Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

August 30, 2011 08:00 ET

Great Western Minerals Group Releases 2nd Quarter 2011 Financial Results

Q2 2011 Revenues Increase 63%, Gross Margins Grow by 81%

SASKATOON, SASKATCHEWAN--(Marketwire - Aug. 30, 2011) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (OTCQX:GWMGF) today announced its financial results for the 2nd Quarter of 2011.

GWMG now reports its results under International Financial Reporting Standards. For the three months and the six months ended June 30, 2011, GWMG's financial summary and highlights are as follows:

Three months ended June 30/11 Three months ended June 30/10 Six months ended June 30/11 Six months ended June 30/10
Revenue $ 5,178,295 $ 3,179,788 $ 9,415,774 $ 7,234,553
Gross Margins $ 1,683,680 $ 931,541 $ 2,978,775 $ 2,247,502
Earnings (Loss) $ (3,613,712 ) $ (1,501,730 ) $ (6,843,468 ) $ (2,207,392 )
Earnings (Loss) per share $ (0.010 ) $ (0.005 ) $ (0.019 ) $ (0.008 )
  • Manufacturing / processing revenues from GWMG's wholly owned subsidiaries Less Common Metals Limited ("LCM") and Great Western Technologies Inc. for the 2nd Quarter of 2011 represent a 63% increase over the 2nd Quarter of 2010.
  • Gross margins on manufacturing / processing operations for the 2nd Quarter 2011 represent an increase of 81% over the same period of 2010.
  • The net consolidated loss for the 2nd Quarter of 2011 of $3.6 million ($.010/share on a fully diluted basis), which includes stock based compensation of $1.7 million and the write-off of the Chaleur exploration property in the amount of $165,359, compares to $.005/ share in the 2nd Quarter of 2010.
  • GWMG completed the 2nd Quarter of 2011 with $10.2 million in cash on hand compared to $4.1 million as of the same time in 2010.

Also of note was the fact that LCM achieved Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $944,267 in Q2 of 2011 compared to $528,621 in the same time frame last year, an increase of 79%.

GWMG President and Chief Executive Officer Jim Engdahl said, "Great Western Minerals Group experienced exceptional growth in revenue and margin performance in the second quarter of 2011. With this type of positive performance, combined with a much stronger cash position than was the case at the same point last year, GWMG is well positioned to continue its development. I am very pleased with our team's ability to execute at this level as we add the final components of our plan to become a fully integrated rare earth producer."

Great Western Minerals Group Ltd. is an integrated Rare Earths processor. 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 Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminium, nickel, cobalt 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 owns a 74% equity interest in the Steenkampskraal Mine. In addition to a planned exploration program at Steenkampskraal, GWMG also holds interests in four active Rare Earth exploration and development properties in North America.

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 results of the exploration program, a resource estimate and commencement of production at Steenkampskraal, satisfaction of the conditions precedent with respect to GWMG's offtake agreement, receipt of all required approvals (including those relating to the commencement of production at the Steenkampskraal mine) and risks, uncertainties and other factors that are beyond the control of GWMG, 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 and the uncertainty of estimates and projections of production, costs and expenses. 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. 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

CUSIP: 39141Y 10 3

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.

Contact Information

  • Great Western Minerals Group Ltd.
    Dwight Percy
    Manager of Investor Relations
    (306) 659-4500

    Great Western Minerals Group Ltd.
    219 Robin Crescent
    Saskatoon, SK S7L 6M8