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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
  -2.00 -2.82% 69.00 68.00 70.00 71.00 68.50 71.00 162,815 15:47:41
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 77.7 27.3 11.6 6.0 119

Griffin Mining Ld Half-year Report

23/07/2020 7:00am

UK Regulatory (RNS & others)


Griffin Mining (LSE:GFM)
Historical Stock Chart


From Jul 2020 to Oct 2020

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TIDMGFM

RNS Number : 8119T

Griffin Mining Ld

23 July 2020

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

23(rd) July 2020

UNAUDITED INTERIM RESULTS

for the six months ended 30(th) June 2020

Griffin Mining Limited ("Griffin" or "the Company") has today released its unaudited results for the six months ended 30th June 2020.

Highlights:

   --    Revenues of $21.3 million (30(th) June 2019 - $38.6 million) 
   --    Gross Profit of $4.2 million (30(th) June 2019 - $15.9 million) 
   --    Profit (Loss) before tax of ($3.0 million) (30(th) June 2019 - Profit $6.3 million) 
   --    Profit (Loss) after tax of ($3.8 million) (30(th) June 2019 - Profit $4.1 million) 

-- Profit (Loss) per share of (2.22 cents) (30(th) June 2019 - Basic earnings per share 2.36 cents)

Financial and Trading:

The first six months of 2020 were impacted by the suspension in operations at Caijiaying imposed by the Chinese authorities for a month in late January / February and subsequent travel restrictions with consequent difficulties in returning mining personnel to Caijiaying resulting in reduced stoping and delayed development work. Tonnes mined were down 23.4% in the first six months of 2020 compared with that achieved in the first six months of 2019 with a knock on effect on ore hauled and processed, with tonnes of ore processed down 25.2% on that achieved in the first six months of 2019. Profitability was further impacted by lower zinc prices received which were 18.0% less than that realised in the first six months of 2019. As a result of the foregoing, zinc metal in concentrate sales were down $10,151,000 on that recorded in the first six months of 2019 directly impacting profits. Gold production was also impacted by the suspension in operations and delays in accessing higher grade gold ore bodies.

In the six months to 30(th) June 2020, 323,536 tonnes (30(th) June 2019 - 432,592 tonnes) of ore were processed to produce:

   --    13,448 tonnes of zinc (30(th) June 2019 - 16,692 tonnes); 
   --    631 tonnes of lead (30(th) June 2019 - 494 tonnes); 
   --    110,832 ounces of silver (30(th) June 2019 - 141,306 ounces); and 
   --    2,418 ounces of gold (30(th) June 2019 - 9,099 ounces). 

Zinc revenues before royalties and resource taxes in the six months to 30(th) June 2020 were $17,008,000 (30(th) June 2019 - $27,159,000) with 13,046 tonnes of zinc metal in concentrate sold (30(th) June 2019 - 17,072 tonnes). Lead and precious metals revenues were $5,279,000 (30(th) June 2019 - $13,036,000) with less gold in concentrate sold.

During the six months to 30(th) June 2020:

   --    314,690 tonnes of ore were mined (30(th) June 2019 - 410,819 tonnes); 
   --    321,514 tonnes of ore were hauled (30(th) June 2019 - 426,070 tonnes); and 
   --    323,536 tonnes of ore were processed (30(th) June 2019 - 432,592 tonnes). 

Costs of sales (mining, haulage and processing costs) of $17,153,000 in the first six months of 2020 were down 24.3% on that incurred in the six months to 30(th) June 2019 of $23,336,000. This reflects reduced activity during the suspension in operations and subsequent travel restrictions imposed by the Chinese authorities, together with consequent cost control by management.

Net operating expenses (including those of the Caijiaying site) fell 27.6% from $9,955,000 in the first six months of 2019 to $7,204,000 in 2020. This includes fees to the Group's Chinese partners of $831,000 (2019 $1,820,000), equivalent to their minimum equity interest in Hebei Hua Ao's profits. Again the reduction in other operating expenses reflects reduced activity and cost control by management.

Losses per share were 2.22 cents (30(th) June 2019: Basic earnings 2.36 cents). At 30(th) June 2020, attributable net assets per share amounted to 121 cents (30(th) June 2019: 124 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, "On first glance, the first 6 month's results seem disappointing but a closer inspection reveals a solid result in the face of the COVID-19 shutdown in operations, the subsequent restrictions imposed by all relevant governments on travel to and from China and the continuing low zinc prices and higher treatment charges. All of these issues resulted in, most importantly, reduced tonnes mined meaning less metal produced, particularly gold. A slow first half of any year is not unusual for Griffin and we expect a stronger and more robust performance in the second half of 2020 as we return to a normal operating environment. It is superfluous to add, we eagerly await the issue of our new mining licence."

Further information

Griffin Mining Limited

   Mladen Ninkov - Chairman                            Telephone: +44(0)20 7629 7772 

Roger Goodwin - Finance Director

Numis Securities Limited

               Paul Gillam                                                      Telephone: +44(0)20 7260 1000 

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   31/12/2019 
                                             30/06/2020   30/06/2019      Audited 
                                              Unaudited    Unaudited 
                                                   $000         $000         $000 
 
Revenue                                          21,321       38,619       82,267 
 
Cost of sales                                  (17,153)     (22,671)     (48,609) 
 
 
Gross profit                                      4,168       15,948       33,568 
 
Net operating expenses                          (7,204)      (9,955)     (19,433) 
 
 
(Loss) / profit from operations                 (3,036)        5,993       14,225 
 
Losses on disposal of equipment                   (614)         (59)        (305) 
Impairment of intangible fixed assets               (1)            -      (1,985) 
Foreign exchange (losses) / gains                 (147)          (4)         (93) 
Finance income                                       45           82          171 
Finance costs                                     (149)        (122)        (377) 
Other income                                         76          386           76 
 
 
(Loss) / profit before tax                      (3,826)        6,276       11,712 
 
Income tax expense                                    -      (2,202)      (5,628) 
 
 
(Loss) / profit after tax                       (3,826)        4,074        6,084 
 
 
(Loss) / basic earnings per share (cents)        (2.22)         2.36         3.52 
                                            ===========  ===========  =========== 
 
(Loss) / diluted earnings per share 
 (cents)                                         (2.22)         2.17         3.24 
                                            ===========  ===========  =========== 
 

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

 
                                              6 months     6 months      Year to 
                                                    to           to   31/12/2019 
                                            30/06/2020   30/06/2019      Audited 
                                             Unaudited    Unaudited 
                                                  $000         $000         $000 
 
(Loss) / profit for the financial period       (3,826)        4,074        6,084 
                                           -----------  -----------  ----------- 
 
Other comprehensive income 
Prior period adjustment (note 6)                     -         (33)            - 
Exchange differences on translating 
 foreign operations                            (1,891)        (297)      (2,324) 
 
 
  Other comprehensive income for the 
  period, net of tax                           (1,891)        (330)      (2,324) 
                                           -----------  -----------  ----------- 
 
Total comprehensive (losses) / income 
 for the period                                (5,717)        3,744        3,760 
                                           ===========  ===========  =========== 
 
 

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

(expressed in thousands US dollars)

 
                                                   30/06/2020   30/06/2019   31/12/2019 
                                                    Unaudited    Unaudited      Audited 
                                                         $000         $000         $000 
 
ASSETS 
Non-current assets 
Property, plant and equipment                         225,898      219,937      228,287 
Intangible assets - exploration interests                 325        2,021          322 
                                                      226,223      221,958      228,609 
                                                  -----------  -----------  ----------- 
Current assets 
Inventories                                             3,896        3,793        3,839 
Receivables and other current assets                    2,275        3,959        1,861 
Cash and cash equivalents                              10,351       19,293       19,885 
                                                  -----------  -----------  ----------- 
                                                       16,522       27,045       25,585 
                                                  -----------  -----------  ----------- 
 
Total assets                                          242,745      249,003      254,194 
                                                  ===========  ===========  =========== 
 
EQUITY AND LIABILITIES 
Equity attributable to equity holders 
 of the parent 
Share capital                                           1,728        1,727        1,728 
Share premium                                          68,455       68,442       68,455 
Contributing surplus                                    3,690        3,690        3,690 
Share based payments                                    2,072        2,072        2,072 
Shares held in treasury                                 (917)        (917)        (917) 
Chinese statutory re-investment reserve                 2,463        2,382        2,500 
Other reserve on acquisition of non-controlling 
 interests                                           (29,346)     (29,346)     (29,346) 
Foreign exchange reserve                                (151)        3,734        1,703 
Profit and loss reserve                               161,233      163,202      165,059 
                                                  -----------  -----------  ----------- 
Total equity attributable to equity 
 holders of the parent                                209,227      214,986      214,944 
 
Non-current liabilities 
Long-term provisions                                    3,802        2,182        2,150 
Deferred taxation                                       2,691        2,389        2,731 
Finance leases                                              -          413          479 
                                                  -----------  -----------  ----------- 
                                                        6,493        4,984        5,360 
                                                  -----------  -----------  ----------- 
Current liabilities 
Trade and other payables                               25,311       28,469       31,769 
Finance leases                                          1,714          564        2,121 
Total liabilities                                      27,025       29,033       33,890 
                                                  -----------  -----------  ----------- 
 
Total equities and liabilities                        242,745      249,003      254,194 
                                                  ===========  ===========  =========== 
 
Number of shares in issue                         172,786,228  172,748,728  172,786,228 
 
Attributable net asset value / total 
 equity per share                                       $1.21        $1.24        $1.24 
 

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 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 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
Regulatory 
 transfer for 
 future 
 investment           -        -             -         -         -         153                -         -    (153)             - 
Issue of 
 shares on 
 exercise 
 of options           1       13             -         -         -           -                -         -        -            14 
Transaction 
 with owners          1       13             -         -         -         153                -              (153)            14 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
Retained 
 profit for 
 the 6 
 months               -        -             -         -         -           -                -         -    2,010         2,010 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -         -        (35)                -   (2,031)        -       (2,066) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
Total 
 comprehensive 
 income 
 for the 
 period               -        -             -         -         -        (35)                -   (2,031)    2,010          (56) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
At 31(st) 
 December 2019    1,728   68,455         3,690     2,072     (917)       2,500         (29,346)     1,703  165,059       214,944 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
 
Retained loss 
 for the 6 
 months               -        -             -         -         -           -                -         -  (3,826)       (3,826) 
Other 
comprehensive 
income: 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations           -        -             -         -         -        (37)                -   (1,854)        -       (1,891) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
Total 
 comprehensive 
 income 
 for the 
 period               -        -             -         -         -        (37)                -   (1,854)  (3,826)       (5,717) 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 
At 30(th) June 
 2020 
 (Unaudited)      1,728   68,455         3,690     2,072     (917)       2,463         (29,346)     (151)  161,233       209,227 
                -------  -------  ------------  --------  --------  ----------  ---------------  --------  -------  ------------ 
 

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

(expressed in thousands US dollars)

 
                                                   6 months     6 months      Year to 
                                                         to           to   31/12/2019 
                                                30/06/20+20   30/06/2019      Audited 
                                                  Unaudited    Unaudited 
                                                       $000         $000           $000 
Net cash flows from operating activities 
(Loss) / profit before taxation                     (3,826)        6,276       11,712 
Foreign exchange losses / (gains)                       147            4           93 
Finance income                                         (45)         (82)        (171) 
Finance costs                                           149          122          377 
Depreciation, depletion and amortisation              5,518        5,000       12,343 
Impairment of intangible assets                           1            -        1,985 
Losses on disposal of equipment                         614           59          305 
(Increase) / decrease in inventories                   (57)        1,157        1,112 
(Increase) / decrease in receivables 
 and other current assets                             (414)      (1,140)          959 
Increase / (decrease) in trade and other 
 payables                                           (2,762)        2,032        4,016 
Taxation paid                                       (3,584)      (9,469)     (11,092) 
                                               ------------  -----------  ----------- 
Net cash inflow from operating activities           (4,259)        3,959       21,639 
                                               ------------  -----------  ----------- 
 
Cash flows from investing activities 
Interest received                                        45           82          171 
Proceeds / (expenses) on disposal of 
 equipment                                             (34)            -            1 
Payments to acquire - mineral interests 
 (mine development)                                 (3,379)     (10,318)     (18,883) 
Payments to acquire - plant & equipment               (984)      (1,519)      (8,193) 
Payments to acquire - office equipment                  (4)            -         (69) 
Payments to acquire - intangible assets 
 - exploration interests                                (3)          (8)        (308) 
                                               ------------  -----------  ----------- 
Net cash (outflow) from investing activities        (4,359)     (11,763)     (27,281) 
                                               ------------  -----------  ----------- 
 
Cash flows from financing activities 
Issue of shares on exercise of share 
 purchase options                                         -            -           14 
Interest paid                                             -         (52)         (52) 
Finance lease advance                                     -            -           65 
Finance lease repayments                              (929)      (1,304)      (2,762) 
Net cash (outflow) from financing activities          (929)      (1,356)      (2,735) 
                                               ------------  -----------  ----------- 
 
(Decrease) / increase in cash and cash 
 equivalents                                        (9,547)      (9,160)      (8,377) 
 
Cash and cash equivalents at beginning 
 of the period                                       19,885       28,452       28,452 
Effects of exchange rate changes                         13            1        (190) 
                                               ------------  -----------  ----------- 
Cash and cash equivalents at end of the 
 period                                              10,351       19,293       19,885 
                                               ============  ===========  =========== 
 
Cash and cash equivalents comprise bank 
 deposits 
Bank deposits                                        10,351       19,293       18,885 
                                               ============  ===========  =========== 
 

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 2019.

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 2019 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 2019 statutory financial statements upon which the auditors' opinion is unqualified.

4. As detailed in the last annual financial statements for the year to 31(st) December 2019, the summary accounts have been prepared on a going concern basis. Having considered recent events, in particular the impact of Covid-19, the cash resources, banking facilities and forecasts regularly prepared, 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. There was no dilutive effect on the losses per share in the six months to 30(th) June 2020. 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 (loss) / earnings per share 
(Loss) 
 earnings 
 attributable 
 to ordinary 
 shareholders     3,826  172,728,728     (2.22)      4,074  172,748,728      2.36     6,084  172,748,831        3.52 
Dilutive effect of securities 
Options                                                  -   14,823,528    (0.19)             15,107,500      (0.28) 
               --------  -----------  ---------  ---------  -----------  --------  --------  -----------  ---------- 
Diluted 
 earnings 
 per share                                           4,074  187,572,256      2.17     6,084  187,856,331        3.24 
               ========  ===========  =========  =========  ===========  ========  ========  ===========  ========== 
 
 

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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