ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

GFM Griffin Mining Limited

113.25
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Griffin Mining Limited LSE:GFM London Ordinary Share BMG319201049 ORD $0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 113.25 113.00 114.00 115.00 113.00 113.00 227,508 16:35:18
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Miscellaneous Metal Ores,nec 94.4M 7.7M 0.0400 28.25 217.9M

Griffin Mining Ld Preliminary Results (7321B)

06/04/2017 7:00am

UK Regulatory


Griffin Mining (LSE:GFM)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Griffin Mining Charts.

TIDMGFM

RNS Number : 7321B

Griffin Mining Ld

06 April 2017

Griffin Mining Limited

Royal Trust House, 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

6th April 2017

PRELIMINARY RESULTS

Griffin Mining Limited ("Griffin" or the "Company") has today published its preliminary results for the year ended 31st December 2016. Griffin and its subsidiaries (together the "Group") recorded:

   --     Revenues of $66,270,000 in 2016 (2015 $59,779,000); 
   --     Operating profit of $15,201,000 in 2016 (2015 $4,301,000); 
   --     Profit before tax of $10,382,000 in 2016 (2015 loss $940,000); and 
   --     Profit after tax of $5,914,000 in 2016 (2015 Loss $2,186,000) 

Although record throughput was achieved in 2016, lower zinc, lead and silver head grades caused by restricted mine access following the suspension in mining operations, resulted in lower zinc, lead and silver in concentrate being produced and sold than in 2015. However, gold in concentrate production was up 22.1% on 2015 to a record 12,654 ozs.

Metal in concentrate prices received were significantly higher in 2016 than in 2015 with zinc metal in concentrate prices received of $1,520 per tonne up 27.6% on that received in 2015 of $1,191; silver of $13.25 per oz was up 10.9% from that received in 2015 of $11.95; and gold of $1,154 per oz up 10.6% on that received in 2015 of $1,043. This reflects higher market prices and a tightening of concentrate supply in China.

In summary, metal in concentrate sales in 2016 were:

   --     31,864 tonnes zinc compared with 38,514 tonnes in 2015; 
   --     1,439 tonnes lead compared with 1,800 tonnes in 2015; 
   --     310,611 ozs silver compared with 346,711 ozs in 2015; and 
   --     12,654 ozs gold compared with 10,406 ozs in 2015. 

Cost of sales of $37,851,000 in 2016 was down on that incurred in 2015 of $42,948,000. This reflects some economies of scale following the installation of the new ball mill and non productive costs during the suspension in mining in 2015.

874,983 tonnes of ore were processed in 2016 up 35,270 tonnes (4.2%) from 2015 of 839,713 tonnes. Despite this increase in throughput processing costs fell by 5.8% in 2016 with costs per tonne of ore processed down by 9.6%.

817,506 tonnes of ore were mined in 2016 up 245,691 (43.0%) from 2015 of 571,815. Mining costs rose 4.8% which with increased tonnage resulted in significantly lower costs per tonne of ore mined. Much of this reduction in costs may be attributed to non productive mine service costs during the suspension in mining activities in the later part of 2015 with no ore extracted.

817,506 tonnes of ore were hauled in 2016 up 220,445 (36.9%) from 2015 of 597,061. Haulage costs rose 26.5% which again with increased tonnage resulted in significantly lower costs per tonne of ore hauled. Much of this cost reduction reflects shorter distances hauled from higher mine levels.

Administration expenses (including those of the Caijiaying site) have risen 5.5% from $12,530,000 in 2015 to $13,218,000 in 2016. Underlying administration costs have fallen 12.5% with lower share based option charges, a fall in the value of the Renminbi and other cost savings. However, service fees to Guoxin based upon on Hebei Hua Ao's profits have increased from a credit of $307,000 in 2015 to a charge of $1,983,000 in 2016.

With a return to profitability, bank loans are being repaid as quickly as possible resulting in finance charges falling from $5,084,000 in 2015 to $4,286,000 in 2016.

A fall in the value of the Chinese Renminbi and British Pound in 2016, caused foreign exchange losses of $532,000 (2015 $447,000) to be incurred.

Losses on the disposal of plant and equipment of $224,000 were recorded in 2016 compared to $48,000 in 2015.

Income taxes of $4,468,000 (2015 $1,246,000) have been charged in 2016. This includes a deferred taxation provision of $151,000 (2015 $813,000) and a charge of $573,000 in respect of deductions made in prior years since disallowed by the Chinese tax authorities.

Basic earnings per share in 2016 was 3.30 cents (2015 loss 1.22 cents) and diluted earnings per share was 3.26 cents (2015 loss 1.22 cents).

Bank loans of $14,891,000 were repaid in 2016 (2015 $3,171,000 drawn down) whilst cash and cash equivalents fell by $10,711,000 in 2016 (2015 reduction $1,520,000) with:

   --     Net cash inflow from operating activities in 2016 of $21,903,000 (2015 $25,165,000);  and 
   --     $11,104,000 invested in mine development and plant upgrades in 2016, (2015 $16,044,000). 

Attributable net assets per share at 31st December 2016 was 80 cents ( 2015 78 cents).

With cash flows from operations directed to repaying banking facilities the directors do not recommend the payment of a dividend at this time.

Chairman's Statement:

2016 was a year when the aberration of our first loss in a decade in 2015 was cast aside and profitability was restored.

Financially, the Company made an operating profit of $15.2 million, profit before tax of $10.4 million and after profit tax of almost $6 million. Operationally, a record number of tonnes were mined and processed whilst cost of sales fell significantly, even though only low grade ore could be processed via stockpiles during the cessation of mining activity and, upon recommencement of mining, only from residual low grade ore in the higher mine levels. Notably, gold production reached a new record high of 12,654 ounces in concentrate.

Further good news included the completion of the upgrade on the 28(th) January 2016 to the mine and processing facilities to a 1.5 million tonne throughput capacity, the addition of a second 35,000 volt grid power line to site, a new safety permit over the lower levels of Zone III and the continuing drive to improve efficiencies with the commissioning of a new, electro hydraulic longhole drill rig.

Non-operationally, almost $15 million of debt was repaid in 2016. And although I believe share price is a very poor indicator of a Company's value and performance, it is pleasing to see that the share price has increased over 115% in the past 12 months.

Critically, the fundamental outlook for zinc continues to improve. According to the International Lead and Zinc Study Group, the zinc market continues to register a supply deficit, short 268,000 tonnes in 2016 and, in January 2017, already short 27,000 tonnes with storage at the London Metal Exchange declining 31,000 tonnes. This is being reflected in lower smelter charges and a higher overall zinc price.

Most pleasing, on the 14(th) December 2016 and in the presence of the Australian Ambassador to China and senior officials from the Ministry of Land and Resources and Zhangjiakou City, an agreement was signed whereby the Company was granted the right to explore, in particular, the Shitouhulun and Sangongdi areas near the Caijiaying Mine. Both areas share the same geological signatures as the known orebodies at the Caijiaying Mine and high hopes exist for exploration success once work begins on these regions.

It would, of course, be disingenuous of me to hide the fact that our overwhelming, continuing, disappointment lies in the failure to be granted a mining licence over Zone II and thereby increase our throughput to our now expanded processing capacity. It has become a frustrating reality in the mining world that mining licences are taking ever longer to obtain due to administrative labyrinths, constant legislative changes, environmental issues needing over-addressing and native concerns being constantly satisfied. China is no different in this respect. The overwhelming question asked by shareholders is when will the licence be granted? I have made predictions in the past and have been proved horribly wrong. I will merely state I have high hopes for 2017.

It would be unfair of me not to thank the directors, staff and contractors who continue to strive to make the Company an even greater success than it has already become. Any organization is only as competent and dynamic as the people who work, think and act solely in the best interest of the Company. Ours are some of the best in the industry, and in country, and we thank them for their outstanding efforts.

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

Dominic Morley

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

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014.

Griffin Mining Limited

Summarised Consolidated Income Statement

For the year ended 31 December 2016

(expressed in thousands US dollars)

 
 
                                                2016      2015 
                                             Audited   Audited 
                                                $000      $000 
 
Revenue                                       66,270    59,779 
 
Cost of sales                               (37,851)  (42,948) 
                                            --------  -------- 
 
 
Gross profit                                  28,419    16,831 
 
Administration expenses                     (13,218)  (12,530) 
                                            --------  -------- 
 
 
Profit from operations                        15,201     4,301 
 
Losses on disposal of plant and equipment      (224)      (48) 
Foreign exchange (losses)                      (532)     (447) 
Finance income                                   178       202 
Finance costs                                (4,286)   (5,084) 
Other income                                      45       136 
 
 
Profit / (loss) before tax                    10,382     (940) 
 
Income tax expense                           (4,468)   (1,246) 
 
 
Profit / (Loss) after tax                      5,914   (2,186) 
                                            ========  ======== 
 
 
Basic earnings / (loss) per share 
 (cents)                                        3.30    (1.22) 
                                            ========  ======== 
 
Diluted earnings / (loss) per share 
 (cents)                                        3.26    (1.22) 
                                            ========  ======== 
 

Griffin Mining Limited

Summarised Consolidated Statement of Comprehensive Income

For the year ended 31 December 2016

(expressed in thousands US dollars)

 
                                            2016       2015 
                                         Audited    Audited 
                                            $000       $000 
 
Profit / (Loss) for the year               5,914    (2,186) 
                                       ---------  --------- 
 
Other comprehensive income that 
 will be reclassified to profit 
 or loss 
 
Exchange differences on translating 
 foreign operations                      (3,299)    (2,967) 
 
 
  Other comprehensive income for 
  the period, net of tax                 (3,299)    (2,967) 
                                       ---------  --------- 
 
 
  Total comprehensive income for 
  the period                               2,615    (5,153) 
                                       =========  ========= 
 

Griffin Mining Limited

Summarised Consolidated Statement of Financial Position

As at 31 December 2016

(expressed in thousands US dollars)

 
                                             2016      2015 
                                          Audited   Audited 
                                             $000      $000 
ASSETS 
Non-current assets 
Property, plant and equipment             204,491   210,252 
Intangible assets - Exploration 
 interests                                  1,792     1,870 
                                          206,283   212,122 
                                         --------  -------- 
Current assets 
Inventories                                 6,148     7,182 
Receivables and other current assets        8,232     3,194 
Cash and cash equivalents                  13,218    24,062 
                                         --------  -------- 
                                           27,598    34,438 
                                         --------  -------- 
 
Total assets                              233,881   246,560 
                                         ========  ======== 
 
EQUITY AND LIABILITIES 
Equity attributable to equity holders 
 of the parent 
Share capital                               1,790     1,790 
Share premium                              71,310    71,310 
Contributing surplus                        3,690     3,690 
Share based payments                        2,072     1,363 
Shares held in treasury                   (3,875)   (3,875) 
Chinese statutory re-investment 
 reserve                                    1,583     1,595 
Other reserve on acquisition of 
 non controlling interests               (29,346)  (29,346) 
Foreign exchange reserve                    4,871     8,068 
Profit and loss reserve                    91,174    85,350 
                                         --------  -------- 
Total equity attributable to equity 
 holders of the parent                    143,269   139,945 
                                         --------  -------- 
 
Non-current liabilities 
Long-term provisions                        2,277     2,433 
Deferred taxation                           2,607     2,630 
Finance lease                               3,791     7,454 
                                         --------  -------- 
                                            8,675    12,517 
                                         --------  -------- 
Current liabilities 
Trade and other payables                   34,466    28,977 
Finance lease                               2,783     1,982 
Bank loans                                 44,688    63,139 
                                         --------  -------- 
Total current liabilities                  81,937    94,098 
 
Total equities and liabilities            233,881   246,560 
                                         ========  ======== 
 
Attributable net asset value per 
 share to equity holders of parent          $0.80     $0.78 
 

Griffin Mining Limited

Summarised Consolidated Statement of Changes in Equity.

For the year ended 31 December 2016

(expressed in thousands US dollars)

 
                  Share    Share  Contributing     Share     Shares        Chinese        Other   Foreign   Profit         Total 
                capital  premium       surplus     based       held  re-investment      reserve  exchange      and  attributable 
                                                                 in                          on               loss            to 
                                                payments   treasury        reserve  acquisition   reserve  reserve        equity 
                                                                                             of                          holders 
                                                                                            non                        of parent 
                                                                                    controlling 
                                                                                      Interests 
                   $000     $000          $000      $000       $000           $000         $000      $000     $000          $000 
 
  At 31st 
  December 
  2014            1,790   71,310         3,690     3,064          -          1,686     (29,365)    10,957   84,794       147,926 
 
Regulatory 
 transfer 
 for future 
 investment           -        -             -         -          -              6            -         -      (6)             - 
Purchase of 
 shares 
 for treasury                  -             -         -    (3,875)              -            -         -        -       (3,875) 
Transfer of 
 share based 
 payments on 
 expiry               -        -             -   (2,748)          -              -            -         -    2,748             - 
Cost of share 
 based 
 payments             -        -             -     1,047          -              -            -         -        -         1,047 
Transaction 
 with owners          -        -             -   (1,701)    (3,875)              6            -         -    2,742       (2,828) 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
 
Loss for the 
 year                 -        -             -         -          -              -            -         -  (2,186)       (2,186) 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -          -           (97)           19   (2,889)        -      (2,967)) 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
Total 
 comprehensive 
 income               -        -             -         -          -           (97)           19   (2,889)  (2,186)       (5,153) 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
 
  At 31st 
  December 
  2015            1,790   71,310         3,690     1,363    (3,875)          1,595     (29,346)     8,068   85,350       139,945 
 
  Regulatory 
  transfer 
  for future 
  investment          -        -             -         -          -             90            -         -     (90)             - 
Cost of share 
 based 
 payments             -        -             -       709          -              -            -         -        -           709 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
Transaction 
 with owners          -        -             -       709          -             90            -         -     (90)           709 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
 
Profit for the 
 year                 -        -             -         -          -              -            -         -    5,914         5,914 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -          -          (102)            -   (3,197)        -       (3,299) 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
Total 
 comprehensive 
 income               -        -             -         -          -          (102)            -   (3,197)    5,914         2,615 
                -------  -------  ------------  --------  ---------  -------------  -----------  --------  -------  ------------ 
 
  At 31st 
  December 
  2016            1,790   71,310         3,690     2,072    (3,875)          1,583     (29,346)     4,871   91,174       143,269 
                =======  =======  ============  ========  =========  =============  ===========  ========  =======  ============ 
 

Griffin Mining Limited

Summarised Consolidated Cash Flow Statement

For the year ended 31 December 2016

(expressed in thousands US dollars)

 
                                                2016      2015 
                                             Audited   Audited 
                                                $000      $000 
 
Net cash flows from operating 
 activities 
Profit / (loss) before taxation               10,382     (940) 
Foreign exchange losses                          532       447 
Finance income                                 (178)     (202) 
Finance costs                                  4,286     5,084 
Adjustment in respect of share 
 based payments                                  709     1,047 
Depreciation, depletion and amortisation       8,526     6,808 
Losses on disposal of equipment                  224        48 
Decrease in inventories                        1,034    10,295 
(Decrease) / increase in receivables 
 and other current assets                    (6,251)       804 
Increase in trade and other payables           3,280     2,748 
Taxation paid                                  (641)     (974) 
 
Net cash inflow from operating 
 activities                                   21,903    25,165 
                                            --------  -------- 
 
Cash flows from investing activities 
Interest received                                178       202 
Payments to acquire - mineral 
 interests                                   (7,361)   (8,960) 
Payments to acquire - plant and 
 equipment                                   (3,776)   (7,215) 
Payments to acquire - office equipment         (102)       (3) 
Payments to acquire intangible 
 fixed assets - exploration interests           (43)      (68) 
Net cash outflow from investing 
 activities                                 (11,104)  (16,044) 
                                            --------  -------- 
 
Cash flows from financing activities 
Purchase of shares for treasury                    -   (3,875) 
Interest paid                                (3,684)   (4,324) 
Finance lease repayments                     (2,935)   (2,573) 
Proceeds from bank loans                           -     3,171 
Repayment of bank loans                     (14,891)         - 
                                            --------  -------- 
Net cash outflow from financing 
 activities                                 (21,510)   (7,601) 
                                            --------  -------- 
 
(Decrease) / increase in cash 
 and cash equivalents                       (10,711)     1,520 
 
Cash and cash equivalents at the 
 beginning of the year                        24,062    23,371 
Effects of exchange rates                      (133)     (829) 
                                                      -------- 
Cash and cash equivalents at the 
 end of the year                              13,218    24,062 
                                            --------  -------- 
 
Cash and cash equivalents comprise 
 bank deposits. 
Bank deposits                                 13,218    24,062 
                                            ========  ======== 
 

Included within net cash flows of $10,711,000 (2015 $1,520,000) are foreign exchange losses of $532,000 (2015 losses $447,000) which have been treated as realised.

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 435 of the UK Companies Act 2006. The summarised consolidated statement of financial position at 31st December 2016 and the summarised consolidated income statement, summarised statement of comprehensive income, consolidated statement of changes in equity and the summarised consolidated cash flow statement for the year then ended have been extracted from the Group's audited 2016 statutory financial statements.

3. The annual report and accounts for 2016 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company's London office, 8(th) Floor, 54 Jermyn Street, London, SW1Y 6LX.

4. The calculation of the basic loss / earnings per share is based on the losses / earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted losses / earnings per share is based on the basic losses / earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.

Reconciliation of the loss / earnings and weighted average number of shares used in the calculations are set out below:

 
                                         2016                                 2015 
                          Earnings       Weighted        Per       Loss       Weighted        Per 
                                          Average      share                   Average      share 
                              $000         number     amount                    number     amount 
                                        of shares    (cents)       $000      of shares    (cents) 
 Basic earnings 
  per share 
 Earnings attributable 
  to ordinary 
  shareholders               5,914    179,091,830       3.30    (2,186)    179,091,830     (1.22) 
 Dilutive effect 
  of securities 
 Options                         -      2,248,862     (0.04)          -              -          - 
                         ---------  -------------  ---------  ---------  -------------  --------- 
 Diluted earnings 
  per share                  5,914    181,340,692       3.26    (2,186)    179,091,830     (1.22) 
                         =========  =============  =========  =========  =============  ========= 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR BIGDSSXGBGRU

(END) Dow Jones Newswires

April 06, 2017 02:00 ET (06:00 GMT)

1 Year Griffin Mining Chart

1 Year Griffin Mining Chart

1 Month Griffin Mining Chart

1 Month Griffin Mining Chart

Your Recent History

Delayed Upgrade Clock