Griffin Mining Share Discussion Threads

[owenga] 02/5/2017 19:36

My understanding was that throughput was between 800k and 1m tonnes. And that they were only going to be able to increase throughput once the zone 2 licence was granted and they started mining in that area in tandem with zone 3.My understanding may well be incorrect???

[roguetreader] 01/5/2017 13:04

Phillis
agreed Zinc price improvement also a significant factor in share price improvement, omitted from my post. Re congestion, it would be good if the company were to elaborate on how they are looking to address it and the likely forecast costs and timescales they are targeting.

[phillis] 01/5/2017 11:59

Just a reminder that Q1 average price achieved for zinc was 33% higher than 2016 average
Throughput somewhere between 1 and 1.5mt is a bit constrained by congestion
Will require more/better access

Good volumes at these prices and some more gold will produce a lot of cash

[roguetreader] 01/5/2017 11:31

Rose
thanks for the view. I agree with your summary above and that was the way I was broadly reading the numbers. The item that led me to my questions above was a statement in the 03/02/15 RNS that said:

'Griffin continues to experience bureaucratic delays in the granting of a new mining licence and permit for the Zone III deeps and Zone II areas at Caijiaying and continues to actively manage the administrative process involved in the granting of these licences.'

I suppose I am seeking clarification that the Zone III deeps referenced in the 03/02/15 RNS are excluded from Griffin's published resource statements and that all of the published resources are available under the current licenses.

If this is the case which I assume it is then I don't see that the Zone II license is going to make a significant impact on the share price in the near term. Getting production toward the 1.5M tonnes per annum throughput is going to be the real catalyst to any positive increase in the share price
cheers
RT

[rose_by_another_name] 01/5/2017 08:59

My amateur summary of the 2016 report- not advice,
not complete, and maybe not accurate. Do not rely
on this-

The licence for the currently mined zone III
was extended to 2037 at the time of the buy-out
of most of the junior partners interest (it had
been due to expire in 2019). A licence to extend
mining operations into zone II, currently licenced
for exploration, was expected to follow but has not
yet been granted. Work has already been done to
provide mining access to zone II in preparation for
the licence.

The mineral resource estimate in the report says there
are 27.8 million tonnes of ore remaining in zone III
and 19.6 million tonnes in zone II. The report has
a comprehensive breakdown of this. In another place
the report says the milling capacity has now been
increased to 1.5 million tonnes of ore per year.
Put these figures together and at maximum current
capacity the zone III resource alone should just about
last out the remaining 20 years of the current licence.

The real question for me is whether the return to
shareholders over the next 20 years will compensate for
the price of the shares, even, let alone a profit. In the
17 years that I have held shares, there has been only a
small dividend for about a year. The chairman says "It
is your faith in your company which has nurtured the
success we have had to date..."

What does he mean "we"?

[roguetreader] 30/4/2017 15:13

Hi
Have been out of GFM for a number of years but have stuck my nose back in as I have inherited a number of shares that I need to administer and wanted to understand the state of play. A key question for me and one I can't see any obvious answer to, either in the published company bulletins or from any of the informed comment on the board here, is what is the position without the licence extension? i.e. What are the current licensed mining reserves? what mining throughput do they support? How long will they support that throughput? I suspect it is not a straightforward answer but if anyone does have a view I'd be interested.
cheers
RT

[phillis] 28/4/2017 19:58

Rm
Historically they have bought stock from instis bent on selling
Market seems a bit tighter this time

[bunlop] 28/4/2017 15:34

Light blue touch paper, wait for ever, then woooooossshhhhh.

[rmjones] 28/4/2017 15:33

MMs trying to attract some selling. I think Griffin may want to buy back more but MM's short of stock.

[phillis] 27/4/2017 17:28

Alan
It depends where the cash is located

[poleaxe] 27/4/2017 16:25

50p, i would rather give them to oxfam.

[alan@bj] 27/4/2017 11:15

With 179m shares in issue, surely buying in 100,000 isn't going to affect anything very much? I thought their priority was to pay down the debt?

[rose_by_another_name] 27/4/2017 11:11

Protect the directors from a takeover "threat"
more like. For shareholders, a takeover would
usually be a big boost in the share price

[up just a little bit] 27/4/2017 10:31

Stock repurchases are used as a tax efficient method to put cash into shareholders' hands, rather than paying dividends, in jurisdictions that treat capital gains more favorably. Sometimes, companies do it when they feel that their stock is undervalued on the open market. Other times, companies do it to reduce dilution from incentive compensation plans for employees. Another motive for stock repurchase is to protect the company against a takeover threat.

[mariopeter] 27/4/2017 07:58

Poleaxe sell them to the Company not through a broker.

[mpclag] 27/4/2017 07:16

100k share repurchase-whats all that about?

[rose_by_another_name] 25/4/2017 09:41

ewads:

"imo they'll be be no statement on divi until Q1'18"

At which point the excuse will change.

[up just a little bit] 24/4/2017 20:55

Dummy trade on idealing is fine. Change your broker.

[poleaxe] 24/4/2017 18:21

Tried to sell a few today,the broker would not even quote me a price just ask me what was the minimum i would sell for. I believe the share price will drift back down over the next few months.

[ewads] 24/4/2017 17:11

Preliminary results for the year ended 31st December 2015.

"The directors have recommended that no dividend be declared at this time in view of the need for the use of the Company's financial resources for further investment in the Caijiaying Mine, and repayment of bank loans."



Preliminary results for the year ended 31st December 2016.

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

imo they'll be be no statement on divi until Q1'18

[phillis] 24/4/2017 12:24

Cash generated in 2017 will eliminate the debt but there will be nothing left to pay a divi
unless the BoD are happy to remain with debt for a tad longer

[rmjones] 24/4/2017 11:21

As previously implied in my earlier posts. I think the results were lacking a forecast for 2017. A positive statement at the AGM (which I doubt will be forthcoming) would help to attract investors and lift the share price