Great Western Mining Corporation PLC
Annual Report 2014
Great Western Mining Corporation PLC - Annual Report 2014
M2 and Huntoon Valley from M1
Drilling at M2
M2 Exploration
target located in the
Black Mountain
group of claims
Sharktooth road
under construction
Great Western Mining Corporation PLC - Annual Report 2014
Great Western Mining Corporation PLC
Annual Report and
Financial Statements
for the year ended 31 December 2014
Registered number: 392620
Great Western Mining Corporation PLC - Annual Report 2014
Contents
Directors and other information
Chairman's Statement
Chief Executive's Statement
Directors' Report
Independent Auditors' Report
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
Notes to the Financial Statements
Page
1
3
4
6
11
13
14
15
16
17
18
19
20
Great Western Mining Corporation PLC - Annual Report 2014
Directors and other information
Directors
Brian Hall (Chairman)
David Fraser (Chief Executive)
Melvyn Quiller (Finance Director)
Robert O'Connell(Operations Director)
Emmett O'Connell (Founder & Non - Executive Director)
Registered Office &
Business Address
Secretary
Geological Advisor
Auditors
Bankers
6 Northbrook Road
Dublin 6
Melvyn Quiller
Dr. Tom Molyneux
74 Ripley Hills
Bray
County Wicklow
Ireland
LHM Casey McGrath Limited
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.
Page 1
Great Western Mining Corporation PLC - Annual Report 2014
Directors and other information continued
Solicitors
AIM Nominated Advisor, ESM Advisor
& Joint Broker
Joint Broker
Registrar
John O'Connor Solicitors
168 Pembroke Road
Ballsbridge
Dublin 4
Wedlake Bell
52 Bedford Row
London WC1R 4LR
England
Davy
Davy House
49 Dawson Street
Dublin 2, Ireland
Beaufort Securities Ltd
131 Finsbury Pavement
London EC2A 1NT
England
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 2014
Chairman's Statement
for the year ended 31 December 2014
Dear Shareholder,
Attached are Great Western's audited financial results for the year ended 31 December 2014. The Company
is still exploring and appraising its prospects in Nevada and has no revenues at this stage. The loss for the
year was €27,425 (2013 €448,319) and net current assets at the yearend were €1,419,276.
Early in 2014 the Company arranged two placings of new ordinary shares which together raised gross
proceeds of £2,300,000 (€2,803,700) and this enabled it to carry out an active programme of mineral drilling
on its Nevada properties with very encouraging results. The progress we have made is set out in the Chief
Executive's report, below.
Emmett O'Connell stood down as chairman of Great Western a couple of years back and has now decided to
retire so is not putting his name forward for re-election at the forthcoming AGM. Emmett has been a well-
known figure in the Irish natural resources sector for many years and was of course the founder of Great
Western and the instigator of its projects in Nevada. His wise counsel will be greatly missed by the
Company and I would like to express the Board's warm appreciation for his tireless efforts. We wish him
well in his retirement and we will of course maintain links as he is a material shareholder.
During the year Dr. Tom Molyneux was appointed as an adviser to the Company. Tom is a career geologist
who has divided his time between academia and the mining industry, having spent thirty years with the
Anglo-American Corporation. His enormous experience will help guide the Company through the next
stage of its development.
Looking ahead, the independently produced JORC-compliant report which was delivered during the year
more than underwrites the potential of our Nevada properties and confirms our faith in the projects in hand.
We have an active programme of exploration in progress and sufficient funds to move it forward with
careful management.
The support of you, our shareholders, is much appreciated and we look forward to answering any questions
on the Company at the Annual General Meeting in Dublin on 30 April.
Yours sincerely
Brian Hall
Chairman
30 March 2015
Page 3
Great Western Mining Corporation PLC - Annual Report 2014
Chief Executive's Statement
for the year ended 31 December 2014
I am pleased to report to shareholders that 2014 has been a year of significant progress in the development of the
73 square kilometre claim area in Marietta, Nevada, held on a 100% interest basis, by Great Western Mining
Corporation plc ("Great Western", "GWM" or "the Company").
The final quarter of 2014 saw the successful establishment of a maiden independent JORC compliant, Inferred
Resource on the Company's M2 copper target, containing 23,636 metric tonnes of Copper, and 16,000 ounces of
Gold. The M2 Exploration Target is an Iron Oxide Copper Gold (IOCG) deposit with inherently favourable
metallurgical characteristics. M2 is a potential planar structure, extending 2,134 metres south-south east beneath
the crest of Bass Mountain to the vicinity of the historic Smith Copper Mine. The Company considers that the
source of the M2 and Smith Mine copper mineralistion is an epithermal plume located beneath the "Sharktooth"
peak of Bass Mountain. Low grade, open-pittable copper-gold values at M2 are indicators of much higher grade
and more consistent copper-gold oxide mineralisation at the intersection the vertical north-easterly Sharktooth
structure and the Diorite-Dunlap hanging wall caprock. Great Western is currently in the process of devising a
Phase 3 drilling programme to identify the core of the epithermal plume, and to extend the strike length of the
2014 Inferred Resource to the Sharktooth peak.
Approximately three miles south of M2 is the Company's second major prospect, the Target 4 copper-gold
exploration project. Significant work has already been completed on Target 4, which is now "drill ready". GWM
appointed Environscientists Inc, Reno, Nevada, to provide project management services, conduct baseline
studies, and prepare a Plan of Operations for the Target 4 project, which is located entirely on National Forest
System lands administered by the United States Forest Service (USFS). The Company is planning a discovery
level drilling programme, which is anticipated to be a significant milestone in the development of what Great
Western has now termed "The Marietta Copper District".
On the opposite side of The Huntoon Valley, approximately five miles West of Target 4, is the M1 Exploration
Target, located in the Huntoon Group of claims. The Huntoon claim block surrounds the six patented claims that
make up the historic Huntoon Mine where Gold-Copper ore was mined between 1906 and 1925. These six
claims are currently owned by a local Nevada based organisation prospecting for Gold and Silver. Their results
to date have been very encouraging and an extensive drill programme is planned within the area of the six claims
for 2015.
GWM's Huntoon Group of claims contains 90 unpatented claims where the magnetic high and alteration suite
suggests a possible skarn hosted copper deposit. M1 contains extensive surface outcrops of oxide copper, where
the acid soluble copper component has been high. There have also been high grade silver values in a number of
samples.
A comprehensive soil grid and rock chip geochemical programme is planned for M1 in 2015.
A very successful field campaign during the course of 2014 confirmed a further three highly prospective claim
groups within GWM's 896 claim block: the JS Group, a potential Carlin type Gold prospect; the TUN Group a
potential open pit gold and silver prospect; and the EM Group, a very exciting copper oxide and copper porphyry
prospect previously investigated by Conoco in the 1970's:
Page 4
Great Western Mining Corporation PLC - Annual Report 2014
Chief Executive's Statement
for the year ended 31 December 2014
JS Group (M5):
The M5 prospect is in altered siliceous host rock, exposed beneath caprock for one square kilometre north and
east of M5. Gold (Au), Arsenic (As) and Antimony (Sb) were all anomalous in samples taken along the
northeasterly crest of the central ridge at M5. This coincidence of geochemistry and altered sediments strongly
suggests Carlin-type disseminated gold mineralisation. GWM will follow up these results with a detailed soil
grid and rock chip geochemical programme. If similar Au-As-Sb values appear in follow-up samples from the
other altered outcrops and surrounding soils, Carlin-type low-grade disseminated gold potential will become a
drill target at M5.
TUN Group (M6):
The M6 prospect appears to be a parallel system of multiple, oxide and sulphide, gold-silver veins and veinlet
stockworks. Relatively small tonnages of supergene, multi-ounce, high-grade, bonanza-style ores were mined in
the past at M6. Potential remains for moderate-sized deposits of shallow, oxidised stockworks and veins and
deeper sulphide ores in the immediate vicinity of the historic M6 workings. Gold in three samples varied from
4,147 ppb Au to 9,839 ppb Au. Silver varied from 337 ppm Ag to 757 ppm Ag. M6 has the potential to be an
underground and much larger open-pit prospect.
EM Group (M8):
M8 contains the historic Eastside Mine ("Eastside"), where high grade oxide copper ores were mined from
shallow underground workings during World War One. Conoco investigated Eastside as a copper porphyry
prospect in the early 1970's, identifying mineralisation consisting of substantial copper (Cu) and molybdenum
(Mo) values. GWM has been able to obtain a substantial quantity of the data from Conoco's exploration efforts.
All soil samples taken last summer by the GWM field team produced strongly anomalous Cu readings, with
several samples greater than 10,000 ppm Cu. Geochemical analysis conducted by Conoco in the 1970's also
produced strongly anomalous copper and molybdenum readings, with high values greater than 25,000 ppm Cu
and 640 ppm Mo. GWM is still assimilating data on M8, but thus far the data is sufficient to confirm at least
one, potentially large, copper oxide target.
On the corporate front, I am very pleased to report to shareholders the strengthening of the GWM advisory team
in October with the appointment of Dr. Tom Molyneux as a Geological and Geochemical Consultant to the
Company. Tom brings with him a wealth of exploration and mining experience, gained primarily during 30 years
working for the Anglo American Corporation. Tom's experience and extensive hard rock academic credentials
will be of invaluable assistance to the GWM management team, during the 2015 field programme.
On 20 March 2015 the Company appointed Beaufort Securities Limited as Joint Broker, superseding Hume
Capital Securities PLC.
I am happy to report that the Board and Management continue to keep a tight control on costs, and that the
Company closes the year with a robust cash position of €1,451,542, and starts 2015 with a fully funded
exploration programme.
David Fraser
Chief Executive Officer
30th March 2015
Page 5
Great Western Mining Corporation PLC - Annual Report 2014
Directors' Report
for the year ended 31 December 2014
The Directors present their Annual Report and audited consolidated financial statements for the year ended 31
December 2014 for Great Western Mining Corporation PLC ("the Company") and its subsidiaries (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 the Chief Executive's Statement.
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 to 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 £0.0055 to a high of Stg £0.0183 (2013: Stg £0.0073
to Stg £0.0421). The share price at the year end was Stg £0.0065 (2013: Stg £0.0098).
Results And Dividends
The loss for the year after providing for depreciation and taxation amounted to €27,425 (2013 : € 448,319 ).
All exploration and development costs to date have been deferred, no transfers to distributable reserves or dividends
are recommended.
Page 6
Great Western Mining Corporation PLC - Annual Report 2014
Directors' Report
for the year ended 31 December 2014
Directors and Secretary and their Interests
In accordance with the Articles of Association, Brian Hall and Robert O'Connell retire from the Board by rotation and
being eligible offers themselves for re-election.
The beneficial interests, including family interests, of the directors and secretary in office at 31 December 2014 in the
shares of the company were as follows:
Directors
Brian Hall
David Fraser
Melvyn Quiller
Robert O'Connell
Robert O'Connell (Pension Fund)
Emmett O'Connell
Emmett O'Connell (Pension Fund)
19 Feb '15
31 Dec '14
1 Jan '14
1,583,333
500,000
2,597,813
6,451,365
2,219,125
12,060,343
-
1,583,333
500,000
2,597,813
6,451,365
2,219,125
8,602,818
3,457,525
333,333
-
1,847,813
7,170,490
250,000
8,910,343
1,900,000
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 19, 20 and 21 to the financial statements.
Significant Shareholders
The Company has been informed that, in addition to the interests of the Directors, at 31 December 2014 and the date
of this report, there were shareholders who owned 3% or more of the issued share capital of the Company. Please see
note 16 for details of these shareholders.
Group undertakings
Details of the Company's subsidiaries are set out in Note 11 to the financial statements.
Political donations
The Company did not make any political donations during the year (2013 : €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.
Page 7
Great Western Mining Corporation PLC - Annual Report 2014
Directors' Report
for the year ended 31 December 2014
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 five Directors, comprising three executive Directors and two non-executive Directors. The
Board met formally on eight occasions during the year ended 31 December 2014. 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 Emmett O'Connell. 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 Emmett O'Connell (Chairman) and Melvyn Quiller. 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
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 the financial and commercial health of the Company.
Directors' Remuneration during the year ended 31 December 2014 was as follows:
Remuneration and other emoluments - Executive Directors
Remuneration and other emoluments - Non-Executive Directors
2014
Total
€
124,120
35,279
_________
159,399
_________
2013
Total
€
46,142
82,745
_________
128,887
_________
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 review.
Page 8
Great Western Mining Corporation PLC - Annual Report 2014
Directors' Report
for the year ended 31 December 2014
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 2013.
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;
- 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 2013, 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, Fouksmills, Co. Wexford.
Page 9
Great Western Mining Corporation PLC - Annual Report 2014
Directors' Report
for the year ended 31 December 2014
Auditors
The auditors LHM Casey McGrath resigned in the period. LHM Casey McGrath Limited were appointed by the
directors to fill the vacancy and 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
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 10
Great Western Mining Corporation PLC - Annual Report 2014
Independent Auditors' Report to the Shareholders of Great Western Mining Corporation PLC
We have audited the financial statements of Great Western Mining Corporation PLC for the year ended 31
December 2014 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement
of Changes Equity, Company Statement of Changes Equity, Consolidated Statement of Financial Position,
Company Statement of Financial Position, Consolidated Statement of Cash Flows, Company Statement of Cash
Flows and the related notes. The financial reporting framework that has been applied in their preparation is Irish
Law and International Financial Reporting Standards ("IFRS") as adopted by the European Union.
This report is made solely to the Company's members as a body in accordance with the requirements of 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
As explained more fully in the Directors' Responsibilities Statement, the Directors are responsible for the
preparation of the Group financial statements giving a true and fair view. Our responsibility is to audit and
express an opinion on the Group financial statements in accordance with applicable law and International
Financial Reporting Standards as adopted by the European Union ("IFRS") and have been prepared in
accordance with Companies Acts 1963 to 2013.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to
give reasonable assurance that the Group financial statements are free from material misstatement, whether
caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the
Group's and Company's circumstances and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the Directors; the overall presentation of the
financial statements. In addition, we read all the other financial and non-financial information in the Annual
Report to identify material inconsistencies with the audited financial statements. This other information
comprises only the Chairman's Statement, the Chief Executive's Statement and the Directors Report. If we
become aware of any apparent material misstatements or inconsistencies we consider the implications for our
report.
Opinion On Financial Statements
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 2014 and of its loss and cash flows 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 2013, of the state of
the Company's affairs as at 31 December 2014 and
-
the financial statements have been properly prepared in accordance with the Companies Acts 1963 to 2013
and all regulations to be construed as one with those acts.
Page 11
Great Western Mining Corporation PLC - Annual Report 2014
Independent Auditors' Report to the Shareholders of Great Western Mining Corporation PLC
............... continued
Emphasis of Matter - Going Concern
In forming our opinion on the financial statements, which is not modified, we considered:
- the adequacy of disclosures made in Note 10 to the financial statements in relation to the Directors' assessment of the
carrying value of the Group's deferred exploration costs amounting to € 2,747,464
- 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 € 27,425 for the year ended 31 December 2014.
These conditions indicate the existence of material uncertainties 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.
Matters on which we are required to report by the Companies Acts 1963 to 2013
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 is consistent with the financial statements.
- The net assets of the Company, as stated in the Company Statement of Financial Position 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 2014 a
financial situation which under Section 40(1) of the Companies (Amendment) Act 1983 may require the convening of
an extraordinary meeting of the Company.
Matters on which we are required to report by exception
We have nothing to report in respect of the provisions in the Companies Acts 1963 to 2013 which require us to report to
you if, in our opinion the disclosures of the directors' remuneration and transactions specified by law are not made.
Brendan Murtagh
Statutory auditor
for and on behalf of
LHM Casey McGrath Limited
Chartered Certified Accountants
Statutory Audit Firm
6 Northbrook Road
Dublin 6
Date: 30 March 2015
Page 12
Great Western Mining Corporation PLC - Annual Report 2014
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2014
Continuing Operations
Administrative expenses
Finance income
Finance costs
Loss for the year before tax
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)
Notes
6
8
9
2014
€
(20,000)
116
(7,541)
_________
2013
€
(442,579)
-
(5,740)
_________
(27,425)
(448,319)
-
_________
(27,425)
_________
(27,425)
_________
(27,425)
_________
(27,425)
_________
(27,425)
_________
-
_________
(448,319)
_________
(448,319)
_________
(448,319)
_________
(448,319)
_________
(448,319)
_________
(0.01)
_________
(0.69)
_________
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 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by:
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 13
Great Western Mining Corporation PLC - Annual Report 2014
Consolidated Statement of Changes in Equity
for the year ended 31 December 2014
Share
Capital
€
Share
Premium
€
Retained
Losses
€
Total
€
Balance at 1 January 2013
Total comprehensive income for the year
Loss for the year
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Total transactions with owners
Balance at 31 December 2013
Balance at 1 January 2014
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 2014
648,238
(2,636,699) 1,989,799
_________ _________ _________ _________
3,978,260
-
(448,319)
_________ _________ _________ _________
(448,319)
_________ _________ _________ _________
(448,319)
(448,319)
-
-
-
_________ _________ _________ _________
-
_________ _________ _________ _________
-
-
-
648,238
(3,085,018) 1,541,480
_________ _________ _________ _________
3,978,260
648,238
(3,085,018) 1,541,480
_________ _________ _________ _________
3,978,260
-
(27,425)
_________ _________ _________ _________
(27,425)
_________ _________ _________ _________
(27,425)
(27,425)
-
-
-
652,685
2,000,000
2,652,685
_________ _________ _________ _________
2,652,685
_________ _________ _________ _________
2,000,000
652,685
-
-
2,648,238
(3,112,443) 4,166,740
_________ _________ _________ _________
4,630,945
Net equity is attributable to the holders of the ordinary shares in the Group.
The accompanying notes on pages 20 to 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by:
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 14
Great Western Mining Corporation PLC - Annual Report 2014
Company Statement of Changes in Equity
for the year ended 31 December 2014
Balance at 1 January 2013
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 2013
Balance at 1 January 2014
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 2014
Share
Capital
€
Share
Premium
€
Retained
Losses
€
Total
€
648,238
(2,633,787) 1,992,711
_________ _________ _________ _________
3,978,260
-
(337,239)
_________ _________ _________ _________
(337,239)
_________ _________ _________ _________
(337,239)
(337,239)
-
-
-
-
-
_________ _________ _________ _________
-
_________ _________ _________ _________
-
-
-
-
-
648,238
(2,971,026) 1,655,472
_________ _________ _________ _________
3,978,260
648,238
(2,971,026) 1,655,472
_________ _________ _________ _________
3,978,260
-
(80,231)
_________ _________ _________ _________
(80,231)
_________ _________ _________ _________
(80,231)
(80,231)
-
-
-
652,685
2,000,000
2,652,685
_________ _________ _________ _________
2,652,685
_________ _________ _________ _________
2,000,000
652,685
-
-
2,648,238
(3,051,257) 4,227,926
_________ _________ _________ _________
4,630,945
Net equity is attributable to the holders of the ordinary shares in the Company.
The accompanying notes on pages 20 to 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by:
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 15
Great Western Mining Corporation PLC - Annual Report 2014
Consolidated Statement of Financial Position
as at 31 December 2014
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
Notes
10
12
13
15
15
18
14
2014
€
2013
€
2,747,464
_________
2,747,464
114,288
1,451,542
_________
1,565,830
_________
4,313,294
_________
2,648,238
4,630,945
(3,112,443)
_________
4,166,740
_________
4,166,740
_________
1,661,816
_________
1,661,816
80,037
82,860
_________
162,897
_________
1,824,713
_________
648,238
3,978,260
(3,085,018)
_________
1,541,480
_________
1,541,480
_________
146,554
_________
146,554
_________
4,313,294
_________
283,233
_________
283,233
_________
1,824,713
_________
The accompanying notes on pages 20 to 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by:
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 16
Great Western Mining Corporation PLC - Annual Report 2014
Company Statement of Financial Position
as at 31 December 2014
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
11
12
13
15
15
18
14
2014
€
2013
€
500,001
_________
500,001
_________
2,420,152
1,438,809
_________
3,858,961
_________
4,358,962
_________
2,648,238
4,630,945
(3,051,257)
_________
4,227,926
_________
4,227,926
_________
131,036
_________
131,036
_________
4,358,962
_________
500,001
_________
500,001
_________
1,332,278
71,805
_________
1,404,083
_________
1,904,084
_________
648,238
3,978,260
(2,971,026)
_________
1,655,472
_________
1,655,472
_________
248,612
_________
248,612
_________
1,904,084
_________
The accompanying notes on pages 20 to 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by:
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 17
Great Western Mining Corporation PLC - Annual Report 2014
Consolidated Statement of Cash Flows
for the year ended 31st December 2014
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
Interest received
Cash flow from investing activities
Cash flows from financing activities
Proceeds from the issue of new shares
Net cash used in financing activities
Movement in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Notes
2014
€
2013
€
(20,000)
(442,579)
(34,251)
(136,679)
_________
(190,930)
_________
(1,085,648)
(7,541)
116
_________
(1,093,073)
_________
2,652,685
_________
2,652,685
_________
1,368,682
82,860
_________
1,451,542
_________
10
6
4
13
13
(67,783)
(15,933)
_________
(526,295)
_________
(97,606)
(5,740)
-
_________
(103,346)
_________
-
_________
-
_________
(629,641)
712,501
_________
82,860
_________
The accompanying notes on pages 20 to 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 18
Great Western Mining Corporation PLC - Annual Report 2014
Company Statement of Cash Flows
for the year ended 31st December 2014
Cash flows from operating activities
Notes
2014
€
2013
€
Loss for the year
(80,231)
(333,439)
Movement in trade and other receivables
Movement in trade and other payables
Finance costs
Cash flows from operating activities
Cash flows from investing activities
Fixed Asset Investment Additions/Disposals
Cash flows from financing activities
Proceeds from the issue of new shares
Net cash used in financing activities
Movement in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year
13
13
(1,085,336)
(120,114)
-
_________
(1,285,681)
_________
-
_________
-
_________
2,652,685
_________
2,652,685
_________
1,367,004
71,805
_________
1,438,809
_________
(272,461)
(22,777)
(3,800)
_________
(632,477)
_________
(1)
_________
(1)
_________
-
_________
-
_________
(632,478)
704,283
_________
71,805
_________
The accompanying notes on pages 20 to 42 form an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 30 March 2015 and signed on its behalf by
______________________
Brian Hall
Director
______________________
David Fraser
Director
Page 19
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
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 subsidiaries (together referred to as the
"Group").
The Group and Company financial statements were authorised for issue by the Directors on 30 March 2015.
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 2013 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 2014
Standards and amendments to existing standards effective 1 January 2014
The following standards, amendments and interpretations which became effective in 2014 are of relevance to
the Group:
IAS 32
IAS 27
IAS 24
IFRS 13
IFRS 10
IFRS 8
IAS 36
IFRS 2
Financial Instruments: Presentation
Separate Financial Statements
Related Party Disclosures
Fair Value Measurement
Consolidated Financial Statements
Operating Segments
Impairment of asset
Share Based Payment
1 January 2014
1 January 2014
1 July 2014
1 July 2014
1 January 2014
1 July 2014
1 January 2014
1 July 2014
Page 20
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
Standards, interpretations and amendments to existing standards that are not yet effective and have
not been early adopted by the Group
Standard/
Interpretation
Content
IAS 38
IFRS 11
IFRS 9
IFRS 7
Intangible Assets
Joint Arrangements
Financial Instruments
Financial Instruments: Disclosures
Applicable for
years
beginning on/after
1 January 2016
1 January 2016
1 January 2018
1 January 2016
In 2014, 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 10 - Intangible asset; measurement of impairment
Note 8 - 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 undertakings for the year ended 31 December 2014.
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.
Page 21
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
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) the operations are ongoing in the area of interest and exploration or evaluation activities have not reached a
recoverable
stage which permits a reasonable assessment of the existence or otherwise of economically
reserves; or
(ii) such costs are expected to be recouped through successful development and exploration of the area of
interest or alternatively by its realisation.
(iii) 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.
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
Page 22
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
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.
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.
Page 23
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
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
Convertible loan notes are classified in accordance with IAS 32. 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.
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.
Page 24
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
2.
Going Concern
The financial statements are prepared on a going concern basis. The Group incurred a loss of €27,425 during the
year ended 31 December 2014. 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 Company
raised finance in the amount of €2,652,685 in the first quarter of 2014, which will be used to continue the
exploration and evaluation programme, this 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.
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.
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
Segment Revenue Segment Loss
2013
2014
€
€
-
-
2014
€
(27,541)
(448,319)
_________ _________ _________ _________
(448,319)
(27,541)
-
-
_________ _________
2013
€
116
-
_________ _________
(448,319)
_________ _________
(27,425)
-
-
_________ _________
(448,319)
_________ _________
(27,425)
€
2014
4,313,294
2013
€
1,824,713
_________ _________
4,313,294
1,824,713
_________ _________
146,554
283,233
_________ _________
283,233
_________ _________
146,554
Page 25
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
Other segment information
Exploration - Nevada
Depreciation and Additions to
Amortisation non-current assets
2013
€
97,606
_________ _________ _________ _________
2014
€
1,085,648
2014
€
-
2013
€
-
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
2014 2013
€ €
-
-
2,747,464
1,661,816
_________ _________
2,747,464 1,661,816
_________ _________
Page 26
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
4.
Interest receivable and similar income
Bank interest
5.
Loss on ordinary activities before taxation
Group
This is arrived at after charging:
Directors' emoluments including employer PRSI
Auditors' remuneration
Auditors' remuneration from non-audit work
and after crediting:
Profit/(loss) on foreign currencies
Company
This is arrived at after charging:
Auditors' remuneration
2014
€
116
_________
116
_________
2013
€
-
_________
-
_________
2014
€
2013
€
159,399
24,184
246
_________
341,287
_________
2014
€
128,887
26,102
246
_________
(105,851)
_________
2013
€
24,184
_________
26,102
_________
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.
6.
Interest payable and similar charges
On loans from Directors
2014
€
7,541
_________
7,541
_________
2013
€
5,740
_________
5,740
_________
Page 27
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
7.
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
7.1. Directors' emoluments
Directors' remuneration
Social security
2014
Number
3
2
_________
5
_________
2014
€
144,963
14,436
_________
159,399
_________
2013
Number
2
5
_________
7
_________
2013
€
128,887
-
_________
128,887
_________
Page 28
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
8.
Income Tax relating to continuing operations
Current tax
Current tax expense in respect of the current year
Total tax expense
2014
€
-
2013
€
-
_________
_________
-
_________
-
_________
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% (2013: 12.5%)
Effects of:
Unused tax losses
Income tax expense recognised
2014
€
(27,425)
_________
(3,428)
3,428
_________
-
_________
2013
€
(448,319)
_________
(56,040)
56,040
_________
-
_________
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 €3,427,784 (31 December 2013:
€3,400,360) available for offset against future profits which equates to a deferred tax asset of €428,473 (31
December 2013: €425,045). The potential deferred tax asset consists of €665 of an asset based on US losses,
€23,233 of an asset based on UK losses and €404,575 of an asset based on Irish losses. The deferred tax asset
is calculated based on the effective tax rate in each jurisdiction. No deferred tax asset has been recognised due to
the unpredictability of future profit streams. Unused tax losses may be carried forward indefinitely.
Page 29
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
9.
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
Weighted average number of ordinary shares for the purposes of basic
earning per share
Basic loss per ordinary share (cent)
2014
€
(27,425)
_________
64,823,809
200,000,000
_________
264,823,809
_________
191,342,466
_________
256,166,275
_________
(0.01)
_________
2013
€
(448,319)
_________
64,823,809
-
_________
64,823,809
_________
-
_________
64,823,809
_________
(0.69)
_________
Diluted earnings per share
There were no potential ordinary shares that would dilute the basic earnings per share.
Page 30
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
10.
Intangible assets - Group
Cost
Accumulated amortisation and impairment
Cost
At 1 January 2014
Additions
At 31 December 2014
2014
€
2,747,464
-
_________
2,747,464
_________
2013
€
1,661,816
-
_________
1,661,816
_________
Exploration and
Evaluation Assets
€
Exploration and
Evaluation Assets
€
1,661,816
1,085,648
_________
2,747,464
_________
1,564,210
97,606
_________
1,661,816
_________
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 2014. 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 31
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
11.
Financial assets - Company
Group undertakings - unlisted:
Shares at cost
2014
€
2013
€
500,001
_________
500,001
_________
In the opinion of the Directors' the carrying value of the investments are appropriate.
At 31 December 2014 the Company had the following subsidiary undertaking:
Incorporated in
Name
Great Western Mining Corporation Nevada, U.S.A.
GWM Operations Limited
London, UK
Main Activity Proportion of holding
100%
Mineral Exploration
100%
Service Company
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
GWM Operation Limited
12.
Trade and other receivables
Amounts falling due within one year:
Amounts owed by Group undertaking
Prepayments and accrued income
Capital and reserves Loss for the year
€
€
(46,286)
(146,899)
(1,662) 31 December 2014
(110,634) 31 December 2014
Year ended
Group
2014
€
Group Company Company
2013
2014
€
€
2013
€
-
114,288
1,320,283
11,995
_________ _________ _________ _________
2,406,397
13,755
-
80,037
114,288
1,332,278
_________ _________ _________ _________
2,420,152
80,037
All receivables are current and there have been no impairment losses during the year (2013: Nil).
Page 32
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
13.
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
2014
€
Group Company Company
2013
2014
€
€
2013
€
Cash and Cash equivalents per statement of cash flows
Cash and Cash Equivalents
14.
Trade and other payables
Amounts falling due within one year
Trade payables
Convertible debt
Other payables
Accruals and deferred income
71,805
1,451,542
_________ _________ _________ _________
1,438,809
82,860
71,805
1,451,542
_________ _________ _________ _________
1,438,809
82,860
Group
2014
Group Company Company
2013
2014
2013
€
€
€
€
13,699
40,000
30,454
62,401
7,830
100,000
26,767
148,636
7,831
100,000
15,948
124,833
_________ _________ _________ _________
248,612
_________ _________ _________ _________
13,207
40,000
15,568
62,261
283,233
131,036
146,554
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 33
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
15.
Share capital
Authorised equity
900,000,000 Ordinary shares of €0.01 each
(2013: 300,000,000 Ordinary shares of €0.01 each)
2014
€
2013
€
9,000,000
_________
3,000,000
_________
9,000,000
_________
3,000,000
_________
Issued, called up and fully paid:
No. of issued
Shares
Share
Capital
€
Share
Premium
€
Total
Capital
€
At 1 January 2013
Total comprehensive income for the year
Loss for the year
Transactions with shareholders, recorded directly in equity
Shares issued
64,823,809
-
At 1 January 2014
-
_________
64,823,809
_________
Total comprehensive income for the year
Loss for the year
Transactions with shareholders, recorded directly in equity
Shares issued for cash
200,000,000
-
648,238
3,978,260
4,626,498
-
-
-
-
_________
648,238
_________
-
_________
3,978,260
_________
-
_________
4,626,498
_________
-
-
-
2,000,000
652,685
2,652,685
As at 31 December 2014
_________
264,823,809
_________
_________
2,648,238
_________
_________
4,630,945
_________
_________
(7,279,183)
_________
The authorised share capital of the company increased to €9,000,000, consisting of 600,000,000 ordinary shares
of €0.01 each by special resolution dated 17 July 2014.
The issued share capital of the company at 31 December 2014 comprised of 264,823,809 ordinary shares of
€0.01 each issued and fully paid (31 December 2013 : 64,823,809 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.
On the 8th of January 2014 the Company completed a placing of 80,000,000 new ordinary shares of €0.01 each
at a price of £0.01 per ordinary share, raising gross proceeds of £800,000. Following the success of the initial
share issue, the Company placed a further 120,000,000 new ordinary shares of €0.01 each at a price of
per ordinary share, raising gross proceeds of £1,500,000.
£0.0125
Page 34
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
16.
Significant Shareholders
The Company has been informed that, in addition to the interests of the Directors, at 31 December 2014
and the date of this report, the following shareholders own 3% or more of the issued share capital of the
Company:
Ashdale Investment Trust Services Ltd
Davycrest Nominees
Barclayshare Nominees Limited
Brewin 1762 Nominees Limited
Hargreaves Lansdown (Nominees) Limited
HSDL Nominees Limited
LR Nominees Limited
Lynchwod Nominees Limited
TD Direct Investing Nominees (Europe) Limited
Percentage of Issued share capital
25 Mar '15
31 Dec '14
6.31%
3.02%
3.83%
-
9.93%
10.15%
5.50%
4.02%
8.24%
6.29%
7.64%
3.19%
3.43%
-
9.83%
10.16%
9.27%
8.53%
The Directors are not aware of any other holding of 3% or more of the share capital of the Company.
Page 35
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
17.
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:
2014
2013
Balance at beginning of 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
Weighted
average
exercise
0.11
-
Number
price of options
_________ _________
178,035
-
-
-
_________ _________
178,035
_________ _________
0.11
-
-
Weighted
average
exercise
price
_________
0.11
-
-
-
_________
0.11
_________
Number
of options
_________
178,035
-
-
-
_________
178,035
_________
178,035
_________
178,035
_________ _________
0.11
0.11
_________
At 31 December 2014, no options lapsed without being exercised.
Exercised during the year
No options were exercised during the year.
The options outstanding at 31 December 2014 had a remaining average contractual life of 1.63 years.
18.
Retained Losses
Loss at beginning of year
Loss for the year
Loss at end of year
Group
2014
€
Group Company Company
2013
2014
€
€
2013
€
(3,085,018) (2,636,699) (2,971,026) (2,633,787)
(337,239)
(448,319)
(27,425)
(80,231)
_________ _________ _________ _________
(3,112,443) (3,085,018) (3,051,257) (2,971,026)
_________ _________ _________ _________
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 €80,231 (2013 - loss of €337,239) has been dealt
with in the Statement of Comprehensive Income of the Company.
Page 36
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
19.
Related party transactions
Details of subsidiary undertakings are shown in Note 11. 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 2014
Great Western Mining Corporation PLC there was no balance outstanding between the companies.
During the year, Great Western Mining Corporation PLC received services from LQ Accounting
Solutions to the value of €11,245 and they discharged €9,339 of this balance. At 31 December 2014
Great Western Mining Corporation PLC owed €1,906 to LQ Accounting Solutions.
Page 37
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
20.
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
Emmett
O'Connell
0%
on call
Melvyn
Robert
Quiller O'Connell
0%
on call
0%
on call
Total
Amount due to director as at 1 January 2014
Advanced by director in year
Repaid to director in the year
Amount due to director as at 31 December 2014
Maximum outstanding in the year
(23,717)
-
-
(25,087)
-
-
_________ _________ _________ _________
(1,165)
-
-
(205)
-
-
(23,717)
(25,087)
_________ _________ _________ _________
(1,165)
(205)
(23,717)
(25,087)
_________ _________ _________ _________
(1,165)
(205)
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
Emmett
O'Connell
0%
on call
Melvyn
Robert
Quiller O'Connell
0%
on call
0%
on call
Total
(12,898)
-
-
(14,268)
-
-
_________ _________ _________ _________
(1,165)
-
-
(205)
-
-
(12,898)
(14,268)
_________ _________ _________ _________
(1,165)
(205)
(12,898)
(14,268)
_________ _________ _________ _________
(1,165)
(205)
Amount due to director as at 1 January 2014
Advanced by director in year
Repaid to director in the year
Amount due to director as at 31 December 2014
Maximum outstanding in the year
Page 38
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
21.
Convertible debt
Redeemable loan
2014
€
2013
€
40,000
_________
40,000
_________
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 Lender. 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. During the period the company repaid an amount of €60,000. At the 31 December 2013 the
amount due to Emmett O'Connell in respect of the redeemable convertible loan is €40,000.
The directors have considered the requirements of IAS 32 and in view of the interest rate payable on the
loan and the likelihood of conversion the directors are of the opinion that the obligation should be
classified as a financial liability.
22.
Events after the reporting date
There were no significant post balance sheet events
Page 39
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
23.
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 2014 and 2013 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 2014 and 31 December 2013, 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.
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 2014.
Page 40
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
The Group and Company's financial liabilities as at 31 December 2014 and 31 December 2013 were all
payable on demand, except an interest-bearing redeemable convertible loan advanced from one of the
directors of the company in the year, which is either convertible to ordinary shares or payable on demand.
The expected maturity of the Group and Company’s financial assets (excluding prepayments) as at 31
December 2014 and 31 December 2013 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 2014 and 31 December 2013.
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
2014 and 31 December 2013. The capital 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 liabilities is a reasonable
approximation of the fair value.
Hedging
At the year ended 31 December 2014 and 31 December 2013, the Group had no outstanding contracts
designated as hedges.
Page 41
Great Western Mining Corporation PLC - Annual Report 2014
Notes to the Financial Statements
for the year ended 31 December 2014
............... continued
24.
Approval of financial statements
The financial statements were approved by the board on 30 March 2015.
Page 42
Great Western Mining Corporation PLC - Annual Report 2014
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