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 0.0% 83.00 82.00 84.00 83.00 83.00 83.00 36,058 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 77.7 27.3 11.6 7.2 143

Griffin Mining Ld Half-year Report

16/09/2019 7:00am

UK Regulatory (RNS & others)


Griffin Mining (LSE:GFM)
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3 Months : From Aug 2019 to Nov 2019

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RNS Number : 3172M

Griffin Mining Ld

16 September 2019

8(th) Floor, 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

16(th) September 2019

INTERIM STATEMENT

for the six months ended 30(th) June 2019

Griffin Mining Limited ("Griffin" or "the Company") has today released its unaudited results for the six months ended 30th June 2019.

Highlights:

   --     Revenues of $38.6 million (30(th) June 2018 - $54.1 million) 
   --     Operating profit of $6.0 million (30(th) June 2018 - $21.1 million) 
   --     Profit before tax of $6.3 million (30(th) June 2018 - $21.3 million) 
   --     Profit after tax of $4.1 million (30(th) June 2018 - $15.3 million) 
   --     Basic earnings per share of 2.36 cents (30(th) June 2018 - 8.95 cents) 

Financial and Trading:

The first six months of 2019 has seen falling zinc metal prices and significantly higher smelter treatment charges resulting in the average zinc metal in concentrate prices received in the first six months of 2019 of $1,591 per tonne compared with $2,522 per tonne in the first six months of 2018, a 36.5% reduction.

In the six months to 30(th) June 2019, 432,592 tonnes (30(th) June 2018 - 448,530 tonnes) of ore were processed to produce:

   --     16,692 tonnes of zinc (30(th) June 2018 - 16,873 tonnes); 
   --     494 tonnes of lead (30(th) June 2018 - 459 tonnes); 
   --     141,306 ounces of silver (30(th) June 2018 - 132,689 ounces); and 
   --     9,099 ounces of gold (30(th) June 2018 - 9,492 ounces). 

Zinc revenues before royalties and resource taxes in the six months to 30(th) June 2019 were $27,159,000 (30(th) June 2018 - $42,573,000) with 17,072 tonnes of zinc metal in concentrate sold (30(th) June 2018 - 16,881 tonnes). Lead and precious metals revenues were $13,036,000 (30(th) June 2018 - $14,045,000) with less gold in concentrate sold.

During the six months to 30(th) June 2019:

   --     410,819 tonnes of ore were mined (30(th) June 2018 - 400,167 tonnes); 
   --     426,070 tonnes of ore were hauled (30(th) June 2018 - 437,734 tonnes); and 
   --     432,592 tonnes of ore were processed (30(th) June 2018 - 448,530 tonnes). 

Costs of sales (mining, haulage and processing costs) of $22,671,000 in the first six months of 2019 were down 2.8% on that incurred in 2018 of $23,336,000. Whilst enhanced safety requirements in China have caused an increase in mining costs, haulage and processing costs have been reduced with less waste materials hauled and sent to tailings and crushing efficiencies.

Net operating expenses (including those of the Caijiaying site) have risen from $9,663,000 in the first six months of 2018 to $9,955,000 in 2019. This includes fees to the Group's Chinese partners of $1,820,000 (2018 $2,186,000), equivalent to their equity interest in Hebei Hua Ao's profits. Whilst these fees have fallen, other operating costs within China have increased with higher fees and costs in dealing with stricter environmental, health and safety regulations and in applying for the mining licence over Zone II.

Basic earnings per share were 2.36 cents (30(th) June 2018: 8.95 cents). At 30(th) June 2019, attributable net assets per share amounted to 124 cents (30(th) June 2018: 119 cents).

Cash flows from operations in the period have been directed at paying down outstanding creditors and further development of the Caijiaying Mine.

Chairman's Statement

Chairman Mladen Ninkov commented, "Although all stakeholders in the Company will be disappointed with the financial results for the first half of 2019, they are directly, and practically solely, attributable to the fall in the zinc price and the tremendously higher smelter treatment charges in the first 6 months of the year. Operations and metal production were generally in line with budget. As is often said, mining is a fixed cost business and, as such, a reduction is sales revenues has a direct and significant effect on the margin of profit. We continue to hope for a higher zinc price and lower treatment charges for 2019 into 2020."

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

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

Condensed Consolidated Income Statement

(expressed in thousands US dollars)

 
                                        6 months     6 months      Year to 
                                              to           to   31/12/2018 
                                      30/06/2019   30/06/2018      Audited 
                                       Unaudited    Unaudited 
                                            $000         $000         $000 
 
Revenue                                   38,619       54,058       99,067 
 
Cost of sales                           (22,671)     (23,336)     (45,798) 
 
 
Gross profit                              15,948       30,722       53,269 
 
Net operating expenses                   (9,955)      (9,663)     (17,714) 
 
 
Profit from operations                     5,993       21,059       35,555 
 
Losses on disposal of equipment             (59)         (18)        (939) 
Foreign exchange (losses) / gains            (4)          133           42 
Finance income                                82          102          223 
Finance costs                              (122)        (144)        (283) 
Other income                                 386          179          200 
 
 
Profit before tax                          6,276       21,311       34,798 
 
Income tax expense                       (2,202)      (6,005)      (9,321) 
 
 
Profit after tax                           4,074       15,306       25,477 
                                                  =========== 
 
 
Basic earnings per share (cents)            2.36         8.95        14.83 
                                     ===========  ===========  =========== 
 
Diluted earnings per share (cents)          2.17         8.42        13.35 
                                     ===========  ===========  =========== 
 

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

 
                                          6 months     6 months      Year to 
                                                to           to   31/12/2018 
                                        30/06/2019   30/06/2018      Audited 
                                         Unaudited    Unaudited 
                                              $000         $000         $000 
 
Profit for the financial period              4,074       15,306       25,477 
                                       -----------  -----------  ----------- 
 
Other comprehensive income 
Prior period adjustment (note 6)              (33)            -            - 
Exchange differences on translating 
 foreign operations                          (297)      (1,498)      (5,856) 
 
 
  Other comprehensive income for the 
  period, net of tax                         (330)      (1,498)      (5,856) 
                                       -----------  -----------  ----------- 
 
Total comprehensive income for the 
 period                                      3,744       13,808       19,621 
                                       ===========  ===========  =========== 
 
 

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

(expressed in thousands US dollars)

 
                                                   30/06/2019   30/06/2018   31/12/2018 
                                                    Unaudited    Unaudited      Audited 
                                                         $000         $000         $000 
 
ASSETS 
Non-current assets 
Property, plant and equipment                         219,937      213,920      213,140 
Intangible assets - Exploration interests               2,021        2,031        2,016 
                                                      221,958      215,951      215,156 
                                                  -----------  -----------  ----------- 
Current assets 
Inventories                                             3,793        4,065        4,951 
Receivables and other current assets                    3,959        5,546        2,819 
Cash and cash equivalents                              19,293       27,841       28,452 
                                                  -----------  -----------  ----------- 
                                                       27,045       37,452       36,222 
                                                  -----------  -----------  ----------- 
 
Total assets                                          249,003      253,403      251,378 
                                                  ===========  ===========  =========== 
 
EQUITY AND LIABILITIES 
Equity attributable to equity holders 
 of the parent 
Share capital                                           1,727        1,725        1,727 
Share premium                                          68,442       68,329       68,442 
Contributing surplus                                    3,690        3,690        3,690 
Share based payments                                    2,072        2,072        2,072 
Shares held in treasury                                 (917)        (300)        (917) 
Chinese statutory re-investment reserve                 2,382        2,177        2,386 
Other reserve on acquisition of non-controlling 
 interests                                           (29,346)     (29,346)     (29,346) 
Foreign exchange reserve                                3,734        8,306        4,027 
Profit and loss reserve                               163,202      149,278      159,161 
                                                  -----------  -----------  ----------- 
Total equity attributable to equity 
 holders of the parent                                214,986      205,931      211,242 
 
Non-current liabilities 
Long-term provisions                                    2,182        2,387        2,302 
Deferred taxation                                       2,389        2,830        2,393 
Finance leases                                            413            -          258 
                                                  -----------  -----------  ----------- 
                                                        4,984        5,217        4,953 
                                                  -----------  -----------  ----------- 
Current liabilities 
Trade and other payables                               28,469       39,116       33,632 
Finance leases                                            564        3,139        1,551 
Total liabilities                                      29,033       42,255       35,183 
                                                  -----------  -----------  ----------- 
 
Total equities and liabilities                        249,003      253,403      251,378 
                                                  ===========  ===========  =========== 
 
Number of shares in issue                         172,748,728  172,512,061  172,748,728 
 
Attributable net asset value / total 
 equity per share                                       $1.24        $1.19        $1.22 
 

Griffin Mining Limited

Condensed Consolidated Statement of Changes in Equity

(expressed in thousands US dollars)

 
                  Share    Share  Contributing     Share    Shares     Chinese            Other   Foreign   Profit         Total 
                Capital  Premium       surplus     based      held          re       reserve on  exchange      and  attributable 
                                                payments        in  investment      acquisition   reserve     loss     to equity 
                                                          treasury     reserve               of            reserve       holders 
                                                                                non-controlling                        of parent 
                                                                                      interests 
                   $000     $000          $000      $000      $000        $000             $000      $000     $000          $000 
At 31(st) 
 December 2017    1,700   67,295         3,690     2,072         -       2,204         (29,346)     9,777  133,972       191,364 
 
Issue of 
 shares on 
 exercise 
 of share 
 options             25    1,034             -         -         -           -                -         -        -         1,059 
Purchase of 
 shares for 
 treasury             -        -             -         -     (300)           -                -         -        -         (300) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
Transaction 
 with owners         25    1,034             -         -     (300)           -                -         -        -           759 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
Retained 
 profit for 
 the 6 
 months               -        -             -         -         -           -                -         -   15,306        15,306 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -         -        (27)                -   (1,471)        -       (1,498) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
Total 
 comprehensive 
 income 
 for the 
 period               -        -             -         -         -        (27)                -   (1,471)   15,306        13,808 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
At 30(th) June 
 2018 
 (Unaudited)      1,725   68,329         3,690     2,072     (300)       2,177         (29,346)     8,306  149,278       205,931 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
Regulatory 
 transfer for 
 future 
 investment           -        -             -         -         -         288                -         -    (288)             - 
Issue of 
 shares on 
 exercise 
 of options           2      113             -         -         -           -                -         -        -           115 
Purchase of 
 shares for 
 treasury             -        -             -         -     (617)           -                -         -        -         (617) 
Transaction 
 with owners          2      113             -         -     (617)         288                -              (288)         (502) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
Retained 
 profit for 
 the 6 
 months               -        -             -         -         -           -                -         -   10,171        10,171 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -         -        (79)                -   (4,279)        -       (4,358) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
Total 
 comprehensive 
 income 
 for the 
 period               -        -             -         -         -        (79)                -   (4,279)   10,171         5,813 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
At 31(st) 
 December 2018    1,727   68,442         3,690     2,072     (917)       2,386         (29,346)     4,027  159,161       211,242 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
 
Retained 
 profit for 
 the 6 
 months               -        -             -         -         -           -                -         -    4,074         4,074 
Prior period 
 adjustment                                                                                                   (33)          (33) 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -         -         (4)                -     (293)        -         (297) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
Total 
 comprehensive 
 income 
 for the 
 period               -        -             -         -         -         (4)                -     (293)    4,041         3,744 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
At 30(th) June 
 2019 
 (Unaudited)      1,727   68,442         3,690     2,072     (917)       2,382         (29,346)     3,734  163,202       214,986 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

(expressed in thousands US dollars)

 
                                                  6 months     6 months      Year to 
                                                        to           to   31/12/2018 
                                                30/06/2019   30/06/2018      Audited 
                                                 Unaudited    Unaudited 
                                                      $000         $000           $000 
Net cash flows from operating activities 
Profit before taxation                               6,276       21,311       34,798 
Foreign exchange losses / (gains)                        4        (133)         (42) 
Finance income                                        (82)        (102)        (223) 
Finance costs                                          122          144          283 
Depreciation, depletion and amortisation             5,000        4,964       10,328 
Losses on disposal of equipment                         59           18          939 
Decrease / (increase) in inventories                 1,157        1,803          917 
(Increase) / decrease in receivables 
 and other current assets                          (1,140)      (1,206)      (1,059) 
Increase / (decrease) in trade and other 
 payables                                            2,032      (6,880)     (12,917) 
Taxation paid                                      (9,469)     (12,275)     (12,585) 
                                               -----------  -----------  ----------- 
Net cash inflow from operating activities            3,959        7,644       20,439 
                                               -----------  -----------  ----------- 
 
Cash flows from investing activities 
Interest received                                       82          102          223 
Proceeds on disposal of equipment                        -            -          351 
Payments to acquire - mineral interests           (10,318)      (4,597)     (10,669) 
Payments to acquire - plant & equipment            (1,519)      (1,323)      (6,134) 
Payments to acquire - office equipment                   -          (1)            - 
Payments to acquire - intangible assets 
 - exploration interests                               (8)         (21)         (81) 
                                               -----------  -----------  ----------- 
Net cash (outflow) from investing activities      (11,763)      (5,840)     (16,310) 
                                               -----------  -----------  ----------- 
 
Cash flows from financing activities 
Purchase of shares for treasury                          -        (300)        (917) 
Issue of shares on exercise of share 
 purchase options                                        -        1,059        1,174 
Interest paid                                         (52)            -            - 
Finance lease                                      (1,304)      (1,365)      (2,728) 
Net cash (outflow) from financing activities       (1,356)        (606)      (2,471) 
                                               -----------  -----------  ----------- 
 
(Decrease) / increase in cash and cash 
 equivalents                                       (9,160)        1,198        1,658 
 
Cash and cash equivalents at beginning 
 of the period                                      28,452       26,518       26,518 
Effects of exchange rate changes                         1          125          276 
                                               -----------  -----------  ----------- 
Cash and cash equivalents at end of the 
 period                                             19,293       27,841       28,452 
                                               ===========  ===========  =========== 
 
Cash and cash equivalents comprise bank 
 deposits 
Bank deposits                                       19,293       27,841       28,452 
                                               ===========  ===========  =========== 
 

Griffin Mining Limited

Notes to the Interim Statement

1. These unaudited condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31(st) December 2018.

2. This interim report will be available on the Company's web site, www.griffinmining.com. Hard copies are available from the Company's London office, 8(th) Floor, Royal Trust House, 54 Jermyn Street, London. SW1Y 6LX.

3. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 434 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 31(st) December 2018 and the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated cash flow statement for the year then ended have been extracted from the Group's 2018 statutory financial statements upon which the auditors' opinion is unqualified.

4. The summary accounts have been prepared on a going concern basis. Having considered the cash resources, banking facilities and forecasts for the remainder of the Hebei Hua Ao joint venture term, the directors do not expect any going concern issues to arise.

5. The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The calculation of diluted earnings per share is based on the basic earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:

 
                         6 months to                       6 months to                         Year to 
                          30/06/2019                        30/06/2018                        31/12/2018 
                           Unaudited                        Unaudited                           Audited 
                            Weighted                           Weighted      Per                 Weighted 
                             average  Per share                 average    share                  average  Per share 
               Earnings       number     amount   Earnings       number   amount  Earnings         number     amount 
                   $000    of shares    (cents)       $000    of shares  (cents)      $000      of shares    (cents) 
Basic earnings per share 
Earnings 
 attributable 
 to ordinary 
 shareholders     4,074  172,748,728       2.36     15,306  170,991,849     8.85    25,477    171,842,166      14.83 
Dilutive effect of securities 
Options               -   14,823,528     (0.19)          -   17,086,523   (0.43)         -     16,494,541     (1.48) 
               --------  -----------  ---------  ---------  -----------  -------  --------  -------------  --------- 
Diluted 
 earnings 
 per share        4,074  187,572,256       2.17     15,306  188,078,102     8.42    43,321    188,336,707      13.35 
               ========  ===========  =========  =========  ===========  =======  ========  =============  ========= 
 
 

6. The prior year adjustment relates to the capitalisation of leases following the introduction of International Financial Reporting Standard 16, on leases.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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