TIDMGFM
RNS Number : 8119T
Griffin Mining Ld
23 July 2020
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
23(rd) July 2020
UNAUDITED INTERIM RESULTS
for the six months ended 30(th) June 2020
Griffin Mining Limited ("Griffin" or "the Company") has today
released its unaudited results for the six months ended 30th June
2020.
Highlights:
-- Revenues of $21.3 million (30(th) June 2019 - $38.6 million)
-- Gross Profit of $4.2 million (30(th) June 2019 - $15.9 million)
-- Profit (Loss) before tax of ($3.0 million) (30(th) June 2019 - Profit $6.3 million)
-- Profit (Loss) after tax of ($3.8 million) (30(th) June 2019 - Profit $4.1 million)
-- Profit (Loss) per share of (2.22 cents) (30(th) June 2019 -
Basic earnings per share 2.36 cents)
Financial and Trading:
The first six months of 2020 were impacted by the suspension in
operations at Caijiaying imposed by the Chinese authorities for a
month in late January / February and subsequent travel restrictions
with consequent difficulties in returning mining personnel to
Caijiaying resulting in reduced stoping and delayed development
work. Tonnes mined were down 23.4% in the first six months of 2020
compared with that achieved in the first six months of 2019 with a
knock on effect on ore hauled and processed, with tonnes of ore
processed down 25.2% on that achieved in the first six months of
2019. Profitability was further impacted by lower zinc prices
received which were 18.0% less than that realised in the first six
months of 2019. As a result of the foregoing, zinc metal in
concentrate sales were down $10,151,000 on that recorded in the
first six months of 2019 directly impacting profits. Gold
production was also impacted by the suspension in operations and
delays in accessing higher grade gold ore bodies.
In the six months to 30(th) June 2020, 323,536 tonnes (30(th)
June 2019 - 432,592 tonnes) of ore were processed to produce:
-- 13,448 tonnes of zinc (30(th) June 2019 - 16,692 tonnes);
-- 631 tonnes of lead (30(th) June 2019 - 494 tonnes);
-- 110,832 ounces of silver (30(th) June 2019 - 141,306 ounces); and
-- 2,418 ounces of gold (30(th) June 2019 - 9,099 ounces).
Zinc revenues before royalties and resource taxes in the six
months to 30(th) June 2020 were $17,008,000 (30(th) June 2019 -
$27,159,000) with 13,046 tonnes of zinc metal in concentrate sold
(30(th) June 2019 - 17,072 tonnes). Lead and precious metals
revenues were $5,279,000 (30(th) June 2019 - $13,036,000) with less
gold in concentrate sold.
During the six months to 30(th) June 2020:
-- 314,690 tonnes of ore were mined (30(th) June 2019 - 410,819 tonnes);
-- 321,514 tonnes of ore were hauled (30(th) June 2019 - 426,070 tonnes); and
-- 323,536 tonnes of ore were processed (30(th) June 2019 - 432,592 tonnes).
Costs of sales (mining, haulage and processing costs) of
$17,153,000 in the first six months of 2020 were down 24.3% on that
incurred in the six months to 30(th) June 2019 of $23,336,000. This
reflects reduced activity during the suspension in operations and
subsequent travel restrictions imposed by the Chinese authorities,
together with consequent cost control by management.
Net operating expenses (including those of the Caijiaying site)
fell 27.6% from $9,955,000 in the first six months of 2019 to
$7,204,000 in 2020. This includes fees to the Group's Chinese
partners of $831,000 (2019 $1,820,000), equivalent to their minimum
equity interest in Hebei Hua Ao's profits. Again the reduction in
other operating expenses reflects reduced activity and cost control
by management.
Losses per share were 2.22 cents (30(th) June 2019: Basic
earnings 2.36 cents). At 30(th) June 2020, attributable net assets
per share amounted to 121 cents (30(th) June 2019: 124 cents).
Cash flows from operations in the period have been directed at
paying down outstanding creditors and further development of the
Caijiaying Mine.
Chairman's Statement
Chairman Mladen Ninkov commented, "On first glance, the first 6
month's results seem disappointing but a closer inspection reveals
a solid result in the face of the COVID-19 shutdown in operations,
the subsequent restrictions imposed by all relevant governments on
travel to and from China and the continuing low zinc prices and
higher treatment charges. All of these issues resulted in, most
importantly, reduced tonnes mined meaning less metal produced,
particularly gold. A slow first half of any year is not unusual for
Griffin and we expect a stronger and more robust performance in the
second half of 2020 as we return to a normal operating environment.
It is superfluous to add, we eagerly await the issue of our new
mining licence."
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Numis Securities Limited
Paul Gillam Telephone: +44(0)20 7260 1000
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 31/12/2019
30/06/2020 30/06/2019 Audited
Unaudited Unaudited
$000 $000 $000
Revenue 21,321 38,619 82,267
Cost of sales (17,153) (22,671) (48,609)
Gross profit 4,168 15,948 33,568
Net operating expenses (7,204) (9,955) (19,433)
(Loss) / profit from operations (3,036) 5,993 14,225
Losses on disposal of equipment (614) (59) (305)
Impairment of intangible fixed assets (1) - (1,985)
Foreign exchange (losses) / gains (147) (4) (93)
Finance income 45 82 171
Finance costs (149) (122) (377)
Other income 76 386 76
(Loss) / profit before tax (3,826) 6,276 11,712
Income tax expense - (2,202) (5,628)
(Loss) / profit after tax (3,826) 4,074 6,084
(Loss) / basic earnings per share (cents) (2.22) 2.36 3.52
=========== =========== ===========
(Loss) / diluted earnings per share
(cents) (2.22) 2.17 3.24
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2019
30/06/2020 30/06/2019 Audited
Unaudited Unaudited
$000 $000 $000
(Loss) / profit for the financial period (3,826) 4,074 6,084
----------- ----------- -----------
Other comprehensive income
Prior period adjustment (note 6) - (33) -
Exchange differences on translating
foreign operations (1,891) (297) (2,324)
Other comprehensive income for the
period, net of tax (1,891) (330) (2,324)
----------- ----------- -----------
Total comprehensive (losses) / income
for the period (5,717) 3,744 3,760
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2020 30/06/2019 31/12/2019
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 225,898 219,937 228,287
Intangible assets - exploration interests 325 2,021 322
226,223 221,958 228,609
----------- ----------- -----------
Current assets
Inventories 3,896 3,793 3,839
Receivables and other current assets 2,275 3,959 1,861
Cash and cash equivalents 10,351 19,293 19,885
----------- ----------- -----------
16,522 27,045 25,585
----------- ----------- -----------
Total assets 242,745 249,003 254,194
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 1,728 1,727 1,728
Share premium 68,455 68,442 68,455
Contributing surplus 3,690 3,690 3,690
Share based payments 2,072 2,072 2,072
Shares held in treasury (917) (917) (917)
Chinese statutory re-investment reserve 2,463 2,382 2,500
Other reserve on acquisition of non-controlling
interests (29,346) (29,346) (29,346)
Foreign exchange reserve (151) 3,734 1,703
Profit and loss reserve 161,233 163,202 165,059
----------- ----------- -----------
Total equity attributable to equity
holders of the parent 209,227 214,986 214,944
Non-current liabilities
Long-term provisions 3,802 2,182 2,150
Deferred taxation 2,691 2,389 2,731
Finance leases - 413 479
----------- ----------- -----------
6,493 4,984 5,360
----------- ----------- -----------
Current liabilities
Trade and other payables 25,311 28,469 31,769
Finance leases 1,714 564 2,121
Total liabilities 27,025 29,033 33,890
----------- ----------- -----------
Total equities and liabilities 242,745 249,003 254,194
=========== =========== ===========
Number of shares in issue 172,786,228 172,748,728 172,786,228
Attributable net asset value / total
equity per share $1.21 $1.24 $1.24
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 2018 1,727 68,442 3,690 2,072 (917) 2,386 (29,346) 4,027 159,161 211,242
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 4,074 4,074
Prior period
adjustment (33) (33)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - (4) - (293) - (297)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - (4) - (293) 4,041 3,744
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2019
(Unaudited) 1,727 68,442 3,690 2,072 (917) 2,382 (29,346) 3,734 163,202 214,986
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Regulatory
transfer for
future
investment - - - - - 153 - - (153) -
Issue of
shares on
exercise
of options 1 13 - - - - - - - 14
Transaction
with owners 1 13 - - - 153 - (153) 14
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 2,010 2,010
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - (35) - (2,031) - (2,066)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - (35) - (2,031) 2,010 (56)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 31(st)
December 2019 1,728 68,455 3,690 2,072 (917) 2,500 (29,346) 1,703 165,059 214,944
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained loss
for the 6
months - - - - - - - - (3,826) (3,826)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - (37) - (1,854) - (1,891)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - (37) - (1,854) (3,826) (5,717)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2020
(Unaudited) 1,728 68,455 3,690 2,072 (917) 2,463 (29,346) (151) 161,233 209,227
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2019
30/06/20+20 30/06/2019 Audited
Unaudited Unaudited
$000 $000 $000
Net cash flows from operating activities
(Loss) / profit before taxation (3,826) 6,276 11,712
Foreign exchange losses / (gains) 147 4 93
Finance income (45) (82) (171)
Finance costs 149 122 377
Depreciation, depletion and amortisation 5,518 5,000 12,343
Impairment of intangible assets 1 - 1,985
Losses on disposal of equipment 614 59 305
(Increase) / decrease in inventories (57) 1,157 1,112
(Increase) / decrease in receivables
and other current assets (414) (1,140) 959
Increase / (decrease) in trade and other
payables (2,762) 2,032 4,016
Taxation paid (3,584) (9,469) (11,092)
------------ ----------- -----------
Net cash inflow from operating activities (4,259) 3,959 21,639
------------ ----------- -----------
Cash flows from investing activities
Interest received 45 82 171
Proceeds / (expenses) on disposal of
equipment (34) - 1
Payments to acquire - mineral interests
(mine development) (3,379) (10,318) (18,883)
Payments to acquire - plant & equipment (984) (1,519) (8,193)
Payments to acquire - office equipment (4) - (69)
Payments to acquire - intangible assets
- exploration interests (3) (8) (308)
------------ ----------- -----------
Net cash (outflow) from investing activities (4,359) (11,763) (27,281)
------------ ----------- -----------
Cash flows from financing activities
Issue of shares on exercise of share
purchase options - - 14
Interest paid - (52) (52)
Finance lease advance - - 65
Finance lease repayments (929) (1,304) (2,762)
Net cash (outflow) from financing activities (929) (1,356) (2,735)
------------ ----------- -----------
(Decrease) / increase in cash and cash
equivalents (9,547) (9,160) (8,377)
Cash and cash equivalents at beginning
of the period 19,885 28,452 28,452
Effects of exchange rate changes 13 1 (190)
------------ ----------- -----------
Cash and cash equivalents at end of the
period 10,351 19,293 19,885
============ =========== ===========
Cash and cash equivalents comprise bank
deposits
Bank deposits 10,351 19,293 18,885
============ =========== ===========
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(st) December 2019.
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(st)
December 2019 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 2019 statutory financial statements upon
which the auditors' opinion is unqualified.
4. As detailed in the last annual financial statements for the
year to 31(st) December 2019, the summary accounts have been
prepared on a going concern basis. Having considered recent events,
in particular the impact of Covid-19, the cash resources, banking
facilities and forecasts regularly prepared, 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. There was no
dilutive effect on the losses per share in the six months to 30(th)
June 2020. 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
30/06/2019 30/06/2018 31/12/2018
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 (loss) / earnings per share
(Loss)
earnings
attributable
to ordinary
shareholders 3,826 172,728,728 (2.22) 4,074 172,748,728 2.36 6,084 172,748,831 3.52
Dilutive effect of securities
Options - 14,823,528 (0.19) 15,107,500 (0.28)
-------- ----------- --------- --------- ----------- -------- -------- ----------- ----------
Diluted
earnings
per share 4,074 187,572,256 2.17 6,084 187,856,331 3.24
======== =========== ========= ========= =========== ======== ======== =========== ==========
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END
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