8th Floor, 54 Jermyn Street,
London, SW1Y 6LX. United Kingdom
Telephone: + 44 (0)20 7629
7772 Facsimile: + 44 (0)20 7629 7773
E mail:
griffin@griffinmining.com
12th September
2024
UNAUDITED INTERIM
RESULTS
for the six months ended 30th
June 2024
Griffin Mining Limited ("Griffin" or
the "Company") today releases its unaudited results for the six
months ended 30th June 2024.
Highlights:
·
Revenues of $85.7 million (30th June
2023: $69.5 million).
·
Gross Profit of $38.5 million (30th
June 2023: $21.7 million).
·
Operating profit of $19.7 million (30th
June 2023: $9.1 million).
·
Profits before tax, depreciation, and interest of
$34.1 million (30th June 2023: $23.9
million).
·
Profit before tax of $20.5 million
(30th June 2023 $9.6 million).
·
Profit after tax of $11.3 million (30th
June 2023: profit $5.2 million).
·
Basic earnings per share of 5.93 cents
(30th June 2023: 2.77 cents).
·
Cash inflow from operations $24.0 million
(30th June 2023 $21.4 million).
Financial and Trading:
Mining, haulage and processing rates
of circa 1.5 million tonnes of ore per annum have been maintained
in the first half of 2024 with 764,682 tonnes of ore mined and
736,010 tonnes of ore processed to produce:
-
26,202 tonnes of zinc ( 30th June 2023
- 28,095 tonnes);
-
731 tonnes of lead (30th June 2023 -
697 tonnes);
-
164,781 ounces of silver (30th June
2023 - 151,608 ounces); and
-
11,307 ounces of gold (30th June 2023 -
7,980 ounces).
Whilst the average zinc ore grade
declined from 3.98% in the first half of 2023 to 3.76% in the first
half of 2024, the gold grade improved from 0.53g/t in the first
half 2023 to 0.73g/t in the first half of 2024, enabling Griffin to
benefit from higher gold prices. Likewise the silver grade
increased from 14.0g/t in the first half of 2023 to 14.8g/t in the
first half of 2024. Zinc recoveries were marginally down on that in
the first half of 2023 whilst gold and silver recoveries improved
on that in the first half of 2023.
During the six months to
30th June 2024:
-
25,653 tonnes of zinc metal in concentrate were
sold (30th June 2023: 28,939 tonnes);
-
11,257 ozs of gold in concentrate were sold
(30th June 2023: 7,835 ozs);
-
162,202 ozs of silver in concentrate were sold
(30th June 2023: 147,663 ozs); and
-
714 tonnes of lead in concentrate were sold
(30th June 2023 : 670 tonnes).
Turnover increased by 23.3% from
$69,518,000 in the first half of 2023 to $85,746,000 in the first
half of 2024, with Griffin benefiting from higher metal prices
received and increased gold and silver in concentrate
production. Zinc revenues before royalties and resource taxes
in the six months to 30th June 2024 were $59,974,000
(30th June 2023: $55,443,000). Lead and precious
metals revenues were $30,476,000 (30th June 2023:
$18,179,000).
Average metal prices received in the
first half year were:
|
|
30th June
|
|
30th
June
|
|
|
2024
|
|
2023
|
|
|
$
|
|
$
|
|
Zinc per tonne
|
2,338
|
|
1,916
|
|
Gold per oz
|
2,183
|
|
1,851
|
|
Silver per oz
|
23.5
|
|
19.3
|
|
Lead per tonne
|
2,904
|
|
2,276
|
Costs of sales (mining, haulage and
processing costs) decreased by 1% in the first half of 2024 from
that in the first half of 2023, despite a 5.8% increase in ore
mined and a marginal decrease in ore processed from that in the
first six months of 2023.
Administration costs, excluding the
Chinese partners interests and share based incentive charges,
increased by 37.0% from $9,999,000 in the first half of 2023
to $13,701,000 in the first half of 2024. This primarily reflects
bonuses to personnel on achieving throughput of 1.5 million tonnes
per annum. A charge of $2,149,000 (30th June 2023:
$969,000) has been made in respect of the Company's share incentive
scheme and $2,954,000 (30th June 2023: $1,677,000) has
been provided for the Chinese partners service fees based upon
Hebei Hua Ao's profits.
Griffin benefited from an
increase in interest received from $565,000 in the first half
of 2023 to $826,000 in the first half of 2024, reflecting a rise in
bank deposits from $46,887,000 at 30th June 2023 to
$65,250,000 at 30th June 2024, despite $11,656,000
expended on share buy backs in that period. Mine development and
other capital expenditure of $10,628,000 was incurred in the first
half of 2024 (30th June 2023: $9,534,000) primarily on
the ongoing development of the Zone II area at Caijiaying expected
to bought into production in 2025.
The tax charge of $9,177,000 is
disproportionally large compared with pre-tax profits of
$20,473,000 as the tax charge primarily arises on Hebei Hua Ao's
profit determined under Chinese Generally accepted Accounting
Principles ("GAAP") in the first half of the year, at a rate of
25%. Accordingly, the share incentive
scheme charge and certain other costs incurred outside China are
not tax deductible.
Chairman's Statement
Chairman Mladen Ninkov commented,
"In what's becoming a well worn cliché, this is yet another
outstanding operational and financial performance by the Company
and it's Caijiaying Mine. With Operating Profit up 116%, Profit
Before Tax up 114% and Profit After Tax up 117% on the same 6 month
period from last year, all with a balance sheet without any debt, I
couldn't be prouder of the Company's management, employees,
contractors and other stakeholders. My heartfelt thanks goes out to
all of them."
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman
Telephone: +44(0)20 7629
7772
Roger Goodwin - Finance
Director
Panmure Liberum Limited - Nominated
Adviser & Joint Broker
Telephone:
+44 (0)20 7886 2500
James Sinclair-Ford
Kieron Hodgson
Dougie McLeod
Berenberg - Joint Broker
Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Lee
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No. 596/2014
Griffin Mining Limited's shares are quoted on
the Alternative Investment Market (AIM) of the London Stock
Exchange (symbol GFM).
The Company's news releases are
available on the Company's web site: www.griffinmining.com
Griffin Mining Limited
Condensed Consolidated Income
Statement
(expressed in thousands US
dollars)
|
|
6 months to
30/06/2024
Unaudited
|
|
6 months
to
30/06/2023
Unaudited
|
|
Year
to
31/12/2023
Audited
|
|
|
$000
|
|
$000
|
|
$000
|
|
|
|
|
|
|
|
|
Revenue
|
85,746
|
|
69,518
|
|
146,023
|
|
|
|
|
|
|
|
|
Cost of sales
|
(47,288)
|
|
(47,779)
|
|
(94,181)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
38,458
|
|
21,739
|
|
51,842
|
|
|
|
|
|
|
|
|
Administration expenses
|
(18,804)
|
|
(12,645)
|
|
(28,005)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from operations
|
19,654
|
|
9,094
|
|
23,837
|
|
|
|
|
|
|
|
|
Losses on disposal of
equipment
|
(82)
|
|
(63)
|
|
(784)
|
|
Foreign exchange (losses)
|
(40)
|
|
(25)
|
|
(136)
|
|
Finance income
|
826
|
|
565
|
|
1,394
|
|
Finance costs
|
(73)
|
|
(85)
|
|
(177)
|
|
Other income
|
188
|
|
126
|
|
352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
20,473
|
|
9,612
|
|
24,486
|
|
|
|
|
|
|
|
|
Income tax expense
|
(9,177)
|
|
(4,424)
|
|
(9,250)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
11,296
|
|
5,188
|
|
15,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (cents)
|
5.93
|
|
2.77
|
|
8.03
|
|
|
|
|
|
|
|
|
Diluted earnings per share (cents)
|
5.93
|
|
2.76
|
|
7.98
|
Griffin Mining Limited
Condensed Consolidated Statement Of
Comprehensive income
(expressed in thousands US
dollars)
|
|
6 months to
30/06/2024
Unaudited
|
|
6 months
to
30/06/2023
Unaudited
|
|
Year
to
31/12/2023
Audited
|
|
|
$000
|
|
$000
|
|
$000
|
|
|
|
|
|
|
|
|
Profit for the financial period
|
11,296
|
|
5,188
|
|
15,236
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense) that will be
reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating
foreign operations
|
422
|
|
(5,865)
|
|
(2,912)
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense) for the period, net of
tax
|
422
|
|
(5,865)
|
|
(2,912)
|
|
|
|
|
|
|
|
|
Total comprehensive income / (losses) for the
period
|
11,718
|
|
(677)
|
|
(12,324)
|
Griffin Mining Limited
Condensed Consolidated Statement Of
Financial Position
(expressed in thousands
US dollars)
|
|
30/06/2024
|
|
30/06/2023
|
|
31/12/2023
|
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
$000
|
|
$000
|
|
$000
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
245,258
|
|
245,632
|
|
250,370
|
|
Intangible assets - exploration
interests
|
600
|
|
532
|
|
575
|
|
Other non-current assets
|
1,471
|
|
1,613
|
|
1,554
|
|
|
247,329
|
|
247,777
|
|
252,499
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
7,862
|
|
5,530
|
|
5,828
|
|
Receivables and other current
assets
|
3,984
|
|
2,957
|
|
2,886
|
|
Cash and cash equivalents
|
65,250
|
|
46,887
|
|
60,007
|
|
|
77,096
|
|
55,374
|
|
68,721
|
|
|
|
|
|
|
|
|
Total assets
|
324,425
|
|
303,151
|
|
321,220
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
Equity attributable to equity holders of the
parent
|
|
|
|
|
|
|
Share capital
|
1,845
|
|
1,928
|
|
1,928
|
|
Share premium
|
67,318
|
|
78,550
|
|
78,550
|
|
Contributing surplus
|
3,690
|
|
3,690
|
|
3,690
|
|
Share based payments
|
5,090
|
|
1,059
|
|
3,109
|
|
Shares held in treasury
|
(1,157)
|
|
(1,644)
|
|
(2,017)
|
|
Chinese statutory re-investment
reserve
|
3,507
|
|
3,091
|
|
3,529
|
|
Other reserve on acquisition of
non-controlling interests
|
(29,346)
|
|
(29,346)
|
|
(29,346)
|
|
Foreign exchange reserve
|
(3,036)
|
|
(6,375)
|
|
(3,480)
|
|
Profit and loss reserve
|
225,253
|
|
204,121
|
|
213,789
|
|
Total equity attributable to equity holders of the
parent
|
273,164
|
|
255,074
|
|
269,752
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Other payables
|
3,087
|
|
9,134
|
|
3,106
|
|
Long-term provisions
|
3,961
|
|
2,594
|
|
3,929
|
|
Deferred taxation
|
-
|
|
1,160
|
|
-
|
|
Finance leases
|
519
|
|
628
|
|
570
|
|
|
7,567
|
|
13,516
|
|
7,605
|
|
Current liabilities
|
|
|
|
|
|
|
Trade and other payables
|
36,530
|
|
32,048
|
|
38,308
|
|
Lease liabilities
|
158
|
|
167
|
|
169
|
|
Business taxation payable
|
7,006
|
|
2,346
|
|
5,386
|
Total current liabilities
|
43,694
|
|
34,561
|
|
43,863
|
|
|
|
|
|
|
|
|
Total equities and liabilities
|
324,425
|
|
303,151
|
|
321,220
|
|
|
|
|
|
|
|
|
Number of shares in issue
|
184,530,477
|
|
192,828,420
|
|
192,828,420
|
|
|
|
|
|
|
|
Attributable net asset value / total equity
per share
|
$1.48
|
|
$1.32
|
|
$1.40
|
|
|
|
|
|
|
|
Griffin Mining Limited
Condensed Consolidated Cash
Flow Statement
(expressed in thousands
US dollars)
|
|
6 months to
30/06/24
|
|
6 months
to
30/06/2023
|
|
Year
to
31/12/2023
|
|
|
|
$000
|
|
$000
|
|
$000
|
|
Net
cash flows from operating activities
|
|
|
|
|
|
|
|
Profit before taxation
|
20,473
|
|
9,612
|
|
24,486
|
|
|
Issue of shares under share incentive
scheme
|
2,149
|
|
969
|
|
3,019
|
|
|
Foreign exchange losses
|
40
|
|
25
|
|
136
|
|
|
Finance income
|
(826)
|
|
(565)
|
|
(1,394)
|
|
|
Finance costs
|
73
|
|
84
|
|
177
|
|
|
Depreciation, depletion and
amortisation
|
14,487
|
|
14,845
|
|
28,026
|
|
|
Losses on disposal of
equipment
|
82
|
|
63
|
|
784
|
|
|
Decrease / (increase) in
inventories
|
(2,033)
|
|
2,547
|
|
2,249
|
|
|
Decrease / (increase) in receivables
and other assets
|
(1,098)
|
|
477
|
|
547
|
|
|
(Decrease) in trade and other
payables
|
(1,778)
|
|
(385)
|
|
(415)
|
|
|
Taxation paid
|
(7,557)
|
|
(6,245)
|
|
(9,238)
|
|
|
Net
cash inflow from operating activities
|
24,012
|
|
21,427
|
|
48,377
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
Interest received
|
826
|
|
565
|
|
1,394
|
|
|
Proceeds / (costs) on disposal of
equipment
|
8
|
|
168
|
|
(263)
|
|
|
Payments to acquire - mineral
interests and mine development
|
(8,838)
|
|
(4,539)
|
|
(16,792)
|
|
|
Payments to acquire - property, plant
& equipment
|
(1,790)
|
|
(4,995)
|
|
(6,056)
|
|
|
Payments to acquire - office lease,
furniture and equipment
|
-
|
|
0
|
|
-
|
|
|
Payments to acquire - intangible
assets - exploration interests
|
(25)
|
|
(125)
|
|
(168)
|
|
|
Net
cash (outflow) from investing activities
|
(9,819)
|
|
(8,926)
|
|
(21,885)
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
|
|
|
Issue of shares on exercise of
options
|
828
|
|
-
|
|
-
|
|
|
Interest paid
|
-
|
|
(21)
|
|
(27)
|
|
|
Purchase of shares for treasury /
cancellation
|
(11,283)
|
|
-
|
|
(373)
|
|
|
Bank loan advances
|
-
|
|
4,228
|
|
4,271
|
|
|
Repayment of bank loans
|
-
|
|
(4,228)
|
|
(4,271)
|
|
|
Lease repayments including
interest
|
(80)
|
|
(78)
|
|
(155)
|
|
|
Net
cash (outflow) from financing activities
|
(10,535)
|
|
(99)
|
|
(555)
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
3,658
|
|
12,402
|
|
25,937
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at beginning of the period
|
60,007
|
|
34,138
|
|
34,138
|
|
|
Effects of exchange rate
changes
|
1,585
|
|
347
|
|
(68)
|
|
|
Cash
and cash equivalents at end of the period
|
65,250
|
|
46,887
|
|
60,007
|
|
|
|
|
|
|
|
|
|
Griffin Mining Limited
Notes to the Interim Statement
1. These
unaudited condensed consolidated interim financial statements have
been prepared in accordance with the accounting policies adopted in
the last annual financial statements for the year to
31st December 2023.
2. This
interim report will be available on the Company's web site,
www.griffinmining.com.
Hard copies are available from the Company's London office,
8th Floor, Royal Trust House, 54 Jermyn Street, London.
SW1Y 6LX.
3. The
summary accounts set out above do not constitute statutory accounts
as defined by Section 84 of the Bermuda Companies Act 1981 or
Section 434 of the UK Companies Act 2006. The consolidated
statement of financial position at 31st December 2023
and the consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity
and the consolidated cash flow statement for the year then ended
have been extracted from the Group's 2023 statutory financial
statements upon which the auditors' opinion is unqualified, and
should be read in conjunction with the accompanying notes contained
therein.
4. The
summary accounts have been prepared on a going concern basis.
Whilst it is difficult to accurately predict future profitability
and liquidity, particularly regarding the impact of metal prices,
the directors consider that at current metal prices and with the
benefit of existing cash resources and agreed banking facilities
the Group can continue as a going concern for the foreseeable
future without the need to curtail operations.and that the Group
will be able to meet its liabilities as they fall due.
5. The
calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period. The
calculation of diluted earnings per share is based on the basic
earnings per share on the assumed conversion of all dilutive
options and other dilutive potential ordinary shares.
6.
Reconciliation of the earnings and weighted average number of
shares used in the calculations are set out below:
|
|
6 months to
30/06/2024
Unaudited
|
6 months
to
30/06/2023
Unaudited
|
Year
to
31/12/2023
Audited
|
|
|
Earnings
$000
|
Weighted
average number of
shares
|
Per share
amount
(cents)
|
Earnings
$000
|
Weighted
average
number of shares
|
Per share
amount (cents)
|
Earnings
$000
|
Weighted
average
number of shares
|
Per share
amount (cents)
|
|
Basic (loss) / earnings per share
|
|
|
|
Earnings attributable to
ordinary shareholders
|
11,296
|
190,505,932
|
5.93
|
5,188
|
187,039,932
|
2.77
|
15,236
|
189,771,884
|
8.03
|
|
Dilutive effect of securities
|
|
|
|
|
|
Options
|
-
|
-
|
-
|
-
|
1,226,454
|
(0.1)
|
-
|
1,234,740
|
(0.05)
|
|
Diluted earnings per share
|
11,296
|
190,505,932
|
5.93
|
5,188
|
188,266,386
|
2.76
|
15,236
|
191,006,624
|
7.98
|
|
|
|
|
|
|
|
|
|
|
|
|
7. As at 30th
June 2024 there were no adjusting post balance sheet
events.