TIDMGFM
RNS Number : 5748L
Griffin Mining Ld
14 August 2013
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
14(th) August 2013
INTERIM STATEMENT
for the six months ended 30(th) June 2013
Below are the interim results for Griffin Mining Limited
("Griffin" or "the Company") for the six months ended 30(th) June
2013.
Highlights:
-- Revenues of $33.7 million (2012: $39.7 million)
-- Operating profit of $7.3 million (2012: $16.7 million)
-- Profit before tax of $5.8 million (2012: $15.0 million)
-- Profit after tax of $4.0 million (2012: $11.4 million)
-- Attributable profit after tax of $3.5 million (2012: $7.5 million)
Financial and Trading:
In the six months to the 30(th) June 2013, throughput at
Griffin's Caijiaying Mine increased from 386,313 to 412,799 tonnes
to produce in concentrate:
-- 19,077 tonnes of zinc (2012: 20,336 tonnes);
-- 903 tonnes of lead (2012: 1,364 tonnes);
-- 151,921 ounces of silver (2012: 215,773 ounces);
-- 3,869 ounces of gold (2012: 3,769 ounces).
Revenues and operating profits were impacted by lower metal
prices for all metals produced and lower metal production for zinc,
lead and silver resulting from lower mined grades at the Caijiaying
Mine.
During the six months to 30(th) June 2013, the average price
received declined from that in the six months to 30(th) June 2012
for zinc by 7.5%, gold by 5%, lead by 5% and silver by 10%. In
addition, during the six months to 30(th) June 2013, priority was
given to extracting the remaining economic mineralization at the
upper levels of the Caijiaying Mine prior to being able to access
lower levels resulting in a reduction in the zinc head grade of
0.66% from that recorded in the six months to 30(th) June 2012.
Throughput increased despite mining and haulage being impacted
by the Chinese Spring Festival holidays in February 2013 and during
the Chinese National Party congress in March 2013 with restricted
delivery of explosives.
Progress has been made in improving gold recoveries with the
expectation of higher gold recoveries in the second half of
2013.
Increases in costs of sales reflect operational mine development
work and increased ore processed. Operating expenses have been
reduced as the Group strives to minimise administration costs.
Profits before tax have been impacted by: Foreign exchange
losses of $20,000 (2012: $684,000) arising as a result of a
stronger US Dollar against Sterling in the period; interest payable
on Chinese bank loans of $1,577,000 (2012: $1,385,000); Griffin's
39.2% equity share of Spitfire Oil Ltd's losses of $45,000 (2012:
$88,000); and interest receivable of $59,000 (2012: $399,000) with
lower interest receipts following the utilisation of cash resources
in June 2012 to fund the extension of the local Chinese joint
venture licence and purchase of non controlling interests.
Chinese income taxes and withholding taxes of $1,724,000 (2012:
$3,617,000) have been charged to profit resulting in profits after
tax of $4,035,000 (2012: $11,379,000).
Provision of $584,000 (2012: $3,840,000) has been made for the
minority interests in the profit of Griffin's Chinese subsidiary,
Hebei Hua Ao Mining Industry Company Limited ("Hua Ao") of 11.2%
(2012: 40% to 25(th) June 2012). Profit attributable to Griffin
amounted to $3,451,000 (2012: $7,539,000).
Basic earnings per share were 1.97 cents (2012: 4.3 cents) and
diluted earnings per share 1.95 cents (2012: 4.26 cents). At 30(th)
June 2013, attributable net assets per share in issue amounted to
81 cents (2012: 75 cents).
Repatriation of funds from China was achieved, whilst still
providing sufficient working capital within Hua Ao, by drawing down
an additional $6,297,000 from banking facilities in China which
were more than matched by cash balances throughout the Group
increasing by $7,740,000 since 31(st) December 2012.
Application for a mining licence over the Zone II area at
Caijiaying and the area between the Zone II and III areas is
progressing as expected.
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, "Although in absolute terms
the interim results are disappointing, they should come as no
surprise in light of the recently released results by other small
to large mineral producers. All miners continue to struggle with
maintaining profitability in the light of falling commodity prices
coupled with a mainly fixed cost business. Griffin's results have
also been further specifically impacted by the scheduling of major
mine development work in the first half of 2013 to extract the
remaining lower grade mineralization at the highest levels at
Caijiaying before accessing the mineralization at lower levels.
Assuming commodity prices remain at least constant and no 'Black
Swan' event materializes, I expect significantly better results for
the second half of 2013."
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 31/12/2012
30/06/2013 30/06/2012 Audited
Unaudited Unaudited
$000 $000 $000
Revenue 33,651 39,747 76,860
Cost of sales (20,534) (16,494) (34,795)
Gross profit 13,117 23,253 42,065
Net operating expenses (5,808) (6,508) (10,891)
Profit from operations 7,309 16,745 31,174
Share of losses of associated
company (45) (88) (163)
Foreign exchange losses (20) (684) (904)
Finance income 59 399 495
Finance costs (1,577) (1,385) (3,411)
Other income 33 9 48
Profit before tax 5,759 14,996 27,239
Income tax expense (1,724) (3,617) (7,532)
Profit after tax 4,035 11,379 19,707
===========
Attributable to non controlling
interests 584 3,840 4,872
Attributable to equity share
owners of the parent 3,451 7,539 14,835
----------- ----------- -----------
4,035 11,379 19,707
=========== =========== ===========
Basic earnings per share (cents) 1.97 4.30 8.46
=========== =========== ===========
Diluted earnings per share
(cents) 1.95 4.26 8.36
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2012
30/06/2013 30/06/2012 Audited
Unaudited Unaudited
$000 $000 $000
Profit for the financial period 4,035 11,379 19,707
----------- ----------- -----------
Other comprehensive income
Exchange differences on translating
foreign operations 211 (478) 545
Other comprehensive income
for the period, net of tax 211 (478) 545
----------- ----------- -----------
Total comprehensive income
for the period 4,246 10,901 20,252
=========== =========== ===========
Attributable to non controlling
interests 614 3,704 4,960
Attributable to equity share
owners of the parent 3,632 7,197 15,292
4,246 10,901 20,252
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2013 30/06/2012 31/12/2012
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 178,433 171,617 177,470
Intangible assets - Exploration
interests 1,766 1,572 1,707
Investment in associated company 3,552 3,670 3,596
----------- ----------- -----------
183,751 176,859 182,773
----------- ----------- -----------
Current assets
Inventories 4,949 5,538 6,231
Other current assets 1,568 2,740 4,168
Cash and cash equivalents 24,504 28,720 16,764
----------- ----------- -----------
31,021 36,998 27,163
----------- ----------- -----------
Total assets 214,772 213,857 209,936
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 1,754 1,755 1,755
Share premium 70,016 70,061 70,037
Contributing surplus 3,690 3,690 3,690
Share based payments 3,055 3,043 3,055
Chinese statutory re-investment
reserve 1,538 1,288 1,313
Other reserve on acquisition
of non controlling interests (29,346) (29,336) (29,346)
Foreign exchange reserve 10,655 9,711 10,485
Profit and loss reserve 81,203 70,670 77,966
----------- ----------- -----------
Total equity attributable to
equity holders of the parent 142,565 130,882 138,955
Non controlling interests 2,104 16,202 4,904
Total equity 144,669 147,084 143,859
Non-current liabilities
Long-term provisions 3,228 1,422 2,535
----------- ----------- -----------
Current liabilities
Taxation payable 393 4,548 3,840
Trade and other payables 13,073 14,288 12,590
Bank loans 53,409 46,515 47,112
----------- ----------- -----------
Total liabilities 66,875 65,351 63,542
----------- ----------- -----------
Total equities and liabilities 214,772 213,857 209,936
=========== =========== ===========
Number of shares in issue 175,401,830 175,501,830 175,451,830
Attributable net asset value
/ total equity per share $0.81 $0.75 $0.79
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
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
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Purchase of
shares
for
cancellation - (24) - - - - - - (24) - (24)
Cost of share
based
payments - - - 12 - - - - 12 - 12
Transfers in
respect
of
distributions - - - - - - - - - (12,554) (12,554)
Purchase of
minority
interests - - - - - (10) - - (10) - (10)
Transaction
with
owners - (24) - 12 - (10) - - (22) (12,554) (12,576)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Retained
profit
for the 6
months - - - - - - - 7,296 7,296 1,032 8,328
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 25 - 774 - 799 224 1,023
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Total
comprehensive
income for
the 6
month period - - - - 25 - 774 7,296 8,095 1,256 9,351
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
At 31 December
2012 1,755 70,037 3,690 3,055 1,313 (29,346) 10,485 77,966 138,955 4,904 143,859
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Regulatory
transfer
for future
investment - - - - 214 - - (214) - - -
Purchase of
shares
for
cancellation (1) (21) - - - - - - (22) - (22)
Transfers in
respect
of
distributions - - - - - - - - - (3,414) (3,414)
Transaction
with
owners (1) (21) - - 214 - - (214) (22) (3,414) (3,436)
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Retained
profit
for the 6
months - - - - - - - 3,451 3,451 584 4,035
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - 11 - 170 - 181 30 211
------- ------- ------------ -------- ---------- ----------- -------- ------- ------------ ----------- --------
Total
comprehensive
income for
the 6
month period - - - - 11 - 170 3,451 3,632 614 4,246
At 30 June
2013
(unaudited) 1,754 70,016 3,690 3,055 1,538 (29,346) 10,655 81,203 142,565 2,104 144,669
======= ======= ============ ======== ========== =========== ======== ======= ============ =========== ========
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2012
30/06/2013 30/06/2012 Audited
Unaudited Unaudited
$000 $000 $000
Net cash flows from operating
activities
Profit before taxation 5,759 14,996 27,239
Share of associated company
losses 45 88 163
Foreign exchange losses 20 684 904
Finance (income) (59) (399) (495)
Finance costs 1,577 1,385 3,411
Adjustment in respect of share
based payments - 12 25
Depreciation, depletion and
amortisation 3,098 3,501 6,762
Provisions 671 623 -
Decrease / increase) in inventories 1,283 (929) (1,623)
Decrease / (increase) in other
current assets 2,008 (235) (1,663)
(Decrease) / increase in trade
and other payables (1,160) 3,432 (2,479)
Net cash inflow from operating
activities 13,242 23,158 32,244
----------- ----------- -----------
Taxation paid (3,528) (10,699) (11,435)
----------- ----------- -----------
Cash flows from investing activities
Interest received 59 399 495
Payments to extend joint venture
term and acquire non controlling
interests - (117,444) (117,459)
Payments to acquire intangible
fixed assets - exploration interests (48) (13) (117)
Payments to acquire tangible
fixed assets - mineral interests (2,305) (2,201) (4,206)
Payments to acquire tangible
fixed assets - plant & equipment (399) (350) (4,132)
----------- ----------- -----------
Net cash (outflow) from investing
activities (2,693) (119,609) (125,419)
----------- ----------- -----------
Cash flows from financing activities
Purchase of shares for cancellation (22) - (24)
Interest paid (1,577) (1,385) (3,411)
Distributions to non controlling
interests (3,414) - (12,561)
Proceeds from bank loans 6,297 46,515 47,112
-----------
1,284 45,130 31,116
----------- ----------- -----------
Increase / (decrease) in cash
and cash equivalents 8,305 (62,020) (73,494)
Cash and cash equivalents at
beginning of the period 16,764 91,089 91,089
Effects of exchange rate changes (565) (349) (831)
----------- ----------- -----------
Cash and cash equivalents at
end of the period 24,504 28,720 16,764
=========== =========== ===========
Cash and cash equivalents comprise
bank deposits and loans
Bank deposits 24,504 28,720 16,764
=========== =========== ===========
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 2012.
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 2012 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 2012 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
30/06/2013 30/06/2012 31/12/2012
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 3,451 175,442,576 1.97 7,539 175,501,830 4.30 14,835 175,456,077 8.46
Dilutive effect of securities
Options - 1,582,970 - 1,374,747 2,021,897
-------- ----------- -------- --------- ----------- -------- -------- ------------- -------
Diluted
earnings
per share 177,025,546 7,539 176,876,577 4.26 14,835 177,477,974 8.36
======== =========== ======== ========= =========== ======== ======== ============= =======
This information is provided by RNS
The company news service from the London Stock Exchange
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