NEWS

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. 

 

Annual General Meeting

Notice of the Annual General Meeting of Griffin Mining Ltd (“the Company”) to be held at 11.00 am (local time) on Friday 23rd June 2017 at Clarendon House, 2 Church Street, Hamilton, HM 11, Bermuda, has been sent to shareholders together with the annual report and accounts for 2016 and are available, on the Company’s web site www.griffinmining.com.

The notice is available as a PDF download, please click here.

Preliminary Announcement of Results for 2016

PRELIMINARY RESULTS

 

Griffin Mining Limited (“Griffin” or the “Company”) has today published its preliminary results for the year ended 31st December 2016. Griffin and its subsidiaries (together the “Group”) recorded:

  • Revenues of $66,270,000 in 2016 (2015 $59,779,000);
  • Operating profit of $15,201,000 in 2016 (2015 $4,301,000);
  • Profit before tax of $10,382,000 in 2016 (2015 loss $940,000); and
  • Profit after tax of $5,914,000 in 2016 (2015 Loss $2,186,000)

Although record throughput was achieved in 2016, lower zinc, lead and silver head grades caused by restricted mine access following the suspension in mining operations, resulted in lower zinc, lead and silver in concentrate being produced and sold than in 2015. However, gold in concentrate production was up 22.1% on 2015 to a record 12,654 ozs.

Metal in concentrate prices received were significantly higher in 2016 than in 2015 with zinc metal in concentrate prices received of $1,520 per tonne up 27.6% on that received in 2015 of $1,191; silver of $13.25 per oz was up 10.9% from that received in 2015 of $11.95; and gold of $1,154 per oz up 10.6% on that received in 2015 of $1,043. This reflects higher market prices and a tightening of concentrate supply in China.

In summary, metal in concentrate sales in 2016 were:

  • 31,864 tonnes zinc compared with 38,514 tonnes in 2015;
  • 1,439 tonnes lead compared with 1,800 tonnes in 2015;
  • 310,611 ozs silver compared with 346,711 ozs in 2015; and
  • 12,654 ozs gold compared with 10,406 ozs in 2015.

Cost of sales of $37,851,000 in 2016 was down on that incurred in 2015 of $42,948,000. This reflects some economies of scale following the installation of the new ball mill and non productive costs during the suspension in mining in 2015.

874,983 tonnes of ore were processed in 2016 up 35,270 tonnes (4.2%) from 2015 of 839,713 tonnes. Despite this increase in throughput processing costs fell by 5.8% in 2016 with costs per tonne of ore processed down by 9.6%.

817,506 tonnes of ore were mined in 2016 up 245,691 (43.0%) from 2015 of 571,815. Mining costs rose 4.8% which with increased tonnage resulted in significantly lower costs per tonne of ore mined. Much of this reduction in costs may be attributed to non productive mine service costs during the suspension in mining activities in the later part of 2015 with no ore extracted.

817,506 tonnes of ore were hauled in 2016 up 220,445 (36.9%) from 2015 of 597,061. Haulage costs rose 26.5% which again with increased tonnage resulted in significantly lower costs per tonne of ore hauled. Much of this cost reduction reflects shorter distances hauled from higher mine levels.

Administration expenses (including those of the Caijiaying site) have risen 5.5% from $12,530,000 in 2015 to $13,218,000 in 2016. Underlying administration costs have fallen 12.5% with lower share based option charges, a fall in the value of the Renminbi and other cost savings. However, service fees to Guoxin based upon on Hebei Hua Ao’s profits have increased from a credit of $307,000 in 2015 to a charge of $1,983,000 in 2016.

With a return to profitability, bank loans are being repaid as quickly as possible resulting in finance charges falling from $5,084,000 in 2015 to $4,286,000 in 2016.

A fall in the value of the Chinese Renminbi and British Pound in 2016, caused foreign exchange losses of $532,000 (2015 $447,000) to be incurred.

Losses on the disposal of plant and equipment of $224,000 were recorded in 2016 compared to $48,000 in 2015.

Income taxes of $4,468,000 (2015 $1,246,000) have been charged in 2016. This includes a deferred taxation provision of $151,000 (2015 $813,000) and a charge of $573,000 in respect of deductions made in prior years since disallowed by the Chinese tax authorities.

Basic earnings per share in 2016 was 3.30 cents (2015 loss 1.22 cents) and diluted earnings per share was 3.26 cents (2015 loss 1.22 cents).

Bank loans of $14,891,000 were repaid in 2016 (2015 $3,171,000 drawn down) whilst cash and cash equivalents fell by $10,711,000 in 2016 (2015 reduction $1,520,000) with:

  • Net cash inflow from operating activities in 2016 of $21,903,000 (2015 $25,165,000); and
  • $11,104,000 invested in mine development and plant upgrades in 2016, (2015 $16,044,000).

Attributable net assets per share at 31st December 2016 was 80 cents ( 2015 78 cents).

With cash flows from operations directed to repaying banking facilities the directors do not recommend the payment of a dividend at this time.

 

Chairman’s Statement:

2016 was a year when the aberration of our first loss in a decade in 2015 was cast aside and profitability was restored.

Financially, the Company made an operating profit of $15.2 million, profit before tax of $10.4 million and after profit tax of almost $6 million. Operationally, a record number of tonnes were mined and processed whilst cost of sales fell significantly, even though only low grade ore could be processed via stockpiles during the cessation of mining activity and, upon recommencement of mining, only from residual low grade ore in the higher mine levels. Notably, gold production reached a new record high of 12,654 ounces in concentrate.

Further good news included the completion of the upgrade on the 28th January 2016 to the mine and processing facilities to a 1.5 million tonne throughput capacity, the addition of a second 35,000 volt grid power line to site, a new safety permit over the lower levels of Zone III and the continuing drive to improve efficiencies with the commissioning of a new, electro hydraulic longhole drill rig.

Non-operationally, almost $15 million of debt was repaid in 2016. And although I believe share price is a very poor indicator of a Company’s value and performance, it is pleasing to see that the share price has increased over 115% in the past 12 months.

Critically, the fundamental outlook for zinc continues to improve. According to the International Lead and Zinc Study Group, the zinc market continues to register a supply deficit, short 268,000 tonnes in 2016 and, in January 2017, already short 27,000 tonnes with storage at the London Metal Exchange declining 31,000 tonnes. This is being reflected in lower smelter charges and a higher overall zinc price.

Most pleasing, on the 14th December 2016 and in the presence of the Australian Ambassador to China and senior officials from the Ministry of Land and Resources and Zhangjiakou City, an agreement was signed whereby the Company was granted the right to explore, in particular, the Shitouhulun and Sangongdi areas near the Caijiaying Mine. Both areas share the same geological signatures as the known orebodies at the Caijiaying Mine and high hopes exist for exploration success once work begins on these regions.

It would, of course, be disingenuous of me to hide the fact that our overwhelming, continuing, disappointment lies in the failure to be granted a mining licence over Zone II and thereby increase our throughput to our now expanded processing capacity. It has become a frustrating reality in the mining world that mining licences are taking ever longer to obtain due to administrative labyrinths, constant legislative changes, environmental issues needing over-addressing and native concerns being constantly satisfied. China is no different in this respect. The overwhelming question asked by shareholders is when will the licence be granted? I have made predictions in the past and have been proved horribly wrong. I will merely state I have high hopes for 2017.

It would be unfair of me not to thank the directors, staff and contractors who continue to strive to make the Company an even greater success than it has already become. Any organization is only as competent and dynamic as the people who work, think and act solely in the best interest of the Company. Ours are some of the best in the industry, and in country, and we thank them for their outstanding effort.

 

The full Preliminary Announcement is available as a PDF download, please click here.

For a copy of the 2016 Annual report please click here.