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Griffin Mining News
| Date: | 10 May 2004 | | Headline: | Preliminary statement of results for the year ended 31 December 2003 |
Griffin Mining Limited (“Griffin”or the “Company”) has today published its results for the year ended 31 December 2003.
The Company recorded a profit for the second half of the year to 31 December 2003 of $227,000, resulting in losses for the financial year of $20,000 in 2003, down from $230,000 in 2002, primarily as a result of exchange gains of $476,000 in 2003 (2002 $159,000) on foreign currency deposits.
Operating costs in 2003 increased to $586,000 (2002 $462,000) as a result of increased activity with the development of the Caijiaying zinc gold mine in China.
Shareholder funds increased from $7,321,000 at 31 December 2002 to $13,365,000 at 31 December 2003, with the benefit of two share placings and the exercise of warrants and options. Since 31 December 2003, the Company has completed a placing of 35,000,000 new ordinary shares and options over 6,600,000 new ordinary shares have been exercised, to raise a total of $16,300,000 before expenses.
Mladen Ninkov, Chairman commented as follows:
“2003 was a year of fervent activity and momentous progress for Griffin. The full feasibility study was completed in September 2003 and negotiations to obtain funding for the construction of the Caijiaying mine began immediately. Funding was completed via a successful £8.75m equity placement to prestigious institutional investors due, in the opinion of the directors, to the strength of the Company’s position in China and the quality of the Caijiaying asset.
The first consequence of the completion of the financing was that Griffin is fully funded to construct and commission the Caijiaying mine. Construction of the mine has commenced with commissioning scheduled for March 2005.
The second consequence of the completion of the financing is support for a higher share price. Only now is the market beginning to appreciate some of the value represented by the Caijiaying project. The real value inherent in Griffin will be truly reflected with the commissioning of the Caijiaying mine and the cash flows generated therefrom, and even more importantly, exploration success in the Caijiaying area.
The Company remains committed to exploring the Caijiaying area as soon as cash flows permit, with drilling, in the first instance, the extensions to the known mineralization between zones II and III, the gold occurrences in zone V, and finally, the large areas of epithermal alteration along the F45 fault, south of zone II.
We look forward to continued growth and an exciting future for the Company.”
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GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT |
|
For the year ended 31 December 2003
(expressed in thousands US dollars) |
| |
|
2003 |
|
2002 |
| |
|
$000 |
|
$000 |
|
Income |
|
|
|
|
|
Gains on the disposal of investments |
|
- |
|
8 |
| |
|
|
|
|
|
Net operating expenses |
|
(586) |
|
(462) |
| |
|
|
|
|
|
Operating (loss) |
|
(586) |
|
(454) |
| |
|
|
|
|
|
Foreign exchange gains |
|
476 |
|
159 |
|
Interest receivable and similar income |
|
90 |
|
65 |
| |
|
|
|
|
|
(Loss) on ordinary activities before taxation |
|
(20) |
|
(230) |
| |
|
|
|
|
|
Taxation on loss on ordinary activities |
|
- |
|
- |
| |
|
|
|
|
|
(Loss) for the financial year |
|
(20) |
|
(230) |
| |
|
|
|
|
| |
|
|
|
|
|
(Loss) per share (cents) |
|
(0.02) |
|
(0.2) |
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GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED BALANCE SHEET |
|
As at 31 December 2003
(expressed in thousands US dollars) |
| |
|
2003 |
|
2002 |
| |
|
$000 |
|
$000 |
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
6,285 |
|
5,617 |
|
Tangible assets |
|
174 |
|
2 |
|
|
6,459 |
|
5,619 |
|
Current assets |
|
|
|
|
|
Portfolio investments |
|
62 |
|
29 |
|
Accounts receivable |
|
33 |
|
10 |
|
Prepaid expenses |
|
66 |
|
13 |
|
Cash and deposits |
|
6,831 |
|
1,737 |
| |
|
6,992 |
|
1,789 |
|
Current liabilities |
|
|
|
|
|
Accrued expenses |
|
(60) |
|
(57) |
|
Creditors |
|
(26) |
|
(30) |
| |
|
|
|
|
|
Net current assets |
|
6,906 |
|
1,702 |
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
|
Total net assets |
|
13,365 |
|
7,321 |
| |
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Share capital |
|
1,352 |
|
1,036 |
|
Share premium |
|
21,385 |
|
15,537 |
|
Contributing surplus |
|
3,690 |
|
3,690 |
|
Investment revaluation reserve |
|
(811) |
|
(844) |
|
Foreign exchange reserve |
|
(121) |
|
152 |
|
Profit & loss account |
|
(12,130) |
|
(12,250) |
| |
|
|
|
|
|
Shareholders' equity interests |
|
13,365 |
|
7,321 |
| |
|
|
|
|
|
Number of shares in issue |
|
135,227,731 |
|
103,557,248 |
| |
|
|
|
|
|
Attributable net asset value per share |
|
$0.10 |
|
$0.07 |
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GRIFFIN MINING LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES |
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For the year ended 31 December 2003
(expressed in thousands US dollars) |
| |
|
2003 |
|
2002 |
| |
|
$000 |
|
$000 |
| |
|
|
|
|
|
(Loss) for the financial year |
|
(20) |
|
(230) |
| |
|
|
|
|
|
Unrealised gains / (losses) on investments |
|
33 |
|
13 |
| |
|
|
|
|
|
Currency translation differences on foreign currency net investments |
|
(133) |
|
(21) |
| |
|
|
|
|
|
Total gains and losses recognised in the year |
|
(120) |
|
(238) |
Losses and profits for the financial year are the same as those on an historical cost basis.
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GRIFFIN MINING LIMITED
CONSOLIDATED SUMMARISED CASH FLOW STATEMENT |
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For the year ended 31 December 2003
(expressed in thousands US dollars) |
| |
|
|
2002 |
|
2001 |
| |
|
|
$000 |
|
$000 |
| |
|
|
|
|
|
|
Net cash (outflow) from operating activities |
|
|
(227) |
|
(285) |
| |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Interest received |
|
|
90 |
|
65 |
|
Payments to acquire intangible fixed assets |
|
|
(760) |
|
(648) |
|
Payments to acquire tangible fixed assets |
|
|
(173) |
|
- |
| |
|
|
|
|
|
|
Net cash (outflow) from investing activities |
|
|
(843) |
|
(583) |
| |
|
|
|
|
|
|
Net cash (outflow) before financing |
|
|
(1,070) |
|
(868) |
| |
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
Issue of ordinary share capital |
|
|
6,452 |
|
24 |
|
Expenses paid in connection with share issue |
|
|
(288) |
|
- |
| |
|
|
6,164 |
|
24 |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
(Decrease) / increase in cash and cash equivalents |
|
|
5,094 |
|
(844) |
| |
|
|
|
|
|
|
Reconciliation of operating (loss) to net cash (outflow) from operating activities |
|
|
|
|
|
|
Operating (loss) |
|
|
(586) |
|
(454) |
|
Depreciation |
|
|
1 |
|
3 |
|
(Gains) on sale of investments |
|
|
- |
|
(8) |
|
Receipts on the sale of investments |
|
|
- |
|
8 |
|
(Increase) / decrease in debtors |
|
|
76 |
|
(4) |
|
Increase / (decrease) in creditors |
|
|
1 |
|
17 |
|
Other non-cash income, including exchange differences |
|
|
435 |
|
155 |
| |
|
|
(227) |
|
(285) |
This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Company.
The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the UK Companies Act 1985. The summarised consolidated balance sheet at 31 December 2002 and the summarised consolidated profit and loss account, summarised consolidated cash flow statement and summarised statement of total recognised gains and losses for the year then ended have been extracted from the Group's 2003 statutory financial statements upon which the auditors' opinion is unqualified. The results for the year ended 31 December 2002 have been extracted from the statutory accounts for that period which contain an unqualified auditor's report.
The annual report and accounts for 2003 will be sent by post to all registered shareholders shortly. Additional copies are available from the Company's London office, 6th Floor, 60 St James's Street, London, SW1A 1LE
4. The loss per share has been calculated on the basis of the net loss after taxation of US$20,000 (loss US$230,000 in 2001) and the weighted average number of shares in issue in the year ended 31 December 2003 of 114,682,774 (103,266,289 in 2002).There is no dilutive effect of share purchase options.
Reconciliation of shareholders' funds
| |
2003 |
|
2002 |
| |
$000 |
|
$000 |
|
Total (losses) and gains recognised in the year |
(120) |
|
(238) |
|
Issue of ordinary shares in the year |
6,164 |
|
24 |
|
Net (reductions in)/ additions to shareholders' funds |
6,044 |
|
(214) |
|
Opening shareholders' funds |
7,321 |
|
7,535 |
|
Closing shareholders' funds |
13,365 |
|
7,321 |
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