LON:GFM | Griffin - General Discussion

28th Oct '09 by renj86

1 comment 4560 reads

Griffin Mining Limited is a mining and investment company.
Its principal asset is the first new foreign owned and operated mine and processing plant in China at Caijiaying, which mined 433,000 tonnes of ore in 2008, producing c. 24,000 tonnes of zinc concentrate (together with smaller amounts of gold, silver and lead).
The Caijiaying zinc-gold mine enjoys great benefits from transportation as it’s closely located to the northeast of Beijing, in Hebei province.

http://www.griffinmining.com/pdf/gm_presentation_agm_2009.pdf

http://www.griffinmining.com/gm_pres2_flash.asp

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Renj86

Premium Member

1 comment

renj86

28th Oct '09

Hi, I have just put up an article on Griffin here - http://www.stockopedia.com/article/view/32799/griffin-an-unusual-company-but-a-potential-value-play

Overall conclusion:

Griffin is a difficult stock to get to the bottom of. Prudent investors are unlikely to be satisfied by the thin amounts available on the website or recent public announcements. The financial statements are rather skimpy, operational updates seem to be few and far between and private investors are crying out for a detailed trading update giving a sense for total ore mined in Q3 and the mix of metals.

Sceptics interpret the recent shutdown negatively and see Hebei Hua’Ao as a marginal mine offering little more than a leveraged play on zinc. However, on closer inspection, the market seems to rightly perceive than there’s more to the stock than this. And that’s not just the fact that its current share price of 37p (£67.2m mkt cap) is backed by almost 22p of cash. Some more visibility on current trading post the shutdown would certainly be welcome. However, given confirmation of the positive trend, investing in Griffin for the medium term looks like an interesting value play given the potential growth driven by underlying Chinese commodity demand.

As Betasurfer points out, subsequent to my article, there's also been some positive newsflow yesterday on both the 1300 license and some more operational colour on Q3: http://www.stockopedia.com/news/announcement/GFM/091027gfm000866.htm/Griffin+Mining+Ld+Mining+Licence+Application+Accepted

Thoughts welcome.

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Griffin - General Discussion

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Renj86

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