Great Western Mining Corporation PLC
Annual Report and Financial Statements
Contents
Page
Directors and other information................................................................2
Chairman's Statement and Review of Activities ........................................3
Directors' Report ......................................................................................5
Independent Auditors' Report..................................................................10
Consolidated Statement of Comprehensive Income .................................13
Consolidated Statement of Changes in Equity .........................................14
Company Statement of Changes in Equity...............................................15
Consolidated Statement of Financial Position...........................................16
Company Statement of Financial Position ................................................17
Consolidated Statement of Cash Flows....................................................18
Company Statement of Cash Flows .........................................................19
Notes to the Financial Statements............................................................20
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 1
Directors and other information
Directors
Emmett O'Connell
(Executive Chairman)
Melvyn Quiller (UK)
(Chief Executive Officer)
Robert O'Connell
(Operations Director)
Nial Ring
(Non-Executive Director)
Christopher Hall (UK)
(Non-Executive Director)
Brian Hall (UK)
(Non-Executive Director)
Registered Office
& Business Address
6 Northbrook Road,
Dublin 6.
Secretary
Emmett O'Connell
Auditors
Bankers
LHM Casey McGrath,
Chartered Certified Accountants
Statutory Audit Firm
6 Northbrook Road,
Dublin 6.
HSBC Bank
60 Queen Victoria Street
London EC4N 4TR
England
Bank of Ireland
Taghmon
Co. Wexford
Country Bank,
200 42nd Street,
New York,
U.S.A.
Solicitors
John O'Connor Solicitors,
168 Pembroke Road,
Ballsbridge,
Dublin 4.
Geological Consultant Donald G. Strachan
Geologist QP CPG
Box 4046, Carson City
Nevada 89702, U.S.A.
AIM Nominated
Advisor & Broker
ESM Advisor and
Joint Broker
Registrar
Shore Capital
Bond Street House
14 Clifford Street
London W1S 4JU
England.
Davy
Davy House
49 Dawson Street
Dublin 2, Ireland
Computershare Investor Services
(Ireland) Limited
Heron House,
Corrig Road,
Sandyford,
Dublin 18.
Registered Number
392620, Republic of Ireland.
Date of Incorporation 20 October 2004.
Website
www.greatwesternmining.com
page 2
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Chairman's Statement & Review of Activities
Results highlights
• Exploration report completed on prospect M2, highlighting potential for 'shallow, open-pittable, disseminated
copper oxides’
• Phase 1 work completed on Target 4 confirming near-surface copper oxide mineralisation over a 2,500m
strike length
• Significantly reduced loss for the year, after providing for depreciation and taxation: €369,186 (2011:
€793,151)
• Basic and Diluted loss per share: €0.0081 (2011: €0.0198)
Post year-end highlights
• 9 hole drilling programme at prospect M2 providing positive results regarding copper mineralisation
The period under review has been one of the most active periods in the Company's relatively short history with
considerable time and investment being committed to geological and field studies in preparation for a long planned
reverse circulation drilling programme.
The sizable area of some 73 square kilometres of mineral claims held by the Company hosting a variety of mineral
prospects, provided us with various choices as to where we should commit the drill bit. We decided to focus on the
claims with the most potential for copper given its strong demand in world markets and the existence of major
copper production in South Western Nevada.
In considering the precise location for the reverse circulation drilling phase and guided by our geological consultants,
the Directors re-examined the extensive body of information which has accumulated since the Company was
incorporated. As a reminder, these studies include: aero-magnetic, induced polarisation, satellite reconnaissance,
soil and chip sampling, trenching and earlier 19th and 20th century records of pit and addit workings. In the final
analysis, we chose to focus on our M2 target on the South Eastern edge of the group's area of claims.
During 2012, a programme of 4 to 6 exploration drill holes was planned to test for a shallow oxide copper deposit.
Post balance sheet activity saw the drill bit turning in January this year, extending to 9 holes in February as the
weather permitted.
With few exceptions, 2.25 kg samples of drill chips were taken every five feet, bagged, logged and transported to
Florin Analytical Services in Reno, Nevada for testing.
The resulting JORC compliant report was announced on 10th May and I have summarised the report as a series of
quotes below. The entire 27 page report and associated maps can be viewed on the Company's website
(www.greatwesternmining.com).
The Board was greatly encouraged with the outcome which exceeded expectations and reinforced our extensive
prior geological research into the potential presence of economic quantities of copper in our M2 property. It appears
that there is a linear extension of copper oxide values extending 1200m in length by 120m wide running down the
M2-Smith and M4 prospects. Looking to the future, the Company plans to acquire additional claims to the east of
M2-Smith for use as a potential mill site.
What follows is a body of text taken from the recent report which supports the Board's opinion that M2-Smith is
in itself, an area of significant potential value to shareholders:
"Phase One results and recommendations, M2-Smith, Marietta NV 8th May 2013.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 3
Three drill holes out of the nine pre-emptive holes drilled in February 2013 at M2-Smith intercepted discovery-
grade and thicknesses of oxide copper, ranging from 30 feet (9.1 m) of 1.13% Cu in drill hole M2-004, to 30 feet
(9.1 m) of 0.84% Cu in drill hole M2-005, to 40 Feet (9.1 m) of 0.2% Cu in drill hole M2-001.
Anomalous copper above 0.05% Cu cut-off was encountered in eight of the nine holes, with intercepts ranging
from 135 feet (41.1 m) grading 0.13% Cu in M2-001 to 60 feet (18.3 m) of 0.60% Cu in M2-004. The two copper
intercepts in M2-001 totalling 240 feet with a combined grade of 0.12% Cu, with 70 feet of lower grade material
between.
Significant gold occurred in drill hole M2-004, where 15 feet (4.5 m) grading 0.09 gpt AU was intercepted at 35
feet. Significant gold was not encountered in the other eight drill holes.
Copper within the mineralized sedimentary-intrusive contact may have enough continuity both along the strike
and down-dip to allow development of an economic oxide and perhaps sulphide resource within its known width
and strike length. Stockwork fractures and disseminations in the diorite may also have economic volumes and
grades. A potentially much larger possibility is a manto or stratiform deposit within sediments between the known
mineralization at M2 and at Smith, between the northwest and southeast limbs of the Black Mountain syncline.
Significant copper above 0.2% Cu cut-off was intercepted in five of the nine holes drilled in 2013. Significant
individual intercepts in these five holes ranged from 40 feet (12.2 m) of 0.20% Cu (M2-001-Appendix A) to 30 feet
(9.1 m) 0f 1.13% Cu (M2-004 - Appendix A). Drill hole M2-005 (Appendix A) also intercepted 30 feet (9.1 m) of
significant copper, but with a lower grade of 0.84% Cu. Anomalous copper above 0.05% Cu cut-off was intercepted
in eight of the nine holes of 2013. Discovery-grade and thicknesses of oxide copper were encountered at depths
less than 140 feet by three of the 2013 drill holes (M2-001, 004 and 005, Table 3). Five additional Phase One drill
holes encountered anomalous copper grades and thicknesses within geologic contexts similar to those of the
discovery holes.
Oxide copper occurs in outcrop and soils at M2 within a known mineralized width of at least 120 meters and a strike
length of 1,200 meters long. This band of oxide copper mineralization appears to be associated with magnetite-
altered diorite near the north easterly sedimentary-intrusive contact mentioned above. Oxide copper appears to be
disseminated within portions of the altered diorite and also distributed along bedding planes and in sandy limestone
beds for up to 10 stratigraphic meters above the intrusive contact.
Surface copper assays from two days of reconnaissance-level rock chip geochemical sampling at M2 yielded up to
77,000ppm total Cu from black diorite with disseminated limonite-magnetite-chrysocolla-azurite-malachite (sample
120412.04). Up to 17,160 ppm total Cu in surface samples was associated with thick zones of disseminated,
abundant, clayey, pale lime-green mineral breccias (samples 169149 and 169420) near the intrusive-sedimentary
contact. Stratiform chalcopyrite-pyrite oxidized to azurite-malachite in hangingwall, silicified, thin-bedded
limestone's was also noted and sampled at the surface (sample 120412.05), returning an assay of 9,580 ppm total
Cu. (Table 1, Figures 4 and 5-Appendix C)."
The Directors are committed to maximising value and will provide shareholders with regular reports and further news
to build on our recent success.
Emmett O'Connell
Chairman
page 4
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Directors' Report
for the year ended 31 December 2012
The Directors present their Annual Report and audited consolidated financial statements for the year ended 31
December 2012 for Great Western Mining Corporation PLC ("the Company") and its subsidiary (collectively "the
Group").
Principal Activity
The Group's main activity is the exploration and mining for copper, silver, gold and other minerals in Nevada, U.S.A.
The Directors have reviewed the financial position of the Group and are satisfied that the Group will continue to
operate at its projected level of activity for the foreseeable future.
Review of Business and Future Developments
A detailed review of activities for the year and future prospects of the Group is contained in the Chairman's
Statement and Review of Activities.
Principal Risks and Uncertainties
The Group's activities are carried out principally in North America and in the Republic of Ireland. Accordingly the
principal risks and uncertainties are considered to be the following:
Exploration Risk
Exploration and development activities may be delayed or adversely affected by factors outside the Group's control,
in particular: climatic conditions, existence of commercial deposits of copper, silver, gold and other minerals,
unknown geological conditions; remoteness of location; actions of host governments or other regulatory authorities
(relating to, inter alia, the grant, maintenance or renewal of any required authorisations, environmental regulations
or changes in law).
Commodity Price Risk
The demand for, and price of, copper, silver, gold and other minerals is dependent on global and local supply and
demand, actions of governments or cartels and general global economic and political developments.
Share Price
The share price movement in the year ranged from a low of Stg £0.0200 to a high of Stg £0.0875 (2011: Stg
£0.0775 to Stg £0.135). The share price at the year end was Stg £0.0238 (2011: Stg £0.0812).
Results And Dividends
The loss for the year after providing for depreciation and taxation amounted to €369,186 (2011 : € 793,151 ).
All exploration and development costs to date have been deferred, no transfers to distributable reserves or dividends
are recommended.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 5
Directors and Secretary and their Interests
In accordance with the Articles of Association, Robert O'Connell, Melvyn Quiller and Christopher Hall retire from
the Board by rotation and being eligible offers themselves for re-election. Brian Hall will offer himself for election
to the board.
The Directors and secretary who held office at the year end had no interest, either direct or beneficial, other than
those shown below, in the shares of the Company.
Directors
Emmett O'Connell (Director & Secretary)
Emmett O'Connell (Pension Fund)
Melvyn Quiller
Brian Hall
Nial Ring
Robert O'Connell
Robert O'Connell (Pension Fund)
Christopher Hall
28 June '13
31 Dec '12
1 Jan '12
8,910,343
1,900,000
1,847,813
333,333
850,000
5,201,365
250,000
-
8,910,343
1,900,000
1,847,813
333,333
850,000
5,201,365
250,000
-
5,802,818
1,650,000
1,847,813
-
850,000
5,201,365
250,000
-
Transactions Involving Directors
There have been no contracts or arrangements of significance during the year in which Directors of the Company
were interested other than as disclosed in Notes 17, 18 and 19 to the financial statements.
Significant Shareholders
The Company has been informed that, in addition to the interests of the Directors, at 31 December 2012 and the
date of this report, the following shareholders own 3% or more of the issued share capital of the Company:
Pershing International Nominees Ltd
Goodbody Stockbrokers Nominees Limited
Ashdale Investment Trust Services
Percentage of Issued share capital
28 June '13
6.46%
4.50%
23.11%
31 Dec '12
6.46%
4.50%
23.11%
The Directors are not aware of any other holding of 3% or more of the share capital of the Company.
page 6
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Group undertakings
Details of the Company's subsidiary are set out in Note 10 to the financial statements.
Political donations
The Company did not make any political donations during the year (2011 : €Nil).
Going Concern
The future of the Group is dependent on the successful future outcome of its exploration interests. The Directors
have carried out a review of budgets and cash flows for the twelve months after the date of this report and on the
basis of that review, consider that the Group and the Company, based on current exploration activity, will have
adequate financial resources to continue in operation for the foreseeable future. As exploration activity is expanded,
further funding will be required.
The Directors consider that in preparing the financial statements they have taken into account all information that
could reasonably be expected to be available. On this basis, they consider that it is appropriate to prepare the
financial statements on the going concern basis.
Corporate governance
The Directors are committed to maintaining the highest standards of corporate governance commensurate with the
size, stage of development and financial status of the Group.
The Board
The Board is responsible for the supervision and control of the Company and is accountable to the shareholders.
The Board has reserved decision-making on a variety of matters, including determining strategy for the Group,
reviewing and monitoring executive management performance and monitoring risks and controls.
The Board currently has six Directors, comprising three executive Directors and three non-executive Directors. The
Board met formally on fourteen occasions during the year ended 31 December 2012. An agenda and supporting
documentation was circulated in advance of each meeting. All the Directors bring independent judgement to bear
on issues affecting the Group and all have full and timely access to information necessary to enable them to
discharge their duties. The Directors have a wide and varying array of experiences in the industry.
Audit Committee
The Audit Committee comprises Brian Hall (Chairman) and Christopher Hall. It may examine any matters relating
to the financial affairs of the Group and the Group's audits. This includes reviews of the annual financial statements
and announcements, internal control procedures, accounting procedures, accounting policies, the appointment,
independence, objectivity, terms of reference and fees of external auditors and such other related functions as the
Board may require.
Remuneration Committee
The Remuneration Committee comprises Brian Hall (Chairman) and Christopher Hall. It determines the terms and
conditions of employment and annual remuneration of the executive directors. It consults with the Chief Executive
Officer, takes into consideration external data and comparative third party remuneration and has access to
professional advice outside the Company.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 7
The key policy objectives of the Remuneration Committee in respect of the Company's executive directors are:
-
-
to ensure that individuals are fairly rewarded for their personal contributions to the Company's overall
performance; and
to act as the independent committee ensuring that due regard is given to the interest of the
Company's shareholders and to finacial and commercial health of the Company.
Directors' Remuneration, including employer's PRSI, during the year ended 31 December 2012 was as follows:
Remuneration and other emoluments - Executive Directors
Remuneration and other emoluments - Non-Executive Directors
2012
Total
€
76,611
41,271
_________
117,882
_________
2011
Total
€
192,629
8,620
_________
201,249
_________
Nomination Committee
At present, as the Board of Directors is small, no formal Nomination Committee has been established. The authority
to nominate new Directors for appointment vests with the Board of Directors. All Directors co-opted to the Board
during any financial period are subject to election by shareholders at the first opportunity following their
appointment. Consideration to setting up a Nomination Committee is under continuous review.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the Group and Company financial statements
in accordance with applicable Irish law and regulations.
Company law requires the Directors to prepare Group and parent Company financial statements for each financial
year. As permitted by company law, the Directors have prepared the Group financial statements in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the EU (EU IFRS) and have elected to prepare the
Company financial statements in accordance with EU IFRS, as applied in accordance with the provisions of the
Companies Acts, 1963 to 2012.
The Group and Company financial statements are required by law and EU IFRS to present fairly the position and
performance of the Group; the Companies Acts provide, in relation to such financial statements, that references in
the relevant part of the Acts to financial statements giving a true and fair view are references to their achieving a
fair presentation.
In preparing each of the Group and Company financial statements, the Directors are required to:
-
select suitable accounting policies and apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- declare and explain any material departures from applicable accounting standards;
page 8
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Company, and the Group as a whole, will continue in business.
The directors confirm that they have complied with the above requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any
time the financial position of the Company and Group and which enable them to ensure that the financial
statements comply with the Companies Acts, 1963 to 2012, the European Communities (Companies: Group
Accounts) Regulations 1992 and all regulations to be construed as one with those Acts.
They are responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included
on the Company's website. Legislation in the Republic of Ireland governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Accounting records
The measures taken by the Directors to ensure compliance with the requirements of Section 202, Companies Act
1990, regarding proper books of account are the implementation of necessary policies and procedures for recording
transactions, the employment of competent accounting personnel with appropriate expertise and the provision of
adequate resources to the financial function. The books of account of the Company are maintained at Raheenduff
House, Foulksmills, Co. Wexford.
Auditors
The auditors, LHM Casey McGrath, have indicated their willingness to continue in office in accordance with the
provisions of Section 160(2) of the Companies Act, 1963.
On behalf of the board
Emmett O'Connell
Melvyn Quiller
Date: 21 June 2013
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 9
Independent Auditors' Report to the Shareholders of Great Western Mining Corporation PLC
We have audited the Group and Company financial statements (the "financial statements") of Great Western
Mining Corporation PLC for the year ended 31 December 2012 which comprise of the Consolidated Statement of
Comprehensive Income, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity,
Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement
of Cash Flows, Company Statement of Cash Flows, and notes thereon. These financial statements have been
prepared under the accounting policies set out on pages 20 to 25.
This report is made solely to the Company's members as a body in accordance with Section 193 of the Companies
Act, 1990. Our audit work has been undertaken so that we might state to the Company's members those matters
that we are required to state to them in the audit report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Company or the Company's members
as a body for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
The Directors' responsibilities for preparing the Annual Report and the financial statements in accordance with
applicable law and International Financial Reporting Standards as adopted by the European Union ("IFRS") are set
out in the Statement of Directors' Responsibilities on pages 8 and 9.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial statements give a true and fair view in accordance
with International Financial Reporting Standards as adopted by the European Union and have been properly prepared
in accordance with the Companies Acts 1963 to 2012. We also report to you to whether, in our opinion; proper
books of account have been kept by the Company; whether at the Statement of Financial Position date, there exists
a financial situation requiring the convening of an extraordinary general meeting of the Company; and whether the
information given in the Directors' Report is consistent with the financial statements. In addition, we state whether
we have obtained all the information and explanations necessary for the purposes of our audit and whether the
Company's financial position is in agreement with the books of account.
We report to the shareholders if, in our opinion, any information specified by law or the listing rules of AIM regarding
Directors' remuneration and Directors' transactions is not given and, where practicable, include such information
in our report.
We read the other information contained in the Annual Report and consider whether it is consistent with the
audited financial statements. This other information comprises only the Chairman's Statement and Review of
Activities. We consider the implications for our audit report if we become aware of any apparent misstatement or
material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
page 10
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements
made by the Directors in the preparation of the financial statements, and whether the accounting policies are
appropriate to the Group's and Company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion
we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
-
-
-
the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by
the EU, of the state of the Group's affairs as at 31 December 2012 and of its loss for the year
then ended;
the Company financial statements give a true and fair view, in accordance with IFRSs as adopted
by the EU and as applied in accordance with the provisions of the Companies Acts, 1963 to
2012, of the state of the Company's affairs as at 31 December 2012 ; and
the financial statements have been properly prepared in accordance with the Companies Acts,
1963 to 2012.
We have obtained all the information and explanations we consider necessary for the purposes of our audit. In our
opinion proper books of account have been kept by the Company. The Company Statement of Financial Position
is in agreement with the books of account.
In our opinion the information given in the Directors' Report on pages 5 to 9 is consistent with the financial
statements.
The net assets of the Company, as at the financial position date, are more than half of the amount of its called up
share capital and, in our opinion, on that basis there did not exist at 31 December 2012 a financial situation which
under Section 40(1) of the Companies (Amendment) Act 1983 may require the convening of an extraordinary
general meeting of the Company.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 11
Emphasis of Matter - Going Concern
In forming our opinion on the financial statements, which is not modified, we considered:
(1)
(2)
the adequacy of disclosures made in Note 9 to the financial statements in relation to the Directors' assessment
of the carrying value of the Group's deferred exploration costs amounting to €1,564,210.
the adequacy of the disclosures made in Note 2 to the financial statements concerning the Group's ability
to continue as a going concern. The Group incurred a net loss of €369,186 for the year ended 31 December
2012.
These conditions indicate the existence of material uncertainty which may cast significant doubt about the Group's
ability to continue as a going concern. The financial statements do not include the adjustments that would result
if the Group was unable to continue as a going concern.
_____________________
Brendan Murtagh
For and on behalf of
LHM Casey McGrath
Chartered Certified Accountants
Statutory Audit Firm
6 Northbrook Road, Dublin 6.
Date: 21 June 2013
page 12
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2012
Continuing Operations
Administrative expenses
Finance costs
Notes
(365,386)
5
2012
€
(787,342)
(3,800)
_________
2011
€
(5,809)
_________
Loss for the year before tax
(369,186)
(793,151)
Income tax expense
Total Comprehensive Loss for the year
Loss attributable to:
Equity holders of the Company
Total Comprehensive Loss attributable to:
Equity holders of the Company
Earnings per share
from continuing operations
Basic and Diluted loss per share (cent)
7
8
-
_________
(369,186)
_________
(369,186)
_________
(369,186)
_________
(369,186)
_________
(369,186)
_________
-
_________
(793,151)
_________
(793,151)
_________
(793,151)
_________
(793,151)
_________
(793,151)
_________
(0.81)
_________
(1.98)
_________
All activities derived from continuing operations. All losses and total comprehensive losses for the period are
attributable to the owners of the Company.
The Company has no recognised gains or losses other than those dealt with in the statement of comprehensive
income.
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by:
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 13
Consolidated Statement of Changes in Equity
for the year ended 31 December 2012
Balance at 1 January 2011
Total comprehensive income for the year
Loss for the year
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Shares issued
Total transactions with owners
Balance at 31 December 2011
Balance at 1 January 2012
Total comprehensive income for the year
Loss for the year
Share options granted in the year
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Shares issued
Total transactions with owners
Balance at 31 December 2012
Share
Capital
€
Share
Premium
€
Retained
Losses
€
Total
€
282,536
_________
1,602,234 (1,474,362)
_________
_________
410,408
_________
-
_________
-
_________
-
_________
-
_________
(793,151)
_________
(793,151)
_________
(793,151)
_________
(793,151)
_________
182,368
_________
182,368
_________
1,888,023
_________
1,888,023
_________
-
_________
-
_________
2,070,391
_________
2,070,391
_________
464,904
_________
3,490,257 (2,267,513)
_________
_________
1,687,648
_________
464,904
_________
3,490,257 (2,267,513)
_________
_________
1,687,648
_________
-
-
_________
-
_________
-
-
_________
-
_________
(369,186)
-
_________
(369,186)
_________
(369,186)
-
_________
(369,186)
_________
183,334
_________
183,334
_________
488,003
_________
488,003
_________
-
_________
-
_________
671,337
_________
671,337
_________
648,238
_________
3,978,260
_________
(2,636,699)
_________
1,989,799
_________
Net equity is attributable to the holders of the ordinary shares in the Group.
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
page 14
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Company Statement of Changes in Equity
for the year ended 31 December 2012
Balance at 1 January 2011
Total comprehensive income for the year
Loss for the year
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Shares issued
Total transactions with owners
Balance at 31 December 2011
Balance at 1 January 2012
Total comprehensive income for the year
Loss for the year
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Shares issued
Total transactions with owners
Balance at 31 December 2012
Share
Capital
€
Share
Premium
€
Retained
Losses
€
Total
€
282,536
_________
1,602,234 (1,467,122)
_________
_________
417,648
_________
-
_________
-
_________
-
_________
-
_________
(820,560)
_________
(820,560)
_________
(820,560)
_________
(820,560)
_________
182,368
_________
182,368
_________
1,888,023
_________
1,888,023
_________
-
_________
-
_________
2,070,391
_________
2,070,391
_________
464,904
_________
3,490,257 (2,287,682)
_________
_________
1,667,479
_________
464,904
_________
3,490,257 (2,287,682)
_________
_________
1,667,479
_________
-
_________
-
_________
-
_________
-
_________
(346,105)
_________
(346,105)
_________
(346,105)
_________
(346,105)
_________
183,334
_________
183,334
_________
488,003
_________
488,003
_________
-
_________
-
_________
671,337
_________
671,337
_________
648,238
_________
3,978,260
_________
(2,633,787)
_________
1,992,711
_________
Net equity is attributable to the holders of the ordinary shares in the Company.
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 15
Consolidated Statement of Financial Position
as at 31 December 2012
Notes
2012
€
2011
€
Assets
Non-Current Assets
Intangible assets
Total Non-Current Assets
Current Assets
Trade and other receivables
Cash and cash equivalents
Total Current Assets
Total Assets
Equity
Capital and Reserves
Share capital
Share premium
Retained loss
Attributable to owners of the Company
Total Equity
Liabilities
Current Liabilities
Trade and other payables
Total Liabilities
Total Equity and Liabilities
9
11
12
14
14
16
13
1,564,210
_________
1,564,210
12,254
712,501
_________
724,755
_________
2,288,965
_________
648,238
3,978,260
(2,636,699)
_________
1,989,799
_________
1,989,799
_________
299,166
_________
299,166
_________
2,288,965
_________
1,231,607
_________
1,231,607
-
656,057
_________
656,057
_________
1,887,664
_________
464,904
3,490,257
(2,267,513)
_________
1,687,648
_________
1,687,648
_________
200,016
_________
200,016
_________
1,887,664
_________
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
page 16
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Company Statement of Financial Position
as at 31 December 2012
Assets
Non-Current Assets
Investment in Subsidiaries
Total Non-Current Assets
Current Assets
Trade and other receivables
Cash and cash equivalents
Total Current Assets
Total Assets
Equity
Capital and Reserves
Share capital
Share premium
Retained loss
Equity Attributable to equity shareholders
Total Equity
Liabilities
Current Liabilities
Trade and other payables
Total Liabilities
Total Equity and Liabilities
Notes
10
11
12
14
14
16
13
2012
€
2011
€
500,000
_________
500,000
_________
1,059,817
704,283
_________
1,764,100
_________
2,264,100
_________
648,238
3,978,260
(2,633,787)
_________
1,992,711
_________
1,992,711
_________
500,000
_________
500,000
_________
738,684
628,734
_________
1,367,418
_________
1,867,418
_________
464,904
3,490,257
(2,287,682)
_________
1,667,479
_________
1,667,479
_________
271,389
_________
271,389
_________
2,264,100
_________
199,939
_________
199,939
_________
1,867,418
_________
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 17
Consolidated Statement of Cash Flows
for the year ended 31st December 2012
Cash flows from operating activities
Loss for the year
Movement in trade and other receivables
Movement in trade and other payables
Cash flows from operating activities
Cash flows from investing activities
Expenditure on intangible assets
Interest paid
Cash flow from investing activities
Cash flows from financing activities
Proceeds from the issue of new shares
Net cash used in financing activities
Notes
2012
€
2011
€
(365,386)
(787,342)
(12,254)
97,548
_________
(280,092)
_________
(332,603)
(3,800)
_________
(336,403)
_________
671,337
_________
671,337
_________
-
(193,594)
_________
(980,936)
_________
(433,950)
(5,809)
_________
(439,759)
_________
2,070,391
_________
2,070,391
_________
Movement in cash and cash equivalents
54,842
649,696
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
12
12
656,057
_________
710,899
_________
6,361
_________
656,057
_________
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
page 18
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Company Statement of Cash Flows
for the year ended 31st December 2012
Cash flows from operating activities
Notes
2012
€
2011
€
Loss for the year
(342,305)
(814,751)
Movement in trade and other receivables
Movement in trade and other payables
Finance costs
Cash flows from operating activities
Cash flows from financing activities
Proceeds from the issue of new shares
Net cash used in financing activities
(321,133)
69,848
(3,800)
_________
(597,390)
_________
671,337
_________
671,337
_________
(448,024)
(176,759)
(5,809)
_________
(1,445,343)
_________
2,070,391
_________
2,070,391
_________
Movement in cash and cash equivalents in the year
73,947
625,048
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year
12
12
628,734
_________
702,681
_________
3,686
_________
628,734
_________
The accompanying notes on pages 20 to 41 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 21 June 2013 and signed on its behalf by
__________________________
Emmett O'Connell
__________________________
Melvyn Quiller
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 19
Notes to the Financial Statements
for the year ended 31st December 2012
1.
Statement of Accounting Policies
Great Western Mining Corporation PLC ("the Company") is a company incorporated in Ireland. The Group financial
statements consolidate those of the Company and its subsidiary (together referred to as the "Group").
The Group and Company financial statements were authorised for issue by the Directors on 21 June 2013.
The accounting policies set out below have been applied consistently to all periods presented in these consolidated
financial statements.
Basis of Preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS's)
as adopted by the EU.
The financial statements have been prepared on the historical cost basis. The accounting policies have been applied
consistently by Group entities.
Statement of Compliance
As permitted by the European Union, the Group financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) and their interpretations issued by the International Accounting
Standards Board (IASB) as adopted by the EU (IFRS). The individual financial statements of the Company ("Company
financial statements") have been prepared in accordance with the IFRSs as adopted by the EU and as applied in
accordance with the Companies Acts, 1963 to 2012 which permit a company that publishes its Company and
Group financial statements together, to take advantage of the exemption in Section 148(8) of the Companies Act,
1963, from presenting to its members its Company Statement of Comprehensive Income and related notes that form
part of the approved Company financial statements.
The IFRSs adopted by the EU as applied by the Company and the Group in the preparation of these financial
statements are those that were effective on or before 31 December 2012.
Standards and amendments to existing standards effective 1 January 2012
The following standards, amendments and interpretations which became effective in 2012 are of relevance to the
Group:
Standard
Content
Applicable for years
beginning on/after
IAS 1
IAS 12
Presentation of Financial Statements (Amendment)
Income Taxes (Amendment)
1 January 2012
1 January 2012
page 20
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Standards, amendments and interpretations to existing standards that are not yet effective and have not been
adopted early by the Group
Standard/
Interpretation
Content
IAS 28
IAS 27
IAS 19
IFRS 13
IFRS 12
IFRS 10
IFRS 9
IFRS 7
Investments in Associates and Joint Ventures
Separate Financial Statements
Employee Benefits
Fair Value Measurement
Disclosure of Interest in Other Entities
Consolidated Financial Statements
Financial Instruments
Financial Instruments: Disclosures
Applicable for
years
beginning on/after
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2015
1 January 2013
In 2012, the Group did not early adopt any new or amended standards and do not plan to early adopt any of the
standards issued but not yet effective.
Functional and Presentation Currency
The consolidated financial statements are presented in Euro (€), which is the Company's functional currency.
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 and 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 9 - Intangible asset; measurement of impairment
Note 7 - Deferred Tax; utilisation of tax losses
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Great Western Mining Corporation PLC
and its subsidiary undertaking for the year ended 31 December 2012.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 21
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly,
to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing
control, potential voting rights that are currently exercisable or convertible are taken into account. Subsidiaries are
fully consolidated from the date that control commences until the date that control ceases. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Intragroup balances and any unrealised gains or losses or income or expenses arising from intragroup transactions
are eliminated in preparing the Group financial statements.
In the Company's own balance sheet, investments in subsidiaries are stated at cost less provisions for any permanent
diminution in value.
Exploration and Evaluation Assets
Exploration expenditure in respect of properties and licences not in production is capitalised and is carried forward
in the balance sheet under intangible assets in respect of each area of interest where:-
(i)
(ii)
(iii)
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; or
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.
When the Directors decide that no further expenditure on an area of interest is worthwhile, the related expenditure
is written off or down to an amount which it is considered represents the residual value of the Group's interest
therein.
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
assets' recoverable amount is estimated. For intangible assets that have indefinite lives or that are not yet available
for use, recoverable amount is estimated at each reporting date.
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
largely are independent from other assets and groups. 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.
page 22
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
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.
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.
Foreign Currencies
Monetary assets and liabilities denominated in a foreign currency are translated into Euro at the exchange rate
ruling at the reporting date, unless specifically covered by foreign exchange contracts whereupon the contract rate
is used. Revenues, costs and non monetary assets are translated at the exchange rates ruling at the dates of the
transactions. All exchange differences are dealt with through the Statement of Comprehensive Income.
On consolidation, the assets and liabilities of overseas subsidiaries are translated into Euro at the rates of exchange
prevailing at the reporting date. The operating results of overseas subsidiary Companies are translated into Euro at
the average rates applicable during the year.
Share capital
Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a reduction
in equity.
Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number
of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 23
Share based payments
For such grants of share options, the fair value as at the date of grant is calculated, taking into account the terms
and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect
the actual number of share options that are likely to vest, except where forfeiture is only due to market-based
conditions not achieving the threshold for vesting.
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
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.
Segmental Information
The Group has one principle reportable segment, ie: Nevada, USA, which represents the exploration for and
development of copper, silver, gold and other minerals in Nevada, USA.
Other operations 'Corporate' includes cash resources held by the Group and other operational expenditure incurred
by the Group. These areas are not within the definition of an operating segment.
Financial Assets - Investment in Subsidiaries
Investments in subsidiaries are stated at cost and are reviewed for impairment if there are indications that the
carrying value may not be recoverable.
Convertible loan note
Where there exists a contractual obligation to settle the loan with cash which cannot be avoided, this portion of
the convertible loan note is classified as a financial liability. The conversion option, the option to convert the loan
note into equity instruments, is assessed separately. The conversion option can only be classified as equity if the
"fixed-for-fixed" criterion is met - this being a contract that will be settled by the entity delivering a fixed numbers
of equity instruments in exchange for a fixed amount of cash. Where the "fixed-for-fixed" criterion is not met, the
conversion option will be classified as a derivative liability.
For convertible loan notes with embedded equity elements, the fair value of the financial liability is first established
using the present value of future cash flows. The residual value of the convertible loan note is then assigned to equity.
For convertible loan notes with embedded derivative liabilities, the embedded derivative liability is determined first
at fair value and the residual value is assigned to the financial liability.
page 24
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
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 in 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.
Comparatives
The comparative figures have been regrouped and restated where necessary on the same basis as those for the
current period.
2.
Going Concern
The financial statements are prepared on a going concern basis. The group incurred a loss of €369,186 during the
year ended 31 December 2012. The validity of the going concern basis is also dependent on the realisation of the
exploration and evaluation assets and also on the ability of the company to secure future funding. The directors
intend to raise additional finance in 2013 which will be used to continue the exploration and evaluation programme
which will enable the company to continue as a going concern for at least 12 months from the date of signing of
these financial statements. On that basis, the directors have deemed it appropriate to prepare the financial
statements on a going concern basis. The financial statements do not include any adjustments that would result if
the company was unable to continue as a going concern.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 25
3.
Segment Information
In the opinion of the Directors the operations of the group comprise one class of business, being the exploration
and mining for copper, silver, gold and other minerals. The group's main operations are located within Nevada, USA.
The information reported to the Group's chief operating decision maker for the purposes of resource allocation and
assessment of segment is specifically focussed on the exploration areas in Nevada. In the opinion of the Directors
the Group has only one reportable segment under IFRS 8 'Operating Segments,' which is exploration carried out
in Nevada.
Information regarding the Group's reportable segments is presented below.
Segment Revenues and Results
The following is an analysis of the Group's revenue and results from continuing operations by reportable
segment.
Segment Revenue
Segment Loss
2012
€
2011
€
2012
€
2011
€
Exploration - Nevada
Total for continuing operations
Investment income
Loss before tax (continuing operations)
Income tax expense
Loss after tax
Segment assets and liabilities
Segment Assets
Exploration - Nevada
Consolidated assets
Segment Liabilities
Exploration - Nevada
Consolidated liabilities
-
_________
-
-
_________
-
(369,186)
_________
(369,186)
_________
-
_________
(369,186)
_________
-
_________
(369,186)
_________
(793,151)
_________
(793,151)
_________
-
_________
(793,151)
_________
-
_________
(793,151)
_________
2012
€
2011
€
2,288,965
_________
2,288,965
_________
1,887,664
_________
1,887,664
_________
299,166
_________
299,166
_________
200,016
_________
200,016
_________
page 26
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
Other segment information
Exploration - Nevada
Depreciation and
Additions to
amortisation
non-current assets
2012
€
2011
€
2012
€
2011
€
-
_________
-
_________
332,603
_________
433,950
_________
Revenue from major products and services
The Group did not receive any revenue in the current or prior year.
Geographical information
The Group operates in two principal geographical areas - Republic of Ireland (country of residence of Great Western
Mining Corporation PLC) and Nevada, U.S.A. (country of residence of Great Western Mining Corporation, a wholly
owned subsidiary of Great Western Mining Corporation PLC).
The Group does not have revenue from external sources. Information about its non-current assets by geographical
location are detailed below:
Ireland
Nevada
2012
€
-
1,564,210
_________
1,564,210
_________
2011
€
-
1,231,607
_________
1,231,607
_________
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 27
4.
Loss on ordinary activities before taxation
Group
This is arrived at after charging:
Directors' emoluments
Auditors' remuneration
Auditors' remuneration from non-audit work
and after crediting:
Profit on foreign currencies
_________
Company
This is arrived at after charging:
Auditors' remuneration
2012
€
2011
€
117,882
26,102
246
_________
4,142
_________
2012
€
201,249
23,689
56,271
_________
62,712
2011
€
26,102
_________
23,689
_________
As permitted by Section 148 (8) of the Companies Act 1963, the Company Statement of Comprehensive Income
has not been separately disclosed in these financial statements.
5.
Interest payable and similar charges
On loans from Directors
2012
€
3,800
_________
3,800
_________
2011
€
5,809
_________
5,809
_________
page 28
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
6.
Employees
Number of employees
The average monthly numbers of employees
(including the Directors) (for Company & Group) during the year were:
Executive Directors
Non-Executive Directors
6.1.
Directors' emoluments
Directors' remuneration
Other emoluments
2012
Number
3
2
_________
5
_________
2012
€
87,882
30,000
_________
117,882
_________
2011
Number
3
1
_________
4
_________
2011
€
201,249
-
_________
201,249
_________
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 29
7.
Income Tax relating to continuing operations
Current tax
Current tax expense in respect of the current year
Total tax expense
2012
€
-
2011
€
-
_________
_________
-
_________
-
_________
The income tax expense for the year can be reconciled to the accounting loss as follows:
Loss from continuing operations
Income tax expense calculated at 12.5% (2011: 12.5%)
Effects of:
Unused tax losses not recognised as deferred tax assets
Income tax expense recognised
2012
€
(369,186)
_________
(46,148)
46,148
_________
-
_________
2011
€
(793,151)
_________
(99,144)
99,144
_________
-
_________
The tax rate used for the year end reconciliations above is the corporate 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 €2,601,085 (31 December 2011:
€2,254,980) available for offset against future profits which equates to a deferred tax asset of €325,136 (31
December 2011: €281,873). No deferred tax asset has been recognised due to the unpredictability of future profit
streams. Unused tax losses may be carried forward indefinitely.
page 30
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
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:
Loss for the period attributable to equity holders of the parent
Number of ordinary shares at start of year
Ordinary shares issues during the year
Ordinary shares in issue at end of year
Effect of shares issued during the year
2012
€
(369,186)
_________
46,490,475
18,333,334
_________
64,823,809
_________
2,360,731
_________
Weighted average number of ordinary shares for the purposes of basic
earning per share
Basic loss per ordinary share (cent)
48,851,206
_________
(0.76)
_________
2011
€
(793,151)
_________
28,253,628
18,236,847
_________
46,490,475
_________
11,817,878
_________
40,071,506
_________
(1.98)
_________
Diluted earnings per share
There were no potential ordinary shares that would dilute the basic earnings per share.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 31
9.
Intangible assets - Group
Cost
Accumulated amortisation and impairment
Cost
At 1 January 2012
Additions
At 31 December 2012
2012
€
1,564,210
-
_________
1,564,210
_________
Exploration and
Evaluation Assets
€
1,231,607
332,603
_________
1,564,210
_________
2011
€
1,231,607
-
_________
1,231,607
_________
Total
€
1,231,607
332,603
_________
1,564,210
_________
The Directors have considered expenditure on exploration and evaluation activities which have been capitalised at
cost. No amortisation has been charged in the period. The Directors have reviewed the carrying value of the
exploration and evaluation assets and consider it to be fairly stated and not impaired at 31 December 2012. The
realisation of the intangible assets is dependent on the successful development, or disposal of, copper, silver, gold
and other minerals in the Group's licence area. Such successful development is dependent on several variables
including the existence of commercial deposits of copper,
silver, gold and other minerals, availability of finance
and the price of copper, silver, gold and other minerals.
page 32
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
10.
Financial assets - Company
Group undertakings - unlisted:
Shares at cost
2012
€
500,000
_________
2011
€
500,000
_________
In the opinion of the Directors' the carrying value of the investment is appropriate.
At 31 December 2012 the Company had the following subsidiary undertaking:
Name
Great Western Mining Corporation
Incorporated in
Nevada, U.S.A.
Main Activity
Mineral Exploration
Proportion of holding
100%
The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial
year were as follows:
Great Western Mining Corporation
(46,106)
(11,141)
31 December 2012
Capital and reserves
€
Loss for the year
€
Year ended
11.
Trade and other receivables
Amounts falling due within one year:
Amounts owed by Group undertaking
Prepayments and accrued income
Group
2012
€
Group
Company
Company
2011
€
2012
€
2011
€
-
12,254
_________
-
-
_________
1,047,563
12,254
_________
738,684
-
_________
12,254
_________
-
_________
1,059,817
_________
738,684
_________
All receivables are current and there have been no impairment losses during the year (2011: Nil).
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 33
12.
Cash and Cash Equivalents
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents include cash in hand and
in banks, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the reporting period as
shown in the consolidated statement of cash flows can be reconciled to the related items in the Consolidated
Statement of Financial Position as follows:
Group
2012
€
Group
Company
Company
2011
€
2012
€
2011
€
Cash and Cash equivalents per statement of cash flows
Bank overdraft
710,899
1,602
_________
656,057
-
_________
702,681
1,602
_________
628,734
-
_________
Cash and Cash Equivalents
712,501
_________
656,057
_________
704,283
_________
628,734
_________
13.
Trade and other payables
Amounts falling due within one year
Bank loans and overdrafts
Trade payables
Convertible debt
Other payables
Accruals and deferred income
Group
2012
Group
Company
Company
2011
2012
2011
€
€
€
€
1,602
25,780
100,000
77,394
94,390
_________
299,166
_________
-
432
100,000
56,159
43,425
_________
200,016
_________
1,602
9,452
100,000
66,021
94,314
_________
271,389
_________
-
432
100,000
56,159
43,348
_________
199,939
_________
The Group has financial risk management policies in place to ensure that payables are paid within the pre-agreed
credit terms.
Some trade creditors had reserved title to goods supplied to the company. Since the extent to which such creditors
are effectively secured depends on a number of factors and conditions, some of which are not readily determinable,
it is not possible to indicate how much of the above amount is secured under reservation of title.
page 34
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
14.
Share capital
Authorised equity
100,000,000 Ordinary shares of €0.01 each
2012
€
2011
€
1,000,000
_________
1,000,000
_________
1,000,000
_________
1,000,000
_________
Issued, called up and fully paid:
No. of issued
Shares
Share
Capital
€
Share
Premium
€
Total
Capital
€
At 1 January 2011
28,253,628
282,536
1,602,234
1,884,770
Total comprehensive income for the year
Loss for the year
Transactions with shareholders, recorded directly in equity
Shares issued
At 1 January 2012
Total comprehensive income for the year
Loss for the year
Transactions with shareholders, recorded directly in equity
Shares issued for cash
-
-
-
-
18,236,847
_________
46,490,475
_________
182,368
_________
464,904
_________
1,888,023
_________
3,490,257
_________
2,070,391
_________
3,955,161
_________
-
-
-
-
18,333,334
183,334
488,003
671,337
As at 31 December 2012
_________
64,823,809
_________
_________
648,238
_________
_________
3,978,260
_________
_________
4,626,498
_________
The issued share capital of the company at 31 December 2012 comprised of 64,823,809 ordinary shares of €0.01
each issued and fully paid (31 December 2011 46,490,475 issued and fully paid)
The holders of Ordinary Shares are entitled to receive dividends as declared from time to time.
The shareholders have all voting powers and full voting rights as permitted under the applicable company laws.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 35
15.
Share-based payments
In August 2011 the Group granted an option to Libertas Capital Corporate Finance Limited in connection with a
share placing. No share based payment charge arose at the time of the granting of the option.
Movements in share options during the year
The following reconciles the outstanding share options granted at the beginning and end of the financial year:
Balance at beginning of the year
Granted during the year
Lapsed during the year
Exercised during the year
Expired during the financial year
Balance at end of the year
of which:
Exercisable at end of the year
2012
2011
Weighted
average
exercise
price
_________
0.11
-
-
_________
0.11
_________
Weighted
average
exercise
price
_________
-
0.11
-
-
-
_________
0.11
_________
Number
of options
_________
-
178,035
-
-
-
-
-
_________
178,035
_________
Number
of options
_________
178,035
-
-
-
-
_________
178,035
_________
178,035
_________
0.11
_________
178,035
_________
0.11
_________
On 31 December 2012, no options lapsed without being exercised.
Exercised during the year
No options were exercised during the year.
The options outstanding at 31 December 2012 had a remaining average contractual life of 3.63 years.
16.
Retained Losses
Group
2012
€
Group
2011
€
Company
2012
€
Company
2011
€
Loss at beginning of year
Loss for the year
(2,267,513)
(369,186)
(1,474,362)
(793,151)
(2,287,682)
(346,105)
(1,467,122)
(820,560)
Loss at end of year
_________
(2,636,699)
_________
_________
(2,267,513)
_________
_________
(2,633,787)
_________
_________
(2,287,682)
_________
In accordance with the provisions of the Companies (Amendment) Act 1986, the Company has not presented an
Income Statement. A loss for the year of €346,105 (2011 - loss of €820,560) has been dealt with in the Statement
of Comprehensive Income of the Company.
page 36
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
17.
Related party transactions
Details of subsidiary undertakings are shown in Note 10. In accordance with International Accounting Standard 24
- Related Party Disclosures, transactions between group entities that have been eliminated on consolidation are
not disclosed.
Melvyn Quiller, Company director and shareholder, is a relative of Lloyd Quiller whose company LQ Accounting
Solutions provided accounting services to the Company in the year. At 1 January 2012 Great Western Mining
Corporation PLC owed €Nil to LQ Accounting Solutions. During the year, Great Western Mining Corporation PLC
received services from LQ Accounting Solutions to the value of €9,866 and they discharged €6,866 of this balance.
At 31 December 2012 Great Western Mining Corporation PLC owed €3,000 to LQ Accounting Solutions.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 37
18.
Transactions with Directors
Loans from directors - Group
The directors have advanced loans to the Group. The movements in these loans are as follows:
Name of director
Rate of interest
Repayment date
Amount due to director as at 1 January 2012
Advanced by director in year
Repaid to director in the year
Emmett
Melvyn
Robert
O'Connell
0%
on call
Quiller
0%
on call
O'Connell
0%
on call
Total
(15,398)
(11,373)
-
_________
(5,181)
(1,922)
7,019
_________
(664)
(891)
-
_________
(21,243)
(14,186)
7,019
_________
Amount due to director as at 31 December 2012
(26,771)
_________
(84)
_________
(1,555)
_________
(28,410)
_________
Maximum outstanding in the year
(26,771)
_________
(7,103)
_________
(664)
_________
(34,538)
_________
Loans from directors - Company
The directors have advanced loans to the company. The movements in these loans are as follows:
Name of director
Rate of interest
Repayment date
Amount due to director as at 1 January 2012
Advanced by director in year
Repaid to director in the year
Emmett
Melvyn
Robert
O'Connell
0%
on call
Quiller
0%
on call
O'Connell
0%
on call
Total
(15,398)
-
-
_________
(5,181)
(1,922)
7,019
_________
(664)
(891)
-
_________
(21,243)
(2,813)
7,019
_________
Amount due to director as at 31 December 2012
(15,398)
_________
(84)
_________
(1,555)
_________
(17,037)
_________
Maximum outstanding in the year
(15,398)
_________
(7,103)
_________
(664)
_________
(23,165)
_________
page 38
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
19.
Convertible debt
Redeemable loan
2012
€
2011
€
100,000
_________
100,000
_________
100,000
_________
100,000
_________
On 22 June 2010, director Emmett O'Connell advanced an interest-bearing redeemable convertible loan to the
company in the amount of €100,000. The loan is convertible into the Company's ordinary shares of €0.01 each
at the lowest mid-market share price between the advance date and the conversion date or repayable upon the
demand of the director. Until either conversion or repayment, interest on the loan value will accrue at 3.8% or at
the variable lending rate charged by the Bank of Ireland whichever is higher.
20.
Events after the reporting date
There were no significant post balance sheet events
21.
Financial Instruments and Financial Risk Management
The Group and Company’s principal financial instruments comprise cash and cash equivalents. The main purpose
of these financial instruments is to provide finance for the Group and Company’s operations. The Group has various
other financial assets and liabilities such as receivables and trade payables, which arise directly from its operations.
It is, and has been throughout 2012 and 2011 the Group and Company’s policy that no trading in derivatives be
undertaken.
The main risks arising from the Group and Company’s financial instruments are foreign currency risk, credit risk,
liquidity risk, interest rate risk and capital risk. The board reviews and agrees policies for managing each of these
risks which are summarised below.
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward
exchange contracts where appropriate.
At the years ended 31 December 2012 and 31 December 2011, the Group had no outstanding forward exchange
contracts.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Group. As the Group does not, as yet, have any sales to third parties, this risk is limited.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 39
The Group and Company’s financial assets comprise receivables and cash and cash equivalents. The credit risk on
cash and cash equivalents is limited because the counterparties are banks with high credit-ratings assigned by
international credit rating agencies. The Group and Company’s exposure to credit risk arise from default of its
counterparty, with a maximum exposure equal to the carrying amount of cash and cash equivalents in its
consolidated balance sheet.
The Group does not have any significant credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics. The Group defines counterparties as having similar characteristics if they
are connected entities.
Liquidity risk management
Liquidity risk is the risk that the Group will not have sufficient funds to meet liabilities. Ultimate responsibility for
liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management
framework for the management of the Group and Company’s short-, medium- and long-term funding
and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities. Cash forecasts are regularly produced to identify the liquidity requirements of the Group. To date, the
Group has relied on shareholder funding to finance its operations. The Group had no borrowing facilities at 31
December 2012.
The Group and Company's financial liabilities as at 31 December 2012 and 31 December 2011 were all payable on
demand, except an interest-bearing redeemable convertible loan advanced from one of the directors
the
company in the year, which is either convertible to ordinary shares or payable on demand.
of
The expected maturity of the Group and Company’s financial assets (excluding prepayments) as at 31 December
2012 and 31 December 2011 was less than one month.
The Group expects to meet its other obligations from operating cash flows with an appropriate mix of funds and
equity instruments. The Group further mitigates liquidity risk by maintaining an insurance programme to minimise
exposure to insurable losses.
The group had no derivative financial instruments as at 31 December 2012 and 31 December 2011.
Interest rate risk
The Group and Company’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 disciplined management of the budgetary process to place
surplus funds on short term deposit in order to maximise interest earned.
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group
manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain
or adjust its capital structure, the Group may adjust or issue new shares or raise debt. No changes were made in
the objectives, policies or processes during the years ended 31 December 2012 and 31 December 2011. The capital
page 40
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
structure of the Group consists of equity attributable to equity holders of the parent, comprising issued capital,
reserves and retained losses as disclosed in the consolidated statement of changes in equity.
Fair values
The carrying amount of the Group and Company’s financial assets and financial
approximation of the fair value.
liabilities is a reasonable
Hedging
At the year ended 31 December 2012 and 31 December 2011, the Group had no outstanding contracts designated
as hedges.
22.
Approval of financial statements
The financial statements were approved by the board on 21 June 2013.
Great Western Mining Corporation PLC
ANNUAL REPORT 2012
page 41