TIDMGFM
RNS Number : 9191H
Griffin Mining Ld
09 August 2021
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
9(th) AUGUST 2021
UNAUDITED INTERIM RESULTS
for the six months ended 30(th) June 2021
Griffin Mining Limited ("Griffin" or "the Company") has today
released its unaudited results for the six months ended 30th June
2021.
Highlights:
-- Revenues of $54.1 million (30(th) June 2020: $21.3 million), an increase of 154%.
-- Gross Profit of $25.7 million (30(th) June 2020: $4.2 million), an increase of 512%.
-- Profit before tax of $15.5 million (30(th) June 2020: Loss $3.0 million).
-- Profit after tax of $10.3 million (30(th) June 2020: Loss $3.8 million).
-- Basic earnings per share of 5.88 cents (30(th) June 2020: Basic loss per share 2.22 cents).
Financial and Trading:
The results for the six months to 30(th) 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 (30(th) 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 ( 30(th) June 2020: 13,448 tonnes);
-- 561 tonnes of lead (30(th) June 2020: 631 tonnes);
-- 144,705 ounces of silver (30(th) June 2020: 110,832 ounces); and
-- 7,584 ounces of gold (30(th) 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 30(th) June 2021 were $42,102,000 (30(th) June 2020:
$17,008,000) with 19,062 tonnes of zinc metal in concentrate sold
(30(th) June 2020: 13,046 tonnes). Precious metals and lead
revenues were $15,136,000 (30(th) June 2020: $5,279,000).
During the six months to 30(th) June 2021:
-- 462,632 tonnes of ore were mined (30(th) June 2020: 314,690 tonnes);
-- 471,423 tonnes of ore were hauled (30(th) June 2020: 321,514 tonnes); and
-- 475,785 tonnes of ore were processed (30(th) 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 (30(th) June 2020: loss
of 2.22 cents per share). At 30(th) June 2021, attributable net
assets per share amounted to 141 cents (30(th) June 2020: 121
cents).
Cash flows from operations in the period of $16,818,000 (30(th)
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 30(th) June 2021 (30(th) June 2020: nil). The Griffin
Mining Group of companies remains free of any bank loans.
Chairman's Statement
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."
Teleconference Call for Griffin Mining Limited's interim results
to 30(th) June 2021 on Monday 9(th) August 2021:
Time: 4.00pm British Summer Time
Dial in numbers: Australia Toll Free: 1 800 681 584
Canada Toll Free: 1 866 378 3566
Berlin : +49 (0) 30 3001 90612
Germany Toll Free: 0800 673 7932
Hong Kong Toll Free: 800 900 476
UK-Wide: +44 (0) 33 0551 0200
Zurich: +41 (0) 43 456 9986
Switzerland Toll Free: 0800 800 038
UK Toll Free: 0808 109 0700
New York New York: +1 212 999 6659
USA Toll Free: 1 866 966 5335
Password: Quote Griffin Interim results when prompted
by operator
Further information
Griffin Mining Limited Telephone: +44 (0)20 7629 7772
Mladen Ninkov - Chairman
Roger Goodwin - Finance Director
Panmure Gordon (UK) Limited Telephone: +44 (0)20 7886 2500
John Prior
Ailsa Macmaster
Berenberg Telephone: +44 (0)20 3207 7800
Matthew Armitt
Jennifer Wyllie
Deltir Elezi
Blythewigh Telephone: +44(0)20 7138 3205
Tim Blythe
Megan Ray
Swiss Resource Capital AG Telephone: + 41(0)71 354 8501
Jochen Staiger
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 31/12/2020
30/06/2021 30/06/2020 Audited
Unaudited Unaudited
$000 $000 $000
Revenue 54,072 21,321 75,403
Cost of sales (28,401) (17,153) (42,737)
Gross profit 25,671 4,168 32,666
Net operating expenses (10,209) (7,204) (17,518)
Profit / (loss) from operations 15,462 (3,036) 15,148
Losses on disposal of equipment (26) (614) (1,129)
Impairment of intangible fixed assets (2) (1) (10)
Foreign exchange (losses) / gains (7) (147) 22
Finance income 68 45 108
Finance costs (152) (149) (359)
Other income 63 76 735
Profit / (loss) before tax 15,406 (3,826) 14,515
Income tax expense (5,148) - (5,605)
Profit / (loss) after tax 10,258 (3,826) 8,910
Basic earnings / (loss) per share (cents) 5.88 (2.22) 5.16
=========== =========== ===========
Diluted earnings / (loss) per share
(cents) 5.43 (2.22) 4.88
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive income
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2020
30/06/2021 30/06/2020 Audited
Unaudited Unaudited
$000 $000 $000
Profit / (loss) for the financial period 10,258 (3,826) 8,910
----------- ----------- -----------
Other comprehensive income
Exchange differences on translating
foreign operations 2,514 (1,891) 9,662
Other comprehensive income for the
period, net of tax 2,514 (1,891) 9,662
----------- ----------- -----------
Total comprehensive income / (losses)
for the period 12,772 (5,717) 18,572
=========== =========== ===========
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
30/06/2021 30/06/2020 31/12/2020
Unaudited Unaudited Audited
$000 $000 $000
ASSETS
Non-current assets
Property, plant and equipment 268,930 225,898 266,709
Intangible assets - exploration interests 349 325 325
269,279 226,223 267,034
----------- ----------- -----------
Current assets
Inventories 6,257 3,896 5,333
Receivables and other current assets 4,175 2,275 6,675
Cash and cash equivalents 25,143 10,351 16,435
----------- ----------- -----------
35,575 16,522 28,443
----------- ----------- -----------
Total assets 304,854 242,745 295,477
=========== =========== ===========
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 1,749 1,728 1,728
Share premium 69,334 68,455 68,470
Contributing surplus 3,690 3,690 3,690
Share based payments 2,072 2,072 2,072
Shares held in treasury (1,589) (917) (917)
Chinese statutory re-investment reserve 2,858 2,463 2,830
Other reserve on acquisition of non-controlling
interests (29,346) (29,346) (29,346)
Foreign exchange reserve 13,851 (151) 11,365
Profit and loss reserve 184,072 161,233 173,814
----------- ----------- -----------
Total equity attributable to equity
holders of the parent 246,691 209,227 233,706
Non-current liabilities
Other payables 13,622 - 13,487
Long-term provisions 2,264 3,802 2,200
Deferred taxation 3,392 2,691 3,359
Finance leases - - -
----------- ----------- -----------
19,278 6,493 19.046
----------- ----------- -----------
Current liabilities
Trade and other payables 38,842 25,311 42,342
Finance leases 43 1,714 383
Total liabilities 38,885 27,025 42,725
----------- ----------- -----------
Total equities and liabilities 304,854 242,745 295,477
=========== =========== ===========
Number of shares in issue 174,892,894 172,786,228 172,826,228
Attributable net asset value / total
equity per share $1.41 $1.21 $1.35
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 on exchange and attributable
payments in investment acquisition reserve loss to equity
treasury reserve of reserve holders
non-controlling of parent
interests
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 31(st)
December 2019 1,728 68,455 3,690 2,072 (917) 2,500 (29,346) 1,703 165,059 214,944
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
(loss) for
the 6
months - - - - - - - - (3,826) (3,826)
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - (37) - (1,854)) - (1,891)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - (37) - (1,854) (3,826) (5,717)
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2020
(Unaudited) 1,728 68,455 3,690 2,072 (917) 2,463 (29,346) (151) 161,233 209,227
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Regulatory
transfer for
future
investment - - - - - 155 - - (155) -
Issue of
shares on
exercise
of options - 15 - - - - - - - 15
Transaction
with owners - 15 - - - 155 - (155) 15
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 12,736 12,736
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - 212 - 11,516 - 11,728
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - 212 - 11,516 12,736 24,464
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 31(st)
December 2020 1,728 68,470 3,690 2,072 (917) 2,830 (29,346) 11,365 173,814 233,706
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Purchase of
shares for
treasury - - - - (672) (672)
Issue of
shares on
exercise
of options 21 864 - - - - - - - 885
Transaction
with owners 21 864 - - (672) - - - - 213
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Retained
profit for
the 6
months - - - - - - - - 10,258 10,258
Other
comprehensive
income:
Exchange
differences
on
translating
foreign
operations - - - - - 28 - 2,486 - 2,514
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Total
comprehensive
income
for the
period - - - - - 28 - 2,486 10,258 12,772
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
At 30(th) June
2021
(Unaudited) 1,749 69,334 3,690 2,072 (1,589) 2,858 (29,346) 13,851 184,072 246,691
------- ------- ------------ -------- -------- ---------- --------------- -------- ------- ------------
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
6 months 6 months Year to
to to 31/12/2020
30/06/21 30/06/2020 Audited
Unaudited Unaudited
$000 $000 $000
Net cash flows from operating activities
Profit /(loss) before taxation 15,406 (3,826) 14,515
Foreign exchange losses / (gains) 7 147 (22)
Finance income (68) (45) (108)
Finance costs 152 149 359
Depreciation, depletion and amortisation 7,964 5,518 12,801
Impairment of intangible assets 2 1 10
Losses on disposal of equipment 26 614 1,129
(Increase) / decrease in inventories (924) (57) (1,494)
Decrease / (Increase) in receivables
and other current assets 2,936 (414) (4,814)
Increase / (decrease) in trade and other
payables (1,395) (2,762) 5,666
Taxation paid (7,288) (3,584) (3,644)
---------- ----------- -----------
Net cash inflow / (outflow) from operating
activities 16,818 (4,259) 24,398
---------- ----------- -----------
Cash flows from investing activities
Interest received 68 45 108
Proceeds / (expenses) on disposal of
equipment - (34) (44)
Payments to acquire - mineral interests
(mine development) (7,471) (3,379) (18,691)
Payments to acquire - plant & equipment (1,215) (984) (5,684)
Payments to acquire - office equipment - (4) (5)
Payments to acquire - intangible assets
- exploration interests (26) (3) (11)
---------- ----------- -----------
Net cash (outflow) from investing activities (8,644) (4,359) (24,327)
---------- ----------- -----------
Cash flows from financing activities
Issue of shares on exercise of share
purchase options 885 - 15
Purchase of shares for treasury (672) - -
Interest paid (101) - (112)
Finance lease repayments (357) (929) (2,469)
Net cash (outflow) from financing activities (245) (929) (2,566)
---------- ----------- -----------
Increase / (decrease) in cash and cash
equivalents 7,929 (9,547) (2,495)
Cash and cash equivalents at beginning
of the period 16,435 19,885 19,885
Effects of exchange rate changes 779 13 (955)
---------- ----------- -----------
Cash and cash equivalents at end of the
period 25,143 10,351 16,435
========== =========== -----------
Cash and cash equivalents comprise bank
deposits
Bank deposits 25,143 10,351 16,435
========== =========== ===========
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(st) December 2020.
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
consolidated statement of financial position at 31(st) December
2020 and the consolidated income statement, consolidated statement
of comprehensive income, consolidated statement of changes in
equity and the consolidated cash flow statement for the year then
ended have been extracted from the Group's 2020 statutory financial
statements upon which the auditors' opinion is unqualified, and
should be read in conjunction with the accompanying notes contained
therein.
4. The summary accounts have been prepared on a going concern
basis. Having considered recent events, including the impact of
Covid-19, the Group's cash resources, banking facilities and
forecasts regularly updated, the directors consider that the Group
will be able to meet its liabilities as they fall due.
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. There was no
dilutive effect on the losses per share in the six months to 30(th)
June 2020. 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
30/06/2021 30/06/2020 31/12/2020
Unaudited Unaudited Audited
Weighted Weighted Per Weighted
average Per share average share average Per share
Earnings number amount Earnings number amount Earnings number amount
$000 of shares (cents) $000 of shares (cents) $000 of shares (cents)
Basic (loss) / earnings per share
(Loss)
earnings
attributable
to ordinary
shareholders 10,258 174,410,343 5.88 3,826 172,728,728 (2.22) 8,910 172,788,420 5.16
Dilutive effect of securities
Options 14,374,897 (0.45) 9,861,227 (0.28)
-------- ----------- --------- --------- ----------- -------- -------- ----------- ----------
Diluted
earnings
per share 10,258 188,785,241 5.43 8,910 182,649,647 4.88
======== =========== ========= ========= =========== ======== ======== =========== ==========
6. As at 30(th) June 2021 there were no adjusting post balance
sheet events. Since 30(th) June the Company bought in 40,000 shares
to be held in treasury at a cost of $54,000.
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