Great Western Mining Corporation PLC (8GW.IR) QQ1 2024 Results — Early-stage Exploration Outlook with Net Losses but a Substantial Asset Base
Executive Summary
Great Western Mining Corporation PLC (8GW.IR) reported QQ1 2024 results with no revenue disclosed and a negative earnings profile consistent with an early-stage exploration company. Operating income stood at -€221.50 and net income at -€220.67, while EBITDA appeared to be significantly negative (-€221,281.50) amid a €221.50 depreciation/amortization line item, suggesting an anomalous reconciliation or data formatting quirk in the provided dataset. The company continues to incur fixed overheads (G&A €221.50) and carries a substantial non-cash asset base, including intangible assets (€9.05m) and long-term investments (€0.54m), which supports a material balance sheet cushion despite the near-term absence of revenue.
On the balance sheet, total assets are approximately €10.04m against liabilities of €0.614m, yielding a stockholders’ equity base near €9.43m. A notable feature is a positive net cash/debt position as implied by the balance sheet data (net debt reported as negative €91k and cash and cash equivalents reported as €91.0k in the data, with a reported cash imbalance that warrants careful interpretation due to inconsistent end-of-period cash figures). The liquidity metrics show a current ratio and quick ratio of 0.613, underscoring near-term liquidity risk if external financing is not sustained. Cash flow from operations is negative (€-272k), with financing activities contributing a €383k inflow, and investing activity reflecting €-118k, yielding a minimal net cash change for QQ1 2024. Overall, the company remains in a typical exploratory phase with a prudent cash runway supported by financing but no immediate revenue streams.
Management commentary for QQ1 2024 is not included in the provided transcript data. Absent explicit guidance or management quotes, investors should focus on exploration progress, assay results, capital deployment for field activities, and partnerships as potential near-term catalysts. The investment thesis hinges on unlocking value through successful exploration outcomes and possible monetization of non-core assets, balanced against the inherent execution risk and commodity-price sensitivity typical of early-stage mining entities.
Key Performance Indicators
Operating Income
-221.50
QoQ: 4.60% | YoY:16.39%
Net Income
-220.67
QoQ: -3.93% | YoY:16.41%
EPS
0.00
QoQ: N/A | YoY:N/A
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed / not reported in QQ1 2024 data.
Gross profit: Not reported.
Operating income: -€221.50 (YoY: 16.39% improvement versus prior period reported figure, QoQ: 4.60% improvement). Note: The data shows a negative operating income across QQ1 2024.
Net income: -€220.67 (YoY: -/+ 16.41% depending on prior period base; QoQ: -3.93%).
EBITDA: -€221,281.50 (significantly negative); Depreciation and amortization: €221.50. The magnitude gap between EBITDA and D&A implies potential data reconciliation anomalies in the supplied figures.
Financial Highlights
Revenue and profitability:
- Revenue: Not disclosed / not reported in QQ1 2024 data.
- Gross profit: Not reported.
- Operating income: -€221.50 (YoY: 16.39% improvement versus prior period reported figure, QoQ: 4.60% improvement). Note: The data shows a negative operating income across QQ1 2024.
- Net income: -€220.67 (YoY: -/+ 16.41% depending on prior period base; QoQ: -3.93%).
- EBITDA: -€221,281.50 (significantly negative); Depreciation and amortization: €221.50. The magnitude gap between EBITDA and D&A implies potential data reconciliation anomalies in the supplied figures.
- EPS (diluted): -€0.00000673 per share; Weighted average diluted shares: 32,800,820.
Liquidity, leverage and cash flow:
- Current ratio: 0.613; Quick ratio: 0.613; Cash ratio: 0.148.
- Cash and cash equivalents: €91,003 (balance sheet reported figure).
- Net debt: -€91,003 (negative debt position on the balance sheet, implying net cash).
- CFO (operating cash flow): -€272k; Free cash flow: -€272k.
- Cash flow from financing: €383k; Net change in cash: -€2k; Cash at end of period: -€2k (note: end-period cash figure appears inconsistent with cash and equivalents on the balance sheet; data units may be EUR thousands).
Balance sheet and capitalization:
- Total assets: €10,041,768k (approx €10.04m).
- Total current assets: €376,798k; Total non-current assets: €9,664,970k.
- Intangible assets: €9,047,352k; Goodwill: none; Long-term investments: €541,262k.
- Total liabilities: €614,384k; Total stockholders’ equity: €9,427,384k.
- Share count: 33,435,150 weighted average shares outstanding; 32,800,820 diluted.
- Price-to-book: 0.355; Enterprise value to forward measures are negative due to the negative earnings multiple context.
- Holdings quality indicators: Significant intangible assets and long-term investments underpin the balance sheet, while cash generation from operations remains negative in QQ1 2024.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-221.50
16.39%
4.60%
Net Income
-220.67
16.41%
-3.93%
EPS
0.00
N/A
N/A
Key Financial Ratios
currentRatio
0.61
returnOnAssets
-0%
returnOnEquity
-0%
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$0
priceToBookRatio
0.36
priceEarningsRatio
-3787.88
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript was provided for QQ1 2024. Consequently, no management quotes or theme-based highlights are available from the transcript in the supplied data.
N/A
— N/A
N/A
— N/A
Forward Guidance
There is no explicit QQ1 2024 forward guidance in the provided data. Given the exploration-focused business model, investors should monitor assay results, drilling programs, permitting status, and potential partnerships or farmouts. Near-term guidance would likely depend on the timing of exploration milestones, licensing developments, and any capital-raising plans to fund field activities. In the absence of stated guidance, the potential trajectory hinges on successful exploration results that could unlock resource potential and improve the valuation of the asset base.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
8GW.IR Focus
0.00%
0.00%
0.00%
-3,787.88%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The stock presents a high-risk, high-uncertainty investment profile consistent with early-stage mining exploration. The current QQ1 2024 data show negative profitability and cash flow, but the balance sheet carries a sizeable asset base including intangible assets and long-term investments, paired with a net cash position that provides liquidity relief to fund exploratory efforts. The investment thesis rests on successful discovery or escalation of exploration milestones that could convert the asset base into value-generating reserves or cash flows. Absent near-term revenue, investors should demand clarity on assay progress, licensing developments, and any financing plan that preserves equity value while enabling field activities. If upcoming exploration results are favorable and financing terms are accretive, the stock could re-rate toward a more favorable multiple relative to book value; if results disappoint or financing becomes constrained, downside risk remains significant given the current liquidity indicators and negative profitability backdrop in QQ1 2024. Key catalysts to watch include assay results, drilling updates, and any strategic collaborations that can unlock value from the company’s claims portfolio.
Key Investment Factors
Growth Potential
Potential catalysts include positive assay results from ongoing exploration, advancement of priority claims (Black Mountain and Huntoon claim groups), and any strategic partnerships or joint ventures that bring funding and technical expertise to accelerate resource delineation. Growth would largely come from converting exploration success into measurable resource ounces and expanding the claim footprint or processing efficiencies.
Profitability Risk
Key risks include the absence of revenue in QQ1 2024, reliance on successful exploration outcomes, commodity price volatility (copper, silver, gold), permitting and regulatory risks, and potential funding liquidity risk if financing markets tighten. The balance sheet shows heavy intangible asset load with limited visible revenue-generating assets, which could lead to impairment considerations if exploration progresses slowly or results disappoint.
Financial Position
Strong asset base (intangible assets and long-term investments) supports a cushion for ongoing exploration, and net cash positioning provides liquidity runway. However, the near-term liquidity constraint implied by a current ratio below 1.0 and negative operating cash flow underscores the importance of timely financing or partner funding to sustain exploration programs.
SWOT Analysis
Strengths
Net cash/net debt position suggesting liquidity runway (negative net debt reported).
Substantial intangible assets and long-term investments underpinning the balance sheet.
Low price-to-book ratio (~0.36) implying potential undervaluation relative to book value.
Weaknesses
No disclosed revenue and negative earnings in QQ1 2024, characteristic of an early-stage explorer.
Current ratio at 0.613 indicates liquidity stress without ongoing financing.
Reliance on financing activities for liquidity; potential accounting/structural complexities (e.g., large intangible base) raise impairment risk concerns.
Opportunities
Exploration docket could yield assay results that unlock resource potential and enhance valuation.
Potential partnerships or farm-outs to fund exploration without dilutive equity issuance.
Opportunity to monetize non-core assets or optimize the capital structure as exploration programs progress.
Threats
Commodity price volatility affecting the economics of potential future resources.
Regulatory, permitting, and environmental liabilities associated with exploration.
Funding risk if equity markets tighten or investor appetite shifts away from early-stage explorers.
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