Press release from PR Newswire
Great Western Minerals Group releases 2012 financial results
Tuesday, April 02, 2013
Great Western Minerals Group releases 2012 financial results19:21 EDT Tuesday, April 02, 2013
TSX Venture Symbol: GWG OTCQX: GWMGF
CUSIP: 39141Y 10 3
SASKATOON, SK, April 2, 2013 /PRNewswire/ - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSXV: GWG) today announced its financial results for the year ended December 31, 2012.
GWMG has reported its results under International Financial Reporting Standards. For the twelve months ended December 31, 2012, GWMG's financial highlights are as follows:
|Twelve months ended December 31, 2012||Twelve months ended December 31, 2011|
|Earnings (Loss) per share||$(0.046)||$(0.058)|
GWMG President and Chief Executive Officer Marc LeVier said, "2012 was a year of accomplishments and challenges. We successfully closed a $90 million convertible bond offering, developed our Preliminary Economic Assessment and advanced the refurbishment of the Steenkampskraal project, all with the intent of achieving our goal of being a fully integrated rare earth producer. One of my priorities, as CEO, is to continually look for, and act decisively upon, avenues that will ensure all possible resources are available for the continued development of the Steenkampskraal project. This includes corporate/organizational realignment, the development of the owner's representative team to effectively oversee all aspects of Steenkampskraal project and the minimization of overhead costs."
Highlights for rare earth alloy manufacturing operations (including Less Common Metals Limited and Great Western Technologies Inc.) for the year ended December 31, 2012 include:
|Twelve months ended December 31, 2012||Twelve months ended December 31, 2011|
LeVier added, "While revenues were equivalent to the prior year, earnings from alloy manufacturing operations were impacted by the cancellation costs of the lease on LCM's previous building as well as an inventory write-down. Company expenditures increased, as expected, with the heightened levels of development and drilling activity at Steenkampskraal. The Company also recognized an impairment of $6,157,191 ($0.015 per share) expense based on a quantity surveyor's report that indicated the quality of work undertaken by the Company's previous main contractor for the Steenkampskraal site (see GWMG news release February 21, 2013) was deficient. In addition, the Company altered its accounting policy from deferring exploration and evaluation expenditures to expensing them in the period in which they are incurred resulting in an increase to net loss in the amount of $12,364,859 ($0.030 per share) (2011- $8,057,189 or $0.021 per share)."
Great Western Minerals Group Ltd. is engaged in becoming an integrated rare earth producer. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly owned subsidiaries Less Common Metals Limited in Ellesmere, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain transition metals including nickel, cobalt, iron and rare earth elements. As part of the Company's vertical integration strategy, GWMG also holds 100% equity ownership in Rare Earth Extraction Co. Limited, which controls the Steenkampskraal monazite mine. In addition to an exploration program at Steenkampskraal, GWMG also holds interests in four active rare earth exploration and development properties in North America.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of GWMG as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to, the successful and timely completion of its preliminary economic assessment at Hoidas Lake; the assumptions and estimates in the preliminary economic assessment of the Steenkampskraal project proving to be accurate over time; the construction, commissioning and operation of the proposed monazite processing facility and separation facility within estimated parameters; mine refurbishment activities; reliance on third parties to meet projected timelines and commencement of production at Steenkampskraal; risks related to the receipt of all required approvals including those relating to the commencement of production at the Steenkampskraal mine, delays in obtaining permits, licenses and operating authorities in Canada, South Africa and China, environmental matters, water and land use risks; risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, including those estimated in the preliminary economic assessment of the Steenkampskraal project; risks associated with the uncertainty of resource estimates; health and safety risks; uncertainty of estimates and projections of production, costs and expenses; risks that future Hoidas Lake or Steenkampskraal and region exploration results may not meet exploration or corporate objectives; the adequacy of the Company's financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all; political risks inherent in South Africa and China; risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in Canada and South Africa, radioactivity and related issues, dependence on one mineral project; loss of, and the inability to attract, key personnel; the factors discussed in the Company's public disclosure record; and other factors that could cause actions, events or results not to be as anticipated. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. Except as required by law, GWMG does not assume any obligation to update forward looking statements as set out in this news release. The forward-looking statements of GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's Annual Information Form available at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.
For further information: <p> For further information, please contact Dwight Percy, Manager of Investor Relations at (306) 659-4516. Email inquiries should be made to <a href="mailto:email@example.com">firstname.lastname@example.org</a> and the Company website is located at <a href="http://www.gwmg.ca">www.gwmg.ca</a>. Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8. </p>