TIDMGFM
RNS Number : 8896M
Griffin Mining Ld
03 August 2017
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
3(rd) August 2017
INTERIM STATEMENT
for the six months ended 30(th) 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 30(th) 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 30(th) 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 30(th) 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 30(th) June 2017, attributable net assets per share
amounted to 91 cents (2016: 75 cents).
In the six months to 30(th) 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 6 months Year to
to to 31/12/2016
30/06/2017 30/06/2016 Audited
Unaudited Unaudited
$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 6 months Year to
to to 31/12/2016
30/06/2017 30/06/2016 Audited
Unaudited Unaudited
$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 held re reserve exchange and attributable
payments in investment on reserve loss to equity
treasury reserve acquisition reserve holders
of of parent
non-controlling
interests
$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 30(th) 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 31(st)
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 30(th) 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 6 months Year to
to to 31/12/2016
30/06/2017 30/06/2016 Audited
Unaudited Unaudited
$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, 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
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.
4. 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 (30(th) 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.
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.
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
30/06/2017 30/06/2016 31/12/2016
Unaudited Unaudited Audited
Weighted Per Weighted Per Weighted Per
average share average share average share
Earnings number amount Earnings number amount Earnings number amount
$000 of shares (cents) $000 of shares (cents) $000 of shares (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
======== =========== ======== ========= =========== ======== ======== ============= =======
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSEFSEFWSESA
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