UNAUDITED INTERIM RESULTS
for the six months ended 30th June 2021
Griffin Mining Limited (“Griffin” or “the Company”) has today released its unaudited results for the six months ended 30th June 2021.
- Revenues of $54.1 million (30th June 2020: $21.3 million), an increase of 154%.
- Gross Profit of $25.7 million (30th June 2020: $4.2 million), an increase of 512%.
- Profit before tax of $15.5 million (30th June 2020: Loss $3.0 million).
- Profit after tax of $10.3 million (30th June 2020: Loss $3.8 million).
- Basic earnings per share of 5.88 cents (30th June 2020: Basic loss per share 2.22 cents).
Financial and Trading:
The results for the six months to 30th June 2021 reflect a step up in production following final PFA approval for previous development work at Zone III of the Caijiaying mine in late 2020, enabling increased mining rates. Mining and processing rates have now reached the equivalent of over a million tonnes of ore per annum without the benefit of ore from the Zone II area at Caijiaying expected in 2022.
As in previous years, the 2021 first half year results were impacted by the Chinese New Year holidays in February in comparison to the 2020 first half year results which were also affected by the suspension in operations at Caijiaying imposed by the Chinese authorities to contain the Covid-19 pandemic.
Ore tonnes mined in the first half of 2021 were up 47% on that mined in the first half of 2020 and tonnes processed in the first half of 2021 were up 47.1% on that achieved in the first half of 2020. Zinc metal in concentrate produced was up 47.8% on that achieved in the first half of 2020. Gold in concentrate production was up 213.6% on that produced in the first half of 2020 and silver in concentrate production was up 30.6% on that produced in the first half of 2020.
With 475,785 tonnes (30th June 2020: 323,536 tonnes) of ore processed, metal in concentrate production in the first six months of 2021 was:
- 19,876 tonnes of zinc ( 30th June 2020: 13,448 tonnes);
- 561 tonnes of lead (30th June 2020: 631 tonnes);
- 144,705 ounces of silver (30th June 2020: 110,832 ounces); and
- 7,584 ounces of gold (30th June 2020: 2,418 ounces).
The results benefited from a significant improvement in the market price for zinc and lower smelter treatment charges from that in the first half of 2020, with the average price received for zinc metal in concentrate increasing by 69.4% from $1,304 per tonne in the first six months of 2020 to $2,209 per tonne in the first half of 2021. Zinc revenues before royalties and resource taxes in the six months to 30th June 2021 were $42,102,000 (30th June 2020: $17,008,000) with 19,062 tonnes of zinc metal in concentrate sold (30th June 2020: 13,046 tonnes). Precious metals and lead revenues were $15,136,000 (30th June 2020: $5,279,000).
During the six months to 30th June 2021:
- 462,632 tonnes of ore were mined (30th June 2020: 314,690 tonnes);
- 471,423 tonnes of ore were hauled (30th June 2020: 321,514 tonnes); and
- 475,785 tonnes of ore were processed (30th June 2020: 323,536 tonnes).
Costs of sales (mining, haulage and processing) of $28,401,000 increased by 65.6% from that in the first six months of 2020 of $17,153,000 reflecting increased tonnes of ore mined, hauled and processed albeit with increased unit costs as mining accesses the deeper levels of the mine.
Net operating expenses (administration costs, including those of the Caijiaying site and the Chinese joint venture partners profit share) increased by 41.7% from $7,204,000 in the first six months of 2020 to $10,209,000 in the first six months of 2021. This reflects the resumption in activities from Covid-19 induced restrictions in 2020 and a 7.6% increase in the value of the Renminbi.
Basic earnings per share were 5.88 cents (30th June 2020: loss of 2.22 cents per share). At 30th June 2021, attributable net assets per share amounted to 141 cents (30th June 2020: 121 cents).
Cash flows from operations in the period of $16,818,000 (30th June 2020 used in operations $4,259,000) have been directed to the further development of the Caijiaying Mine. 359,799 shares in the Company were bought in to treasury at a cost of $672,000 in the six months to 30th June 2021 (30th June 2020: nil). The Griffin Mining Group of companies remains free of any bank loans.
Chairman Mladen Ninkov commented, “This is an extraordinary 2021 half year result, already surpassing the full year financial results for 2020. It is a credit to the continuing team effort of the people at the mine site, office and board table. If all things remain equal, and assuming the zinc and gold prices hold firm or rise further, 2021 should prove to be an outstanding year for the Company. I would, however, caution that events can quickly turn in the current environment with the current Covid-19 coronavirus again having broken out in multiple Chinese provinces, the lack of any government announcement concerning the Winter Olympic Games and how that will impact Provincial borders and transport of workers, explosives, re-agents and other critical supplies and the ongoing diplomatic tensions between China, the US, the UK, Canada and Australia.”
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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
Berenberg Telephone: +44(0)20 3207 7800
Tim Blythe Telephone: +44(0)20 7138 3205
Swiss Resource Capital AG
Jochen Staiger Telephone: +41(0)71 354 8501
To read the full Interim Statement, please click here.