NEWS

DIRECTORS SHARE DEALINGS

Griffin Mining Limited (“Griffin”) has today been advised that Mr Dal S Brynelsen a non-executive director of Griffin purchased 15,000 ordinary shares in Griffin at a price of 62 pence per share. Following this purchase Mr Dal S Brynelsen has an interest in 397,001 ordinary shares representing 0.2% of the issued share capital of Griffin.

For a copy of the announcement as a PDF download please click here.

TRANSACTION IN OWN SHARES

Griffin Mining Ltd (“the Company”) announces that it has today cancelled the 9,048,103 Ordinary Shares in the Company it purchased and held in treasury. Following the cancellation of these shares there are 169,983,727 ordinary shares in the Company in issue. No shares remain in treasury.

 

For a copy the announcement as a PDF download please click here.

Interim Statement for the six months ended 30th June 2017

Griffin Mining Limited (“Griffin” or “the Company”) has today released its unaudited results for the six months ended 30th June 2017.

Highlights:

  • Revenues of $52.3 million (2016: $20.8 million)
  • Operating profit of $23.5 million (2016: loss $1.8 million)
  • Profit before tax of $22.1 million (2016: loss $4.1 million)
  • Profit after tax of $15.8 million (2016: loss $4.1 million)
  • Basic earnings per share 8.85 cents (2016 loss per share 2.29 cents)

Financial and Trading:

The first six months of 2017 has seen a continued recovery in profitability from the first half of 2016 mainly from increased zinc metal in concentrate prices received and increased throughput and higher grades. Operations at Caijiaying were maintained with minimal disruption throughout the first half of 2017 following the connection of the new 35kv power line and commissioning of the new 750,000 tonnes per annum ball mill.

In the six months to 30th June 2017, 461,618 (2016: 365,337) tonnes of ore were processed to produce:

  • 19,553 tonnes of zinc (2016: 13,420 tonnes);
  • 719 tonnes of lead (2016: 705 tonnes);
  • 168,426 ounces of silver (2016: 120,953 ounces); and
  • 9,372 ounces of gold (2016: 3,553 ounces).

Zinc revenues before royalties and resource taxes in the six months to 30th June 2017 were $40,259,000 (2016; $15,798,000) with 19,336 tonnes (2016: 13,414 tonnes) of zinc metal in concentrate sold with an average price received after smelter charges of $2,082 per tonne up 90% on that received in 2016 of $1,090.  Lead and precious metals revenues were $14,485,000 (2016: $6,372,000) with more metal in concentrate sold.

During the six months to 30th June 2017:

  • 486,000 tonnes of ore were mined, up 139,811 (40.3%) on that mined in 2016 of 346,189 tonnes;
  • 466,020 tonnes of ore were hauled, up 159,958 (52.2%) on that hauled in 2016 of 306,062 tonnes; and
  • 461,618 tonnes of ore were processed, up 96,281 (26.3%) on that processed in 2016 of 365,337 tonnes.

Basic earnings per share were 8.85 cents (2016: losses 2.29 cents).  At 30th June 2017, attributable net assets per share amounted to 91 cents (2016: 75 cents).

In the six months to 30th June 2017 bank loans of $10,940,000 (2016: nil) were repaid.

Cash flows from operations are being directed to the repayment of bank loans.

The Company continues to await the grant of a new mining licence over the Zone II and adjacent areas at Caijiaying.  Development of the mine at Zone III continues.

With cash flows from operations directed to repaying Chinese banking facilities and in line with previous years’ practice of determining annual dividends at the time of the Company’s full year results, no interim dividend has been declared by the Board of Griffin.

 Chairman’s Statement

Chairman Mladen Ninkov commented, “I am sure shareholders, in conjunction with management, derive enormous satisfaction from the outstanding results for the first half of the 2017 financial year.   The result was due to a superb operational effort by all concerned with the Caijiaying mine which led to increased throughput and higher zinc grades in conjunction with the long awaited increase in the zinc price and lower smelter charges.  Needless to say, we fully expect, all things being equal, an equally as impressive second half of the year.  Most importantly, the priority of the Company remains the granting of the new mining licence over zone II at the Caijiaying mine which will only multiply the results achieved to date.  I sincerely hope that day will arrive in the not too distant future.”

 Further information

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

Dominic Morley

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

30/06/2017

Unaudited

6 months to

30/06/2016

Unaudited

Year to

31/12/2016

Audited

  $000 $000 $000
         
Revenue 52,332   20,818 66,270
 
Cost of sales (20,820)   (17,290) (37,851)
   
     
Gross profit  31,512   3,528 28,419
   
Net operating expenses (8,061) (5,354) (13,218)
 
   
Profit / (loss) from operations 23,451   (1,826) 15,201
     
Losses on disposal of equipment (16) (224)
Foreign exchange (losses) (104) (190) (532)
Finance income 63 80 178
Finance costs (1,401) (2,245) (4,286)
Other income 60 81 45
     
     
Profit / (loss) before tax 22,053   (4,100) 10,382
     
Income tax  expense (6,209)   (4,468)
     
     
Profit / (loss) after tax 15,844   (4,100) 5,914
     
     
Basic earnings / (loss) per share (cents) 8.85   (2.29) 3.30
     
Diluted earnings / (loss) per share (cents) 8.36   (2.29) 3.26

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

  6 months to

30/06/2017

Unaudited

6 months to

30/06/2016

Unaudited

Year to

31/12/2016

Audited

  $000 $000 $000
         
Profit / (loss) for the financial period 15,844   (4,100) 5,914
 
Other comprehensive income    
     
Exchange differences on translating foreign operations 3,854 (1,184) (3,299)
     
 

Other comprehensive income for the period, net of tax

 

3,854

   

(1,184)

 

(3,299)

     
Total comprehensive income for the period 19,698   (5,284) 2,615
       

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

 (expressed in thousands US dollars)

  30/06/2017   30/06/2016   31/12/2016
  Unaudited   Unaudited   Audited
  $000   $000   $000
         
ASSETS      
Non-current assets      
Property, plant and equipment 206,556   209,388   204,491
Intangible assets – Exploration interests 1,834   1,843   1,792
  208,390   211,231   206,283
Current assets      
Inventories 6,121   4,718   6,148
Other current assets 6,607   4,062   8,232
Cash and cash equivalents 15,752   18,313   13,218
  28,480   27,093   27,598
     
Total assets 236,870   238,324   233,881
       
EQUITY AND LIABILITIES      
Equity attributable to equity holders of the parent      
Share capital 1,790   1,790   1,790
Share premium 71,310 71,310 71,310
Contributing surplus 3,690 3,690 3,690
Share based payments 2,072 1,672 2,072
Shares held in treasury (4,105) (3,875) (3,875)
Chinese statutory re-investment reserve 1,621 1,558 1,583
Other reserve on acquisition of non-controlling interests (29,346) (29,346) (29,346)
Foreign exchange reserve 8,687 6,921 4,871
Profit and loss reserve 107,018 81,250 91,174
Total equity attributable to equity holders of the parent 162,737   134,970   143,269
       
Non-current liabilities      
Long-term provisions 2,332   2,376   2,277
Deferred taxation 2,670   2,568   2,607
Finance lease 3,479   5,670   3,791
  8,481   10,614   8,675
Current liabilities      
Taxation payable 2,826     2,549
Trade and other payables 26,142   28,654   31,917
Finance lease 1,995 2,420 2,783
Bank loans 34,689 61,666 44,688
Total liabilities 65,652 92,740 81,937
 
Total equities and liabilities 236,870 238,324 233,881
 
Number of shares in issue 179,041,830 179,041,830 179,041,830
 
Attributable net asset value / total equity per share $0.91 $0.75 $0.80

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 31 December 2015 1,790 71,310 3,690 1,363 (3,875) 1,595 (29,346) 8,068 85,350 139,945
Cost of share based payments 309 309
Transaction with owners 309 309
Retained profit for the 6 months (4,100) (4,100)
Other comprehensive income:
Exchange differences on translating foreign operations (37) (1,147) (1,184)
Total comprehensive income for the period (37) (1,147) (4,100) (5,284)
                     
At 30th June 2016 (Unaudited) 1,790 71,310 3,690 1,672 (3,875) 1,558 (29,346) 6,921 81,250 134,970
                     
Regulatory transfer for future investment 90 (90)
Cost of share based payments 400   400
Transaction with owners 400 90   (90) 400
                   
Retained profit for the 6 months 10,014 10,014
Other comprehensive income:                    
Exchange differences on translating foreign operations  

(65) (2,050) (2,115)
Total comprehensive income for the period (65) (2,050) 10,014 7,899
                     
At 31st December 2016 1,790 71,310 3,690 2,072 (3,875) 1,583 (29,346) 4,871 91,174 143,269
                     
Purchase of shares for treasury (230) (230)
Transaction with owners (230) (230)
                   
Retained profit for the 6 months 15,844 15,844
Other comprehensive income:                    
Exchange differences on translating foreign operations 38 3,816 3,854
Total comprehensive income for the period 38 3,816 15,844 19,698
                     
At 30th June 2017 (Unaudited) 1,790 71,310 3,690 2,072 (4,105) 1,621 (29,346) 8,687 107,018 162,737

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

 (expressed in thousands US dollars)

  6 months to

30/06/2017

Unaudited

6 months to

30/06/2016

Unaudited

Year to

31/12/2016

Audited

$000   $000   $000
Net cash flows from operating activities      
Profit / (loss) before taxation 22,053   (4,100)   10,382
Foreign exchange losses 104 190 532
Finance income (63) (80) (178)
Finance costs 1,401 2,245 4,286
Adjustment in respect of share based payments   309   709
Depreciation, depletion and amortisation 4,855   3,510   8,526
Losses on disposal of equipment 16     224
Decrease / (increase) in inventories 27   2,464   1,034
Decrease / (increase) in receivables and other current assets 1,602   (926)   (6,251)
(Decrease) / increase  in trade and other payables (3,807)   (326)   3,280
Taxation paid (5,932)     (641)
Net cash inflow from operating activities 20,256   3,286   21,903
     
Cash flows from investing activities      
Interest received 63   80   178
Payments to acquire – mineral interests (2,764)   (4,035)   (7,361)
Payments to acquire – plant & equipment (1,201)   (1,585)   (3,776)
Payments to acquire – office equipment (2) (102)
Payments to acquire – intangible assets – exploration interests 1   (17)   (43)
Net cash (outflow) from investing activities (3,903)   (5,557)   (11,104)
     
Cash flows from financing activities      
Purchase of shares for treasury (230)    
Interest paid (1,181)   (1,938)   (3,684)
Finance lease (1,463)   (1,469)   (2,935)
Repayment of bank loans (10,940)     (14,891)
Net cash (outflow) from financing activities (13,814)   (3,407)   (21,510)
       
Increase / (decrease) in cash and cash equivalents 2,539   (5,678)   (10,711)
     
Cash and cash equivalents at beginning of the period 13,218   24,062   24,062
Effects of exchange rate changes (5)   (71)   (133)
Cash and cash equivalents at end of the period 15,752   18,313   13,218
       
Cash and cash equivalents comprise bank deposits      
Bank deposits 15,752   18,313   13,218

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 December 2016.
  2. This interim report will be available on the Company’s web site, griffinmining.com. Hard copies are available from the Company’s London office, 8th Floor, Royal trust House, 54 Jermyn Street, London. SW1Y 6LX.
  1. 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 December 2016 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 2016 statutory financial statements upon which the auditors’ opinion is unqualified.
  1. The summary accounts have been prepared on a going concern basis. As at 30th June 2017, Hebei Hua Ao (a subsidiary of the Company) had bank loans outstanding of $34,689,000 (30th June 2016 $61,666,000).  Having previously rolled over each of the bank facilities and having made substantial repayments, Hebei Hua Ao expects to repay or roll over the existing facilities for a further 12 months.  Having considered the cash resources, banking facilities and forecasts for the remainder of the Hebei Hua Ao joint venture term, the directors do not expect any going concern issues to arise.
  2. 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. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:
  6 months to

30/06/2017

Unaudited

6 months to

30/06/2016

Unaudited

Year to

31/12/2016

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 earnings per share  
Earnings  attributable to ordinary shareholders  

 

 

15,844

179,091,830 8.85  

 

 

(4,100)

179,091,830 (2.29)  

 

 

5,914

 

 

 

179,091,830

 

 

 

3.3

Dilutive effect of securities
Options 10,311,861 (0.49) 2,248,862 (0.04)
Diluted earnings per share  

15,844

189,403,691 8.36  

(4,100)

179,091,830 (2.29)  

5,914

 

181,340,692

 

2.26

For a copy of the announcement as a PDF download please click here.

Transaction in Own Shares

Griffin Mining Ltd (“the Company”) announces that on 29th June 2017 it purchased a further 10,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 55.5p per Ordinary Share. The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these Ordinary Shares there will be 9,038,103 Ordinary Shares held in treasury.

The purchase represented 0.005% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download please click here. 

Transaction in Own Shares

Griffin Mining Ltd (“the Company”) announces that on Griffin Mining Ltd (“the Company”) announces that on 22nd June 2017 it purchased a further 50,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 51.4p per Ordinary Share.

The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these Ordinary Shares there will be 9,028,103 Ordinary Shares held in treasury.

The purchase represented 0.02% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download please click here. 

Transaction in Own shares

Griffin Mining Ltd (“the Company”) announces that on Griffin Mining Ltd (“the Company”) announces that on 16th June 2017 it purchased a further 25,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 51.0p per Ordinary Share.

The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these Ordinary Shares there will be 8,978,103 Ordinary Shares held in treasury.

The purchase represented 0.01% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download please click here. 

Transaction in Own Shares

Griffin Mining Ltd (“the Company”) announces that on 9th June 2017 it purchased a further 25,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 52.0p per Ordinary Share. The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these Ordinary Shares there will be 8,953,103 Ordinary Shares held in treasury.

The purchase represented 0.01% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download, please click here. 

Transaction in Own Shares

Griffin Mining Ltd (“the Company”) announces that on 16th May 2017 it purchased a further 100,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 51.375p per share. The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these shares there will be 8,928,103 shares held in treasury.

The purchase represented 0.06% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download please click here.

Transaction in Own Shares

Griffin Mining Ltd (“the Company”) announces that on 26th April 2017 it purchased a further 25,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 54.5p per share. The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these shares there will be 8,828,103 shares held in treasury.

The purchase represented 0.01% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download, please click here. 

Transaction in Own Shares

Griffin Mining Ltd (“the Company”) announces that on 26th April 2017 it purchased 100,000 of the Company’s own ordinary shares (“Ordinary Shares”) at a price of 56.0p per share. The Ordinary Shares have been purchased to be held in treasury. Following completion of the purchase of these shares there will be 8,803,103 shares held in treasury.

The purchase represented 0.06% of the Company’s issued share capital and was pursuant to the bye-laws of the Company and a resolution of the directors.

For a copy of the announcement as a PDF download, please click here.