Great Western has
already discovered an extension to the OMCO vein. Good intercepts have
already been encountered through drilling at the Trafalgar Hill prospect in
the east of this 800 acre project area and Rhyolite Dome to the south of the
project is potentially large, interesting and has never been drilled. Large
quantities of pre-mined material at Olympic Gold is of higher quality and is
more accessible than the spoil heaps at the Company's Mineral Jackpot claims,
so will enhance the viability of the Company's milling joint venture.
Shareholders are urged to read the more detailed Operations section of this
report which provides more information on all the exploration
activity.
During the year the Company completed its earn-in as a 50% participant in
Western Milling LLC, a joint venture with Muletown, an established contractor
in the Company's area of operations. Western Milling started the
construction of a process mill to produce precious metal concentrates from
pre-mined material and shallow ore with construction completed after the
year-end. Production from this mill will mark the Company's first revenues
and move it away from pure exploration, but commissioning of the plant and
start-up of production are now dependent on final environmental consent from
the State of Nevada. The project has been designed and developed
meticulously in line with the regulator's own guidelines and recommendations,
initially for gravity processing for which approval is being sought but at a
second stage for leaching operations which will require separate approval. The
State of Nevada encourages industrial development in its rural areas but due
to administrative delays caused by staff shortages in the relevant state
department, the Company cannot yet give any firm assurances on the timing of
the permit being granted.
Great Western has a lot of work ongoing relative to its small size and,
although progress may sometimes seem slow with frustrating delays, in the
general life cycle of mining operations a great deal has been achieved since
the current management took over in late 2019. Few exploration companies of
Great Western's size have created and constructed such an advanced commercial
project as Western Milling LLC, in a time span of less than 18 months since
first heads of terms were signed. There are multiple precious metals
prospects on the Company's ground which could supply material to the process
mill in the future. Most significantly, the prospect of a major, commercial
copper porphyry on the Company's claims offers the sort of upside that should
be highly interesting to an investor in mineral resources and provide long
term value for shareholders.
Looking ahead to the remainder of 2024, we expect to begin commercial
production during the year even though precise timing is out of our hands.
We will continue to work on the Huntoon Copper Project this summer while
actively seeking a larger and better-funded industry partner to help take it
to the next stage, confirming that discussions are ongoing with several
interested parties.
The AGM will be held in Dublin on 5 June with a telephone facility to allow
shareholders to listen to the proceedings remotely.
I would like to thank our investors for their patience and continuing support
and our small technical team for their professionalism, dedication, hard work
and positive results.
Yours sincerely,
Brian Hall
Executive Chairman
Operations Report
For the year ended 31 December 2023
Principal activities, strategy and business model
The principal activity of Great Western is to explore for and develop gold,
silver, copper and other minerals, with the aim of increasing shareholder
value by the systematic evaluation and exploitation of its existing assets in
Mineral County, Nevada, USA. Great Western's strategy is:
· Exploration for gold and silver on existing licensed claims to
establish resources for commercial exploitation.
· Exploitation of previously mined material containing residual
gold and silver to generate revenue.
· Expanding the search for precious metals into new areas.
· Developing copper potential based on an existing indicated and
inferred resource.
During the year ended 31 December 2023, Great Western held interests in seven
claim groups are categorised into the following projects:
Claim Group Ownership Projects Target mineral
1 Black Mountain Group 100% Mineral Jackpot Silver, Gold
M2 (HCP) Copper
2 Huntoon 100% West Huntoon (HCP) Copper, Gold
3 Jack Springs 100% M4 (HCP) Copper, Gold
M5 Gold, Silver, Copper
4 Rock House 100% Rock House Gold, Silver, Copper
5 Eastside Mine 100% Eastside Mine Copper
6 TUN 100% TUN Gold, Silver
7 Olympic Gold 100% OMCO Mine Gold
(following exercise of option to purchase)
Trafalgar Hill Gold
West Ridge Gold
Rhyolite Dome Gold
As part of an annual claim renewal procedure, the Group renewed all its claims
with effect from 1 September 2023 and subsequently staked 19 additional claims
prior to the year-end. The land position held by Great Western in Mineral
County currently consists of 760 full and fractional unpatented claims,
covering an area of approximately 61 km².
In addition to exploration activities, Great Western has created Western
Milling LLC, a 50-50 joint venture with a local contractor, to construct a
mill at Sodaville, Nevada, which will process historical mine waste into
precious metal concentrates, including tailings spoil heaps and stockpiles
from Great Western's claims.
EXPLORATION - Precious Metals Projects
Olympic Gold Project
In 2020, the Company acquired an option to purchase the Olympic Gold Project,
a group of 48 claims located approximately 50 miles from Great Western's other
concessions and still within Mineral County. In April 2024 Great Western
exercised its option to purchase Olympic Gold and made the final option
payment of the total consideration of $150,000. Work is in progress on several
potential prospects at this 800-acre site.
The Olympic Gold Project lies on the northern flanks of the Cedar Mountain
Range, on the eastern edge of Mineral County, within the Walker Lane Fault
Belt at the intersection of two major mineral trends - the Rawhide-Paradise
Peak trend and the Aurora-Round Mountain Trend. The mineral deposit style at
Olympic is low-sulphidation epithermal banded quartz-gold vein. Production of
gold from the Olympic Mine in the interwar period of 1918 to 1939 totalled
approximately 35,000 tonnes at a grade of 25 grams/ton gold and 30 grams/ton
silver. Based on a review of the historical data, Great Western believes
that faulted offsets of the high-grade Olympic Vein remain to be discovered
and this forms one of the numerous target zones on the prospect.
During 2023 a single core hole was drilled as a twin of the successful
2022-hole OMRC015, to investigate the mineralised intercept in detail. This
hole provided the first core at Olympic and penetrated the mineralised
horizon, but did not improve on the previous intercept. The zone where
mineralisation was expected was highly brecciated and susceptible to being
lost to the core drilling fluids. The unmined portion of the OMCO vein, as
intercepted in OMRC015, remains open along the edge of the workings.
Considerable interpretive work has been undertaken for a better understanding
of the chemostratigraphy at Olympic and to identify possible vectors towards
mineralisation in the existing drill data. This resulting predictive model
indicates best potential for gold southeast from the OMCO mine site, east of
the major OMCO fault.
Grab sampling, soil sampling and mapping were carried out at the as yet
undrilled Rhyolite Dome prospect in the south of the claims group. A total of
147 new soil samples were taken in a series of northeast trending traverses,
resulting in a positive anomaly for gold (45 samples >10 ppb Au, 7 > 20
ppb Au and 3 > 50 ppb Au), silver and a suite of associated elements,
covering around 50 acres on the northwest side of the dome structure. The
results will assist in the planning of an induced polarisation (IP) survey and
drill targeting at Rhyolite Dome.
Black Mountain
The Black Mountain Group ("BM") lies on a southwest trending spur ridge of the
Excelsior Range of mountains and comprises 249 full and fractional claims
covering 20.7km². The BM group contains both Great Western's copper resource
at M2 (see Copper Projects below) and the Mineral Jackpot prospect, where
outcropping veins, vein workings and spoil heaps contain high-grade gold and
silver. Although the five historic mines making up Mineral Jackpot produced
gold and silver around the turn of the 19(th)-20(th) century, access had only
been by mule track and until 2022 none of the prospects had ever been
drilled. Great Western has carried out soil surveys over the last three
years, collected rock chip samples and conducted magnetometry surveys.
Following a successful intercept in MJRC004, the final hole of 2022, a
single follow up hole was drilled in 2023, aimed at again intersecting the
near-surface mineralised zone. The zone was identified in chips at the
expected position, via alteration and in anomalous assay results, but grades
were subeconomic, highlighting the variability of these vein zones over
relatively short distances along strike. Further planned drillholes were
postponed due to technical issues with the rig. The next stage of exploration
at Mineral Jackpot is being evaluated.
Rock House
The M7 gold-silver prospect lies within the Rock House (RH) group of claims.
This area is accessible and lends itself to mining operations but has never
been mined in the past, its potential having only recently been identified
through the interpretation of satellite imagery. It is an approximately
circular structure of around 450 acres associated with a magnetic low, and is
an opening of older rock surrounded by younger volcanic cover. It is also
adjacent to the prolifically mineralised Golconda thrust fault and 5 km west
along strike from the historically significant Candelaria silver mining
district. The area is characterised by intense argillic and sericite
alteration, along with silicification and oxidation, within basement
siltstones and slates. Unlike many of Great Western's other prospects, the RH
targets were virgin territory until drilled by the Company in 2021. While past
workings represent an important guide for exploration, a lack of any previous
workings does not rule out mineralisation and any discovery made in such
ground will have the benefit of being entirely intact as its highest-grade and
nearest-surface portions will not have been removed by previous mining
operations.
Rock House was soil sampled in 2023 to test the value of higher resolution
surveys around peaks in the previous reconnaissance grid in the north of the
area. This work was successful, with a majority of samples matching or
exceeding the previous best values obtained for gold. A follow-up broad
resampling plan halved the grid spacing of soils at Rock House Northern Shear
Zone. This work was underway but incomplete at the end of the year and all
samples will be sent to the lab as one batch once the resampling is completed
during the 2024 work season.
Complex folding was observed at surface in the Southern Alteration Zone. A 3D
geological model that takes the effect of folding into account is being
developed. For information on the potential for copper at Rock House, see
Copper Projects below.
Huntoon
After staking an additional 19 claims during the year, Great Western holds a
total of 126 full and 12 fractional claims which surround the workings of the
historic underground Huntoon gold mine and are prospective for gold, silver
and copper mineralisation. The claims are located on the northwest side of
the Huntoon Valley, covering approximately 10km(2). The main focus for GWM at
this claim group is copper, and this is covered below under Copper Projects.
Huntoon does, however, contain some high-grade, potentially epithermal,
precious metal veins, which were the target of the old Huntoon mine workings.
In 2023 grabs selectively sampled for their apparent copper mineralisation, or
because they contained quartz veins, yielded gold grades of 7.29 g/t, 5.53 g/t
and 4.51 g/t Au, and bonanza silver grades of 2,438 g/t, 843 g/t, 108 g/t and
102 g/t Ag.
Jack Springs ("JS")
The M5 gold prospect lies within the JS Group in altered siliceous host rock
surrounded by Tertiary volcaniclastics. Gold, arsenic and antimony were all
anomalous in initial reconnaissance samples taken along a northeasterly crest
of the central ridge at M5 during the first years of the Company's operations
in the area. Since that time, due to other priorities M5 has not been further
explored and remains undrilled.
During 2023 Great Western returned to the M5 prospect and conducted full
follow up soil sampling. A total of 335 soil samples were taken in two phases,
with 188 samples > 10 ppb Au, 49 samples > 30 ppb, and 20 samples >
50 ppb. The peak value detected in this sampling was 395 ppb or 0.395 g/t Au.
A zone 1500 m long by 400 m wide was identified, which contains several
corridors of anomalous gold, open as they reach the edge of surrounding
overlying tertiary lavas. Two disconnected areas of sampling, taken over small
'windows' through the tertiary cover, are also broadly anomalous, suggesting a
more widespread sub-cropping zone.
A total of 19 new selective grab samples were taken at M5 during soil
sampling. These were taken from outcrops that were mineralised in appearance
or otherwise of interest to the sampling geologist. Two stand-out samples,
taken from a small working which features a copper oxide bearing quartz vein,
returned 5.14 g/t Au, 1,246 g/t Ag (0.125 % Ag) and 0.32% Cu, and 0.291 g/t
Au, 534 g/t Ag, and 0.105% Cu respectively. These grabs also represents a
significant increase in maximum silver results from M5, the previous most
silver-rich samples being 24 g/t and 18 g/t in grab samples from the crest of
the hill taken prior to 2023. A sample taken from a small pit on the
southeastern flank of the M5 hill returned a grade of 1.247 g/t Au. Two other
samples with notably high-grade copper (5.16 % and 1.09 % Cu) occurred on the
southeast facing flank of the ridge line. These samples feature sulphide
stringers with chalcopyrite and abundant copper oxides.
The selected high-grade samples described above indicate that several discrete
strongly mineralised structures reach the surface at M5 and are a likely
source of the soil anomalies.
The M4 Copper-Gold project also lies within the JS Group and is covered under
Copper Projects below.
Tun
The M6 gold-silver prospect lies within the Tun Group. The M6 prospect is a
parallel system of multiple, oxide and sulphide, gold-silver veins and veinlet
stockworks. Supergene, high-grade ores have been mined in the past at M6 and
the potential remains for deposits of shallow, oxidised stockworks in the
immediate vicinity of the historic workings. An initial reconnaissance soil
traverse was undertaken at Tun group early in the year, 32 samples being taken
in a single traverse, with some positive results (14 samples >10 ppb Au, 2
samples >50 ppb Au). This work was an orientation survey to help identify
optimal sample spacing for a more thorough future programme.
EXPLORATION - Copper Projects
Great Western has an exciting and extensive copper portfolio. During the year,
the proximity of and possible connectivity between (1) the existing M2
resource, (2) the M4 prospect which has already been successfully drilled and
(3) the West Huntoon area led to a re-categorisation of the three projects
into a single area of interest, hereinafter described as the Huntoon Copper
Project (HCP).
The Huntoon Copper Project
At M2 in the Black Mountains Group, Great Western has discovered and drilled a
partly inferred, partly indicated copper resource of 4.3 million tonnes at a
grade of 0.45% Cu in a skarn setting. This was a considerable achievement,
with the potential to lead to the discovery of a much larger copper resource.
Great Western believes that there is untested potential in both directions
along strike, on a structure of up to 5 km, supported by historical mine
workings to the northeast and an IP anomaly to the southwest.
The M4 copper target, in the JS group, approximately 4 km from the M2
resource, was identified through geophysical surveys, soil sampling and
mapping of mineralised structures at surface. The Company has previously
identified copper in drill intercepts at M4 (21.18 m at 0.35% Cu starting at
106.22 m in hole M2_005, including 5.64 m at 0.48% Cu and 0.105 grams/ton Au
starting at 106.22 m). Great Western believes that the breccia zone
intercepted in hole M4_05, along with other such structures mapped at surface,
could be offshoot structures in the roof of a buried orebody. Porphyry
systems often feature breccia pipes in the upper reaches in 2019 the Group
received a drill permit to follow up on the exciting discovery in hole M4_05.
The abundance of highly prospective targets in the Company's portfolio,
combined with rig availability issues, led to drilling on the JS projects
being deferred in recent years. During 2023 the soil grid east of M4 was
extended further to the east with the aim of filling a gap where the existing
soil anomalies are open and surface showings of copper are present. This work
was ongoing at the end of the field season, and samples will be sent to a lab
in 2024, once the planned grid is complete.
At West Huntoon, situated 7 km west of M4, and 10 km southwest of M2, there
is a copper prospect on which the Company has previously drilled a single
hole, assaying at 0.35% Cu over 27.4 metres, amongst other grading intercepts.
West Huntoon also contains a sizeable copper anomaly in soils, part of which
is coincident with a clear magnetic signature identified on drone magnetometry
conducted in early 2022. Post mineralisation tertiary lavas obscure both the
geochemical anomaly and the southwestern continuation of the linear anomaly
associated with the shear zone. Significant field work at West Huntoon
during 2023 included mapping, soil sampling and, towards the end of the field
season, a field visit by Dr Lawrence Carter, an independent porphyry expert.
A significant development occurred at the conclusion of the season's
programme with the identification of several granite exposures not recorded on
the US Geological Survey's official map of the area. These granites contain
textures typically associated with porphyry-linked intrusions, including
varying degrees of mineralisation and alteration. 135 new soil samples were
taken which established a copper anomaly (>75 ppm Cu) of 2 km(2)
surrounding the granite outcrop, with strong outlier samples (11 samples
>300 ppm, 5 samples > 400 ppm, maximum value 528 ppm Cu) at several
locations.
In 2024 a novated Huntoon Mine Cooperation Agreement has been signed with the
owner of six patented claims at the core of the West Huntoon area. This
agreement provides GWM with near-term drill access, excellent road
infrastructure and a local water supply located in one of the most prospective
parts of the wider claim group.
Other copper projects
The M8 copper prospect lies within the Eastside Mine (EM) claim group, named
for the historic Eastside Mine where high-grade copper-oxide ore was mined
from shallow underground workings during the First World War. Conoco
investigated Eastside as a copper porphyry prospect in the early 1970s,
identifying mineralisation consisting of substantial copper and molybdenum
values, within a northeast trending graben structure. Drilling by Conoco at
the southern end of this structure identified thick successions of alteration
together with copper enrichment, but the results were not followed up. The
Company regards the northerly continuation of this structure as a strong,
untested target for buried copper mineralisation. During 2021 an IP survey
was performed at EM Group and the results were highly encouraging. The key
findings of this work were fault zones accompanied by high resistivity and
chargeability features, correlating with observed surface stockwork veining,
silicification, copper mineralisation and copper soil halos. Although no
significant activities took place at the Eastside mine during 2023, there are
drill-ready targets.
Following the identification of anomalous copper in the final 2022 hole at
Rock House, copper oxide has been identified in surface grabs during soil
sampling in the Northern Shear Zone.
While Tun has in the past been primarily a gold target, initial orientation
soil samples taken there early in the year showed copper anomalism. Over 32
samples, 15 were >75 ppm Cu, 12 > 100 ppm Cu and 5 > 150 ppm Cu, with
a peak value of 204 ppm Cu.
Seeking Copper JV partner
A major copper project remains too large an undertaking for a company of Great
Western's size and so a larger industry partner is currently being sought,
particularly in light of the potentially transformative porphyry evidence
found during the year.
Reclamation work
Reclamation work undertaken at OMCO has been signed off by the Bureau of Land
Management and a new permit issued for planned follow-up drilling and ground
disturbance relating to removing mine waste for processing at the Company's
milling joint venture.
Summary of 2023 Work Programme
· Discovery of granite at the core of the West Huntoon 2 km(2) copper
anomaly shows porphyry potential and new soil results strengthen continuity of
the anomaly. New grab results highlight overlapping precious metal potential.
· A total of 335 new soil samples at M5 establishes a large
gold-silver-copper anomaly, previously suspected but never properly tested at
scale.
· New soil results at Rhyolite Dome in the Olympic Gold Project are
some of the best results for the entire claim group, including the area of the
old OMCO mine, and indicate the prospectivity of this target.
· Drilling at Mineral Jackpot and Olympic confirms locations of
mineralised horizons previously intercepted.
· Permit granted for removal of first material from Olympic for
processing by the milling joint venture.
· New encouraging soil results at Tun.
· At the end of the year additional soil sampling was underway at
both JS-NE (east of M4) and Rock House. Samples will be submitted to lab once
all planned samples have been collected.
PROCESSING OPEATIONS - Joint Venture
Planned Processing Operations
Over the last two years, Great Western has been developing the optimum means
of processing mining waste for recovery of gold and silver. Originally this
was planned to be a simple gravity separation process for spoil material from
Mineral Jackpot, where there are 51 known spoil heaps, but the concept was
expanded once work began on the newly acquired Olympic Gold Project in 2021,
where extensive tailings, spoil heaps are present and a stockpile of material
had been mined but never processed. A 50-50 joint venture known as Western
Milling LLC was established with local contractor Muletown Enterprizes to
construct a processing mill on land owned by Muletown. Construction of the
processing plant was completed in early 2024 and start-up of operations is
subject only to final environmental approval from the State of Nevada.
Initially material will be processed through a gravity circuit but the plant
has been built to meet the specifications required for a chemical leaching
project, for which a permit application will be lodged once gravity processing
is operational.
In 2022, an independent JORC-compliant resource estimate of Great Western's
mine waste material resulted in an Inferred Resource of 31,000 tonnes, grading
1.6 grams/ton Au and 3.0 grams/ton Ag in tailings at Olympic Mine and several
Exploration Targets at the OMCO Mine and Mineral Jackpot.
Consolidated Income Statement
For the year ended 31 December 2023
Notes 2023 2022
€ €
Continuing operations
Administrative expenses (994,246) (951,294)
Finance income 4 4,434 527
Loss for the year before tax 5 (989,812) (950,767)
Income tax expense 7 37,158 158,504
Loss for the financial year (952,654) (792,263)
Loss attributable to:
Equity holders of the Company (952,654) (792,263)
Loss per share from continuing operations
Basic and diluted loss per share (cent) 8 (0.0002) (0.0002)
All activities are derived from continuing operations. All losses are
attributable to the owners of the Company.
Consolidated Statement of Other Comprehensive Income
For the year ended 31 December 2023
Notes 2023 2022
€ €
Loss for the financial year (952,654) (792,263)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Currency translation differences (284,325) 400,861
(284,325) 400,861
Total comprehensive expense for the financial year
attributable to equity holders of the Company (1,236,979) (391,402)
Consolidated Statement of Financial Position
For the year ended 31 December 2023
Notes 2023 2022
€ €
Assets
Non-current assets
Property, plant and equipment 10 73,972 76,635
Intangible assets 11 8,603,289 8,462,329
Total non-current assets 8,677,261 8,538,964
Current assets
Trade and other receivables 13 691,870 272,887
Cash and cash equivalents 14 95,306 145,197
Total current assets 787,176 418,084
Total assets 9,464,437 8,957,048
Equity
Capital and reserves
Share capital 18 548,660 357,751
Share premium 18 14,875,499 13,572,027
Share based payment reserve 19 386,005 368,709
Foreign currency translation reserve 635,779 920,104
Retained earnings (7,614,527) (6,600,567)
Attributable to owners of the Company 8,831,416 8,618,024
Total equity 8,831,416 8,618,024
Liabilities
Current liabilities
Trade and other payables 15 504,150 207,603
Decommissioning provision 16 128,871 131,421
Share warrant provision 17 - -
Total current liabilities 633,021 339,024
Total liabilities 633,021 339,024
Total equity and liabilities 9,464,437 8,957,048
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Share Share Share based payment reserve Foreign Retained Total
capital premium € currency earnings €
€ € translation €
reserve
€
Balance at 1 January 2022 357,751 13,572,027 318,621 519,243 (5,822,011) 8,945,631
Total comprehensive income
Loss for the year - - - - (792,263) (792,263)
Currency translation differences - - - 400,861 - 400,861
Total comprehensive income for the year - - - 400,861 (792,263) (391,402)
Transactions with owners, recorded directly in equity
Share warrants terminated - - (13,707) - 13,707 -
Share options charge - - 63,795 - - 63,795
Total transactions with owners, recorded directly in - - 50,088 - 13,707 63,795
equity
Balance at 31 December 2022 357,751 13,572,027 368,709 920,104 (6,600,567) 8,618,024
Total comprehensive income
Loss for the year - - - - (952,654) (952,654)
Currency translation differences - - - (284,325) - (284,325)
Total comprehensive income - - - (284,325) (952,654) (1,236,979)
for the year
Transactions with owners, recorded directly in equity
Shares issued 190,909 1,303,472 - - (82,015) 1,412,366
Share warrants terminated - - (20,709) - 20,709 -
Share options charge - - 38,005 - - 38,005
Total transactions with owners, recorded directly 190,909 1,303,472 17,296 - (61,306) 1,450,371
in equity
Balance at 31 December 2023 548,660 14,875,499 386,005 635,779 (7,614,527) 8,831,416
Consolidated Statement of Cash Flows
For the year ended 31 December 2023
Notes 2023 2022
€ €
Cash flows from operating activities
Loss for the year (952,654) (792,263)
Adjustments for:
Depreciation 10 - -
Interest receivable and similar income 4 (4,434) (527)
Increase in trade and other receivables (474,195) (161,947)
Decrease in trade and other payables 279,750 53,273
Gain on revaluation of share warrants - (96,294)
Decrease in tax receivable 55,212 -
Equity settled share-based payment 19 38,005 63,795
Net cash flows from operating activities (1,058,316) (933,963)
Cash flow from investing activities
Expenditure on intangible assets 11 (401,269) (956,077)
Interest received 4 4,434 527
Net cash from investing activities (396,835) (955,550)
Cash flow from financing activities
Proceeds from the issue of new shares 18 1,494,381 -
Proceeds from grant of warrants 17 - -
Commission paid from the issue of new shares 18 (82,015) -
Net cash from financing activities 1,412,366 -
Decrease in cash and cash equivalents (42,785) (1,889,513)
Exchange rate adjustment on cash and cash equivalents (7,106) (7,837)
Cash and cash equivalents at beginning of the year 14 145,197 2,042,547
Cash and cash equivalents at end of the year 14 95,306 145,197
Notes to the Financial Statements
For the year ended 31 December 2023
1. Accounting policies
Great Western Mining Corporation PLC ("the Company") is a Company domiciled
and incorporated in Ireland. The Company is listed on the Euronext Growth
Market in Dublin and on AIM in London. The Group financial statements
consolidate the individual financial statements of the Company and its
subsidiaries ("the Group").
Basis of preparation
The Group and the Company financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as
adopted by the European Union ("EU").
Statement of compliance
The Group financial statements have been prepared and approved by the
Directors in accordance with International Financial Reporting Standards and
their interpretations as adopted by the European Union ("EU IFRSs"). The
individual financial statements of the Company have been prepared and approved
by the Directors in accordance with EU IFRSs and as applied in accordance with
the provisions of the Companies Act 2014 which permits a Company that
publishes its Company and Group financial statements together, to take
advantage of the exemption in Section 304 of the Companies Act 2014 from
presenting to its members its Company income statement and related notes that
form part of the approved Company financial statements.
The EU IFRSs applied by the Company and the Group in the preparation of these
financial statements are those that were effective for accounting periods
ending on or before 31 December 2023.
New accounting standards and interpretations adopted
Below is a list of standards and interpretations that were required to be
applied in the year ended 31 December 2023. There was no material impact to
the financial statements in the current year from these standards set out
below:
· IFRS 17 Insurance Contracts - effective 1 January 2023
· Amendments to IAS 1 and IFRS Practice Statement 2:
Disclosure of Accounting Policies - effective 1 January 2023
· Amendments to IAS 8: Definition of Accounting Estimate
- effective 1 January 2023
· Amendments to IAS 12 Income Taxes: Deferred Tax Related
to Assets and Liabilities Arising from a Single Transaction - effective 1
January 2023
· Amendments to IAS 12 Income Taxes: International Tax
Reform - Pillar Two Model Rules - effective 23 May 2023
New accounting standards and interpretations not adopted
Standards endorsed by the EU that are not yet required to be applied but can
be early adopted are set out below. None of these standards have been applied
in the current period. The Group is currently assessing whether these
standards will have a material impact in the financial statements.
• Amendments to IAS 1: Classification of liabilities as
current or non-current - effective 1 January 2024
• Amendments to IFRS 16: Lease Liability in a Sale and
Leaseback - effective 1 January 2024
• Amendments to IAS7 and IFRS 17: Supplier Finance
Arrangements - effective 1 January 2024
• IFRS 51: General requirements for Disclosure of
Sustainability-related Financial information and IFRS 52 Climate-related
Disclosures - effective 1 January 2024
• Amendments to IAS 21: Lack of Exchangeability -
effective 1 January 2025
The following standards have been issued by the IASB but have not been
endorsed by the EU, accordingly none of these standards have been applied in
the current period and the Group is currently assessing whether these
standards will have a material impact in the financial statements.
• Amendments to IFRS 10 and IAS 28: Sale and Contribution
of Assets between an Investor and its Associate or Joint Venture - optional
Functional and Presentation Currency
The presentation currency of the Group and the functional currency of Great
Western Mining Corporation PLC is the Euro ("€") representing the currency
of the primary economic environment in which the Group operates.
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 in applying
accounting policies that have the most significant effect on the amount
recognised in the financial statements are in the following area:
• Note 19 - 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 11 - Intangible asset, consideration of impairment
of carrying value of claim groups.
• Note 11 - Intangible asset, consideration of impairment
relating to net assets being lower than market capitalisation.
• Note 12 - Amounts owed by subsidiary, expected credit
loss.
• Note 16 - Decommissioning provision.
Basis of Consolidation
The consolidated financial statements comprise the financial statements of
Great Western Mining Corporation PLC and its subsidiary undertakings for the
year ended 31 December 2023.
Subsidiaries are consolidated from the date on which control is transferred to
the Group and cease to be consolidated from the date on which control is
transferred out of the Group. Control exists when the Company is exposed to,
or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity.
Financial statements of subsidiaries are prepared for the same reporting year
as the parent company.
Upon the loss of control, the Group derecognises the assets and liabilities of
the subsidiary, and no controlling interests and the other components of
equity related to the subsidiary. Any surplus or deficit arising on the loss
of control is recognised in the income statement. If the Group retains any
interest in the previous subsidiary, then such interest in measured at fair
value at the date control is lost. Subsequently, it is accounted for an
equity-accounted investee or as an available for sale financial asset,
depending on the level of influence retained.
Intragroup balances and transactions, including any unrealised gains arising
from intragroup transactions, are eliminated in preparing the Group financial
statements. Unrealised losses are eliminated in the same manner as unrealised
gains except to the extent that there is evidence of impairment.
Investments in Subsidiaries
In the Company's own statement of financial position, investments in
subsidiaries are stated at cost less provisions for any impairment.
Intangible Assets - Exploration and Evaluation Assets
The Directors have designated that an individual exploration and evaluation
asset is a group of claims which provide separate areas of interest in
different geographic locations. Each group of claims may comprise more than
one area of exploration interest. Exploration expenditure in respect of
properties and licences not in production is capitalised and is carried
forward in the statement of financial position 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; and
(ii) such costs are expected to be recouped through successful
development and exploration of the area of interest or alternatively by its
realisation.
Exploration costs include licence costs, survey, geophysical and geological
analysis and evaluation costs, costs of drilling and project-related
overheads. Where the Company undertakes the evaluation and appraisal of
historical waste material at surface, the costs of evaluation are capitalised
in exploration and evaluation assets. Capitalised exploration and evaluation
expenditures are not amortised prior to the conclusion of exploration and
appraisal activity.
Exploration and evaluation assets will be reclassified to property, plant and
equipment as a cash-generating unit when a commercially viable reserve has
been determined, all approvals and permits have been obtained. On
reclassification, the carrying value of the asset will be assessed for
impairment and, where appropriate, the carrying value will be adjusted. If,
after completion of exploration, evaluation and appraisal activities the
conditions for achieving a cash-generating unit are not met, the associated
expenditures are written off to the income statement.
Decommissioning Provision
There is uncertainty around the cost of decommissioning as cost estimates can
vary in response to many factors, including changes to the relevant legal
requirements, the emergence of new technology or experience at other assets.
The expected timing, work scope and amount and currency mix of expenditure
required may also change. Therefore, significant estimates and assumptions are
made in determining the provision for decommissioning. Provision for
environmental clean-up and remediation costs is based on current legal and
contractual requirements, technology and management's estimate of costs with
reference to current price levels and the estimated costs calculated by the
regulatory authorities.
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 amount
recoverable from the assets is estimated. For intangible assets that have
indefinite lives or that are not yet available for use, the recoverable amount
is estimated at each reporting date.
Under IFRS 6, the following indicators are set out to determine whether an
exploration and evaluation asset is required to be tested for impairment:
· the period for which the entity has the right to explore in the
specific area has expired during the period or will expire in the near future,
and is not expected to be renewed;
· substantive expenditure on further exploration for and evaluation
of mineral resources in the specific area is neither budgeted nor planned;
· exploration for and evaluation of mineral resources in the
specific area have not led to the discovery of commercially viable quantities
of mineral resources and the entity has decided to discontinue such activities
in the specific area; and
· sufficient data exists to indicate that, although a development
in the specific area is likely to proceed, the carrying amount of the
exploration and evaluation asset is unlikely to be recovered in full from
successful development or by sale.
The list is not exhaustive, and the Group also considers the following
additional tests: current cash available to the Group and its capacity to
raise additional funds; commodity prices and markets; taxation and the
regulatory regime; access to equipment, materials and services; and the
comparison of the Group's net assets with the market capitalisation of the
Company.
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 is largely independent from other assets and Groups of assets. 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
Income tax expense comprises current and deferred tax. Income tax expense is
recognised in profit and loss except to the extent that it relates to items
recognised in other comprehensive income or directly in equity, in which case
the tax is also recognised in other comprehensive income or equity
respectively.
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.
Special tax deductions for qualifying expenditure claimed by the Group are in
accordance with the Research and Development Tax Incentive regime in the UK.
The Group accounts for such allowances as tax credits, which reduces income
tax payable and current tax expense.
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.
Additional income taxes that arise from the distribution of dividends are
recognised at the same time as the liability to pay the related dividends is
recognised.
Employee Benefits
Equity-Settled Share-Based Payments
For equity-settled share-based payment transactions (i.e. the issuance of
share options in accordance with the Group's share option scheme or share
warrants granted in relation to services provided), the Group measures the
services received by reference to the value of the option or other financial
instrument at fair value at the measurement date (which is the grant date)
using a recognised valuation methodology for the pricing of financial
instruments (the binomial option pricing model). If the share options granted
do not vest until the completion of a specified period of service, the fair
value assessed at the grant date is recognised in the income statement over
the vesting period as the services are rendered by employees with a
corresponding increase in equity. For options granted with no vesting period,
the fair value is recognised in the income statement at the date of the
grant. For share warrants granted in relation to services provided, the fair
value is an issue cost and is accordingly recognised in retained earnings. The
fair value of equity-settled share-based payments on exercise is released to
the share premium account. When equity settled share-based payments which
have not been exercised reach the end of the original contractual life,
whether share options or share warrants, the value is transferred from the
share option reserve to retained earnings.
Foreign Currencies
Transactions in foreign currencies are recorded at the rate of exchange ruling
at the date of the transaction. Monetary assets and liabilities denominated in
a foreign currency are translated into the functional currency at the exchange
rate ruling at the reporting date, unless specifically covered by foreign
exchange contracts whereupon the contract rate is used. All translation
differences are taken to the income statement with the exception of foreign
currency differences arising on net investment in a foreign operation. These
are recognised in other comprehensive income.
Results and cash flows of non-Euro subsidiary undertakings are translated into
Euro at average exchange rates for the year and the related assets and
liabilities are translated at the rates of exchange ruling at the reporting
date. Adjustments arising on translation of the results of non-Euro subsidiary
undertakings at average rates, and on the restatement of the opening net
assets at closing rates, are dealt with in a separate translation reserve
within equity. Proceeds from the issue of share capital are recognised at the
prevailing exchange rate on the date that the Board of Directors ratifies such
issuance; and foreign exchange movement arising between the date of issue and
the date of receipt of funds is credited or charged to the income statement.
The principal exchange rates used for the translation of results, cash flows
and balance sheets into Euro were as follows:
Average rate Spot rate at year end
2023 2022 2023 2022
1 GPD 0.8678 0.8526 0.8691 0.8869
1 USD 1.0813 1.0530 1.1050 1.0666
On loss of control of a foreign operation, accumulated currency translation
differences are recognised in the income statement as part of the overall gain
or loss on disposal.
Property, plant and equipment
Property, plant and equipment under the cost model are stated at historical
cost less accumulated depreciation and any accumulated impairment losses.
Historical cost includes expenditure that is directly attributable to bringing
the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
Depreciation is provided on the following basis:
Land and property 0%
Plant & machinery 33.33% straight line
Motor vehicles 33.33% straight line
On disposal of property, plant and equipment, the cost and related accumulated
deprecation and impairments are removed from the financial statements and the
net amounts less any proceeds are taken to the income statement.
The carrying amounts of property, plant and equipment are reviewed at each
balance sheet date to determine whether there is any indication of
impairment. An impairment loss is recognised whenever the carrying amount of
an asset or its cash generating unit exceeds its recoverable amount.
Impairment losses are recognised in the income statement.
Subsequent costs are included in an asset's carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the
replaced item can be measured reliably. All other repair and maintenance
costs are charged to the income statement during the financial period in which
they are incurred.
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
Except for the decommissioning provision and financial liabilities arising on
the grant of share warrants, 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. There are no expected
credit losses on amounts due from subsidiaries and therefore no expected
credit loss provision has been recognised.
Financial assets - amounts owed by subsidiary undertakings
Financial assets are classified as measured at amortised cost when they are
held in a business model the objective of which is to collect contractual cash
flows and the contractual cash flows represent solely payments of principal
and interest. Such assets are carried at amortised cost using the effective
interest method if the time value of money is significant. Gains and losses
are recognised in profit or loss when the assets are derecognised or impaired
and when interest is recognised using the effective interest rate method. This
category of financial assets includes trade and other receivables and loans
provided to subsidiary undertakings of the Company.
Impairment of financial assets
The expected credit loss model is applied for recognition and measurement of
impairments in financial assets measured at amortised cost. The loss allowance
for the financial asset is measured at an amount equal to the life-time
expected credit losses. Changes in loss allowances are recognised in profit
and loss.
Share Warrant Provision
The fair value of an equity classified warrant is measured using the binomial
option pricing model. As the warrant price is in a different currency to the
functional currency of the Company, the share warrant provision creates a
financial liability. The fair value is remeasured at each period end and any
movement charged or credited to the income statement. The fair value of the
liability settled by the issue of shares is credited to the share premium
account. The fair value on exercise is credited to the share premium
account.
Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of this
obligation. Where the Group expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the
Consolidated Statement of Comprehensive Income net of any reimbursement. If
the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
Contingencies
A contingent liability is disclosed where the existence of an obligation will
only be confirmed by future events or where the amount of the obligation
cannot be measured with reasonable reliability. Contingent assets are not
recognised but are disclosed where an inflow of economic benefit is probable.
2. Going concern
The financial statements of the Group and Parent Company 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 year ended 31 December 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 year ended 31 December 2023.
At the balance sheet date, the Group had cash and cash equivalents amounting
to €0.10 million and the Company raised an additional amount of €0.82
million (before transactions expenses) through a placing completed in March
2024. 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. The Directors are seeking a joint venture partner to provide
funding to enable the acceleration of the Group's Huntoon Copper Project.
The Directors also believe that the Group's cash flow 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 and
March 2024, 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 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
Revenue Loss
2023 2022 2023 2022
€ € € €
Exploration activities - Nevada - - (30,061) (31,891)
Corporate activities - - (959,751) (918,876)
Consolidated loss before tax - - (989,812) (950,767)
Segment assets
2023 2022
€ €
Exploration activities - Nevada 9,274,402 8,819,118
Corporate activities 190,035 137,930
Consolidated total assets 9,464,437 8,957,048
Segment liabilities
2023 2022
€ €
Exploration activities - Nevada 519,150 173,590
Corporate activities 113,871 165,434
Consolidated total Liabilities 633,021 339,024
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:
2023 2022
€ €
Nevada, USA - exploration activities 8,677,261 8,538,964
Ireland - -
United Kingdom - -
8,677,261 8,538,964
4. Finance income
Group Group Company Company
2023 2022 2023 2022
€ € € €
Bank interest receivable 4,434 527 4,246 517
4,434 527 4,426 517
5. Statutory and other disclosures
Group Group Company Company
2023 2022 2023 2022
€ € € €
Director's remuneration
- Salaries 316,105 311,335 134,452 135,434
- Social security 33,759 34,101 13,087 13,165
- Defined contribution pension scheme - - - -
- Share based payments 28,504 43,269 28,504 43,269
Auditor's remuneration
- Audit of the financial statements 30,750 30,750 27,500 27,500
- Other assurance services - - - -
- Other non-audit services - - - -
Effects of exchange rate changes on cash and cash equivalents 18,198 51,367 17,959 51,322
Effects of revaluation of share warrants - financial liability - (96,294) - (96,294)
6. Employment
Number of employees
The average number of employees, including executive Directors, during the
year was:
Group Group Company Company
2023 2022 2023 2022
Number Number Number Number
Executive and non-Executive Directors 6 6 6 6
Technical 3 2 - -
Administration 1 1 - -
10 9 6 6
Employees costs
The employment costs, including executive Directors, during the year were
charged to the income statement:
Group Group Company Company
2023 2022 2023 2022
€ € € €
Wages and salaries 499,167 480,197 134,452 135,434
Social security 51,043 49,354 13,087 13,165
Defined contribution pension scheme 2,480 3,361 - -
Share based payments 38,005 63,795 38,005 63,795
Total employees costs 590,695 596,707 185,544 212,394
Own costs capitalised (45,221) - - -
545,474 596,707 185,544 212,394
7. Income tax - expense
2023 2022
€ €
Current tax credit (43,782) (61,142)
Adjustment for previous period 6,624 (97,362)
(37,158) (158,504)
The income tax expense for the year can be reconciled to the accounting loss
as follows:
2023 2022
€ €
Loss before tax (989,812) (950,767)
Income tax calculated at 12.5% (2022: 12.5%) (123,727) (118,846)
Effects of:
Expenses not deductible for tax purposes 16,219 21,107
Income not taxable - (12,037)
Losses carried forward 107,508 109,776
Adjustment for UK research and development tax credit (37,158) (158,504)
Income tax (credit)/expense (37,158) (158,504)
The tax rate used for the year end reconciliations above is the corporation
rate of 12.5% payable by corporate entities in Ireland on taxable profits
under tax law in the jurisdiction of Ireland.
At the statement of financial position date, the Group had unused tax losses
of €8,390,479 (2022: €7,616,147) available for offset against future
profits. No deferred tax asset has been recognised due to the unpredictability
of future profit streams. Unused tax losses may be carried forward
indefinitely.
8. 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:
2023 2022
€ €
Loss for the year attribute to equity holders of the parent (952,654) (792,263)
Number of ordinary shares at start of year 3,577,510,005 3,577,510,005
Number of ordinary shares issued during the year 1,909,090,914 -
Number of ordinary shares in issue at end of year 5,486,600,919 3,577,510,005
Weighted average number of ordinary shares for the purposes of basic earnings 4,905,222,617 3,577,510,005
per share
Basic loss per ordinary share (cent) (0.0002) (0.0002)
Diluted earnings per share
There were no potentially dilutive ordinary shares that would increase the
basic loss per share.
9. Investments in subsidiaries
2023 2022
€ €
Subsidiary undertakings - unlisted
Investment cost 500,001 500,001
500,001 500,001
The Directors reviewed the recoverability of the investments and concluded
there was no impairment and that the carrying value of these investments to be
fully recoverable.
At 31 December 2023, the Company had the following subsidiary undertakings:
Name Incorporated in Main activity Holdings
Great Western Mining Corporation Inc. Nevada, U.S.A. Mineral Exploration 100%
GWM Operations Limited UK Service Company 100%
10. Property, plant and equipment
Property, plant & equipment Total
€ €
Cost
At 1 January 2022 93,644 93,644
Additions - -
Exchange rate adjustment 5,795 5,795
At 31 December 2022 99,439 99,439
Additions - -
Exchange rate adjustment (3,457) (3,457)
At 31 December 2023 95,982 95,982
Depreciation
At 1 January 2022 21,474 21,474
Depreciation charge for the year - -
Exchange rate adjustment 1,330 1,330
At 31 December 2022 22,804 22,804
Depreciation charge for the year - -
Exchange rate adjustment (794) (794)
At December 2023 22,010 22,010
Net book value
At 31 December 2023 73,972 73,972
At 31 December 2022 76,635 76,635
The net book value of €73,972 at 31 December 2023 (2022: €76,635) relates
to the Group's warehouse in Hawthorne, Nevada, and yard facility at Marietta,
Nevada. Motor vehicles, plant and machinery and were fully depreciated in
the prior year. The Directors have considered the carrying value of the
assets and concluded that there is no impairment.
11. Intangible assets
Exploration and evaluation assets Total
€ €
Cost
At 1 January 2022 7,086,254 7,086,254
Additions 963,765 963,765
Cost of decommissioning 445 445
Exchange rate adjustment 411,865 411,865
At 31 December 2022 8,462,329 8,462,329
Additions 373,815 373,815
Own employment costs capitalised 44,251 44,251
Cost of decommissioning 2,017 2,017
Exchange rate adjustment (279,123) (279,123)
At 31 December 2023 8,603,289 8,603,289
Net book value
At 31 December 2023 8,603,289 8,603,289
At 31 December 2022 8,462,329 8,462,329
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 specific indicators as
set out in 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 considered other factors in assessing potential impairment including
cash available to the Group, commodity prices and markets, taxation and
regulatory regime and access to equipment. The Directors also considered the
carrying amount of the Company's net assets in relation to its market
capitalisation. The Directors are satisfied that no impairment is required as
at 31 December 2023. 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, including the potential to
reprocess historical spoil heaps and tailings. This is dependent on several
variables including the existence of commercial mineral deposits, availability
of finance and mineral prices.
12. Amounts owed by subsidiary undertakings
Company Total
€
Cost
At 1 January 2022 8,626,955
Advances to subsidiary undertakings 1,176,388
At 31 December 2022 9,803,343
Advances to subsidiary undertakings 919,952
At 31 December 2023 10,723,295
Provisions for impairment
At 1 January 2022 1,703,600
Provision 1,607,700
At 31 December 2022 3,311,300
Provision 1,468,970
At 31 December 2023 4,780,270
Net book value
At 31 December 2023 5,943,025
At 31 December 2022 6,492,043
Amounts owed by subsidiary undertakings are denominated in Euro, interest free
and payable on demand. The Directors do not expect to call for repayment of
these loans in the foreseeable future. The loans are expected to be repaid
from future revenues generated by the Group's mining interests in Nevada, USA.
In accordance with IFRS 9, the Company has reviewed the amounts owed by
subsidiary undertakings and calculated an expected credit loss equivalent to
the lifetime expected credit loss. As the loans are interest free and
payable on demand, the Company applies no discount when calculating the
expected credit loss as the effective interest rate is considered to be 0%.
Based on the calculation, the Directors have made an impairment provision of
€1,468,970 as at 31 December 2023 (2022: €1,607,700). The Directors
believe the net carrying value of the amounts owed by subsidiary undertakings
to be fully recoverable.
13. Trade and other receivables
Group Group Company Company
2023 2022 2023 2022
€ € € €
Amounts falling due within one year:
Other debtors 83,204 85,169 - -
Tax credit receivable 97,186 152,398 - -
Prepayments 511,480 35,320 13,052 35,049
691,870 272,887 13,052 35,049
All amounts above are current and there have been no impairment losses during
the year (2022: €Nil).
14. Cash and cash equivalents
For the purposes 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. The cash and cash equivalents are held with bank and
financial institution counterparties, which are rated BBB+ to AA-.
Group Group Company Company
2023 2022 2023 2022
€ € € €
Cash in bank and in hand 37,125 97,586 21,545 67,134
Short term bank deposit 58,181 47,611 40,224 29,100
95,306 145,197 61,769 96,234
15. Trade and other payables
Group Group Company Company
2023 2022 2023 2022
€ € € €
Amounts falling due within one year:
Trade payables 262,368 45,716 1,929 11,923
Other payables - - - -
Accruals 227,259 146,778 49,423 92,511
Other taxation and social security 14,523 15,109 3,673 3,764
Amounts payable to subsidiary undertakings - - 67,155 61,322
504,150 207,603 122,180 169,520
The Group has financial risk management policies in place to ensure that
payables are paid within the pre-agreed credit terms (see note 22).
16. Decommissioning provision
Group Group Company Company
2023 2022 2023 2022
€ € € €
Decommissioning provision 128,871 131,421 - -
The decommissioning provisions relate to undertakings by the Group to carry
our reclamation work after the completion of planned work permitted by the
regulator. The cost of the reclamation work is estimated by the regulator in
advance and the notice permitting operations to be conducted, together with
the associated reclamation work, is effective for two years, subject to
certain variations. As the Group applies for approval of operations to be
conducted within the current year where possible, the cost of decommissioning
provision is treated as a current asset.
17. Share warrants - financial liability
The share warrants have been granted as rights to acquire additional new
ordinary share of €0.0001 in accordance with the terms of placings completed
in 2019, 2020 and 2021.
The warrants are classified and accounted for as financial liabilities using
Level 3 fair value measurement, with any change in fair value recorded in the
Consolidated Income Statement. Level 3 fair value recognises that the inputs
for any asset or liability valuation are not based on observable market data.
Group and Company
Number of warrants Level 3
Fair value
€
At 1 January 2022 670,272,727 96,294
Released on exercise of warrants (443,000,000) (47,536)
Movement in fair value of warrants liabilities - (48,758)
At 31 December 2022 227,272,727 -
Released on lapse of warrants (227,272,727) -
Movement in fair value of warrants liabilities - -
At 31 December 2023 - -
In April 2021, the Group granted warrants in connection with a share placing.
227,272,727 warrants were granted exercisable at £0.0030 each with immediate
vesting and a contractual life of 2 years. These warrants lapsed in April
2023 with the fair value of the warrants having been written down to nil at 31
December 2022.
18. Share capital
No of shares Value of shares
€
Authorised at 1 January 2022 and 31 December 2022 7,000,000,000 700,000
Authorised at 1 January 2023 7,000,000,000 700,000
Creation of Ordinary shares of €0.0001 each 2,000,000,000 200,000
Authorised at 31 December 2023 9,000,000,000 900,000
No of issued shares
Ordinary shares of €0.0001 each Share Share Total
capital premium capital
€ € €
Issued, called up and fully:
At 1 January and 31 December 2022
3,577,510,005 357,751 13,572,027 13,929,778
Issued, called up and fully:
At 1 January 2023 3,577,510,005 357,751 13,572,027 13,929,778
Ordinary shares issued 1,909,090,914 190,909 1,303,472 1,494,381
At 31 December 2023 5,486,600,919 548,660 14,875,499 15,424,159
The Company did not issue shares during the year ended 31 December 2022 and
accordingly there were no transaction expenses.
On 20 January 2023, the Company completed a placing for 1,000,000,000 new
ordinary shares of €0.0001 ("the Placing Share"). Each Placing Share was
issued at a price of £0.0008 (€0.0009) raising gross proceeds of £800,000
(€913,242) and increasing share capital by €100,000. The premium arising
on the issue amounted to €813,242. The warrants were granted with an
exercise price of £0.0030 and a fair value of €191,364.
On 2 August 2023, the Company completed a placing for 909,090,914 new ordinary
shares of €0.0001 ("the Placing Share"). Each Placing Share was issued at
a price of £0.00055 (€0.00064) raising gross proceeds of £500,000
(€581,139) and increasing share capital by €90,909. The premium arising on
the issue amounted to €490,230.
19. Share based payments
Share options
The Great Western Mining Corporation PLC operates a share options scheme,
"Share Option Plan 2014", which entitles directors and employees to purchase
ordinary shares in the Company at the market value of a share on the award
date, subject to a maximum aggregate of 10% of the issued share capital of the
Company on that date.
Measure of fair values of options
The fair value of the options granted has been measured using the binomial
lattice option pricing model. The input used in the measurement of the fair
value at grant date of the options were as follows:
30 Jan 2023 23 Feb 2022
Fair value at grant date €0.0006 €0.0011
Share price at grant date €0.0009 €0.0016
Exercise price €0.0009 €0.0016
Number of options granted 52,000,000 57,500,000
Vesting conditions Immediate Immediate
Expected volatility 108% 107.8%
Sub-optimal exercise factor 4x 4x
Expected life 7 years 7 years
Expected dividend 0% 0%
Risk free interest rate 2.31% 0.18%
During the year, the Group recognised a total expense of €38,005 (2022:
€63,795) in the income statement relating to share options granted during
the year:
Number of options Average exercise price
Outstanding at 1 January 2022 85,666,667 Stg0.62 p
Granted 57,500,000 Stg0.13 p
Authorised at 31 December 2022 143,166,667 Stg0.29 p
Granted 52,000,000 Stg0.09 p
Outstanding at 31 December 2023 195,166,667 Stg0.24 p
Exercisable at 31 December 2022 195,166,667 Stg0.24 p
Exercisable at 31 December 2022 143,166,667 Stg0.29 p
On 31 December 2023, there were options over 195,166,667 ordinary shares
outstanding (2022: 143,166,667) which are exercisable at prices ranging from
Stg0.09 pence to Stg1.6 pence and which expire at various dates up to February
2029. The weighted average remaining contractual life of the options
outstanding is 4 years 5 months (2022: 4 years 9 months).
Equity-settled warrants
In November 2022, broker warrants granted in November 2020 over 20,000,000
shares lapsed unexercised and an amount of €13,707 released from the
share-based payment reserve to retained earnings.
In April 2023, broker warrants granted in April 2021 over 22,727,272 shares
lapsed unexercised and an amount of €20,709 released from the share-based
payment reserve to retained earnings
At 31 December 2023, the balance on the share-based payment reserve amounted
to €386,005 (2022: €368,709).
20. Retained losses
In accordance with Section 304 of the Companies Act 2014, the Company has not
presented a separate income statement. Of the consolidated loss after
taxation, a loss of €2,008,511 for the financial year ended 31 December 2023
(2022: loss of €2,039,553) has been dealt with in the Company income
statement of Great Western Mining Corporation PLC.
21. Related party transactions
Intercompany transactions
In accordance with International Accounting Standards 24 - Related Party
Disclosures, transactions between Group entities that have been eliminated on
consolidation are not disclosed.
The Company entered in the following transactions with its subsidiary
companies:
2023 2022
€ €
Balances at 31 December:
Amounts owed by subsidiary undertakings 5,943,025 6,492,043
Amounts owed to subsidiary undertakings (67,155) (61,322)
Remuneration of key management personnel
Details of the directors' remuneration for the year is set out in Note 5.
Information about the remuneration of each director is shown in the
Remuneration Report. The directors are considered to be the Group's key
management personnel.
2023 2022
€ €
Short-term benefits: 316,105 311,335
Pension contributions - -
Share-based payments 28,504 43,269
344,609 354,604
The Group also entered into related party transactions with Andrew Hay
Advisory Limited for corporate finance advice services and Sofabar Consulting
Limited for marketing services which are companies connected with Andrew Hay
and Alastair Ford respectively. The companies each received €14,946 in the
period (2022: €15,245). There was a €nil balance outstanding with both
companies as at 31 December 2023 (2022: €nil). Details of the directors'
interests in the share capital of the Company are set out in the Directors'
Report .
22. Financial instruments and financial risk management
Group
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial
assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include fair value information for financial assets and
financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value. The Group does not recognise any Level
1 fair value financial assets or liabilities.
31 December 2023 FVTPL Financial assets at amortised cost Other financial liabilities Carrying amount total Level 2 Level 3
Fair value Fair value
€ € € € € €
Financial assets not measured at fair value
Cash and cash equivalent - 95,306 - 95,306 95,306 -
Financial liabilities measured at fair value
Share warrants - - - - - -
Financial liabilities measured at fair value
Decommissioning provision - - (128,871) (128,871) (128,871) -
Trade and other payables - - (504,150) (504,150) (504,150) -
- - (633,021) (633,021) (633,021) -
31 December 2022 FVTPL Financial assets at amortised cost Other financial liabilities Carrying amount total Level 2 Level 3
Fair value Fair value
€ € € € € €
Financial assets not measured at fair value
Cash and cash equivalent - 145,197 - 145,197 145,197 -
Financial liabilities measured at fair value
Share warrants - - - - - -
Financial liabilities measured at fair value
Decommissioning provision - - (131,421) (131,421) (131,421) -
Trade and other payables - - (207,603) (207,603) (207,603) -
- - (339,024) (339,024) (339,024) -
Measurement of fair values
A number of the Group's accounting policies and disclosures require the
measurement of fair values, for both financial and non-financial assets and
liabilities. Significant valuation issues are reported to the Group's audit
committee.
When measuring the fair value of an asset or a liability, the Group uses
observable market data as far as possible. Fair values are categorised into
different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows.
· Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities.
· Level 2: inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
· Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
Set out below are the major methods and assumptions used in estimating the
fair values of the financial assets and liabilities set out in the table
above:
Cash and cash equivalents including short-term deposits
For short-term deposits and cash and cash equivalents, all of which have a
remaining maturity of less than three months, the nominal value is deemed to
reflect the fair value.
Share warrants
For the financial liabilities from share warrants, the Level 3 fair value is
based on the revaluation of the warrants at the year-end, including the
changes to key input assumptions for expected volatility and expected exercise
life.
Decommissioning provision
The fair value is based on expected costs determined in line with estimates
provided by the regulator.
Trade and other payables
For the payables with a remaining maturity of less than six months or demand
balances, the contractual amount payable less impairment provisions, where
necessary, is deemed to reflect fair value.
B. Financial risk management
The Board has overall responsibility for the establishment and oversight of
the risk management framework for each of the risks summarised below. The
Board receives regular reports at board meetings through which it reviews the
effectiveness of the processes put in place and the appropriateness of the
objectives and policies it sets.
The Group's risk management policies are established to identify and analyse
the risks faced by the Group, to set appropriate risk limits and controls and
to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions and the Group's
activities. The Group, through its training and management standards and
procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.
The Group has exposure to the following risks arising from financial
instruments:
a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. The Group's principal credit risk arises on cash and cash
equivalents, including deposits with banks. The cash and cash equivalents
are held with bank and financial institution counterparties, which are rated
BBB+ to AA- by Fitch Ratings.
The carrying amount of financial assets represents the maximum credit
exposure. The maximum credit exposure to credit risk is:
Group Group
2023 2022
€ €
Trade and other debtors 691,870 272,887
Cash and cash equivalents 95,306 145,197
787,176 418,084
b) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting
the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Group's objective when
managing liquidity is to ensure, as far as possible, that it will have
sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group's reputation. The Group closely monitors and
manages its liquidity risk using both short and long-term cash flow
projections. Cash forecasts are regularly produced, and sensitivities run
for different scenarios including changes to planned work programmes. To
date, the Group has relied on shareholder funding to finance its operations.
Board approval would be required for any borrowing facilities and the Group
did not have any bank loan facilities at 31 December 2023 or 31 December 2022.
The expected maturity of the Group's financial assets (excluding prepayments)
as at 31 December 2023 and 31 December 2022 was less than one month.
The following are the contractual maturities of the financial liabilities
including estimated interest payments and excluding the impact of netting
agreements:
31 December 2023 Carrying amount Contractual 0-6 6-12 1-2
€ cashflows months months years
€ € € €
Trade payables 262,368 262,368 262,368 - -
Other payables - - - - -
Accruals 227,259 227,259 227,259 - -
Share warrant provision - - - - -
Decommissioning provision 128,871 128,871 - 128,871 -
618,498 618,498 489,627 128,871 -
31 December 2022 Carrying amount Contractual 0-6 6-12 1-2
€ cashflows months months years
€ € € €
Trade payables 45,716 45,716 45,716 - -
Other payables - - - - -
Accruals 146,778 146,778 146,778 - -
Share warrant provision - - - - -
Decommissioning provision 131,421 131,421 - 131,421 -
323,915 323,915 192,494 131,421 -
c) Market risk
Market risk is the risk that changes in market prices and indices will affect
the Group's income or the value of its holdings of financial instruments.
The Group has two principal types of market risk being foreign currency
exchange rates and interest rates.
The Group's operates in an industry with financial risks arising from changes
in commodity prices. At present the Group does not have revenue-generating
operations but the Directors keep the requirement for hedging instruments
under review. During the year, the Group did not enter into any hedging
transactions.
Foreign currency risk
The Group presentational and functional currency is the Euro. The Group
conducts and manages its business in Euro, US Dollars and GB Pounds in
accordance with liabilities of the parent company and subsidiary
undertakings. The Group therefore routinely purchases on the spot market the
currencies of the countries in which it operates. From time to time certain
transactions are undertaken denominated in other currencies. The risk is
managed wherever possible by holding currency in Euro, US Dollars and GB
Pounds. During the years ended 31 December 2023 and 31 December 2022, the
Group did not utilise derivatives to manage foreign currency risk. The Group
also recognises translation risk on consolidation as a foreign currency risk.
The Group's exposure to transactional foreign currency risk, for amounts
included in cash and cash equivalents and trade and other payables (as shown
on the balance sheet), is as follows:
GB US Euro GB Pounds US Euro
Pounds Dollars 2022 2022 Dollars 2022
2023 2023 € € 2022 €
€ € €
Cash and cash equivalents 42,660 18,182 - 69,150 25,683 -
Trade and other payables - - - (4,422) - -
42,660 18,182 - 64,728 25,683 -
Sensitivity analysis
A 10% strengthening or weakening in the value of sterling and the euro against
the US dollar, based on the outstanding financial assets and liabilities at 31
December 2023 (2022: 10%), would have the following impact on the income
statement. This analysis assumes that all other variables, in particular
interest rates, remain constant.
10% 10% decrease 10% 10%
increase 2023 increase decrease
2023 € 2022 2022
€ € €
Cash and cash equivalents 6,084 (6,084) 9,483 (9,483)
Trade and other creditors - - (888) 888
6,084 (6,084) 8,595 (8,595)
Tax impact - - - -
After tax 6,084 (6,084) 8,595 (8,595)
Interest rate risk
The Group's exposure to the risk of changes in market interest rates relates
primarily to the Group and Company's holdings of cash and short-term deposits.
It is the Group and Company's policy as part of its management of the
budgetary process to place surplus funds on short term deposit from time to
time where interest is earned. The Group did not have any bank loan
facilities at 31 December 2023 or 31 December 2022.
The interest rate profile of the Group's interest-bearing financial
instruments at 31 December 2023 was as follows:
Fixed Floating Fixed Floating
rate rate Total rate rate Total
2023 2023 2023 2022 2022 2022
€ € € € € €
Cash and cash equivalents - 58,181 58,181 - 47,611 47,611
Tax impact - - - - - -
- 58,181 58,181 - 47,611 47,611
Cash flow sensitivity analysis
The Company's approach to the management of financial risk is as set out under
the Group disclosures above. The accounting classification for each class of
the Company's financial assets and financial liabilities, together with their
fair values, is as follows:
An increase of 500 basis points (2022: 500 basis points) or decrease of 500
basis points (2022: 500 basis point) in interest rates at the reporting date
would have had the following effect on the income statement. This analysis
assumes all other variables, in particular foreign currency, remain constant.
500 bps 500 bps decrease 500 bps 500 bps
increase 2023 increase decrease
2023 € 2022 2022
€ € €
Cash and cash equivalents 291 (291) 238 (238)
Tax impact - - - -
After tax 291 (291) 238 (238)
The Group has no interest bearing loans outstanding at 31 December 2023 and 31
December 2022. As there are no variable rate loans, there is no potential
impact to profit and loss from a change in interest rates.
Company
A. Accounting classifications and fair values
The Company's approach to the management of financial risk is as set out under
the Group disclosures above.
The accounting classification for each class of the Company's financial assets
and financial liabilities, together with their fair values, is as follows:
31 December 2023 FVTPL Financial assets at amortised cost Other financial liabilities Carrying amount total Level 2 Level 3
Fair value Fair value
€ € € € € €
Financial assets
measured at fair value
Amounts owed by subsidiary undertakings 5,943,025 - - 5,943,025 - 5,943,025
Financial assets not measured at fair value
Cash and cash equivalents - 61,769 - 61,769 61,769 -
Financial liabilities
measured at fair value
Share warrants - - - - - -
Financial liabilities not measured at fair value
Trade and other payables - - (55,027) (55,027) (55,027) -
31 December 2022 FVTPL Financial assets at amortised cost Other financial liabilities Carrying amount total Level 2 Level 3
Fair value Fair value
€ € € € € €
Financial assets
measured at fair value
Amounts owed by subsidiary undertakings 6,492,043 - - 6,492,043 - 6,492,043
Financial assets not measured at fair value
Cash and cash equivalents - 96,234 - 96,234 96,234 -
Financial liabilities
measured at fair value
Share warrants - - - - - -
Financial liabilities not measured at fair value
Trade and other payables - - (108,198) (108,198) (108,198) -
The Company does not recognise any Level 1 fair value financial assets or
liabilities.
Measurement of fair values
The Company's basis for the measurement of fair values is as set out under the
Group disclosures above.
Amounts due from subsidiary companies
The amounts due from subsidiary undertakings are technically repayable on
demand and so the carrying value is deemed to reflect fair value. The
estimation of other fair values is the same, where appropriate, as for the
Group as set out in above.
Risk exposures
The Company's operations expose it to the risks as set out for the Group
above.
This note presents information about the Company's exposure to credit risk,
liquidity risk and market risk, the Company's objectives, policies and
processes for measuring and managing risk. Unless stated, the policy and
process for measuring risk in the Company is the same as outlined for the
Group above.
Credit risk
The carrying value of financial assets, net of impairment provisions,
represents the Company's maximum exposure at the balance sheet date. The
maximum credit exposure to credit risk is:
Company Company
2023 2022
€ €
Amounts due from subsidiary undertakings 5,943,025 6,492,043
Trade and other debtors 13,052 35,049
Cash and cash equivalents 61,769 96,234
6,017,846 6,623,326
At the balance sheet date, there was deemed to be a reduction in credit risk
related to the loans due from subsidiary undertakings. The loans are
expected to be recovered from future revenues generated by the Group's assets
in Nevada, USA. A lifetime expected credit loss was calculated and a partial
impairment provision of €1,468,970 has been made against the carrying value
of the loans due from subsidiary undertakings (2022: €1,607,700) (see note
12). The expected credit loss calculation involved considering the maximum
amount exposed to default, the potential loss arising on default and the
probability of default in the judgement of the Directors.
The Directors are satisfied that no further impairment is considered to have
occurred.
Liquidity risk
The liquidity risk for the Company is similar to that for the Group as set out
above.
The following are the contractual maturities of the financial liabilities
including estimated interest payments and excluding the impact of netting
agreements:
31 December 2023 Carrying amount Contractual 0-6 6-12 1-2
€ cashflows months months years
€ € € €
Trade payables 1,929 1,929 1,929 - -
Accruals 49,423 49,423 49,423 - -
Share warrant provision - - - - -
51,352 51,352 51,352 - -
31 December 2022 Carrying amount Contractual 0-6 6-12 1-2
€ cashflows months months years
€ € € €
Trade payables 11,923 11,923 11,923 - -
Accruals 92,511 92,511 92,511 - -
Share warrant provision - - - - -
104,434 104,434 104,434 - -
Market risk
The market risk for the Company is similar to that for the Group as set out
above. The Company's exposure to transactional foreign currency risk,
including the associated sensitivities, is the same as the Group's as set out
above.
23. Post balance sheet events
On 11 March 2024, the Company announced a Placing Agreement for the issue of
1,610,344,827 new Ordinary Shares of €0.0001 each at a price of 0.0435 pence
each, raising £700,500 (€819,826) before transaction expenses and completed
on 19 March 2024.
On 16 April 2024, the Company exercised an option to acquire the Olympic Gold
Project.
There were no other significant post balance sheet events.
24. Approval of financial statements
The financial statements were approved by the Board on 8 May 2024.
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