8th 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
12th September 2024
UNAUDITED INTERIM RESULTS
for the six months ended 30th June 2024
Griffin Mining Limited ("Griffin" or the "Company") today releases its unaudited results for the six months ended 30th June 2024.
Highlights:
· Revenues of $85.7 million (30th June 2023: $69.5 million).
· Gross Profit of $38.5 million (30th June 2023: $21.7 million).
· Operating profit of $19.7 million (30th June 2023: $9.1 million).
· Profits before tax, depreciation, and interest of $34.1 million (30th June 2023: $23.9 million).
· Profit before tax of $20.5 million (30th June 2023 $9.6 million).
· Profit after tax of $11.3 million (30th June 2023: profit $5.2 million).
· Basic earnings per share of 5.93 cents (30th June 2023: 2.77 cents).
· Cash inflow from operations $24.0 million (30th June 2023 $21.4 million).
Financial and Trading:
Mining, haulage and processing rates of circa 1.5 million tonnes of ore per annum have been maintained in the first half of 2024 with 764,682 tonnes of ore mined and 736,010 tonnes of ore processed to produce:
- 26,202 tonnes of zinc ( 30th June 2023 - 28,095 tonnes);
- 731 tonnes of lead (30th June 2023 - 697 tonnes);
- 164,781 ounces of silver (30th June 2023 - 151,608 ounces); and
- 11,307 ounces of gold (30th June 2023 - 7,980 ounces).
Whilst the average zinc ore grade declined from 3.98% in the first half of 2023 to 3.76% in the first half of 2024, the gold grade improved from 0.53g/t in the first half 2023 to 0.73g/t in the first half of 2024, enabling Griffin to benefit from higher gold prices. Likewise the silver grade increased from 14.0g/t in the first half of 2023 to 14.8g/t in the first half of 2024. Zinc recoveries were marginally down on that in the first half of 2023 whilst gold and silver recoveries improved on that in the first half of 2023.
During the six months to 30th June 2024:
- 25,653 tonnes of zinc metal in concentrate were sold (30th June 2023: 28,939 tonnes);
- 11,257 ozs of gold in concentrate were sold (30th June 2023: 7,835 ozs);
- 162,202 ozs of silver in concentrate were sold (30th June 2023: 147,663 ozs); and
- 714 tonnes of lead in concentrate were sold (30th June 2023 : 670 tonnes).
Turnover increased by 23.3% from $69,518,000 in the first half of 2023 to $85,746,000 in the first half of 2024, with Griffin benefiting from higher metal prices received and increased gold and silver in concentrate production. Zinc revenues before royalties and resource taxes in the six months to 30th June 2024 were $59,974,000 (30th June 2023: $55,443,000). Lead and precious metals revenues were $30,476,000 (30th June 2023: $18,179,000).
Average metal prices received in the first half year were:
| | 30th June |
| 30th June |
| | 2024 |
| 2023 |
| | $ |
| $ |
| Zinc per tonne | 2,338 |
| 1,916 |
| Gold per oz | 2,183 |
| 1,851 |
| Silver per oz | 23.5 |
| 19.3 |
| Lead per tonne | 2,904 |
| 2,276 |
Costs of sales (mining, haulage and processing costs) decreased by 1% in the first half of 2024 from that in the first half of 2023, despite a 5.8% increase in ore mined and a marginal decrease in ore processed from that in the first six months of 2023.
Administration costs, excluding the Chinese partners interests and share based incentive charges, increased by 37.0% from $9,999,000 in the first half of 2023 to $13,701,000 in the first half of 2024. This primarily reflects bonuses to personnel on achieving throughput of 1.5 million tonnes per annum. A charge of $2,149,000 (30th June 2023: $969,000) has been made in respect of the Company's share incentive scheme and $2,954,000 (30th June 2023: $1,677,000) has been provided for the Chinese partners service fees based upon Hebei Hua Ao's profits.
Griffin benefited from an increase in interest received from $565,000 in the first half of 2023 to $826,000 in the first half of 2024, reflecting a rise in bank deposits from $46,887,000 at 30th June 2023 to $65,250,000 at 30th June 2024, despite $11,656,000 expended on share buy backs in that period. Mine development and other capital expenditure of $10,628,000 was incurred in the first half of 2024 (30th June 2023: $9,534,000) primarily on the ongoing development of the Zone II area at Caijiaying expected to bought into production in 2025.
The tax charge of $9,177,000 is disproportionally large compared with pre-tax profits of $20,473,000 as the tax charge primarily arises on Hebei Hua Ao's profit determined under Chinese Generally accepted Accounting Principles ("GAAP") in the first half of the year, at a rate of 25%. Accordingly, the share incentive scheme charge and certain other costs incurred outside China are not tax deductible.
Chairman's Statement
Chairman Mladen Ninkov commented, "In what's becoming a well worn cliché, this is yet another outstanding operational and financial performance by the Company and it's Caijiaying Mine. With Operating Profit up 116%, Profit Before Tax up 114% and Profit After Tax up 117% on the same 6 month period from last year, all with a balance sheet without any debt, I couldn't be prouder of the Company's management, employees, contractors and other stakeholders. My heartfelt thanks goes out to all of them."
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Panmure Liberum Limited - Nominated Adviser & Joint Broker Telephone: +44 (0)20 7886 2500
James Sinclair-Ford
Kieron Hodgson
Dougie McLeod
Berenberg - Joint Broker Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Lee
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 to 30/06/2024 Unaudited | | 6 months to 30/06/2023 Unaudited | | Year to 31/12/2023 Audited |
|
| $000 | | $000 | | $000 |
|
|
|
| |
|
|
| Revenue | 85,746 |
| 69,518 | | 146,023 |
| |
| | | | |
| Cost of sales | (47,288) |
| (47,779) | | (94,181) |
| |
|
| | | |
|
|
|
| | | |
| Gross profit | 38,458 |
| 21,739 | | 51,842 |
| |
|
| | | |
| Administration expenses | (18,804) | | (12,645) | | (28,005) |
| |
| | | | |
| |
| | | | |
| Profit from operations | 19,654 |
| 9,094 | | 23,837 |
|
|
|
| | | |
| Losses on disposal of equipment | (82) | | (63) | | (784) |
| Foreign exchange (losses) | (40) | | (25) | | (136) |
| Finance income | 826 | | 565 | | 1,394 |
| Finance costs | (73) | | (85) | | (177) |
| Other income | 188 | | 126 | | 352 |
|
|
|
| | | |
|
|
|
| | | |
| Profit before tax | 20,473 |
| 9,612 | | 24,486 |
|
|
|
| | | |
| Income tax expense | (9,177) |
| (4,424) | | (9,250) |
|
|
|
| | | |
|
|
|
| | | |
| Profit for the period | 11,296 |
| 5,188 | | 15,236 |
|
|
|
| | | |
|
|
|
| | | |
| Basic earnings per share (cents) | 5.93 |
| 2.77 | | 8.03 |
|
|
|
| | | |
| Diluted earnings per share (cents) | 5.93 |
| 2.76 | | 7.98 |
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
|
| 6 months to 30/06/2024 Unaudited | | 6 months to 30/06/2023 Unaudited | | Year to 31/12/2023 Audited |
|
| $000 | | $000 | | $000 |
|
|
|
| |
|
|
| Profit for the financial period | 11,296 |
| 5,188 | | 15,236 |
| |
| | | | |
| Other comprehensive income / (expense) that will be reclassified to profit or loss |
|
| | | |
| |
| | | | |
| Exchange differences on translating foreign operations | 422 | | (5,865) | | (2,912) |
|
|
|
| | | |
|
Other comprehensive income / (expense) for the period, net of tax |
422 |
|
(5,865) | |
(2,912) |
|
|
|
| | | |
| Total comprehensive income / (losses) for the period | 11,718 |
| (677) | | (12,324) |
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
|
| 30/06/2024 |
| 30/06/2023 |
| 31/12/2023 |
|
| Unaudited |
| Unaudited |
| Audited |
|
| $000 |
| $000 |
| $000 |
|
|
|
| |
|
|
| ASSETS |
|
| |
| |
| Non-current assets |
|
| |
| |
| Property, plant and equipment | 245,258 |
| 245,632 |
| 250,370 |
| Intangible assets - exploration interests | 600 |
| 532 |
| 575 |
| Other non-current assets | 1,471 |
| 1,613 |
| 1,554 |
|
| 247,329 |
| 247,777 |
| 252,499 |
| Current assets |
|
| |
| |
| Inventories | 7,862 |
| 5,530 |
| 5,828 |
| Receivables and other current assets | 3,984 |
| 2,957 |
| 2,886 |
| Cash and cash equivalents | 65,250 |
| 46,887 |
| 60,007 |
|
| 77,096 |
| 55,374 |
| 68,721 |
| |
|
| |
| |
| Total assets | 324,425 |
| 303,151 |
| 321,220 |
|
|
|
| |
| |
| EQUITY AND LIABILITIES |
|
| |
| |
| Equity attributable to equity holders of the parent |
|
| |
| |
| Share capital | 1,845 |
| 1,928 |
| 1,928 |
| Share premium | 67,318 | | 78,550 | | 78,550 |
| Contributing surplus | 3,690 | | 3,690 | | 3,690 |
| Share based payments | 5,090 | | 1,059 | | 3,109 |
| Shares held in treasury | (1,157) | | (1,644) | | (2,017) |
| Chinese statutory re-investment reserve | 3,507 | | 3,091 | | 3,529 |
| Other reserve on acquisition of non-controlling interests | (29,346) | | (29,346) | | (29,346) |
| Foreign exchange reserve | (3,036) | | (6,375) | | (3,480) |
| Profit and loss reserve | 225,253 | | 204,121 | | 213,789 |
| Total equity attributable to equity holders of the parent | 273,164 |
| 255,074 |
| 269,752 |
|
|
|
| |
| |
| Non-current liabilities |
|
| |
| |
| Other payables | 3,087 |
| 9,134 |
| 3,106 |
| Long-term provisions | 3,961 |
| 2,594 |
| 3,929 |
| Deferred taxation | - |
| 1,160 |
| - |
| Finance leases | 519 |
| 628 |
| 570 |
|
| 7,567 |
| 13,516 |
| 7,605 |
| Current liabilities |
|
| |
| |
| Trade and other payables | 36,530 |
| 32,048 |
| 38,308 |
| Lease liabilities | 158 | | 167 | | 169 |
| Business taxation payable | 7,006 | | 2,346 | | 5,386 |
Total current liabilities | 43,694 | | 34,561 | | 43,863 |
| |
| | | | |
| Total equities and liabilities | 324,425 | | 303,151 | | 321,220 |
| |
| | | | |
| Number of shares in issue | 184,530,477 | | 192,828,420 | | 192,828,420 |
| |
| | | | |
Attributable net asset value / total equity per share | $1.48 | | $1.32 | | $1.40 |
| |
| | | | |
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 payments | held in treasury | re investment reserve | reserve on acquisition of non-controlling interests | exchange reserve | and loss reserve | attributable to equity holders of parent |
| | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 |
| At 31st December 2022 | 1,749 | 69,334 | 3,690 | 168 | (1,644) | 2,992 | (29,346) | (618) | 199,140 | 245,465 |
|
| | | | | | | | | | |
| Issue of shares on cancellation of share options | 101 | 9,216 | - | - | - | - | - | - | - | 9,317 |
| Issue of shares under share incentive scheme | 78 | - | - | 891 | - | - | - | - | - | 7,084 |
| Regulatory transfer for future investment | - | - | - | - | - | 207 | - | - | (207) | - |
| Transaction with owners | 179 | 9,216 | - | 891 | - | 207 | - | - | (207) | 16,401 |
| | | | | | | | | | | |
| Retained profit for the 6 months | - | - | - | - | - | - | - | - | 5,188 | 5,188 |
| Other comprehensive income: | | 67,318 | | | | | | | | |
| Exchange differences on translating foreign operations | - | - | - | - | - | (108) | - | (5,757) | - | (5,865) |
| Total comprehensive income for the period | - | - | - | - | - | (108) | - | (5,757) | 5,188 | (677) |
| | | | | | | | | | | |
| At 30th June 2023 (Unaudited) | 1,928 | 78,550 | 3,690 | 1,059 | (1,644) | 3,091 | (29,346) | (6,375) | 204,121 | 255,074 |
| | | | | | | | | | | |
| Share based payments | - | - | - | 2,050 | - | - | - | - | - | 2,050 |
| Purchase of shares for treasury | - | - | - | - | (373) | - | - | - | - | (373) |
| Regulatory transfer for future investment | - | - | - | - | - | 380 | - | - | (380) | - |
| Transaction with owners | - | - | - | 2,050 | (373) | 380 | - | - | (380) | 1,677 |
| | | | | | | | | | | |
| Retained profit for the 6 months | - | - | - | - | - | - | - | - | 10,048 | 10,048 |
| Other comprehensive income: | | | | | | | | | | |
| Exchange differences on translating foreign operations | - | - | - | - | - | 58 | - | 2,895 | - | 2,953 |
| Total comprehensive income for the period | - | - | - | - | - | 58 | - | 2,895 | 10,048 | 13,001 |
|
|
|
|
|
|
|
|
|
|
|
|
| At 31st December 2023 | 1,928 | 78,550 | 3,690 | 3,109 | (2.017) | 3,529 | (29,346) | (3,480) | 213,789 | 269,752 |
| | | | | | | | | | | |
| Issue of shares on exercise of options | 20 | 808 | - | - | - | - | - | - | - | 828 |
| Transfer on exercise of options | - | - | - | (168) | - | - | - | - | 168 | - |
| Share based payments | - | - | - | 2,149 | - | - | - | - | - | 2,148 |
| Purchase of shares for treasury | - | - | - | | (11,283) | - | - | - | - | (11,283) |
| Cancellation of shares | (103) | (12,040) | - | | 12,143 | - | - | - | - | - |
| Transaction with owners | (83) | (11,232) | - | 1,981 | 860 | - | - | - | 168 | (8,306) |
| | | | | | | | | | | |
| Retained profit for the 6 months | - | - | - | - | - | - | - | - | 11,296 | 11,296 |
| Other comprehensive income: | | | | | | | | | | |
| Exchange differences on translating foreign operations | - | - | - | - | - | (22) | - | 444 | - | 422 |
| Total comprehensive income for the period | - | - | - | - | - | (22) | - | 444 | 11,296 | 11,718 |
|
|
|
|
|
|
|
|
|
|
|
|
| At 30th June 2024 (Unaudited) | 1,845 | 67,318 | 3,690 | 5,090 | (1,157) | 3,507 | (29,346) | (3,036) | 225,253 | 273,164 |
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
|
| 6 months to 30/06/24 | | 6 months to 30/06/2023 | | Year to 31/12/2023 |
|
| | $000 |
| $000 |
| $000 | |
| Net cash flows from operating activities |
|
| |
| |
|
| Profit before taxation | 20,473 |
| 9,612 |
| 24,486 |
|
| Issue of shares under share incentive scheme | 2,149 | | 969 | | 3,019 |
|
| Foreign exchange losses | 40 | | 25 | | 136 |
|
| Finance income | (826) | | (565) | | (1,394) |
|
| Finance costs | 73 | | 84 | | 177 |
|
| Depreciation, depletion and amortisation | 14,487 |
| 14,845 |
| 28,026 |
|
| Losses on disposal of equipment | 82 |
| 63 |
| 784 |
|
| Decrease / (increase) in inventories | (2,033) |
| 2,547 |
| 2,249 |
|
| Decrease / (increase) in receivables and other assets | (1,098) |
| 477 |
| 547 |
|
| (Decrease) in trade and other payables | (1,778) |
| (385) |
| (415) |
|
| Taxation paid | (7,557) |
| (6,245) |
| (9,238) |
|
| Net cash inflow from operating activities | 24,012 |
| 21,427 |
| 48,377 |
|
| |
|
| |
| |
|
Cash flows from investing activities |
|
| |
| |
|
| Interest received | 826 |
| 565 |
| 1,394 |
|
| Proceeds / (costs) on disposal of equipment | 8 |
| 168 |
| (263) |
|
| Payments to acquire - mineral interests and mine development | (8,838) |
| (4,539) |
| (16,792) |
|
| Payments to acquire - property, plant & equipment | (1,790) |
| (4,995) |
| (6,056) |
|
| Payments to acquire - office lease, furniture and equipment | - |
| 0 |
| - |
|
| Payments to acquire - intangible assets - exploration interests | (25) |
| (125) |
| (168) |
|
| Net cash (outflow) from investing activities | (9,819) |
| (8,926) |
| (21,885) |
|
| |
|
| |
| |
|
| Cash flows from financing activities |
|
| |
| |
|
| Issue of shares on exercise of options | 828 |
| - |
| - |
|
| Interest paid | - |
| (21) |
| (27) |
|
| Purchase of shares for treasury / cancellation | (11,283) |
| - |
| (373) |
|
| Bank loan advances | - |
| 4,228 |
| 4,271 |
|
| Repayment of bank loans | - |
| (4,228) |
| (4,271) |
|
| Lease repayments including interest | (80) |
| (78) |
| (155) |
|
| Net cash (outflow) from financing activities | (10,535) |
| (99) |
| (555) |
|
|
|
|
| |
| |
|
| Increase in cash and cash equivalents | 3,658 |
| 12,402 |
| 25,937 |
|
| |
|
| |
| |
|
| Cash and cash equivalents at beginning of the period | 60,007 |
| 34,138 |
| 34,138 |
|
| Effects of exchange rate changes | 1,585 |
| 347 |
| (68) |
|
| Cash and cash equivalents at end of the period | 65,250 |
| 46,887 |
| 60,007 |
|
|
|
|
| |
| |
|
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 31st December 2023.
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, 8th 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 consolidated statement of financial position at 31st December 2023 and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and the consolidated cash flow statement for the year then ended have been extracted from the Group's 2023 statutory financial statements upon which the auditors' opinion is unqualified, and should be read in conjunction with the accompanying notes contained therein.
4. The summary accounts have been prepared on a going concern basis. Whilst it is difficult to accurately predict future profitability and liquidity, particularly regarding the impact of metal prices, the directors consider that at current metal prices and with the benefit of existing cash resources and agreed banking facilities the Group can continue as a going concern for the foreseeable future without the need to curtail operations.and that the Group will be able to meet its liabilities as they fall due.
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.
6. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:
|
| 6 months to 30/06/2024 Unaudited | 6 months to 30/06/2023 Unaudited | Year to 31/12/2023 Audited | ||||||||
| | Earnings $000 | Weighted average number of shares | Per share amount (cents) |
Earnings $000 | Weighted average number of shares | Per share amount (cents) | Earnings $000 | Weighted average number of shares | Per share amount (cents) | ||
| Basic (loss) / earnings per share |
| | |||||||||
| Earnings attributable to ordinary shareholders | 11,296 | 190,505,932 | 5.93 | 5,188 | 187,039,932 | 2.77 |
15,236 |
189,771,884 |
8.03 | ||
| Dilutive effect of securities | | | |
| |||||||
| Options | - | - | - | - | 1,226,454 | (0.1) | - | 1,234,740 | (0.05) | ||
| Diluted earnings per share |
11,296 | 190,505,932 | 5.93 |
5,188 | 188,266,386 | 2.76 |
15,236 |
191,006,624 |
7.98 | ||
7. As at 30th June 2024 there were no adjusting post balance sheet events.
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