TIDMGFM
RNS Number : 6558N
Griffin Mining Ld
06 September 2011
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629
7773
E mail: griffin@griffinmining.com
6th September 2011
Interim Statement for the six months ended 30th June 2011
RECORD 6 MONTH PRODUCTION
6 MONTHS PRE-TAX PROFIT OF US$17.9 MILLION
Griffin Mining Limited ("Griffin" or "the Company") is very
pleased to publish its interim results for the six months ended
30th June 2011.
Highlights:
-- Increased revenues of $33.9m (2010 $27.0m)
-- Increased operating profit of $15.4m (2010 $11.2m)
-- Increased profit before tax of $17.9m (2010 $8.7m)
-- Increased profit after tax of $13.6m (2010 $6.8m)
-- Increased attributable profit after tax of $8.5m (2010
$2.0m)
-- Increased attributable earnings per share of 4.8 cents (2010
1.1 cent)
-- Reduced overhead costs of $5.5m (2010 $5.8m)
-- Record ore processed of 319,525 tonnes (2010 260,317
tonnes)
-- Record zinc metal in concentrate produced of 16,069 tonnes
(2010 15,101 tonnes)
-- Record silver in concentrate produced of 117,036 ozs (2010
105,475 ozs)
Financial and Trading:
The results for the six months ended 30th June 2011 show a
pre-tax profit of US$17,871,000 compared to a profit in the six
months to 30th June 2010 of US$8,658,000. There has been an
increase in turnover and operating profits despite a slow start in
ramping up production at the beginning of the year following the
suspension in operations in the later part of 2010. Although head
grades were slightly lower than that in the same period in 2010,
record zinc metal production of 16,069 tonnes was achieved in the
period. Gold production of 4,493 ozs was marginally less than that
achieved in 2010 of 4,570 ozs, however, gold recoveries and grades
have begun to improve significantly. With the completion of the
upgrade of the processing plant to a minimum capacity of 750,000
tonnes of ore per annum, mining and processing rates have stepped
up during the period to meet the new processing capacity.
Operating costs have been reduced from $5,829,000 in six months
to 30th June 2010 to $5,469,000 in the six months to 30th June 2011
which, with increased gross profits, resulted in increased
operating profits of $15,382,000 compared to $11,201,000 in
2010.
The results for the first six months of 2011 have benefited from
foreign exchange gains of $2,221,000 (2010 losses $3,061,000)
arising as a result of a weakening US dollar against the Renminbi
and Sterling.
Griffin has a 39.2% equity interest in Spitfire Oil Ltd
("Spitfire"). Griffin's share of Spitfire's profits of $28,000
(2010 losses $127,000) have been recognised in the interim
results.
Interest receivable of $228,000 (2010 $149,000) was recorded in
the period with Griffin holding substantial cash balances amounting
to $74.7m as at 30th June 2011. This equates to 42.5 cents (26.5p)
per share in issue. With no put options or any other form of
hedging in place there were no gains or losses arising on the
revaluation of financial instruments (2010 gains $201,000).
During the period, 5,040,000 shares were bought back on market
for cancellation at a cost of $4,977,000.
At 30th June 2011, attributable net assets per share in issue
amounted to 82 cents (62.5p) compared with 76 cents (47.5p) at 30th
June 2010.
In line with previous years and the Company's policy of
determining annual dividends at the time of the Company's full year
results, the Board of Griffin has not declared an interim
dividend.
Chairman's Statement
Chairman Mladen Ninkov commented, "The half yearly results
provide clear evidence of the progress which has been made at
Caijiaying and the resulting benefits to Griffin and its
shareholders. The potential of Caijiaying has only just begun to be
tapped with the recently upgraded processing, increased throughput
and stabilized metal prices. The Company expects to produce even
better results in the second half of the year.
Nevertheless the Company continues to look to the future.
Constant consideration is given to continuing to increase mining
and throughput at Caijiaying. Work is well advanced towards making
an application for a mining licence at the Zone II deposit, just
over a kilometre to the south of the existing mine. Finally,
investigations continue in evaluating tenements, mining operations
and or mining companies which hold premium mining assets which
could add significant shareholder value. The Company looks forward
to progressing these possibilities for the benefit of its
shareholders."
Further information
Griffin Mining Limited Mladen Ninkov - Chairman Telephone:
+44(0)20 7629 7772 Roger Goodwin - Finance Director
Panmure Gordon (UK) Limited Telephone: +44 (0) 20 7459 3600
Dominic Morley
Hannah Woodley
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 6 months
to to Year to
30/06/2011 30/06/2010 31/12/2010
Unaudited Unaudited Audited
$000 $000 $000
Revenue 33,938 27,014 41,050
Cost of sales (13,087) (9,984) (16,780)
Gross profit 20,851 17,030 24,270
Net operating expenses (5,469) (5,829) (11,127)
Profit from operations 15,382 11,201 13,143
Share of profits / (losses) of
associated company 28 (127) (109)
Foreign exchange gains / (losses) 2,221 (3,061) 38
Finance income 228 614 350
Finance (losses) (14) - (2,224)
Other income 26 31 38
Profit before tax 17,871 8,658 11,236
Income tax expense (4,273) (1,809) (2,376)
Profit after tax 13,598 6,849 8,860
===========
Attributable to non controlling
interests 5,102 4,815 6,116
Attributable to equity share owners
of the parent 8,496 2,034 2,744
----------- ----------- -----------
13,598 6,849 8,860
=========== =========== ===========
Basic earnings per share (cents) 4.79 1.12 1.51
=========== =========== ===========
Diluted earnings per share (cents) 4.65 1.10 1.49
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months
to to Year to
30/06/2011 30/06/2010 31/12/2010
Unaudited Unaudited Audited
$000 $000 $000
Profit for the financial period 13,598 6,849 8,860
----------- ----------- -----------
Other comprehensive income
Exchange differences on translating
foreign operations 903 343 1,374
Other comprehensive income for the
period, net of tax 903 343 1,374
----------- ----------- -----------
Total comprehensive income for the
period 14,501 7,192 10,234
=========== =========== ===========
Attributable to minority interests 5,452 4,831 6,218
Attributable to equity share owners
of the parent 9,049 2,361 4,016
14,501 7,192 10,234
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2011 30/06/2010 31/12/2010
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 80,368 68,847 77,745
Intangible assets - Exploration
interests 1,537 1,437 1,481
Investment in associated company 3,905 3,859 3,877
----------- ----------- -----------
85,810 74,143 83,103
----------- ----------- -----------
Current assets
Inventories 4,277 3,381 3,136
Other current assets 2,248 8,145 3,423
Cash and cash equivalents 74,652 67,070 66,450
----------- ----------- -----------
81,177 78,596 73,009
----------- ----------- -----------
Total assets 166,987 152,739 156,112
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 1,755 1,815 1,804
Share premium 70,061 75,807 74,948
Contributing surplus 3,690 3,690 3,690
Share based payments 2,775 1,329 2,513
Other reserves 959 764 938
Foreign exchange reserve 9,011 7,556 8,480
Profit and loss reserve 56,127 47,075 47,631
----------- ----------- -----------
Total equity attributable to equity
holders of the parent 144,378 138,036 140,004
Minority interests 9,642 4,831 6,218
----------- ----------- -----------
Total Equity 154,020 142,867 146,222
----------- ----------- -----------
Non-current liabilities
Long-term provisions 1,197 1,076 768
----------- ----------- -----------
Current liabilities
Taxation payable 2,939 1,018 1,011
Trade and other payables 8,831 7,778 8,111
Total liabilities 11,770 8,796 9,122
----------- ----------- -----------
Total equities and liabilities 166,987 152,739 156,112
=========== =========== ===========
Number of shares in issue 175,501,830 181,538,496 180,408,496
Attributable net asset value / total
equity per share $0.82 $0.76 $0.78
Griffin Mining Limited
Condensed Consolidated Statement of Changes in Equity
(expressed in thousands US dollars)
Total
Share Share Contributing Share Other Foreign Profit attributable Minority Total
and to equity
Capital Premium Surplus Based Reserves Exchange loss holders Interests Equity
Payments Reserve Reserve of parent
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 31 December
2009 1,817 75,984 3,690 4,790 759 7,234 40,440 134,714 2,616 137,330
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Issue of share
capital 3 94 - - - - - 97 - 97
Purchase of
shares for
cancellation (5) (271) - - - - - (276) - (276)
Cost of share
based
payments - - - 1,140 - - - 1,140 - 1,140
Transfer in
respect of
share based
payments - - - (4,601) - - 4,601 - - -
Transfer other
current
assets - - - - - - - - (2,616) (2,616)
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Transaction
with owners (2) (177) - (3,461) - - 4,601 961 (2,616) (1,655)
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Retained
profit for
the 6 months - - - - - - 2,034 2,034 4,815 6,849
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 5 322 - 327 16 343
Total
comprehensive
income for
the 6 month
period - - - - 5 322 2,034 2,361 4,831 7,192
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
At 30 June
2010
(unaudited) 1,815 75,807 3,690 1,329 764 7,556 47,075 138,036 4,831 142,867
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Regulatory
transfer for
future
investment - - - - 153 - (153) - - -
Purchase of
shares for
cancellation (11) (859) - - - - - (870) - (870)
Cost of share
based
payments - - - 1,184 - - - 1,184 - 1,184
Transaction
with owners (11) (859) - 1,184 153 - (153) 314 - 314
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Retained
profit for
the 6 months - - - - - - 709 709 1,301 2,010
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 21 924 - 945 86 1,031
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Total
comprehensive
income for
the 6 month
period - - - - 21 924 709 1,654 1,387 3,041
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
At 31 December
2010 1,804 74,948 3,690 2,513 938 8,480 47,631 140,004 6,218 146,222
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Issue of share
capital 1 40 - - - - - 41 - 41
Purchase of
shares for
cancellation (50) (4,927) - - - - - (4,977) - (4,977)
Cost of share
based
payments - - - 262 - - - 262 - 262
Transfer other
current
assets - - - - - - - - (2,028) (2,028)
Transaction
with owners (49) (4,887) - 262 - - - (4,674) (2,028) (6,702)
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Retained loss
for the 6
months - - - - - - 8,496 8,496 5,102 13,598
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 21 531 - 552 350 902
------- ------- ------------ -------- -------- -------- ------- ------------ --------- -------
Total
comprehensive
income for
the 6 month
period - - - - 21 531 8,496 9,048 5,452 14,500
At 30 June
2011
(unaudited) 1,755 70,061 3,690 2,775 959 9,011 56,127 144,378 9,642 154,020
======= ======= ============ ======== ======== ======== ======= ============ ========= =======
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months
to to Year to
30/06/2011 30/06/2010 31/12/2010
Unaudited Unaudited Audited
$000 $000 $000
Net cash flows from operating
activities
Profit before taxation 17,871 8,658 11,236
Share of associated company (profits)
/ losses (28) 127 109
Foreign exchange (gains) / losses (2,221) 3,061 (38)
Finance (income) (228) (614) (350)
Finance losses 14 - 2,224
Adjustment in respect of share based
payments 262 1,140 2,323
Depreciation, depletion and
amortisation 2,555 1,282 2,151
Provisions 455 333 -
(Increase) in inventories (1,141) (601) (356)
(Increase) in other current assets (867) (2,777) (747)
Increase in trade and other payables 719 3,111 3,445
Net cash inflow from operating
activities 17,391 13,720 19,997
----------- ----------- -----------
Taxation paid (2,346) (2,363) (2,936)
----------- ----------- -----------
Cash flows from investing activities
Interest received 228 148 350
Payments to acquire intangible fixed
assets (21) (7) (10)
Payments to acquire tangible fixed
assets (3,522) (6,501) (14,484)
Payments to acquire financial assets - (2,238) (2,238)
----------- ----------- -----------
Net cash (outflow) from investing
activities (3,315) (8,598) (16,382)
----------- ----------- -----------
Cash flows from financing activities
Issue of ordinary share capital 41 97 97
Purchase of shares for cancellation (4,977) (276) (1,146)
-----------
(4,936) (179) (1,049)
----------- ----------- -----------
Dividends paid - - -
Increase / (decrease) in cash and cash
equivalents 6,794 2,580 (370)
Cash and cash equivalents at beginning
of the period 66,450 67,630 67,630
Effects of exchange rate changes 1,408 (3,140) (810)
----------- ----------- -----------
Cash and cash equivalents at end of the
period 74,652 67,070 66,450
=========== =========== ===========
Griffin Mining Limited
Notes to the Interim Statement
1. These 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 31
December 2010.
2. Copies of this interim report are being sent to all
registered shareholders. Additional copies are available from the
Company's London office, 60 St James's Street, London, SW1A
1LE.
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
condensed consolidated statement of financial position at 31
December 2010 and the condensed consolidated income statement,
condensed consolidated statement of comprehensive income, condensed
consolidated statement of changes in equity and the condensed
consolidated cash flow statement for the year then ended have been
extracted from the Group's 2010 statutory financial statements upon
which the auditors' opinion is unqualified.
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 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.
Reconciliation of the earnings and weighted average number of
shares used in the calculations are set out below:
6 months to 6 months to Year to
30/06/2011 30/06/2010 31/12/2010
Unaudited Unaudited Audited
Weighted Per Weighted Per Weighted Per
average share average share average share
Earnings number amount Earnings number amount Earnings number amount
$000 of shares (cents) $000 of shares (cents) $000 of shares (cents)
Basic earnings per share
Earnings
attributable
to ordinary
shareholders 8,496 177,513,948 4.79 2,034 181,836,513 1.12 2,744 181,579,409 1.51
Dilutive effect of securities
Options - 5,385,543 2,602,749 2,648,124
-------- ----------- -------- -------- ----------- -------- -------- ----------- --------
Diluted
earnings per
share 8,496 182,899,491 4.65 2,034 184,439,252 1.10 2,744 184,227,533 1.49
======== =========== ======== ======== =========== ======== ======== =========== ========
This information is provided by RNS
The company news service from the London Stock Exchange
END
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