Great Western Minerals Group Ltd.
TSX VENTURE : GWG
OTCQX : GWMGF
April 30, 2012 20:23 ET
Great Western Minerals Group Releases Annual 2011 Financial Results
SASKATOON, SASKATCHEWAN--(Marketwire - April 30, 2012) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (OTCQX:GWMGF) today announced its financial results for the year ended December 31, 2011.
GWMG now reports its results under International Financial Reporting Standards. For the three months and the year ended December 31, 2011, GWMG's financial summary and highlights are as follows:
Three months ended December 31/11 Three months ended December 31/10 Year ended December/11 Year ended December 31/10
Revenue $ 2,806,843 $ 4,692,380 $ 16,437,278 $ 15,139,682
Gross Margins $ 1,473,336 $ 1,345,478 $ 6,108,573 $ 4,490,851
Earnings (Loss) $ (3,789,786 ) $ (11,423,416 ) $ (14,040,581 ) $ (15,773,399 )
Earnings (Loss) per share $ (0.010 ) $ (0.044 ) $ (0.037 ) $ (0.060 )
•Manufacturing revenues from GWMG's wholly owned subsidiaries Less Common Metals Limited ("LCM") and Great Western Technologies Inc. ("GWTI") for the year ended December 31, 2011 represent a 9% increase over the year ended December 31, 2010.
•Gross margins on LCM/GWTI manufacturing operations for the year ended December 31, 2011 represent an increase of 36% over the same period of 2010.
•LCM/GWTI manufacturing operations achieved Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $1,122,875 for the year ended December 31, 2011 compared to EBITDA of $859,436 for the prior year, an increase of 31%.
•The net consolidated loss for the Company for the year ended December 31, 2011 of $14.0 million ($.037/share on a fully diluted basis) includes stock based compensation of $5.4 million. This compares to a net consolidated loss of $.060/share for the year ended December 31, 2010.
•GWMG completed 2011 with a consolidated cash balance of $10.9 million compared to $9.2 million at the end of 2010. Subsequent to the end of 2011, GWMG successfully closed a U.S. $90 Million offering of secured convertible bonds (See April 5, 2012 media release: GWMG Announces Closing of US$90 Million Convertible Bond Financing).
GWMG President and Chief Executive Officer Jim Engdahl said, "GWMG experienced continued success in revenue and margin growth during 2011. The strong track record of our alloy manufacturing operations, particularly with the new strip cast furnace about to go into production at LCM, positions our Company to build even further on its strong financial and market position. That, in turn, provides a very solid base with which to move our Company's top priority, the Steenkampskraal project, to the finish line."
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, satisfaction of escrow conditions with the Offering completed on April 5, 2012, the construction, commissioning and operation of the proposed monazite processing facility and separation facility, mine refurbishment activities, reliance on third parties to meet projected timelines, the results of the exploration program at Steenkampskraal, completion of a resource estimate 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 South Africa,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, risks associated with the uncertainty of reserve or resource estimates, health and safety risks, uncertainty of estimates and projections of production, costs and expenses, risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives, the availability of additional financing on reasonable terms or at all, political risks inherent in South Africa, risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in South Africa, radioactivity and related issues, dependence on one mineral project, loss of 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 current annual information form available at www.sedar.com
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