Final Results
29 Juni 2001 - 1:38PM
UK Regulatory
RNS Number:1191G
Griffin Mining Ld
29 June 2001
GRIFFIN MINING LIMITED
29th JUNE 2001.
PRELIMINARY STATEMENT OF RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2000
Griffin Mining Limited ("Griffin") has today published its results for the
year ended 31 December 2000.
Losses for the financial year were down from $1,006,000 in 1999 to $608,000 in
2000, with operating costs reduced from $774,000 in 1999 to $629,000 in 2000.
Mladen Ninkov, Chairman commented as follows:
"Griffin has made excellent progress in the past year in bringing the
Caijiaying deposit to the stage where, subject to the conclusion of financing
arrangements, the Company is ready to begin the process of constructing
processing facilities and commission a producing zinc-gold-silver mine. In
essence Griffin is on the verge of becoming a true mining company, not an
exploration and development company.
We have decided not to follow the traditional path of financing the
construction of a mine. Normally that process would involve a lengthy and,
for a company of Griffin's size, prohibitively expensive bankable feasibility
study followed by debt and equity financing arranged by a commercial bank. We
have opted not to follow this course for a number of reasons, not only because
of cost, but also because of the lack of knowledge of the Chinese mining
sector by the commercial markets. We believe that finance should be arranged
from a position of strength rather than going "cap in hand" to the commercial
banks. Consequently, the Board took the decision at the end of 2000 to raise
the approximately $2 million equity portion of the US$6.7 million needed to
build and commission the Caijiaying mine prior to canvassing the commercial
banks for the debt facility. As of the 15th of June 2001, Griffin raised
approximately $3.1m million before expenses comprising $2.1 million via an
equity placing to institutions and a further $1m by existing shareholders
exercising the warrants issued at the same time as the placing. Griffin now
finds itself in the unusual but strong position of having raised the equity
finance estimated by the Board as needed for Caijiaying. The Company is now
able to speak confidently with banks to raise the debt portion needed for
Caijiaying.
The granting of the mining licence over the Caijiaying deposit will not only
be a pre-condition for commencing production but also to obtaining any debt
finance. Consequently our first priority in the remainder of 2001 is to
complete the remaining matters required under the Chinese Mining Law of 1998
to convert Griffin's exploration licence over the Caijiaying zinc gold project
into a mining licence. This will include the completion of an environmental
impact study and a number of geological and engineering studies in Mandarin
compiled from previous studies completed by the Company in English.
Griffin has also continued to instigate transactions which have the capacity
to add value to the Company and most importantly generate realisable assets
which may be able to finance the construction of the Caijiaying mine without
resort to bank debt. To that effect, In April 2001 Griffin earned a 4%
interest in Ozmosa Limited ("Ozmosa"), a sports betting and casino operator in
the East and South East Asia regions, in return for facilitating transactions
including that with Sportingbet.com (UK) plc ("Sportingbet"). Ozmosa has
entered into agreements with Sportingbet for the joint development of the
Asian gaming market. As part of these agreements Sportingbet acquired a 1%
equity interest in Ozmosa for a consideration of #1 million, together with an
option to acquire a further 18.9% of the issued share capital of Ozmosa for #
25 million."
Copies of Griffin's annual report and accounts for 2000 are available from the
offices of Griffin Mining Ltd at 4th Floor, the Linen Hall, 162-168 Regent
Street, London, W1R 5TE.
Further information
Roger Goodwin (President and Finance Director)
Telephone: + 44 (0)20 7663 9855
Charles Dampney - Charles Stanley
Telephone: + 44 (0)20 7739 8200
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
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2000
(expressed in thousands US dollars)
2000 1999
$000 $000
Income
Gains / (losses) on the disposal of investments 39 (179)
Net operating expenses (629) (774)
Other income 22 -
Provisions in respect of continuing operations (55) (74)
Profit on disposal of discontinued operations 58 -
Operating (loss) (565) (1,027)
Foreign exchange (losses) / gains (85) 4
Interest receivable and similar income 42 17
(Loss) on ordinary activities before taxation (608) (1,006)
Taxation on ordinary activities - -
(Loss) on ordinary activities after taxation (608) (1,006)
Minority interests - -
(Loss) for the financial year (608) (1,006)
(Loss) per share (cents) (1.5) (4.2)
GRIFFIN MINING LIMITED
CONSOLIDATED BALANCE SHEET
As at 31 December 2000
(expressed in thousands US dollars)
2000 1999
$000 $000
Fixed assets
Intangible assets 4,542 5,122
Negative goodwill - (288)
Tangible assets 4 259
4,546 5,093
Current assets
Portfolio investments 501 82
Accounts receivable 261 10
Prepaid expenses 18 3
Cash and deposits 370 1,501
1,150 1,596
Creditors: Amounts falling due within one
year
Accrued expenses (64) (155)
Creditors (67) (364)
Net current assets 1,019 1,077
Total net assets 5,565 6,170
Capital and reserves
Share capital 4,100 3,895
Share premium 13,154 13,084
Investment revaluation reserve (372) (764)
Foreign exchange reserve 160 266
Profit & loss account (11,477) (10,978)
Equity shareholders' funds 5,565 5,503
Equity minority interests - 667
Equity interests 5,565 6,170
Number of shares in issue 41,003,551 38,946,501
Attributable net asset value per share $0.14 $0.14
GRIFFIN MINING LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December 2000
(expressed in thousands US dollars)
2000 1999
$000 $000
(Loss) for the financial year (608) (1,006)
Unrealised gains on investments 392 147
Currency translation differences in foreign currency 3 23
net investments
Total gains and losses recognised in the year (213) (836)
Losses and profits for the financial year are the same as those on an
historical cost basis.
GRIFFIN MINING LIMITED
CASH FLOW STATEMENT
For the year ended 31 December 2000
(expressed in thousands US dollars)
2000 1999
$000 $000
Net cash (outflow) from operating activities (997) (381)
Investing activities
Payments to acquire intangible fixed assets (488) (819)
Receipts from the disposal of discontinued 88
operations
Net cash (outflow) from investing activities (400) (819)
Net cash (outflow) before financing (1,397) (1,200)
Financing
Issue of ordinary share capital 285 2,774
Expenses paid in connection with share issue (19) (481)
266 2,293
(Decrease) / increase in cash and cash (1,131) 1,093
equivalents
Reconciliation of operating (loss) to net cash
(outflow) from operating activities
(Loss) on ordinary activities before taxation (608) (1,006)
Taxation - -
Depreciation 5 4
(Gains) / losses on sale of investments (39) 179
Receipts on the sale of investments 71 51
Payments to acquire investments (114) -
Provisions in respect of continuing operations 55 74
Profits on disposal of discontinued operations (58) -
(Increase) / decrease in debtors (16) 12
(Decrease) / increase in creditors (303) 287
Other non-cash income, including exchange 10 18
differences
(997) (381)
Notes:
1. This statement has been prepared using accounting policies and
presentation consistent with those applied in the preparation of the statutory
accounts of the Company.
2. The summary accounts set out above do not constitute statutory accounts
as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of
the UK Companies Act 1985. The summarised balance sheet at 31 December 2000
and the summarised profit and loss account, summarised cash flow statement and
summarised statement of total recognised gains and losses for the year then
ended have been extracted from the Group's 2000 statutory financial statements
upon which the auditors' opinion is unqualified. The results for the year
ended 31 December 1999 have been extracted from the statutory accounts for
that period which contain an unqualified auditor's report.
3. The annual report and accounts for 2000 will be sent by post to all
registered shareholders shortly. Additional copies are available from the
Company's London office, 4th Floor, The Linen Hall, 162-168 Regent Street,
London. W1R 5TE.
4. Losses per share have been calculated on the basis of the net loss after
taxation of US$608,000 (loss US$1,006,000 in 1998) and the weighted average
number of shares in issue in the year ended 31 December 2000 of 40,834,868
(24,200,537 in 1999). There is no dilutive effect of share purchase options.
5. Reconciliation of shareholders' funds
2000 1999
$000 $000
Total gains and (losses) recognised in the year (213) (836)
Issue of ordinary shares in the year 275 2,293
Net additions to shareholders' funds 62 1,457
Opening shareholders' funds 5,503 4,046
Closing shareholders' funds 5,565 5,503
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