TIDMGFM
RNS Number : 9708W
Griffin Mining Ld
07 August 2018
8(th) Floor, 54 Jermyn Street, London, SW1Y 6LX. United
Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629
7773
E mail: griffin@griffinmining.com
7(th) August 2018
INTERIM STATEMENT
for the six months ended 30(th) June 2018
Griffin Mining Limited ("Griffin" or "the Company") has today
released its unaudited results for the six months ended 30th June
2018.
Highlights:
-- Revenues of $54.1 million
-- Operating profit of $21.1 million
-- Profit before tax of $21.3 million
-- Profit after tax of $15.3 million
-- Basic earnings per share 8.95 cents
Financial and Trading:
The first six months of 2018 has seen falling zinc metal prices
only marginally impacting profitability whereas higher grade gold
areas have resulted in record gold in concentrate production in the
first six months of the year. Operations at Caijiaying were
maintained with minimal disruption throughout the first half of
2018.
In the six months to 30(th) June 2018, 448,530 tonnes of ore
were processed to produce:
-- 16,873 tonnes of zinc;
-- 459 tonnes of lead;
-- 132,689 ounces of silver; and
-- 9,492 ounces of gold.
Zinc revenues before royalties and resource taxes in the six
months to 30(th) June 2018 were $42,573,000 with 16,881 tonnes of
zinc metal in concentrate sold with an average price received after
smelter charges of $2,522 per tonne. Lead and precious metals
revenues were $14,045,000 with more gold in concentrate sold offset
by lower silver in concentrate sold.
During the six months to 30(th) June 2018:
-- 400,167 tonnes of ore were mined;
-- 437,734 tonnes of ore were hauled; and
-- 448,530 tonnes of ore were processed.
Cost of sales of $23,336,000 in the first six months of 2018 was
up on that incurred in 2017 of $20,820,000. This in the main
reflects additional costs incurred extracting ore from greater
depth and backfilling waste material and tailings to minimise
surface storage of tailings.
Administration expenses (including those of the Caijiaying site)
have risen from $8,061,000 in the first six months of 2017 to
$9,663,000 in 2018. This includes fees to the Group's Chinese
partners, of $2,186,000 (2017 $2,111,000); equivalent to their
equity interest of 11.2% of Hebei Hua Ao's profits. Administration
costs within China have increased with higher fees and costs in
dealing with stricter environmental, health and safety regulations
and in applying for the mining licence over Zone II. At the
beginning of 2018, Griffin's wholly owned Hong Kong subsidiary,
China Zinc Ltd, engaged a corporate development manager to identify
potential areas and projects of interest in China.
Basic earnings per share were 8.95 cents (2017: 8.85 cents). At
30(th) June 2018, attributable net assets per share amounted to 119
cents (2017: 91 cents).
Cash flows from operations in the period have been directed at
paying down outstanding creditors and further development of the
Caijiaying Mine.
On 11(th) July 2018 the Company's Chinese operating subsidiary,
Hebei HuaAo Mining Industry Co Ltd ("Hebei Hua Ao") completed the
most important phase in the granting of the new mining licence over
Zone II of the Caijiaying Zinc-Gold Mine ("Zone II"). On 11(th)
July 2018 a legally binding contract was signed with the Hebei
Department of Land and Mineral Resources, as authorised by the
Beijing Ministry of Natural Resources, pursuant to the Interim
Administrative Regulation for Proceeds Collection from the Transfer
of Mineral Rights (2017). Hebei Hua Ao has become the first company
to proceed under this newly promulgated regulation governing the
transfer and conversion of mining tenements. Hebei Hua Ao will be
prioritized in its final documentation approvals for the conversion
of the exploration licence over Zone II into a mining licence in
compliance with relevant national policies.
With cash flows from operations now directed towards the
development of the Zone II area at Caijiaying and in line with
previous years' practice 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, "This is a wonderful result in
light of the 21% fall in the zinc since the beginning of the year.
The second half of the year will remain challenging if commodity
prices remain subdued. However, the recent signing of the Contract
of Transfer and the progress towards the issue of the new Mining
Licence over Zone II, sets the stage for an exciting 2019."
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 7886 2500
Dominic Morley
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
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 31/12/2017
30/06/2018 30/06/2017 Audited
Unaudited Unaudited
$000 $000 $000
Revenue 54,058 52,332 126,657
Cost of sales (23,336) (20,820) (44,360)
Gross profit 30,722 31,512 82,297
Net operating expenses (9,663) (8,061) (18,524)
Profit from operations 21,059 23,451 63,773
Losses on disposal of equipment (18) (16) (1,067)
Foreign exchange gains (losses) 133 (104) 87
Finance income 102 63 143
Finance costs (144) (1,401) (2,219)
Other income 179 60 160
Profit before tax 21,311 22,053 60,877
Income tax expense (6,005) (6,209) (17,556)
Profit after tax 15,306 15,844 43,321
===========
Basic earnings per share (cents) 8.95 8.85 24.63
=========== =========== ===========
Diluted earnings per share (cents) 8.42 8.36 22.97
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2017
30/06/2018 30/06/2017 Audited
Unaudited Unaudited
$000 $000 $000
Profit for the financial period 15,306 15,844 43,321
----------- ----------- -----------
Other comprehensive income
Exchange differences on translating
foreign operations (1,498) 3,854 5,004
Other comprehensive income for the
period, net of tax (1,498) 3,854 5,004
----------- ----------- -----------
Total comprehensive income for the
period 13,808 19,698 48,325
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2018 30/06/2017 31/12/2017
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 213,920 206,556 214,695
Intangible assets - Exploration interests 2,031 1,834 2,035
215,951 208,390 216,730
----------- ----------- -----------
Current assets
Inventories 4,065 6,121 5,868
Other current assets 5,546 6,607 4,374
Cash and cash equivalents 27,841 15,752 26,518
----------- ----------- -----------
37,452 28,480 36,760
----------- ----------- -----------
Total assets 253,403 236,870 253,490
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 1,725 1,790 1,700
Share premium 68,329 71,310 67,295
Contributing surplus 3,690 3,690 3,690
Share based payments 2,072 2,072 2,072
Shares held in treasury (300) (4,105) -
Chinese statutory re-investment reserve 2,177 1,621 2,204
Other reserve on acquisition of non-controlling
interests (29,346) (29,346) (29,346)
Foreign exchange reserve 8,306 8,687 9,777
Profit and loss reserve 149,278 107,018 133,972
----------- ----------- -----------
Total equity attributable to equity
holders of the parent 205,931 162,737 191,364
Non-current liabilities
Long-term provisions 2,387 2,332 2,418
Deferred taxation 2,830 2,670 2,865
Finance lease - 3,479 712
----------- ----------- -----------
5,217 8,481 5,995
----------- ----------- -----------
Current liabilities
Taxation payable 6,077 2,826 12,349
Trade and other payables 33,039 26,142 40,088
Finance lease 3,139 1,995 3,694
Bank loans - 34,689 -
----------- ----------- -----------
Total liabilities 42,255 65,652 56,131
----------- ----------- -----------
Total equities and liabilities 253,403 236,870 253,490
=========== =========== ===========
Number of shares in issue 172,512,061 179,041,830 169,993,727
Attributable net asset value / total
equity per share $1.19 $0.91 $1.13
Griffin Mining Limited
Condensed Consolidated Statement of Changes in Equity
(expressed in thousands US dollars)
Share Share Contributing Share Shares Chinese Other Foreign Profit Total
Capital Premium surplus based held re reserve on exchange and attributable
payments in investment acquisition reserve loss to equity
treasury reserve of reserve holders
non-controlling of parent
interests
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 31(st)
December 2016 1,790 71,310 3,690 2,072 (3,875) 1,583 (29,346) 4,871 91,174 143,269
Purchase of
shares for
treasury - - - - (230) - - - - (230)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Transaction
with owners - - - - (230) - - - - (230)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 15,844 15,844
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - 38 - 3,816 - 3,854
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - 38 - 3,816 15,844 19,698
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2017
(Unaudited) 1,790 71,310 3,690 2,072 (4,105) 1,621 (29,346) 8,687 107,018 162,737
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Regulatory
transfer for
future
investment - - - - - 523 - - (523) -
Cancellation
of shares in
treasury (90) (4,015) - - 4,105 - - - - -
Transaction
with owners (90) (4,015) - - 4,105 523 - (523) -
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 27,477 27,477
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - 60 - 1,090 - 1,150
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - 60 - 1,090 27,477 28,627
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 31(st)
December 2017 1,700 67,295 3,690 2,072 - 2,204 (29,346) 9,777 133,972 191,364
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Issue of
shares on
exercise
of share
options 25 1,034 1,059
Purchase of
shares for
treasury - - - - (300) - - - - (300)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Transaction
with owners 25 1,034 - - (300) - - - - 759
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 15,306 15,306
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - (27) - (1,471) - (1,498)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - (27) - (1,471) 15,306 13,808
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2018
(Unaudited) 1,725 68,329 3,690 2,072 (300) 2,177 (29,346) 8,306 149,278 205,931
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2017
30/06/2018 30/06/2017 Audited
Unaudited Unaudited
$000 $000 $000
Net cash flows from operating activities
Profit before taxation 21,311 22,053 60,877
Foreign exchange (gains) / losses (133) 104 (87)
Finance income (102) (63) (143)
Finance costs 144 1,401 2,219
Depreciation, depletion and amortisation 4,964 4,855 9,783
Losses on disposal of equipment 18 16 1,067
Decrease / (increase) in inventories 1,803 27 280
Decrease / (increase) in receivables
and other current assets (1,206) 1,602 3,928
(Decrease) / increase in trade and other
payables (6,880) (3,807) 7,621
Taxation paid (12,275) (5,932) (8,108)
----------- ----------- -----------
Net cash inflow from operating activities 7,644 20,256 77,437
----------- ----------- -----------
Cash flows from investing activities
Interest received 102 63 143
Proceeds on disposal of equipment - - 184
Payments to acquire - mineral interests (4,597) (2,764) (9,330)
Payments to acquire - plant & equipment (1,323) (1,201) (4,125)
Payments to acquire - office equipment (1) (2) (2)
Payments to acquire - intangible assets
- exploration interests (21) 1 (128)
----------- ----------- -----------
Net cash (outflow) from investing activities (5,840) (3,903) (13,258)
----------- ----------- -----------
Cash flows from financing activities
Purchase of shares for treasury (300) (230) (230)
Issue of shares on exercise of share
purchase options 1,059 - -
Interest paid - (1,181) (1,773)
Finance lease (1,365) (1,463) (2,943)
Repayment of bank loans - (10,940) (46,024)
-----------
Net cash (outflow) from financing activities (606) (13,814) (50,970)
----------- ----------- -----------
Increase in cash and cash equivalents 1,198 2,539 13,209
Cash and cash equivalents at beginning
of the period 26,518 13,218 13,218
Effects of exchange rate changes 125 (5) 91
----------- ----------- -----------
Cash and cash equivalents at end of the
period 27,841 15,752 26,518
=========== =========== ===========
Cash and cash equivalents comprise bank
deposits
Bank deposits 27,841 15,752 26,518
=========== =========== ===========
Griffin Mining Limited
Notes to the Interim Statement
1. These unaudited 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 2017.
2. This interim report will be available on the Company's web
site, www.griffinmining.com. Hard copies are available from the
Company's London office, 8(th) Floor, Royal Trust House, 54 Jermyn
Street, London. SW1Y 6LX.
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 2017 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 2017 statutory financial statements upon
which the auditors' opinion is unqualified.
4. The summary accounts have been prepared on a going concern
basis. Having considered the cash resources, banking facilities and
forecasts for the remainder of the Hebei Hua Ao joint venture term,
the directors do not expect any going concern issues to arise.
5. 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
30/06/2018 30/06/2017 31/12/2017
Unaudited Unaudited Audited
Weighted Weighted Per Weighted
average Per share average share average Per 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 15,306 170,991,849 8.85 15,844 179,091,830 8.85 43,321 175,894,007 24.63
Dilutive effect of securities
Options - 17,086,523 (0.43) - 10,311,861 (0.49) - 12,703,367 (1.66)
-------- ----------- --------- --------- ----------- ------- -------- ------------- ---------
Diluted
earnings
per share 15,306 188,078,102 8.42 15,844 189,403,691 8.36 43,321 188,597,374 22.97
======== =========== ========= ========= =========== ======= ======== ============= =========
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London Stock Exchange. RNS is approved by the Financial Conduct
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END
IR SSIFLMFASEIA
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