TIDMGFM
RNS Number : 0767W
Griffin Mining Ld
16 August 2022
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
16(th) AUGUST 2022
UNAUDITED INTERIM RESULTS
for the six months ended 30(th) June 2022
Griffin Mining Limited ("Griffin" or the "Company") has today
released its unaudited results for the six months ended 30th June
2022. It should be noted that all operations at the Caijiaying
Zinc-Gold Mine were fully suspended for virtually the whole of the
first quarter of 2022 due to the mandatory Governmental suspension
of operations directive relating to the 2022 Winter Olympics,
subsequent Winter Paralympics and the Chinese New Year
holidays.
Highlights:
-- Record second quarter zinc production and profitable second quarter.
-- Revenues of $34.7 million (uninterrupted 6 months operations
to 30(th) June 2021: $54.1 million).
-- Gross Profit of $15.5 million (uninterrupted 6 months
operations to 30(th) June 2021: $25.7 million).
-- Profit before tax of $5.4 million (uninterrupted 6 months
operations to 30(th) June 2021: $15.5 million).
-- Profit after tax of $3.0 million (uninterrupted 6 months
operations to 30(th) June 2021: $10.3 million).
-- Basic earnings per share of 1.73 cents (uninterrupted 6
months operations to 30(th) June 2021: 5.88 cents).
Financial and Trading:
The results for the six months to 30(th) June 2022 were impacted
by the suspension of operations at the Caijiaying Zinc Gold Mine
imposed by the Chinese authorities in the period during, and
leading up to, the Winter Olympics and Paralympics at Chong Li and
the Chinese New Year Holidays. From 1(st) January 2022 to 23(rd)
March 2022 no stoping or underground development work was
undertaken with processing not restarting until 25(th) March
2022.
Whilst minimal ore was mined and processed in the first quarter
of 2022, the second quarter to 30(th) June 2022 saw the successful
recommencement of operations with record ore mined, hauled and
processed resulting in record zinc metal in concentrate production
for a quarter since operations began at Caijiaying in June
2005.
Mining and processing have now reached the equivalent of over
1.3 million tonnes of ore per annum, all of which has been
extracted from Zone III. Zone II has not yet been placed into
production.
Quarterly analysis of the trading results underlines exceptional
performance since 25(th) March 2022:
3 months 3 months 3 months
to 30(th) to 31(st) to 30(th)
June 2022 March 2022 June 2021
Ore mined Tonnes 338,790 17,975 277,112
Ore processed Tonnes 329,390 8,649 275,576
Zinc in concentrate Produced Tonnes 13,189 268 11,645
Gold in concentrate produced Ozs 3,504 1,474 4,080
Silver in concentrate produced Ozs 79,246 168 81,098
Lead in concentrate produced Tonnes 345 7 327
Average zinc price received
per tonne $ 2,886 - 2,224
Average gold price received
per oz $ 1,788 - 1,684
Average silver price received
per oz $ 18.1 - 20.4
Average lead price received
per tonne $ 2,323 - 2,026
Zinc sales $000s 31,104 130 23,878
Lead and precious metals
sales $000s 5,479 256 7,766
Royalties $000s (2,198) (22) (1,784)
----------- ------------ -----------
Total Turnover $000s 34,385 364 29,860
----------- ------------ -----------
Cost of sales $000s (15,457) (3,815) (15,412)
Gross profit (loss) $000s 18,928 (3,451) 14,448
Administration expenses $000s (6,040) (3,964) (5,037)
Operating profit / (loss) $000s 12,888 (7,415) 9,411
Interest and other income
/ (costs) $000s (118) (79) (4)
Profit (loss) before tax $000s 12,770 (7,336) 9,407
Taxation $000s (2,398) (2) (3,082)
Profit (loss) after tax $000s 10,372 (7,338) 6,325
=========== ============ ===========
Despite the suspension in operations in the first quarter of
2022, ore tonnes mined in the first half of 2022 were down only
22.9% on that mined in the first half of 2021 and tonnes processed
in the first half of 2022 were down 29.0% on that achieved in the
first half of 2021. Zinc metal in concentrate produced was down
32.3% on that achieved in the first half of 2021, gold in
concentrate production was down 51.6% on that produced in the first
half of 2021 and silver in concentrate production was down 44.3% on
that produced in the first half of 2021.
With 338,039 tonnes (30(th) June 2021 475,785 tonnes) of ore
processed, metal in concentrate production in the first six months
of 2022 was:
-- 13,457 tonnes of zinc ( 30(th) June 2021: 19,876 tonnes);
-- 353 tonnes of lead (30(th) June 2021: 561 tonnes);
-- 80,717 ounces of silver (30(th+) June 2021: 144,705 ounces); and
-- 3,672 ounces of gold (30(th) June 2021: 7,584 ounces).
The results benefited from a significant improvement in the
market price for zinc with the average price received for zinc
metal in concentrate increasing by 31.9% from $2,209 per tonne in
the first six months of 2021 to $2,914 per tonne in the first half
of 2022. Zinc revenues before royalties and resource taxes in the
six months to 30(th) June 2022 were $31,234,000 (30(th) June 2021 -
$42,102,000). Lead and precious metals revenues were $5,735,000
(30(th) June 2021 - $15,136,000), with the average gold price
received of $1,788 per oz (30(th) June 2021 - $1,675) and silver
$18.1 per oz (30(th) June 2021 - $20.4). Metal in concentrate with
a potential sales value of over $9m remained unsold at 30(th) June
2022.
During the six months to 30(th) June 2022:
- 10,719 tonnes of zinc metal in concentrate were sold (30(th) June 2021 : 19,876ozs);
- 2,491 ozs of gold in concentrate were sold (30(th) June 2021 : 6,919 ozs); and
- 44,627 ozs of silver in concentrate were sold (30(th) June 2021 : 129,990 ozs).
With operations suspended in the first quarter of 2022, costs of
sales (mining, haulage and processing) fell by 32.1% from that in
the first six months of 2021. Costs of sales in the second quarter
of 2022 were in line with that in the second quarter of 2021
despite increased ore mined and hauled..
Administration costs were marginally reduced with a reduction in
charges from Griffin's Chinese joint venture partners based upon
the profits of Hebei Hua Ao. Otherwise, additional costs were
incurred with the appointment of 3 new directors with their
associated directors fees, Mr Clive Whiley's appointment as a
consultant to the company with his associated consulting fees,
annual bonuses awarded by the directors to Keynes Capital and the
Finance D irector, increased directors and officers liability
insurance premiums and the resumption of corporate travel. With the
suspension in operations in the first quarter administration costs
were contained at Hebei Hua Ao.
Basic earnings per share were 1.73 cents (30(th) June 2021: 5.88
cents per share). At 30(th) June 2022, attributable net assets per
share amounted to 149 cents (30(th) June 2021: 141 cents).
With the suspension in operations in the first quarter of 2022
cash flows used in operations in the period amounted to $4,122,000
(the cash flow generated in the period to 30(th) June 2021 was
$16,818,000). The Griffin Mining Group of companies remains free of
any bank loans.
Chairman's Statement
Chairman Mladen Ninkov commented, "What an amazing performance,
yet again, by the staff, contractors and orebody at Caijiaying.
They all continue to deliver outstanding results, even more
impressive in light of the unique environment of generally no
operations at Caijiaying during the whole of the 1(st) quarter and
to then come back in the 2(nd) quarter with record ore mined,
hauled and processed, resulting in record zinc metal in concentrate
production for any quarter since operations began in June 2005. If
anything further needed to be added to that performance, the
equivalent of over 1.3 million tonnes of ore on an annualised basis
was being mined and processed, all from Zone III. This is without
any contribution yet from Zone II. I couldn't be prouder or happier
with the Griffin Team and it augurs extraordinarily well for the
Company in the second half of 2022 and into 2023. "
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
John Prior
Alisa MacMaster
Berenberg Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Wyllie
Deltir Elezi
BlytheRay
Tim Blythe Telephone: +44(0)20 7138 3205
Megan Ray
Swiss Resource Capital AG
Jochen Staiger Telephone: + 41(0)71 354 8501
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 31/12/2021
30/06/2022 30/06/2021 Audited
Unaudited Unaudited
$000 $000 $000
Revenue 34,749 54,072 121,648
Cost of sales (19,272) (28,401) (63,224)
Gross profit 15,477 25,671 58,424
Administration expenses (10,004) (10,209) (21,499)
Profit from operations 5,473 15,462 36,925
Losses on disposal of equipment (77) (26) (293)
Impairment of intangible fixed assets 0 (2) (11)
Foreign exchange (losses) (121) (7) (51)
Finance income 107 68 236
Finance costs (68) (152) (404)
Other income 120 63 124
Profit before tax 5,434 15,406 36,526
Income tax expense (2,400) (5,148) (11,150)
Profit after tax 3,034 10,258 25,376
===========
Basic earnings per share (cents) 1.73 5.88 14.53
=========== =========== ===========
Diluted earnings per share (cents) 1.62 5.43 13.47
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2021
30/06/2022 30/06/2021 Audited
Unaudited Unaudited
$000 $000 $000
Profit for the financial period 3,034 10,258 25,376
----------- ----------- -----------
Other comprehensive income
Exchange differences on translating
foreign operations (7,892) 2,514 3,336
Other comprehensive income for the
period, net of tax (7,892) 2,514 3,336
----------- ----------- -----------
Total comprehensive income / (losses)
for the period (4,858) 12,772 28,712
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2022 30/06/2021 31/12/2021
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 268,266 268,930 275,296
Intangible assets - exploration interests 399 349 387
-----------
268,665 269,279 275,683
----------- ----------- -----------
Current assets
Inventories 9,198 6,257 4,516
Receivables and other current assets 3,960 4,175 2,174
Cash and cash equivalents 24,993 25,143 38,159
----------- ----------- -----------
38,151 35,575 44,849
----------- ----------- -----------
Total assets 306,816 304,854 320,532
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 1,749 1,749 1,749
Share premium 69,334 69,334 69,334
Contributing surplus 3,690 3,690 3,690
Share based payments 2,072 2,072 2,072
Shares held in treasury (1,644) (1,589) (1,644)
Chinese statutory re-investment reserve 3,105 2,858 2,896
Other reserve on acquisition of non-controlling
interests (29,346) (29,346) (29,346)
Foreign exchange reserve 6,888 13,851 14,635
Profit and loss reserve 201,870 184,072 199,190
----------- ----------- -----------
Total equity attributable to equity
holders of the parent 257,718 246,691 262,576
-----------
Non-current liabilities
Other payables 13,112 13,622 10,352
Long-term provisions 2,576 2,264 2,667
Deferred taxation 3,078 3,392 3,240
Finance leases 705 - 794
----------- ----------- -----------
19,471 19,278 17,053
----------- ----------- -----------
Current liabilities
Trade and other payables 29,427 38,842 40,726
Finance leases 200 43 177
Total current liabilities 29,627 38,885 40,903
----------- ----------- -----------
Total equities and liabilities 306,816 304,854 320,532
=========== =========== ===========
Number of shares in issue 174,892,894 174,892,894 174,892,894
Attributable net asset value / total
equity per share $1.47 $1.41 $1.50
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 2020 1,728 68,470 3,690 2,072 (917) 2,830 (29,346) 11,365 173,814 233,706
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Purchase of
shares for
treasury - - - - (672) (672)
Issue of
shares on
exercise
of options 21 864 - - - - - - - 885
Transaction
with owners 21 864 - - (672) - - - - 213
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 10,258 10,258
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - 28 - 2,486 - 2,514
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - 28 - 2,486 10,258 12,772
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2021
(Unaudited) 1,749 69,334 3,690 2,072 (1,589) 2,858 (29,346) 13,851 184,072 246,691
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Purchase of
shares for
treasury - - - - (55) - - - - (55)
Transaction
with owners - - - - (55) - - - (55)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 15,118 15,118
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - 38 - 784 - 822
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - 38 - 784 15,118 15,940
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 31(st)
December 2021 1,749 69,334 3,690 2,072 (1,644) 2,896 (29,346) 14,635 199,190 262,576
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Regulatory
transfer for
future
investment - - - - - 354 - - (354) -
Transaction
with owners - - - - - 354 - - (354) -
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 3,034 3,034
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - (145) - (7,747) - (7,892)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - (145) - (7,747) 3,034 (4,858)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2022
(Unaudited) 1,749 69,334 3,690 2,072 (1,644) 3,105 (29,346) 6,888 201,870 257,718
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2021
30/06/22 30/06/2021
$000 $000 $000
Net cash flows from operating activities
Profit before taxation 5,434 15,406 36,526
Foreign exchange losses 121 7 51
Finance income (107) (68) (236)
Finance costs 68 152 404
Depreciation, depletion and amortisation 7,226 7,964 16,530
Impairment of intangible assets 0 2 11
Losses on disposal of equipment 77 26 293
(Increase) / decrease in inventories (4,683) (924) 817
(Increase) / decrease in receivables
and other current assets (2,011) 2,936 4,936
(Decrease) in trade and other payables (7,351) (1,395) (2,871)
Taxation paid (2,896) (7,288) (13,581)
--------- ----------- -----------
Net cash (outflow) / inflow from operating
activities (4,122) 16,818 42,880
--------- ----------- -----------
Cash flows from investing activities
Interest received 107 68 236
Proceeds / (expenses) on disposal of
equipment 11 0 1
Payments to acquire - mineral interests
(mine development) (3,619) (7,471) (13,564)
Payments to acquire - plant & equipment (6,846) (1,215) (6,365)
Payments to acquire - intangible assets
- exploration interests (13) (26) (73)
--------- ----------- -----------
Net cash (outflow) from investing activities (10,360) (8,644) (19,765)
--------- ----------- -----------
Cash flows from financing activities
Issue of shares on exercise of share
purchase options 0 885 885
Purchase of shares for treasury 0 (672) (309)
Interest paid 0 (101) (727)
Bank loan advances 0 0 15,500
Repayment of bank loans 0 0 (15,500)
Finance lease repayments (90) (357) (462)
Net cash (outflow) from financing activities (90) (245) (613)
--------- ----------- -----------
Increase / (decrease) in cash and cash
equivalents (14,572) 7,929 22,502
Cash and cash equivalents at beginning
of the period 38,159 16,435 16,435
Effects of exchange rate changes 1,406 779 (778)
--------- ----------- -----------
Cash and cash equivalents at end of
the period 24,993 25,143 38,159
========= =========== -----------
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 2021.
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
consolidated statement of financial position at 31(st) December
2021 and the consolidated income statement, consolidated statement
of comprehensive income, consolidated statement of changes in
equity and the consolidated cash flow statement for the year then
ended have been extracted from the Group's 2021 statutory financial
statements upon which the auditors' opinion is unqualified, and
should be read in conjunction with the accompanying notes contained
therein.
4. The summary accounts have been prepared on a going concern
basis. Having considered recent events, including the impact of
Covid-19, the Group's cash resources, banking facilities and
regularly updated forecasts, the directors consider that the Group
will be able to meet its liabilities as they fall due.
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.
6. 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
30/06/2022 30/06/2021 31/12/2021
Unaudited Unaudited Audited
Weighted Per Weighted Per Weighted
average 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 3,034 174,653,602 1.73 10,258 174,410,343 5.88 25,376 174,653,602 14.53
Dilutive effect of securities
Options 12,950,882 (0.11) 14,374,897 (0.45) 13,730,107 (1.06)
-------- ----------- -------- --------- ----------- -------- -------- ----------- -----------
Diluted
earnings
per share 3,034 187,843,776 1.62 10,258 188,785,241 5.43 25,376 188,383,709 13.47
======== =========== ======== ========= =========== ======== ======== =========== ===========
7. As at 30(th) June 2022 there were no adjusting post balance sheet events.
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IR BKPBQPBKDOFD
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