Results to 31st December 2002
30 April 2003 - 3:48PM
UK Regulatory
RNS Number:5729K
Griffin Mining Ld
30 April 2003
GRIFFIN MINING LIMITED
1 Berkeley Street, London, W1J 8DJ, United Kingdom
Telephone: + 44 (0)20 7016 8821 Facsimile: + 44 (0)20 7016 9124
E mail: griffin@griffinmining.com
30th APRIL 2003
PRELIMINARY STATEMENT OF RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2002
Griffin Mining Limited ("Griffin"or the "Company") has today published its
results for the year ended 31 December 2002.
Losses for the financial year were USD230,000 in 2002, down from USD543,000 in
2001.
Mladen Ninkov, Chairman commented as follows:
"The 2002 calendar year was yet another momentous year in the continued
development of Griffin Mining Limited ("Griffin" or the "Company") from a junior
mining company towards being a producing mining company.
As outlined last year, the most critical matter which needed to be addressed in
2002 was providing a Resource Statement, according to the world's best
practices, to prove to the world investment community that zone III at
Caijiaying was a world class resource on which a mine could be planned and
built. On the 25th November 2002, Griffin announced a new resource of 1,230,000
tonnes of zinc metal and 500,000 ounces of gold, over 61/2 times the previously
estimated contained metal at Caijiaying.
With that information in hand, a feasibility study was commissioned on
underground mining zone III and processing the zinc via a floatation circuit and
the gold via a simple gravity circuit. That study was to be completed by the
end of the first quarter in 2003. In March 2003 it was identified that gold
production could be maximized if gold was recovered not only from the free gold,
but also from the gold associated with the pyrite, arsenopyrite and gold bearing
sulphides. This has meant planning production of a precious metals concentrate
for cyanidation and production of gold dore bars on site, entailing additional
planning, approval and engineering design work. Consequently, the timetable for
production at Caijiaying has been rescheduled, fortunately for valid and
positive reasons. The Company can now look forward to a more extensive
processing facility being designed and built, which will not only be able to
process the currently known mineralization at Caijiaying, but also any new
resources found in the Company's tenement area.
Whilst mentioning the possibility of new resources being discovered, it should
be noted that only a very small area at Caijiaying has been drilled, and that to
a wide drill grid spacing. The geology of the area, the proven zinc-gold
resources already at zone III and the success of the minimal work completed on
other areas, clearly indicate the real possibility of substantial new zinc, gold
and other mineral discoveries. The Company has continued to identify additional
extraordinary exploration targets. In addition to the defined resource to be
mined at zone III, there are 4 other identified zones of mineralization and 2
new, untested, epithermal gold targets within the larger regional Caijiaying
area. When funding allows, the Company intends to confirm the continuation of
the mineralization between zones II and III, test for extensions of gold
mineralization in zone III, seek to extend the known gold and base metals
mineralization in zone V and undertake drilling of the large epithermal gold
targets along the F45 fault south of zone II.
Given the significant developments at Caijiaing in the past year it is perhaps
not surprising that 2002 saw a significant rise in the price of the Company's
shares. The share price at one stage rose more than 500%. Whilst appreciating
the investment returns this has provided to shareholders, it more importantly
demonstrates that the continued fulfilment of our goals of production at
Caijiaying and further exploration success will continue to bring real value to
shareholders which will be reflected in the Company's share price.
The challenge now before the Company is to finance, construct, commission and
produce a mine at Caijiaying. Although this sounds like a daunting task, in
fact, the most difficult part of the exercise has been completed. The resource,
or more succinctly, the approximately US$1.5 billion of metal sitting in zone
III, has been defined. On that proven asset base, subject to any unforeseen
difficulties, we expect to finance and build the Caijiaying mine in 2003/2004.
The Company welcomes the task."
Further information
Mladen Ninkov - Chairman
Telephone: +44(0)20 7016 8821
Roger Goodwin - Finance Director
Telephone: +44(0)20 7016 8821
Charles Dampney - Charles Stanley
Telephone: +44(0)20 7739 8200
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
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2002
(expressed in thousands US dollars)
2002 2001
$000 $000
Income
Gains on the disposal of investments 8 -
Net operating expenses (462) (422)
(Loss) on disposal of discontinued operations - (250)
Operating (loss) (454) (672)
Foreign exchange gains 159 47
Interest receivable and similar income 65 82
(Loss) on ordinary activities before taxation (230) (543)
Taxation on loss on ordinary activities - -
(Loss) for the financial year (230) (543)
(Loss) per share (cents) (0.2) (0.6)
GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED BALANCE SHEET
As at 31 December 2002
(expressed in thousands US dollars)
2002 2001
$000 $000
Non-current assets
Intangible assets 5,617 4,985
Tangible assets 2 3
5,619 4,988
Current assets
Portfolio investments 29 17
Accounts receivable 10 12
Prepaid expenses 13 7
Cash and deposits 1,737 2,581
1,789 2,617
Current liabilities
Accrued expenses (57) (32)
Creditors (30) (38)
Net current assets 1,702 2,547
Total net assets 7,321 7,535
Capital and reserves
Share capital 1,036 1,033
Share premium 15,537 15,516
Contributing surplus 3,690 3,690
Investment revaluation reserve (844) (857)
Foreign exchange reserve 152 173
Profit & loss account (12,250) (12,020)
Shareholders' equity interests 7,321 7,535
Number of shares in issue 103,557,248 103,257,248
Attributable net asset value per share $0.07 $0.07
GRIFFIN MINING LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December 2002
(expressed in thousands US dollars)
2002 2001
$000 $000
(Loss) for the financial year (230) (543)
Unrealised gains / (losses) on investments 13 (485)
Currency translation differences on foreign currency net investments (21) 13
Total gains and losses recognised in the year (238) (1,015)
Losses and profits for the financial year are the same as those on an historical
cost basis.
GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
For the year ended 31 December 2002
(expressed in thousands US dollars)
2002 2001
$000 $000
Net cash (outflow) from operating activities (285) (420)
Investing activities
Interest received 65 82
Payments to acquire intangible fixed assets (648) (434)
Payments to acquire tangible fixed assets - (2)
Net cash (outflow) from investing activities (583) (354)
Net cash (outflow) before financing (868) (774)
Financing
Issue of ordinary share capital 24 3,101
Expenses paid in connection with share issue - (116)
24 2,985
(Decrease) / increase in cash and cash equivalents (844) 2,211
Reconciliation of operating (loss) to net cash (outflow) from
operating activities
Operating (loss) (454) (672)
Depreciation 1 3
(Gains) on sale of investments (8) -
Receipts on the sale of investments 8 -
Losses on disposal of discontinued operations - 250
(Increase) / decrease in debtors (4) 10
Increase / (decrease) in creditors 17 (61)
Other non-cash income, including exchange differences 155 50
(285) (420)
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 consolidated balance sheet at 31 December
2002 and the summarised consolidated profit and loss account, summarised
consolidated cash flow statement and summarised statement of total recognised
gains and losses for the year then ended have been extracted from the Group's
2002 statutory financial statements upon which the auditors' opinion is
unqualified. The results for the year ended 31 December 2001 have been extracted
from the statutory accounts for that period which contain an unqualified
auditor's report.
3. The annual report and accounts for 2002 will be sent by post to all
registered shareholders shortly. Additional copies are available from the
Company's London office, 1 Berkeley Street, London, W1J 8DJ.
4. The loss per share has been calculated on the basis of the net loss after
taxation of US$230,000 (loss US$543,000 in 2001) and the weighted average number
of shares in issue in the year ended 31 December 2002 of 103,266,289 (85,098,010
in 2001).There is no dilutive effect of share purchase options.
4. Reconciliation of shareholders' funds
2002 2001
$000 $000
Total (losses) and gains recognised in the year (238) (1,015)
Issue of ordinary shares in the year 24 2,985
Net (reductions in)/ additions to shareholders' funds (214) 1,970
Opening shareholders' funds 7,535 5,565
Closing shareholders' funds 7,321 7,535
This information is provided by RNS
The company news service from the London Stock Exchange
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