Interim Results
29 September 2003 - 9:30AM
UK Regulatory
RNS Number:2643Q
Griffin Mining Ld
29 September 2003
GRIFFIN MINING LTD
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
29th September 2003
INTERIM STATEMENT FOR THE 6 MONTHS TO 30 JUNE 2003
CONFIRMATION OF FEASIBILITY STUDY RESULTS
Griffin Mining Limited ("Griffin"or the "Company") has today published its
interim results for the 6 months ended 30th June 2003. Losses for the 6 months
ended 30th June 2003 were US$247,000 compared to US$109,000 in the same period
in 2002. Losses increased due to a fall in foreign exchange profits and
interest received. Operating costs increased from US$225,000 in the 6 months to
30th June 2002 to US$279,000 in the same period in 2003 as a result of a
weakening US dollar and increased corporate activity, in particular, in
completing a feasibility study on the Caijiaying zinc-gold project.
Since 30th June 2003, Griffin has completed 2 private placings with
institutional investors to raise #2.9 million (US$4.7 million) before expenses.
In addition, warrants were granted to existing shareholders of the Company basis
of one warrant for every fifteen shares held, exercisable at 12p per share at
any time up to 30th September 2003. Should all of these warrants be exercised,
the Company will receive a further #830,000 (US$1.33 million) and have cash
balances of some US$7 million. The funds raised from the placings and warrant
exercise will be used to fund further exploration work and initial construction
work at Caijiaying prior to the onset of winter, in particular, portal,
ventilation decline and vertical shaft construction.
Since the Company's announcement of the results of its feasibility study ("the
Study") on the 2nd September 2003, the Company has been inundated by questions
concerning the Caijiaying zinc-gold mine by the wider investment community. It
may therefore be beneficial to reiterate and confirm the most pertinent points
of the feasibility study:
1. The Study was prepared by independent geological consultants, CSA
Australia Pty Ltd using mainly Australian experts for the mine process plant and
infrastructure and the leading Chinese engineering institute (ENFI) for the mine
design to comply with Chinese regulations and costs. The financial model, based
upon the results of the Study, was prepared by independent experts Northwind
Resources Pty Ltd.
2. The Study applies only to zone III at Caijiaying, which is only a
small area of some 1.5 sq km in the overall tenement package held by the Company
at Caijiaying of 67 sq km, the vast majority of which has yet to be explored.
3. The ore reserves (based on the previously announced resource
estimates compiled by Micromine Consulting) have been optimized by Datamine
Consulting and CSA Australia Pty Ltd according to the mine plan. Only those
reserves that relate to Phase I of the Caijiaying mine development (i.e. the
first 14.5 years) have been included in the ore reserves.
4. In addition to the computer-generated reserve, the mining plan
incorporates a manually interpreted Inferred Resource block of higher grade gold
mineralisation of 330,000 tonnes at 8.61% zinc, 2.47g/t gold and 36.35g/t
silver. This resource block does not include significant other gold
intersections such as hole ZK313-14 which produced 8 metres at 11.65 g/t gold,
7.12% Zinc & 31.13 g/t silver from 118 metres. Griffin is planning a gold
exploration drilling programme which will initially target this area.
5. The Study confirms a profitable zinc-gold mine at Caijiaying with an
initial throughput of 200,000 tonnes per annum to produce 314,250 tonnes of zinc
metal and 108,450 kilograms of silver in 586,300 tonnes of concentrates grading
53.6% zinc and 185 g/t silver over the life of the mine. In addition, 39,850
ounces of gold will be produced in bullion.
6. The mine has been designed so that an upgrade of mine production can
be readily implemented. The Company expects to increase throughput to 500,000
tonnes per annum as soon practicable.
7. The Company will continue to drill underground for further zinc and
gold resources during the financing, construction and commissioning of the zone
III mine.
Mladen Ninkov, Chairman, commented as follows:
"Even with the inevitable increase in costs associated with the completion of a
feasibility study for Caijiaying, the financial results must be very pleasing
for our shareholders. These results continue to reflect tight management
control of costs and augers well for the Caijiaying mine being brought into
production on time and on budget."
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
(expressed in thousands US dollars)
6 months to 6 months to Year to
30/06/2003 30/06/2002 31/12/2002
Unaudited Unaudited Audited
$000 $000 $000
Income
Gains on the disposal of investments - 8 8
Net operating expenses (279) (225) (462)
Operating (Loss) (279) (217) (454)
Foreign exchange profits 13 74 159
Interest receivable and similar income 19 34 65
(Loss) on ordinary activities before taxation (247) (109) (230)
Taxation on loss on ordinary activities - - -
(Loss) for the financial period (247) (109) (230)
(Loss) per share (cents) (0.2) (0.1) (0.2)
GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED BALANCE SHEET
(expressed in thousands US dollars)
30/6/2003 30/6/2002 31/12/2002
Unaudited Unaudited Audited
$000 $000 $000
Fixed Assets
Intangible assets 5,903 5,190 5,617
Tangible assets 2 2 2
5,905 5,192 5,619
Current Assets
Portfolio investments 28 28 29
Accounts receivable 2 11 10
Prepaid expenses 30 14 13
Cash and deposits 1,178 2,218 1,737
1,238 2,271 1,789
Current liabilities
Creditors and accrued expenses (141) (45) (87)
Net current assets 1,097 2,226 1,702
Total net assets 7,002 7,418 7,321
Capital and reserves
Share capital 1,036 1,033 1,036
Share premium 15,537 15,516 15,537
Contributing surplus 3,690 3,690 3,690
Investment revaluation reserve (846) (845) (844)
Foreign exchange reserve (58) 152 152
Profit & loss account (12,357) (12,128) (12,250)
Shareholders' equity interests 7,002 7,418 7,321
Attributable net assets per share (cents) 7 7 7
Number of shares in issue 103,557,248 103,257,248 103,557,248
GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT
(expressed in thousands US dollars)
6 months to 6 months to Year to
30/06/2003 30/06/2002 31/12/2002
Unaudited Unaudited Audited
$000 $000 $000
Net cash (outflow) from operating activities (236) (178) (285)
Investing activities
Interest received 19 34 65
Payments to acquire intangible fixed assets (341) (219) (648)
Payments to acquire tangible fixed assets (1) - -
Net cash (outflow) from investing activities (323) (185) (583)
Net cash (outflow) before financing (559) (363) (868)
Financing
Issue of ordinary share capital - - 24
Expenses paid in connection with share issue - - -
- - 24
(Decrease) in cash and cash equivalents (559) (363) (844)
Reconciliation of operating (loss) to net cash
(outflow) from operating activities
Operating loss (279) (217) (454)
Depreciation 1 1 1
(Gains) on sale of investments - (8) (8)
Receipts on the sale of investments - 8 8
(Increase) in debtors (9) (6) (4)
(Decrease) / increase in creditors 54 (24) 17
Other non-cash income, including exchange differences (3) 68 155
(236) (178) (285)
GRIFFIN MINING LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
(expressed in thousands US dollars)
6 months to 6 months to Year to
30/06/2003 30/06/2002 31/12/2002
Unaudited Unaudited Audited
$000 $000 $000
(Loss) for the period (247) (109) (230)
Unrealised (losses) / gains on investments (1) 12 13
Currency translation differences in foreign currency
net investments (71) (20) (21)
Total (losses) recognised in the period (319) (117) (238)
Losses and profits for the financial year are the same as those on an historical
cost basis.
GRIFFIN MINING LIMITED
NOTES TO THE INTERIM FINANCIAL STATEMENT
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. Copies of this interim report are being sent to all registered
shareholders. Additional copies are available from the Company's London office,
1 Berkeley Street, London W1J 8DJ.
3. Losses per share have been calculated on the basis of the net loss
after taxation of $247,000 and the weighted average number of shares in issue in
the period ended 30 June 2003 of 103,557,248. There is no dilutive effect of
outstanding share purchase options.
4. 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 2002 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 2002 statutory financial statements
upon which the auditors' opinion is unqualified.
5. Reconciliation of shareholders' funds.
6 months to 6 months to Year to
30/06/2003 30/06/2002 31/12/2002
Unaudited Unaudited Audited
$000 $000 $000
Total (losses) recognised in the period (319) (117) (238)
Issue of Ordinary Shares in the period - - 24
Net reduction shareholders' funds (319) (117) (214)
Opening shareholders' funds 7,321 7,535 7,535
Closing shareholders' funds 7,002 7,418 7,321
This information is provided by RNS
The company news service from the London Stock Exchange
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