Yahoo News Griffin Mining Limited Announces Unaudited Interim Results
UNAUDITED INTERIM RESULTS
for the six months ended 30th June 2023
SHARE BUY-BACK PROGRAMME TO BE CONTINUED
LONDON, UK / ACCESSWIRE / September 12, 2023 / Griffin Mining Limited ("Griffin" or the "Company") today releases its unaudited results for the six months ended 30th June 2023.
Highlights:
Revenues of $69.5 million (30th June 2022: $34.7 million).
Gross Profit of $21.7 million (30th June 2022: $15.5 million).
Operating profit of $9.1 million (30th June 2022: $5.5 million).
Profits before tax, depreciation, and interest of $23.9m (30th June 2022: $12.7m).
Profit before tax of $9.6m (30th June 2022 $5.4m).
Profit after tax of $5.2 million (30th June 2022: profit $3.0 million).
Basic earnings per share of 2.77 cents (30th June 2022: 1.73 cents).
Cash inflow from operations $21,427,000 (30th June 2022 outflow $4,122,000)
Financial and Trading:
738,924 tonnes of ore were processed in the 6 months to 30th June 2023 (30th June 2022 338,039) to produce:
- 28,095 tonnes of zinc ( 30th June 2022 - 13,457 tonnes);
- 697 tonnes of lead (30th June 2022 - 353 tonnes);
- 151,608 ounces of silver (30th June 2022 - 80,717 ounces); and
- 7,980 ounces of gold (30th June 2022 - 3,672 ounces).
Ore throughput at Caijiaying is now running consistently at a rate of circa 1.5 million tonnes of ore per annum.
Zinc ore grades declined from 4.2% in the first half of 2022 to 3.98% in the first half of 2023, the gold grade improved marginally from 0.5g/t in the first half 2022 to 0.53g/t in the first half of 2023, whilst the silver grade declined from 15.5g/t in the first half of 2022 to 14.0g/t in the first half of 2023. Zinc, lead and silver recoveries were marginally down on that in the first half of 2022 whilst gold recoveries marginally improved on that in the first half of 2022.
During the six months to 30th June 2023:
- 28,939 tonnes of zinc metal in concentrate were sold (30th June 2022: 10,719 tonnes);
- 7,835 ozs of gold in concentrate were sold (30th June 2022: 2,491 ozs); and
- 147,663 ozs of silver in concentrate were sold (30th June 2022: 44,627 ozs).
Zinc revenues before royalties and resource taxes in the six months to 30th June 2023 were $55,443,000 (30th June 2022 - $31,234,000) with the average zinc metal price received declining from $2,914 per tonne in the first half of 2022 to $1,916 in the first half of 2023. Lead and precious metals revenues in the first six months to 30th June 2023 were $18,179,000 (30th June 2022 - $5,735,000), with the average gold price received of $1,851 per oz (30th June 2022 - $1,788) and silver $19.3 per oz (30th June 2022 - $18.1).
With uninterrupted production resulting in ore processed increasing by 119% from that in the first half of 2022, when operations were suspended by the Chinese authorities for the 2022 Winter Olympics in the first quarter of 2022, costs of sales (mining, haulage and processing costs) have increased from that in the first half of 2022.
Administration costs increased by $2,641,000 from that in the first half of 2022 reflecting increased activity with operations suspended in the first quarter of 2022 and includes a pro-rata charge of $969,000 (30th June 2022 nil) in respect of 7,805,000 new ordinary shares in the Company issued under a share incentive scheme, as announced on 29th March 2023 to retain and incentivise management to 31st December 2024.
The Group benefited from a significant increase in interest received from $107,000 in the first half of 2022 to $565,000 in the first half of 2023. with increased interest rates and bank deposits.
The tax charge of $4,424,000 is disproportionally large compared with pre-tax profits of $9,612,000 as the tax charge primarily arises on Hebei Hua Ao's profit determined under Chinese Generally accepted Accounting Principles ("GAAP") in the first half of the year, at a rate of 25%. Accordingly, the share incentive scheme charge and certain other costs incurred outside China are not tax deductible. The tax charge incorporates a deferred tax credit of $1,486,000 in respect of accelerated depreciation.
In light of the severely undervalued nature of the Company's share price, the cash generated by operations in conjunction with the available funds available outside of China to Griffin and the current depressed nature of base metals prices and the share prices of those producers, the Directors have resolved to renew efforts to successfully effect the share buy-back programme announced on the 25th February 2021 (the "Buy-Back Programme") to return excess monies not required to meet financial and working capital requirements to shareholders. Furthermore, the Directors have determined that, provided sufficient funds are available, they may seek to extend the buy-back programme in the same terms once the current Buy-Back Programme expires on the 25th February 2024.
In addition to the Buy-Back Programme, the directors reserve the right (subject to compliance with applicable law) to:
1. purchase large blocks of shares from individual shareholders where the large number of such shares offered in the market may cause instability in the Company's share price; and
2. purchase a larger number of shares via a tender offer which would be the subject of further documentation being sent to non-US resident shareholders.
Purchases will be carried out in compliance with the EU Market Abuse Regulation 2016, as implemented and amended by the European Union (Withdrawal) Act 2018 and the Market Abuse Exit Regulations 2019 pertaining to the relevant conditions for trading, including where relevant, applicable restrictions regarding time and volume, disclosure and reporting obligations and price conditions.
Griffin will make further announcements in due course following the completion of any share repurchases. The ordinary shares bought back will be held as treasury shares or cancelled.
Chairman's Statement
Chairman Mladen Ninkov commented, "This is a truly stellar operational and financial performance by the Caijiaying Mine, the Company and all its employees, contractors and other stakeholders, particularly in the current, relatively modest, commodity prices environment. I'm further delighted that the Directors have decided to address the issue of the market value of the Company which, with the cash now being generated by operations, will be an ongoing and permanent feature of the Company's 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
John Prior
Dougie Mcleod
Berenberg Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Wyllie
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/201
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
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SOURCE: Griffin Mining Ltd
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