TIDMGFM
RNS Number : 3622L
Griffin Mining Ld
06 May 2010
6th MAY 2010
PRELIMINARY RESULTS
Griffin Mining Limited ("Griffin" or "the Company") has today published its
preliminary results for the year ended 31 December 2009.
Highlights:
· Return to profitability following suspension of operations in first five
months of 2009.
· Profit before tax and minority interests of $7.2 million, compared with
$7.0m in 2008.
· 17,167 tonnes of zinc in concentrate produced in 2009, compared to 22,922
tonnes in 2008.
· 3,726 ounces of gold in concentrate produced in 2009, compared to 2,421
ounces in 2008.
· 89,227 ounces of silver in concentrate produced in 2009, compared to
171,888 ounces in 2008.
· 500 tonnes of lead in concentrate produced in 2009, compared to 1,127
tonnes in 2008.
· 276,880 tonnes ore mined in 2009, compared to 433,274 tonnes in 2008
· 320,883 tonnes of ore processed in 2009, compared with 491,848 tonnes in
2008
Overview
Griffin Mining Limited (the "Company") and its subsidiaries (together the
"Group") recorded a profit before tax for the year of $7,246,000 (2008:
$6,959,000). This was a commendable performance in light of the suspension of
operations in the first half of 2009 and the dramatic fall in commodity prices
in late 2008.
Although the Global Financial Crisis caused a dramatic and sustained fall in
commodity prices in 2008/2009, the Company was able to weather these economic
conditions to place itself in an enviable position to benefit from an improved
economic climate. This was foreseen by suspending operations at Caijiaying in
the first half of 2009, when the opportunity cost of a shut-down was relatively
low, which allowed for ore block modelling, long term structural maintenance and
an operational efficiency review to be completed at Caijiaying. The rewards of
this work were felt immediately on resumption of production with increased ore
grades, production and revenues, resulting in the Group returning rapidly to
profitability in the second half of 2009. The full benefit of this foresight
will be felt when production rates are increased in the second half of 2010 with
the completion of the plant upgrade.
The maximization of operational productivity failed to be achieved throughout
2009 due to the continuing delay in obtaining a mining permit to mine below the
1300 level at Caijiaying. This restricted mining operations to the upper levels
of the mine where the ore lenses are less continuous than below the 1300 level.
Such continuity allows for more mechanised mining and higher extraction rates.
Accordingly, the permitting delays lessened the immediate need to upgrade the
processing plant to a planned throughput capacity of 750,000 tonnes of ore per
annum. With the receipt of the new mining licence in January 2010, the Group
began immediately with the completion of the plant upgrade including the
installation of a second primary ball mill, new crushing circuit, thickener and
third tailings storage facility, construction of which should be completed by
the autumn 2010.
Group profitability benefited from an increasing zinc price throughout 2009, as
quoted on the London Metals Exchange ("LME"), beginning the year at $1,200 per
tonne and ending the year at $2,500 per tonne. Whilst historically Griffin has
never hedged its zinc production, to protect the Company from any adverse
effects of any future fall in the zinc rice, Griffin has purchased put options
over a significant portion of its next 12 month zinc production from Caijiaying.
Griffin benefited from interest receipts of $253,000 during 2009 (2008:
$4,670,000). Interest receipts have declined from that received in 2008 as a
result of reduced interest rates and a reduction in cash balances following the
buy-back of shares in the Company from Citadel Equity Fund Ltd in May 2008.
Foreign exchange gains of $1,956,000 were recorded in 2009 (2008: losses of
$3,221,000) primarily on sterling deposits held to cover sterling commitments.
The gains follow the increase in the value of sterling in the later part of
2009, since reversed in early 2010.
Griffin's 39.2% share of the losses of Spitfire Oil Limited ("Spitfire") of
$517,000 has been recognised. In the autumn of 2009, testwork and investigations
into Spitfires' proprietary L2VTM process to extract oil and other products from
the lignite at Salmon Gums highlighted the need for additional research in
refining and finalising the process for commercial production. As a result,
active development work was suspended pending the conclusion of a full technical
and economic review including all viable options being evaluated for the project
including the use of alternative technologies, technical and financial joint
venture partners and the sale of the Salmon Gums lignite tenements.
Chairman's Statement:
Following the unforeseeable catastrophe of the Global Financial Crisis in the
final quarter of 2008 and the subsequent collapse in commodity prices, the
Company decided to shut down mining operations at Caijiaying, place staff on
temporary leave and undertake long term maintenance and extensive geological
work whilst the economic opportunity cost of doing so was minimal. Further, a
concerted effort was made at this time to ensure the economic performance of the
mine was enhanced once production restarted by seeking to cut any extraneous
costs. Whilst these measures are not apparent in the 2009 results, which were
impacted by the suspension of mining, costs have been declining per tonne of
metal produced since the restart of operations.
Operations recommenced after a five month shutdown in the first week of June
2009. This led to an immediate return to profitability with profit before tax
in the second half of 2009 being $8.6 million compared to a loss of $6.1 million
in the second half of 2008.
There were a number of momentous developments for the Company in 2009/2010. The
first was the receipt of the new mining licence to mine below the 1300 level.
This immediately enabled larger and higher grade ore lodes to be accessed via
more extensive mechanised mining which led to increased extraction rates. The
new licence also justified the decision to complete the processing plant
upgrade, including the installation of a new primary ball mill, a new crushing
circuit, the construction of a very large third tailings dam and all ancillary
equipment, to allow a minimum throughput capacity of 750,000 tonnes per annum.
This upgrade is scheduled to be completed by the 10th of August 2010. The
economic benefits which should flow should be substantial. Needless to say, the
Company decided not to declare a dividend for the 2009 year to enable the
retention of funds in China to finance this plant upgrade and expansion of
operations.
Secondly, the publication of the new JORC reported Mineral Resource for Zone III
at Caijiaying, confirmed the very extensive mine life available at Zone III at
the higher production levels expected to be obtained in the late summer of 2010.
This does not even take into account the ore believed to be contained at the
lower levels of Zone III, the known ore at Zone II and the significant resources
believed to be housed in the area between Zones II and III.
Of course, mining continues to be a fixed cost business whose profitability
continues to be governed by the swings inherent in commodity prices. Although
the zinc price has been stable since the recommencement of operations, serious
concerns still exist in the global economy with huge public debt levels, rising
interest rates, a liquidity and associated housing bubble in China and world
zinc supply outstripping demand. To lessen the impact to the Company's
financial health should some economic shock reoccur and zinc prices deteriorate
as in 2008/2009, in 2010 the Company purchased put options over the next year's
production at a very modest cost. This was considered to be a prudent course of
action whilst not in any way limiting the upside potential to the Company should
the zinc price continue to rise.
As has come to be expected, the Company continues to aggressively investigate,
evaluate and negotiate a myriad of mining companies and projects to find the
next long life, profitable mine for its shareholders. The task continues to be
a difficult one with many poor quality assets and companies available, but few
projects uncovered of the standard which the shareholders of the Company have
come to deserve and expect. The Company will continue to undertake this task
energetically in 2010.
With respect to the Company's investment in Spitfire Oil Limited ("Spitfire"),
enough progress has been made to recognise the need to bring in a strategic
partner capable of providing, primarily, the technical expertise needed to
progress the development of the process for the commercial production of oil
from the Salmon Gums lignite deposit. In the interim, overhead costs have been
minimised and all efforts have been placed on the strategic path needed to make
Spitfire a commercial success.
Dividend
In view of the suspension of operations at Caijiaying in the first half of 2009
and requirement to finance the expansion of operations at Caijiaying, a dividend
is not being paid.
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman
Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Investec Investment Banking:
Stephen Cooper
Telephone: +44 (0)20 7597 5104
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
Summarised Consolidated Income Statement
For the year ended 31 December 2009
(expressed in thousands US dollars)
+---------------------------------------------+-----+----------+--+----------+
| | | 2009 | | 2008 |
+---------------------------------------------+-----+----------+--+----------+
| | | $000 | | $000 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Revenue | | 25,368 | | 32,061 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Cost of sales | | (11,909) | | (18,438) |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Gross profit | | 13,459 | | 13,623 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Net operating expenses | | (7,940) | | (10,517) |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Profit from operations | | 5,519 | | 3,106 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Share of losses of associated company | | (517) | | (39) |
+---------------------------------------------+-----+----------+--+----------+
| Foreign exchange gains / (losses) | | 1,956 | | (3,221) |
+---------------------------------------------+-----+----------+--+----------+
| Finance income | | 253 | | 4,670 |
+---------------------------------------------+-----+----------+--+----------+
| Other income | | 35 | | 2,533 |
+---------------------------------------------+-----+----------+--+----------+
| Interest payable | | - | | (90) |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Profit before tax | | 7,246 | | 6,959 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Income tax expense | | (1,013) | | (637) |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Profit after tax | | 6,233 | | 6,322 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Attributable to minority interests | | 2,621 | | - |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Attributable to equity share owners of the | | 3,612 | | 6,322 |
| parent | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| | | 6,233 | | 6,322 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Basic earnings per share (cents) | | 1.99 | | 2.87 |
+---------------------------------------------+-----+----------+--+----------+
| | | | | |
+---------------------------------------------+-----+----------+--+----------+
| Diluted earnings per share (cents) | | 1.97 | | 2.83 |
+---------------------------------------------+-----+----------+--+----------+
Griffin Mining Limited
Summarised Consolidated Statement of Comprehensive Income
For the year ended 31 December 2009
(expressed in thousands US dollars)
+---------------------------------------------+-----+-----------+--+--------+
| | | 2009 | | 2008 |
+---------------------------------------------+-----+-----------+--+--------+
| | | $000 | | $000 |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| Profit for the year | | 6,233 | | 6,322 |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| Other comprehensive income | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| Exchange differences on translating foreign | | 87 | | 4,090 |
| operations | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
| Other comprehensive income for the period, | | 87 | | 4,090 |
| net of tax | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| Total comprehensive income for the year | | 6,320 | | 10,412 |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| Attributable to minority interests | | 2,616 | | - |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| Attributable to equity owners of the parent | | 3,704 | | 10,412 |
+---------------------------------------------+-----+-----------+--+--------+
| | | | | |
+---------------------------------------------+-----+-----------+--+--------+
| | | 6,320 | | 10,412 |
+---------------------------------------------+-----+-----------+--+--------+
Griffin Mining Limited
Summarised Consolidated Statement of Financial Position
As at 31 December 2009
(expressed in thousands US dollars)
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | 2009 | | 2008 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | $000 | | $000 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| ASSETS | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Non-current assets | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Property, plant and equipment | | 63,214 | | 56,885 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Intangible assets - Exploration interests | | 1,422 | | 1,313 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Investment in associated company | | 3,986 | | 4,503 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | 68,622 | | 62,701 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Current assets | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Inventories | | 2,780 | | 3,227 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Other current assets | | 5,279 | | 5,564 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Cash and cash equivalents | | 67,630 | | 67,193 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | 75,689 | | 75,984 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Total assets | | 144,311 | | 138,685 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| EQUITY AND LIABILITIES | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Equity attributable to equity holders of the | | | | |
| parent | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Share capital | | 1,817 | | 1,816 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Share premium | | 75,984 | | 75,950 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Contributing surplus | | 3,690 | | 3,690 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Share based payments | | 4,790 | | 5,826 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Other reserves | | 759 | | 711 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Foreign exchange reserve | | 7,234 | | 7,142 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Profit and loss reserve | | 40,440 | | 35,345 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Total equity attributable to equity of the | | 134,714 | | 130,480 |
| parent | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Minority interests | | 2,616 | | - |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Total equity | | 137,330 | | 130,480 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Non-current liabilities | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Long-term provisions | | 743 | | 98 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Current liabilities | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Taxation payable | | 1,572 | | - |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Trade and other payables | | 4,666 | | 8,107 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Total liabilities | | 6,238 | | 8,107 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Total equities and liabilities | | 144,311 | | 138,685 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Number of shares in issue | | 181,688,497 | | 181,589,731 |
+-----------------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
| Attributable net asset value / total equity | | $0.74 | | $0.72 |
| per share | | | | |
+-----------------------------------------------+-----+-------------+----------+-------------+
Griffin Mining Limited
Summarised Consolidated Statement of Changes in Equity.
For the year ended 31 December 2009
(expressed in thousands US dollars)
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | Share | Share | Contributing | Share | Other | Foreign | Profit | Total | Minority | Total |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | Capital | Premium | surplus | Based | Reserves | Exchange | and | attributable | Interests | Equity |
| | | | | | | | loss | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | | | | Payments | | Reserve | Reserve | to | | |
| | | | | | | | | equity | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | | | | | | | | holders | | |
| | | | | | | | | of | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | | | | | | | | parent | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| At 31 December 2007 | 2,615 | 196,637 | 3,690 | 4,426 | 579 | 3,109 | 37,106 | 248,162 | - | 248,162 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Regulatory transfer for | - | - | - | - | 75 | - | (75) | - | - | - |
| future investment | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Dividend paid | - | - | - | - | - | - | (8,008) | (8,008) | - | (8,008) |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Purchase of shares for | (799) | (120,687) | - | - | - | - | - | (121,486) | - | (121,486) |
| cancellation | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Cost of share based payments | - | - | - | 1,400 | - | - | - | 1,400 | - | 1,400 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Transaction with owners | (799) | (120,687) | - | 1,400 | 75 | - | (8,083) | (128,094) | - | (128,094) |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Retained profit for the year | - | - | - | - | - | - | 6,322 | 6,322 | - | 6,322 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Other comprehensive income: | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Exchange differences on | - | - | - | - | | 4,033 | - | | | 4,090 |
| translating foreign | | | | | 57 | | | 4,090 | - | |
| operations | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Total comprehensive income | - | - | - | - | 57 | 4,033 | 6,322 | 10,412 | - | 10,412 |
| for the year | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| At 31 December 2008 | 1,816 | 75,950 | 3,690 | 5,826 | 711 | 7,142 | 35,345 | 130,480 | - | 130,480 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Regulatory transfer for | - | - | - | - | 48 | - | (48) | - | - | - |
| future investment | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Dividend paid | - | - | - | - | - | - | - | - | - | - |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Issue of share capital | 1 | 41 | - | - | - | - | - | 42 | - | 42 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Purchase of shares for | - | (7) | - | - | - | - | - | (7) | - | (7) |
| cancellation | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Cost of share based payments | - | - | - | 495 | - | - | - | 495 | - | 495 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Transfer | - | - | - | (1,531) | - | - | 1,531 | - | - | - |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Transaction with owners | 1 | 34 | - | (1,036) | 48 | - | 1,483 | 530 | - | 530 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Retained profit for the year | - | - | - | - | - | - | 3,612 | 3,612 | 2,621 | 6,233 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Other comprehensive income: | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Exchange differences on | - | - | - | - | | 92 | - | | | 87 |
| translating foreign | | | | | - | | | 92 | (5) | |
| operations | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| Total comprehensive income | - | - | - | - | - | 92 | 3,612 | 3,704 | 2,616 | 6,320 |
| for the year | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| | | | | | | | | | | |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
| At 31 December 2009 | 1,817 | 75,984 | 3,690 | 4,790 | 759 | 7,234 | 40,440 | 134,714 | 2,616 | 137,330 |
+------------------------------+---------+-----------+--------------+----------+----------+----------+---------+--------------+-----------+-----------+
Griffin Mining Limited
Summarised Cash Flow Statement
For the year ended 31 December 2009
(expressed in thousands US dollars)
+-----------------------------------------------+------+---------+--+-----------+
| | | 2009 | | 2008 |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| | | $000 | | $000 |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Net cash flows from operating activities | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Profit before taxation | | 7,246 | | 6,959 |
+-----------------------------------------------+------+---------+--+-----------+
| Share of associated company losses | | 517 | | 39 |
+-----------------------------------------------+------+---------+--+-----------+
| Foreign exchange (gains) / losses | | (1,956) | | 3,221 |
+-----------------------------------------------+------+---------+--+-----------+
| Finance income | | (253) | | (4,670) |
+-----------------------------------------------+------+---------+--+-----------+
| Adjustment in respect of share based payments | | 495 | | 1,400 |
+-----------------------------------------------+------+---------+--+-----------+
| Depreciation, depletion and amortisation | | 1,533 | | 2,844 |
+-----------------------------------------------+------+---------+--+-----------+
| Provisions | | - | | 98 |
+-----------------------------------------------+------+---------+--+-----------+
| Decrease in inventories | | 446 | | 1,412 |
+-----------------------------------------------+------+---------+--+-----------+
| Decrease / (increase) in other current assets | | 285 | | (1,101) |
+-----------------------------------------------+------+---------+--+-----------+
| (Decrease) / increase in trade and other | | (2,882) | | 3,059 |
| payables | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Net cash inflow from operating activities | | 5,431 | | 13,261 |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Taxation paid | | - | | (637) |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Cash flows from investing activities | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Interest received | | 253 | | 4,670 |
+-----------------------------------------------+------+---------+--+-----------+
| Payments to acquire intangible fixed assets - | | (105) | | (388) |
| exploration interests | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Payments to acquire tangible fixed assets - | | (5,944) | | (9,393) |
| mineral interests | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Payments to acquire tangible fixed assets - | | (1,298) | | (1,681) |
| plant and equipment | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Payments to acquire interest in associated | | - | | (4,542) |
| company | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Net cash (outflow) from investing activities | | (7,094) | | (11,334) |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Cash flows from financing activities | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Issue of ordinary share capital | | 42 | | - |
+-----------------------------------------------+------+---------+--+-----------+
| Purchase of shares for cancellation | | (7) | | (121,486) |
+-----------------------------------------------+------+---------+--+-----------+
| | | 35 | | (121,486) |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Dividends paid | | - | | (8,008) |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| (Decrease) in cash and cash equivalents | | (1,628) | | (128,204) |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Cash and cash equivalents at the beginning of | | 67,193 | | 199,283 |
| the year | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Effects of exchange rates | | 2,065 | | (3,886) |
+-----------------------------------------------+------+---------+--+-----------+
| Cash and cash equivalents at the end of the | | 67,630 | | 67,193 |
| year | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Cash and cash equivalents comprise bank | | | | |
| deposits. | | | | |
+-----------------------------------------------+------+---------+--+-----------+
| Bank deposits | | 67,630 | | 67,193 |
+-----------------------------------------------+------+---------+--+-----------+
| Short term bank overdrafts | | - | | - |
+-----------------------------------------------+------+---------+--+-----------+
| Total | | 67,630 | | 67,193 |
+-----------------------------------------------+------+---------+--+-----------+
Included within net cash flows of $1,628,000 (2008 $128,204,000) are foreign
exchange gains of $1,956,000 (2008 losses $3,221,000) which have been treated as
realised.
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 435 of the UK
Companies Act 2006. The summarised consolidated statement of financial position
at 31 December 2009 and the summarised consolidated income statement, summarised
statement of comprehensive income, 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 2009 statutory financial statements upon which
the auditors' opinion is unqualified. The results for the year ended 31 December
2008 have been extracted from the statutory accounts for that period, which
contain an unqualified auditors' report.
3. The annual report and accounts for 2009 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:
+--------------+----------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| | | | 2009 | | | | | | 2008 | | |
+--------------+----------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| | Earnings | | Weighted | | Per | | Earnings | | Weighted | | Per |
| | | | Average | | share | | | | Average | | share |
| | | | number | | amount | | | | number | | amount |
| | $000 | | of | | (cents) | | $000 | | of | | (cents) |
| | | | shares | | | | | | shares | | |
+--------------+----------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| Basic earnings per | | | | | | | | | | |
| share | | | | | | | | | | |
+-------------------------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| Earnings | | | | | | | | | | | |
| attributable | 3,612 | | 181,560,512 | | 2.87 | | 6,322 | | 220,587,242 | | 2.87 |
| to ordinary | | | | | | | | | | | |
| shareholders | | | | | | | | | | | |
+--------------+----------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| Dilutive effect of | | | | | | | | | | |
| securities | | | | | | | | | | |
+-------------------------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| Options | | | 1,906,603 | | | | | | 3,090,342 | | |
+--------------+----------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
| Diluted | | | | | | | | | | | |
| earnings | 3,612 | | 183,467,115 | | 2.83 | | 6,322 | | 223,677,584 | | 2.83 |
| per share | | | | | | | | | | | |
+--------------+----------+----------+-------------+----------+---------+----------+----------+----------+-------------+----------+---------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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