Griffin Mining Ld - Final Results etc.
04 Juni 1999 - 5:47PM
UK Regulatory
RNS No 3519c
GRIFFIN MINING LIMITED
4 June 1999
PLACING OF 1,666,667 NEW ORDINARY SHARES AT 30 US CENTS PER SHARE TO RAISE
$500,000
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 1998
Griffin Mining Limited ("Griffin") today announces that it has completed a
placing of 1,666,667 new ordinary shares at 30 cents per share. The shares
have been placed with an international institutional investor. The funds
raised will be used to continue development work at the Company's major zinc
gold project at Caijiaying and in meeting ongoing working capital
requirements.
Preliminary statement of results for the year ended 31 December 1998
Griffin has today published its results for the year ended 31 December 1998, a
copy of which is attached.
Craig Niven, Chairman commented on the results as follows:
"The year to 31 December 1998 was one of significant progress at Griffin's
Caijiaying zinc-gold project in China. During the course of the year Griffin
increased its equity interest in Caijiaying through its wholly owned
subsidiary China Zinc Pty Limited from 30% to 60%, and completed a major work
programme at Caijiaying, funded by a placing of new shares in June 1998 which
raised USD 1.7 million at US 24 cents per share. In addition, we were pleased
to raise the profile of our Caijiaying joint venture significantly when the
company was informed by the Chinese Deputy Minister for Mining that it had
become the first foreign controlled joint venture company to receive a new
three year exploration licence for a hard rock deposit in China under the
recently enacted mining laws. This licence was presented by the Chinese Deputy
Minister for Mining at a high profile ceremony in Beijing on 17 October 1998.
The 1998 Caijiaying work programme comprised approximately 5,000 metres of
diamond drilling and a re-logging and re-assaying programme based on 98,000
metres of previously drilled core. The conclusions that your Board has drawn
from the 1998 programme can be summarised as follows:
- The geological re-interpretation of the ore body made by Griffin's
geological consultants, CSA Australia Pty Limited, as shallow dipping ore
lenses has been confirmed.
- The new ore body re-interpretation is likely to improve project economics
and suggests an increase in zinc grade and/or tonnage.
- The potential area of the main orebody in Zone III extends further to the
south east.
Work is currently underway on the design of an extension of an existing
decline on Zone III and associated horizontal drives. The decline will be used
to a) visually reconfirm the new geological interpretation of the orebody made
by CSA Australia Pty Limited, b) to conduct underground drilling to define
more accurately the ore block geometry, and c) generate bulk samples for
metallurgical test-work. Work is also ongoing in defining freight logistics
and on detailed feasibility work on the project power supply designed to link
into major upgrades to the electricity grid being planned in the Caijiaying
area by the Chinese authorities. Environmental baseline work is planned to
commence in 1999.
It is your Board's intention to continue development work and progress towards
completion of a full bankable feasibility study at Caijiaying. All such
progress adds value to the project.
Griffin also retains interests in Burkina Faso, Sweden and Botswana but has
restructured these so as to require minimal cash investment. Our strategy,
originally set out in 1997, continues to be to move the Caijiaying project
forward to full bankable feasibility and to seek opportunities to acquire
other world class assets. The balance sheet at 31 December 1998 reflects write
downs on the Group's Burkina Faso and Botswana projects, the new funds raised
during the year and the development work undertaken at Caijiaying."
Further information
Craig Niven (Chairman) - United Kingdom - Telephone: + 44 (0)207 321 2077
Charles Dampney - Charles Stanley - Telephone; + 44 (0)1273 486244
Fred Coombes - Canada - Telephone: + 1 604 681 5225
Griffin Mining Limited's shares are quoted on the Alternative Investment
Market (AIM) of the London Stock Exchange (symbol GFM) and traded on the
Canadian Dealing Network in Toronto (symbol GRFM). Corporate information and
share prices can be accessed via the Newstrack Service on Reuters (symbol
GFM.L) (page JPJA), Bloomberg (symbol GFM LN), ICV Topic (*1180).
The Company's news releases are available on the Company's web site:
www.griffinmining.com
GRIFFIN MINING LIMITED
Consolidated Profit and Loss Account
(Expressed in thousands US Dollars)
Year to Year to
31/12/98 31/12/97
$'000 $'000
Income
Gains on the disposal of investments 147 139
Other income - 18
------ ------
147 157
Net operating expenses (711) (882)
Provisions in respect of continuing operations (1,976) (3,226)
Release of negative goodwill 490 183
------ ------
Operating (Loss) (2,050) (3,768)
Foreign exchange (losses) (10) (3)
Interest receivable 31 53
------ ------
(Loss) before taxation (2,029) (3,718)
Taxation on ordinary activities - -
------ ------
(Loss) on ordinary activities after taxation (2,029) (3,718)
Minority interests 375 -
------ ------
(Loss) for the Period (1,654) (3,718)
------ ------
(Loss) per share (cents) ( 10.0) (46.0)
Fully diluted (loss) per share (10.0) (46.0)
GRIFFIN MINING LIMITED
Consolidated Balance Sheet
(Expressed in thousands US Dollars)
31/12/98 31/12/97
$'000 $'000
Fixed Assets
Intangible assets 4,344 5,427
Tangible assets 263 360
----- -----
4,607 5,787
----- -----
Current Assets
Portfolio investments 165 529
Accounts receivable 14 157
Prepaid expenses 11 23
Cash and deposits 408 402
----- -----
598 1,111
Creditors:
Falling due within one year
Creditors and accruals (204) (148)
----- -----
Net current assets 394 963
----- -----
Negative goodwill (288) (778)
----- -----
Total net assets 4,713 5,972
===== =====
Capital and reserves
Share capital 2,099 818
Shares to be issued - 780
Share premium 12,587 10,878
Investment revaluation reserve (911) (717)
Foreign exchange reserve 243 170
Profit & loss (Deficit) (9,972) (8,318)
----- -----
Equity shareholders funds 4,046 3,611
Equity minority interests 667 2,361
----- -----
Equity interests 4,713 5,972
===== =====
Attributable net assets per share (cents) 19 35
Number of shares in issue 20,993,779 10,408,154
GRIFFIN MINING LIMITED
Consolidated Cash Flow
(Expressed in thousands US Dollars)
Year to Year to
31/12/98 31/12/97
$'000 $'000
Net cash (outflow) from operating activities (246) (548)
----- ------
Investing activities
Payments to acquire intangible fixed assets (1,093) (192)
Payments to acquire tangible fixed assets (7) (23)
Payments to acquire investments - (89)
Payments to acquire subsidiary undertaking (14) (538)
------ ------
Net cash (outflow) from investing activities (1,114) (842)
------ ------
Net cash (outflow) before financing (1,360) (1,390)
------ ------
Financing
Issue of ordinary share capital 1,728 1,000
Expenses paid in connection with share issue (362) (61)
----- ------
1,366 939
----- ------
Increase/(Decrease) in cash and cash equivalents 6 (451)
===== ======
Reconciliation of operating (loss) to net cash (outflow) from operating
activities
Operating (loss) (2,050) (3,768)
Interest received 31 53
Taxation - -
Depreciation 4 9
Gains on sale of investments (147) (139)
Receipts on the sale of investments 230 1,390
Payments to acquire investments - (1,330)
Provisions in respect of continuing operations 1,976 3,226
Release of negative goodwill (490) (183)
Decrease in debtors 155 308
Increase / (decrease) in creditors 57 (107)
Other non-cash income, including exchange differences (12) (7)
----- -----
Net cash inflow / (outflow) from operating activities (246) (548)
===== =====
GRIFFIN MINING LIMITED
Statement of Total Recognised Gains & Losses
(Expressed in thousands US Dollars)
Year to Year to
31/12/98 31/12/97
$'000 $'000
(Loss) for the year (1,654) (3,718)
Unrealised (losses) on investments (195) (677)
Currency translation differences in foreign
currency net investments 73 (97)
------ -------
Total gains and losses recognised in year (1,776) (4,492)
====== =======
Notes:
1. This statement has been prepared using accounting policies and presentation
consistent with those applied in the preparation of the statutory accounts of
the Company.
2. The summary accounts set out above do not constitute statutory accounts as
defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the
UK Companies Act 1985. The summarised balance sheet at 31 December 1998 and
the summarised profit and loss account, summarised cash flow statement and
summarised statement of total recognised gains and losses for the year then
ended have been extracted from the Group's 1998 statutory financial statements
upon which the auditor's opinion is unqualified. The results for the year
ended 31 December 1997 have been extracted from the statutory accounts for
that period which contain an unqualified auditor's report.
3. The annual report and accounts for 1998 will be sent by post to all
registered shareholders shortly. Additional copies are available from the
Company's London office, Whitehall House, 41 Whitehall, London, SW1A 2BY.
4. Losses per share have been calculated on the basis of the net loss after
taxation of US$1,654,000 (loss US$3,718,000 in 1997) and the weighted average
number of shares in issue in the year ended 31 December 1998 of 16,457,940
(8,068,565 in 1997). Warrants to purchase 1,250,000 shares at $0.50 and share
purchase options to purchase 2,775,000 shares at $0.24 were not included in
the computation of diluted earnings per share because the warrants' and share
purchase option exercise prices were greater than the average market price of
the ordinary shares.
5. Reconciliation of shareholders' funds
1998 1997
$000 $000
Total gains and (losses) recognised in the year (1,776) (4,492)
Issue of ordinary shares in the year 2,991 939
Shares to be issued (780) 780
----- -----
Net additions to shareholders' funds 435 (2,773)
Opening shareholders' funds 3,611 6,384
----- -----
Closing shareholders' funds at 31 December 4,046 3,611
===== =====
END
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