REG - Griffin Mining Ltd - UNAUDITED INTERIM RESULTS
12/09/2024 07:00
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RNS Number : 8299D Griffin Mining Limited 12 September 2024
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 (mailto:griffin@griffinmining.com)
12(th) September 2024
UNAUDITED INTERIM RESULTS
for the six months ended 30(th) 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 (30(th) June 2023: $69.5 million).
· Gross Profit of $38.5 million (30(th) June 2023: $21.7 million).
· Operating profit of $19.7 million (30(th) June 2023: $9.1 million).
· Profits before tax, depreciation, and interest of $34.1 million
(30(th) June 2023: $23.9 million).
· Profit before tax of $20.5 million (30(th) June 2023 $9.6 million).
· Profit after tax of $11.3 million (30(th) June 2023: profit $5.2
million).
· Basic earnings per share of 5.93 cents (30(th) June 2023: 2.77
cents).
· Cash inflow from operations $24.0 million (30(th) 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 ( 30(th) June 2023 - 28,095 tonnes);
- 731 tonnes of lead (30(th) June 2023 - 697 tonnes);
- 164,781 ounces of silver (30(th) June 2023 - 151,608 ounces); and
- 11,307 ounces of gold (30(th) 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 30(th) June 2024:
- 25,653 tonnes of zinc metal in concentrate were sold (30(th) June
2023: 28,939 tonnes);
- 11,257 ozs of gold in concentrate were sold (30(th) June 2023: 7,835
ozs);
- 162,202 ozs of silver in concentrate were sold (30(th) June 2023:
147,663 ozs); and
- 714 tonnes of lead in concentrate were sold (30(th) 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 30(th) June 2024 were $59,974,000 (30(th) June 2023: $55,443,000).
Lead and precious metals revenues were $30,476,000 (30(th) 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 (30(th) June 2023: $969,000) has been made in respect
of the Company's share incentive scheme and $2,954,000 (30(th) 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 30(th) June 2023 to $65,250,000 at 30(th)
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 (30(th) 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 (http://www.griffinmining.com/)
Griffin Mining Limited
Condensed Consolidated Income Statement
(expressed in thousands US dollars)
6 months to 6 months to Year to
30/06/2024 30/06/2023 31/12/2023
Unaudited Unaudited 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 6 months to Year to
30/06/2024 30/06/2023 31/12/2023
Unaudited Unaudited 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 held in re investment reserve on exchange and loss attributable
payments treasury reserve acquisition of reserve reserve to equity holders
non-controlling of parent
interests
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 31(st) 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 30(th) 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 31(st) 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 30(th) 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 6 months to Year to
30/06/24 30/06/2023 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 31(st) December 2023.
2. This interim report will be available on the Company's web site,
www.griffinmining.com (http://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 consolidated statement of financial
position at 31(st) 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 6 months to Year to
30/06/2024 30/06/2023 31/12/2023
Unaudited
Unaudited Audited
Earnings Weighted Per share amount Weighted Per share amount (cents) Earnings Weighted Per share amount (cents)
$000 average number of shares (cents) average number of shares $000 average number of shares
Earnings
$000
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 190,505,932 5.93 188,266,386 2.76
11,296 5,188 15,236 191,006,624 7.98
7. As at 30(th) June 2024 there were no adjusting post balance sheet
events.
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