RNS Number:6841V
Griffin Mining Ld
30 April 2007
30th APRIL 2007
PRELIMINARY RESULTS
RECORD PROFIT US$29.5 MILLION
MAIDEN DIVIDEND DECLARED
Griffin Mining Limited ("Griffin" or "the Company") has today published its
preliminary results for the year ended 31 December 2006 and declared a maiden
dividend of three cents per ordinary share.
Highlights:
* Record profit before tax of US$29.5 million (2005 US$0.3 million)
* Maiden dividend of $0.03 per ordinary share
* Substantially increased resource base
* Substantially increased throughput
* Increased production of zinc metal in concentrate
* Further substantial increases in throughput and metal production
scheduled for 2007 & 2008
* Initial gold, silver and lead production scheduled for 2007
* Ongoing exploration success
* Continued evaluation of further acquisitions
Chairman's Statement:
It gives me enormous pride and real satisfaction to announce a record annual
profit of US$29.5 million for the Company in 2006 and to declare a maiden
dividend of US$0.03 per share.
The further good news is that Caijiaying continues to rapidly improve. Since
commissioning approximately 18 months ago, throughput has doubled from 200,000
tonnes of ore per annum to over 400,000 tonnes of ore per annum. The resource
base has increased from 1.2 to 3 million tonnes of zinc metal, from 0.2 to 1.6
million ounces of gold and from 13.9 to 53.7 million ounces of silver. An
impressive achievement.
And 2007 promises to be an even more exciting year. The Company has announced
an upgrade to the Caijiaying mine and facilities to enable the processing of
over 500,000 tonnes of ore per annum by the end of 2007 rising to 750,000 tonnes
of ore per annum in 2008. The Company has also announced that in 2007 it will
begin producing a second concentrate which will contain gold, silver and lead.
This will be another significant source of revenue for the Company. Lastly, the
exploration programme continues underground with exploration and grade control
drilling in zone III, pure underground exploration drilling at zone II in the
newly constructed Fox Incline and exciting above ground diamond drilling between
zones II and III.
Needless to say, the Company continues to endlessly look for further means to
grow shareholder value. In that respect, the Company has evaluated a large
number of mining projects, predominantly in China. The overwhelming majority of
these projects have not met the rigorous geological, metallurgical, mining
engineering and financial standards required by the Company. Nevertheless, the
Company remains ever hopeful of acquiring such a project at some point in the
future
Finally, with US$48 million on the Company's balance sheet at the time of
writing this statement, no debt, no hedging commitments, continued strong
commodities prices and an expanding mining operation at Caijiaying, the future
of the Company looks particularly exciting.
Maiden dividend
A maiden dividend of US$0.03 per share will be paid to shareholders on 6th June
2007. The ex dividend date being 9 May 2007 and the record date 11 May 2007.
Further information
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Griffin Mining Limited
Adrian Hadden / Christopher Rollason Telephone: +44(0)20 7523 8353
Collins Stewart Europe Limited
Hugo de Salis Telephone: +44(0) 20 7242 4477
St Brides Media & Finance Ltd
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 Income Statement
For the year ended 31 December 2006
(expressed in thousands US dollars)
2006 2005
$000 $000
Revenue 42,802 6,120
Cost of sales (8,516) (2,440)
Gross Profit 34,286 3,680
Net operating expenses (6,142) (3,254)
Profit from operations 28,144 426
Foreign exchange gains / (losses) 789 (411)
Finance income 612 296
Profit before tax 29,545 311
Income tax expense (75) -
Profit after tax attributable to equity share owners for the financial year 29,470 311
Basic earnings per share (cents) 16.02 0.17
Diluted earnings per share (cents) 15.45 0.17
Griffin Mining Limited
Consolidated Balance Sheet
As at 31 December 2006
(expressed in thousands US dollars)
2006 2005
$000 $000
ASSETS
Non-current assets
Property, plant and equipment 32,087 27,070
Intangible assets - Exploration interests 842 419
32,929 27,489
Current assets
Inventories 1,104 1,620
Other current assets 1,064 947
Available-for-sale financial assets - 63
Cash and cash equivalents 34,081 6,663
36,249 9,293
Total assets 69,178 36,782
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital 1,841 1,838
Share premium 39,166 39,040
Contributing surplus 3,690 3,690
Share based payments 2,553 842
Other reserves 297 -
Foreign exchange reserve 479 215
Profit and loss reserve 16,432 (12,740)
Total equity 64,458 32,885
Non-current liabilities
Long-term provisions 384 372
Current liabilities
Trade and other payables 4,336 3,525
Total liabilities 4,720 3,897
Total equities and liabilities 69,178 36,782
Number of shares in issue 184,061,064 183,827,731
Attributable net asset value / total equity per share $0.35 $0.18
Griffin Mining Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2006
(expressed in thousands US dollars)
Share Share Contributing Share Other Foreign Profit
Capital Premium surplus Based Reserves exchange and loss Total
payments reserve Reserve
$000 $000 $000 $000 $000 $000 $000 $000
At 31 December 2004 1,773 36,594 3,690 509 - (143) (13,087) 29,336
Exchange differences on - - - - 358 - 358
translating foreign
operations -
Net income recognised - - - - 358 - 358
directly in equity
-
Profit for the year - - - - - - 311 311
Total recognised income and - - - - 358 311 669
expenses in the year
-
Issue of share capital 65 2,446 - - - - - 2,511
Cost of share based - - - 333 - - - 333
payments
Movement in fair value of - - - - - - 36 36
financial assets
At 31 December 2005 1,838 39,040 3,690 842 - 215 (12,740) 32,885
Exchange differences on - - - - 264 264
translating foreign
operations -
Net income recognised - - - - 264 - 264
directly in equity
-
Profit for the year - - - - - - 29,470 29,470
Total recognised income and - - - - - 264 29,470 29,734
expenses in the year
Transfer - - - - 297 - (297) -
Issue of share capital 3 126 - - - - 129
Cost of share based - 1,711 - - 1,711
payments
Movement in fair value of - - - - - - (1) (1)
financial assets
At 31 December 2006 1,841 39,166 3,690 2,553 297 479 16,432 64,458
Griffin Mining Limited
Consolidated Cash Flow Statement
For the year ended 31 December 2006
(expressed in thousands US dollars)
2006 2005
$000 $000
Net cash flows from operating activities
Profit before taxation 29,545 311
Foreign exchange (gains) / losses (789) 411
Taxation paid (75) -
Finance income (612) (296)
Adjustment in respect of share based payments 1,711 333
Depreciation, depletion and amortisation 890 557
Decrease / (increase) in inventories 516 (1,620)
(Increase) in other current assets (117) (671)
Increase in trade and other payables 811 2,640
Net cash inflow from operating activities 31,880 1,665
Cash flows from investing activities
Interest received 612 296
Receipts on sale of investments 63 -
Payments to acquire intangible fixed assets (414) (376)
Payments to acquire tangible fixed assets - mineral interests (2,829) (6,949)
Payments to acquire tangible fixed assets - plant and equipment (2,504) (3,409)
Payments to acquire tangible fixed assets - other (9) (9)
Net cash (outflow) from investing activities (5,081) (10,447)
Cash flows from financing activities
Issue of ordinary share capital 129 2,511
129 2,511
Increase/(decrease) in cash and cash equivalents 26,928 (6,271)
Cash and cash equivalents at beginning of the year 6,663 12,985
Effects of exchange rate changes 490 (51)
Cash and cash equivalents at beginning of the year 34,081 6,663
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 consolidated balance sheet at 31 December
2006 and the summarised consolidated income statement, consolidated statement of
changes in equity and the summarised consolidated cash flow statement for the
year then ended have been extracted from the Group's 2006 statutory financial
statements upon which the auditors' opinion is unqualified. The results for the
year ended 31 December 2005 have been extracted from the statutory accounts for
that period, which contain an unqualified auditors' report.
3. The annual report and accounts for 2006 together with the notice of the
Annual General Meeting to be held on 15 June 2007 are being sent by post to all
registered shareholders. Additional copies of the annual report and accounts
are available from the Company's London office, 6th Floor, 60 St James's Street,
London, SW1A 1LE.
4. 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 year. 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.
Reconciliation of the earnings and weighted average number of shares used in the
calculations are set out below:
2006 2005
Earnings Weighted Per share Earnings Weighted Per
amount share
Average (cents) Average amount
number of number of (cents)
$000 shares $000 shares
Basic earnings per share
Earnings attributable
to ordinary shareholders 29,470 183,931,840 16.02 311 180,639,032 0.17
Dilutive effect of
securities
Options 6,820,134 3,677,894
Diluted earnings per
share 29,470 190,751,974 15.45 311 184,316,926 0.17
This information is provided by RNS
The company news service from the London Stock Exchange
END
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