TIDMGFM
RNS Number : 3220L
Griffin Mining Ld
04 September 2012
Griffin Mining Limited
4th September 2012
Interim Statement for the six months ended 30th June 2012
Griffin Mining Limited ("Griffin" or "the Company") is pleased
to publish its interim results for the six months ended 30th June
2012.
Highlights:
-- Record production of zinc, lead and silver in concentrate at
Caijiaying for any six month period
-- Revenues of $39.7m (2011 $33.9m)
-- Operating profit of $16.7m (2011 $15.4m)
-- Profit before tax of $15.0m (2011 $17.9m)
-- Profit after tax of $11.4m (2011 $13.6m)
-- Attributable profit after tax of $7.5m (2011 $8.5m)
Financial and Trading:
Operating profit in the six months to the 30(th) June 2012 has
benefited from increased throughput at Griffin's Caijiaying Mine
with 386,313 tonnes (2011 319,525 tonnes) processed to produce:
-- 20,336 tonnes (2011 16,069 tonnes) of zinc metal in concentrate;
-- 1,364 tonnes (2011 602 tonnes) of lead in concentrate;
-- 215,773 ounces (2011 117,036 ounces) of silver in concentrate;
-- 3,769 ounces (2011 4,493 ounces) of gold in concentrate.
Production of zinc, lead and silver in concentrate in the six
months to the 30(th) June 2012 was a record for any six month
period at Caijiaying despite production being impacted by the
Chinese Spring Festival holidays in January / February and
restricted delivery of explosives during the Chinese National Party
Congress. Metallurgical configuration is continuing to help improve
gold recoveries. In the interim, mining of high grade gold areas
has been deferred until metallurgical improvements have been
consolidated.
Increases in costs of sales and net operating costs mainly
reflect increased ore processed and concentrate produced with unit
costs per tonne of ore processed and zinc metal in concentrate
produced in line with the equivalent period in 2011.
Profits before tax have been impacted by foreign exchange losses
of $684,000 (2011 gains of $2,221,000) arising as a result of a
stronger US Dollar against both the Chinese Renminbi and British
Pound Sterling in the period and interest payable on Chinese bank
loans of $1,385,000 (2011 nil).
Griffin has a 39.2% equity interest in Spitfire Oil Ltd
("Spitfire"). Griffin's share of Spitfire's losses of $88,000 (2011
profits $28,000) have been recognised in the interim results.
Interest receivable of $399,000 (2011 $228,000) was recorded in
the period.
Chinese income taxes and withholding taxes of $3,617,000 (2011
$4,273,000) have been charged to profit resulting in profits after
tax of $11,379,000 (2011 $13,598,000).
The minority interest in the profit of Griffins Chinese
subsidiary, Hebei Hua Ao Mining Industry Company Limited ("Hua
Ao"), of 40% to 21(st) May 2012 and 11.2% from the 22(nd) May to
the 30(th) June of $3,840,000 (2011 $5,102,000), have been ascribed
to the non-controlling interest and $7,539,000 (2011 $8,496,000)
attributable to Griffin's interest.
As announced on 10(th) May 2012, 28.8% of the existing joint
venture partner's interest in Hua Ao was acquired, and the term of
the joint venture's business licence extended to 2037, by the
outlay of $117,444,000. In accordance with International Financial
Reporting Standards 75% of this amount has been attributed to the
extension of the joint venture term and capitalised to non-current
assets and 25% attributed to buying out the minority interests and
charged directly to reserves within other reserves on acquisition
of non controlling interests. The allocation has been based upon
estimated future discounted cash flows from the Caijiaying mine.
The purchase price has been financed from undistributed retained
dividends in Hua Ao, banking facilities in China and Griffin's
existing cash resources.
At 30(th) June 2012, attributable net assets per share on issue
amounted to 75 cents (48p) compared with 82 cents (52.5p) at 30(th)
June 2011.
In line with previous years practice and the Company's policy of
determining annual dividends at the time of the Company's full year
results, no interim dividend has been declared by the Board of
Griffin.
Chairman's Statement
Chairman Mladen Ninkov commented, "The interim results are very
pleasing in the face of falling commodity prices and only minor
financial benefits flowing at the 30(th) of June from the Company
moving to an 88.8% interest in Hua Ao. Assuming commodity prices
stay at or above these levels, we expect to see a significant
improvement in the full year results."
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 Year to
to to 31/12/2011
30/06/2012 30/06/2011 Audited
Unaudited Unaudited
$000 $000 $000
Revenue 39,747 33,938 79,062
Cost of sales (16,494) (13,087) (31,918)
Gross profit 23,253 20,851 47,144
Net operating expenses (6,508) (5,469) (10,312)
Profit from operations 16,745 15,382 36,832
Share of (losses) / profits
of associated company (88) 28 (118)
Foreign exchange (losses)
/ gains (684) 2,221 2,588
Finance income 399 228 616
Finance (losses) - (14) (14)
Finance costs (1,385) - -
Other income 9 26 49
Profit before tax 14,996 17,871 39,953
Income tax expense (3,617) (4,273) (12,256)
Profit after tax 11,379 13,598 27,697
===========
Attributable to non controlling
interests 3,840 5,102 11,882
Attributable to equity share
owners of the parent 7,539 8,496 15,815
----------- ----------- -----------
11,379 13,598 27,697
=========== =========== ===========
Basic earnings per share (cents) 4.30 4.79 8.96
=========== =========== ===========
Diluted earnings per share
(cents) 4.26 4.65 8.76
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2011
30/06/2012 30/06/2011 Audited
Unaudited Unaudited
$000 $000 $000
Profit for the financial period 11,379 13,598 27,697
----------- ----------- -----------
Other comprehensive income
Exchange differences on translating
foreign operations (478) 903 2,417
Other comprehensive income
for the period, net of tax (478) 903 2,417
----------- ----------- -----------
Total comprehensive income
for the period 10,901 14,501 30,114
=========== =========== ===========
Attributable to non controlling
interests 3,704 5,452 12,691
Attributable to equity share
owners of the parent 7,197 9,049 17,423
10,901 14,501 30,114
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2012 30/06/2011 31/12/2011
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 171,617 80,368 85,291
Intangible assets - Exploration
interests 1,572 1,537 1,573
Investment in associated company 3,670 3,905 3,759
----------- ----------- -----------
176,859 85,810 90,623
----------- ----------- -----------
Current assets
Inventories 5,538 4,277 4,608
Other current assets 2,740 2,248 2,505
Cash and cash equivalents 28,720 74,652 91,089
----------- ----------- -----------
36,998 81,177 98,202
----------- ----------- -----------
Total assets 213,857 166,987 188,825
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 1,755 1,755 1,755
Share premium 70,061 70,061 70,061
Contributing surplus 3,690 3,690 3,690
Share based payments 3,043 2,775 3,030
Chinese statutory re-investment
reserve 1,288 959 1,300
Other reserve on acquisition
of non controlling interests (29,336) - -
Foreign exchange reserve 9,711 9,011 10,041
Profit and loss reserve 70,670 56,127 63,131
----------- ----------- -----------
Total equity attributable to
equity holders of the parent 130,882 144,378 153,008
Non controlling interests 16,202 9,642 12,523
----------- ----------- -----------
Non-current liabilities
Long-term provisions 1,422 1,197 806
----------- ----------- -----------
Current liabilities
Taxation payable 4,548 2,939 11,631
Trade and other payables 14,288 8,831 10,857
Bank loans 46,515 - -
----------- ----------- -----------
Total liabilities 65,351 11,770 22,488
----------- ----------- -----------
Total equities and liabilities 213,857 166,987 188,825
=========== =========== ===========
Number of shares in issue 175,501,830 175,501,830 175,501,830
Attributable net asset value
/ total equity per share $0.75 $0.82 $0.87
Griffin Mining Limited
Condensed Consolidated Statement of Changes in Equity
(expressed in thousands US dollars)
Share Share Contributing Share Chinese Other Foreign Profit Total Non Total
attributable
capital premium surplus based re reserve exchange and to equity controlling equity
investment on loss holders
payments Reserve acquisition reserve reserve of parent interests
of
non
controlling
interests
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
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 in
respect
of
distributions - - - - - - - - - (2,028) (2,028)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Transaction
with
owners (49) (4,887) - 262 - - - - (4,674) (2,028) (6,702)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Retained
profit
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
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Regulatory
transfer
for future
investment
investment - - - - 315 - - (315) - - -
Cost of share
based
payments - - - 255 - - - - 255 - 255
Transfers in
respect
of
distributions - - - - - - - - - (4,358) (4,358)
Transaction
with
owners - - - 255 315 - - (315) 255 (4,358) (4,103)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Retained
profit
for the 6
months - - - - - - - 7,319 7,319 6,780 14,099
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 26 - 1,030 - 1,056 459 1,515
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Total
comprehensive
income for
the 6
month period - - - - - 26 - 1,030 7,319 8,375 7,239 15,614
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
At 31 December
2011 1,755 70,061 3,690 3,030 1,300 - 10,041 63,131 153,008 12,523 165,531
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Cost of share
based
payments - - - 13 - - - 13 - 13
Purchase of
minority
interests - - - - - (29,336) - - (29,336) (25) (29,361)
Transaction
with
owners - - - 13 - (29,336) - - (29,323) (25) (29,348)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Retained
profit
for the 6
months - - - - - - - 7,539 7,539 3,840 11,379
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - (12) - (330) - (342) (136) (478)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Total
comprehensive
income for
the 6
month period - - - - (12) - (330) 7,539 7,197 3,704 10,901
At 30 June
2012
(unaudited) 1,755 70,061 3,690 3,043 1,288 (29,336) 9,711 70,670 130,882 16,202 147,084
======= ======= ============ ======== ========== =========== ======== ======= ============ =========== ========
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2011
30/06/2012 30/06/2011 Audited
Unaudited Unaudited
$000 $000 $000
Net cash flows from operating
activities
Profit before taxation 14,996 17,871 39,953
Share of associated company
losses / (profits) 88 (28) 118
Foreign exchange losses / (gains) 684 (2,221) (2,588)
Finance (income) (399) (228) (616)
Finance costs 1,385 - -
Finance losses - 14 14
Adjustment in respect of share
based payments 12 262 517
Depreciation, depletion and
amortisation 3,501 2,555 5,900
Provisions 623 455 -
(Increase) in inventories (929) (1,141) (1,472)
(Increase) in other current
assets (235) (867) (1,226)
Increase in trade and other
payables 3,432 719 2,746
Net cash inflow from operating
activities 23,158 17,391 43,346
----------- ----------- -----------
Taxation paid (10,699) (2,346) (1,637)
----------- ----------- -----------
Cash flows from investing activities
Interest received 399 228 616
Payments to extend joint venture
term and acquire non controlling (117,444) - -
interests
Payments to acquire intangible
fixed assets - exploration interests (13) (21) (19)
Payments to acquire tangible
fixed assets - mineral interests (2,201) (3,141) (6,073)
Payments to acquire tangible
fixed assets - plant & equipment (350) (381) (3,607)
----------- ----------- -----------
Net cash (outflow) from investing
activities (119,609) (3,315) (9,083)
----------- ----------- -----------
Cash flows from financing activities
Issue of ordinary share capital - 41 41
Purchase of shares for cancellation - (4,977) (4,977)
Interest paid (1,385) - -
Dividends to non controlling
interests - - (4,257)
Proceeds from bank loans 46,515 - -
-----------
45,130 (4,936) (9,193)
----------- ----------- -----------
(Decrease)/increase in cash
and cash equivalents (62,020) 6,794 23,433
Cash and cash equivalents at
beginning of the period 91,089 66,450 66,450
Effects of exchange rate changes (349) 1,408 1,206
----------- ----------- -----------
Cash and cash equivalents at
end of the period 28,720 74,652 91,089
=========== =========== ===========
Cash and cash equivalents comprise
bank deposits and loans
Bank deposits 28,720 74,652 91,089
=========== =========== ===========
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 2011.
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 2011 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 2011 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
30/06/2012 30/06/2011 31/12/2011
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 7,539 175,501,830 4.30 8,496 177,513,948 4.79 15,815 176,499,620 8.96
Dilutive effect of securities
Options - 1,374,747 - 5,385,5439 - 3,981,592
-------- ----------- -------- --------- ----------- -------- -------- ----------- --------
Diluted
earnings
per share 7,539 176,876,577 4.26 8,496 182,899,491 4.65 15,815 180,481,212 8.76
======== =========== ======== ========= =========== ======== ======== =========== ========
This information is provided by RNS
The company news service from the London Stock Exchange
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