Final Results
30 April 2002 - 4:11PM
UK Regulatory
RNS Number:3104V
Griffin Mining Ld
30 April 2002
Griffin Mining Limited
4th Floor, the Linen Hall, 162-168 Regent Street, London, W1R 5TE, United
Kingdom
Telephone: + 44 (0)20 7663 9855 Facsimile: + 44 (0)20 7663 9856
E mail: griffin@griffinmining.demon.co.uk
30th APRIL 2002
PRELIMINARY STATEMENT OF RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2001
Griffin Mining Limited ("Griffin"or the "Company") has today published its
results for the year ended 31 December 2001.
Losses for the financial year were down from USD608,000 in 2000 to USD543,000 in
2001, with operating costs reduced from USD629,000 in 2000 to USD422,000 in
2001. Losses for the financial year 2001 included an exceptional charge of
USD250,000 in respect of discontinued operations in Burkina Faso.
Mladen Ninkov, Chairman commented as follows:
"The financial results for the year are most satisfactory considering the
considerable progress made by the Company in advancing Caijiaying closer to
production, which has included, the granting of our long anticipated Chinese
mining licence.
The first priority for Griffin in the second half of 2001 was to complete the
remaining matters required under the Chinese Mining Law to convert Griffin's
exploration licence over the Caijiaying zinc gold project into a mining licence.
It took all of 2001 and the beginning of 2002 to complete the matters required
to lodge the application for a mining licence including an Environmental Impact
Study, Staged Geological Report, Chinese Feasibility Study and numerous other
studies and reports. In the prosperous new Chinese Year of the Horse, Griffin
was rewarded for its perseverance, patience and expertise by being granted its
mining licence.
This was a momentous event for the Company, for the Chinese mining industry and
for the world mining industry in general. Griffin was able to accomplish
something never previously achieved by any mining company. It was granted the
first ever mining licence (over a base metals deposit) in the Peoples Republic
of China to a foreign controlled joint venture company under the Chinese Mining
Law of 1998.
The Company's focus has now turned to completing all matters necessary to begin
the construction of the mine and processing plant at Caijiaying so that the mine
can be commissioned as soon as feasibly possible. A number of critical steps
will be required to be completed prior to construction taking place.
The first of these is the completion of a resource and reserve statement drafted
by independent resource geologists, according to acknowledged international
standards, to provide comfort to the commercial banks that a long enough mine
life exists at Caijiaying to support repayment of the project finance extended
for the construction of the Caijiaying mine. To achieve that goal, Griffin has
agreed to drill a minimum of 6 deep diamond drill holes in the northern section
of the Caijiaying deposit. Drilling is to begin in May and should be completed
by July 2002.
Assuming the drilling programme produces the anticipated results, the Company
expects to move ahead with enhancing the Chinese Feasibility Study into a
bankable feasibility study of western standard. This means editing and adding
to the Chinese Feasibility Study including incorporating the above mentioned
independent resource statement, the design of the underground decline and the
metallurgical work completed by the Company.
With the final bankable feasibility study in hand, the Company with its
financial advisor, Endeavour Financial Corporation, will approach, negotiate
with and, hopefully, enter into a project financing arrangement with one or more
commercial banks.
With financing in place, the Company would then move into the design,
procurement and construction stage leading to the commissioning of the plant.
Griffin remains confident of China as a country in which to do business and as a
place of continuing exciting opportunities. The Company is well placed to take
advantage of these opportunities. The entry of China into the World Trade
Organization at the end of 2001, the continuing growth in the Chinese economy
and the country's falling zinc production all augur well for the operations of
Griffin in China.
Griffin has continued to initiate and investigate transactions both within and
outside its traditional mining base to try to add real value to its
shareholders. The Company will continue in 2002 to look at mining and
non-mining transactions which meet its strict investment parameters"
Further information
Roger Goodwin - President 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 2001
(expressed in thousands US dollars)
2001 2000
$000 $000
Income
Gains on the disposal of investments - 39
Net operating expenses (422) (629)
Other income - 22
Provisions in respect of continuing operations - (55)
(Loss) / profit on disposal of discontinued operations (250) 58
Operating (loss) (672) (565)
Foreign exchange gains / (losses) 47 (85)
Interest receivable and similar income 82 42
(Loss) on ordinary activities before taxation (543) (608)
Taxation on ordinary activities - -
(Loss) for the financial year (543) (608)
(Loss) per share (cents) (0.6) (1.5)
GRIFFIN MINING LIMITED
CONSOLIDATED BALANCE SHEET
As at 31 December 2001
(expressed in thousands US dollars)
2001 2000
$000 $000
Fixed assets
Intangible assets 4,985 4,542
Tangible assets 3 4
4,988 4,546
Current assets
Portfolio investments 17 501
Accounts receivable 12 261
Prepaid expenses 7 18
Cash and deposits 2,581 370
2,617 1,150
Creditors: Amounts falling due within one year
Accrued expenses (32) (64)
Creditors (38) (67)
Net current assets 2,547 1,019
Total net assets 7,535 5,565
Capital and reserves
Share capital 1,033 4,100
Share premium 15,516 13,154
Contributing surplus 3,690 -
Investment revaluation reserve (857) (372)
Foreign exchange reserve 173 160
Profit & loss account (12,020) (11,477)
Equity interests 7,535 5,565
Number of shares in issue 103,257,248 41,003,551
Attributable net asset value per share $0.07 $0.14
GRIFFIN MINING LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December 2001
(expressed in thousands US dollars)
2001 2000
$000 $000
(Loss) for the financial year (543) (608)
Unrealised (losses) / gains on investments (485) 392
Currency translation differences in foreign currency net investments 13 3
Total gains and losses recognised in the year (1,015) (213)
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 2001
(expressed in thousands US dollars)
2001 2000
$000 $000
Net cash (outflow) from operating activities (420) (1,039)
Investing activities
Interest received 82 42
Payments to acquire intangible fixed assets (434) (488)
Payments to acquire tangible fixed assets (2) -
Receipts from the disposal of discontinued operations - 88
Net cash (outflow) from investing activities (354) (358)
Net cash (outflow) before financing (774) (1,397)
Financing
Issue of ordinary share capital 3,101 285
Expenses paid in connection with share issue (116) (19)
2,985 266
Increase / (decrease) in cash and cash equivalents 2,211 (1,131)
Reconciliation of operating (loss) to net cash (outflow) from
operating activities
Operating loss (672) (565)
Taxation - -
Depreciation 3 5
(Gains) on sale of investments - (39)
Receipts on the sale of investments - 71
Payments to acquire investments - (114)
Provisions in respect of continuing operations - 55
Losses / (profits) on disposal of discontinued operations 250 (58)
Decrease / (increase) in debtors 10 (16)
(Decrease) in creditors (61) (303)
Other non-cash income, including exchange differences 50 (75)
(420) (1,039)
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 2001 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 2001 statutory financial statements
upon which the auditors' opinion is unqualified. The results for the year ended
31 December 2000 have been extracted from the statutory accounts for that period
which contain an unqualified auditor's report.
3. The annual report and accounts for 2001 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$543,000 (loss US$608,000 in 2000) and the weighted average number
of shares in issue in the year ended 31 December 2001 of 85,098,010 (40,834,868
in 2000). There is no dilutive effect of share purchase options.
5. Reconciliation of shareholders' funds
2001 2000
$000 $000
Total (losses) and gains recognised in the year (1,015) (213)
Issue of ordinary shares in the year 2,985 275
Net additions to shareholders' funds 1,970 62
Opening shareholders' funds 5,565 5,503
Closing shareholders' funds 7,535 5,565
This information is provided by RNS
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