2025 FINAL RESULTS

Griffin Mining Limited

12 May 2026

 

Royal Trust house, 54 Jermyn Street, London SW1Y 6LX, United Kingdom

Telephone: + 44 (0)20 7629 7772 Facsimile:  + 44 (0)20 7629 7773

E mail: [e-mail]

2025 Final Results

12^th May 2026  

Griffin Mining Limited ("Griffin" or the "Company") has today published its annual report and accounts for the year ended 31 December 2025 which will be available shortly on the Company's web site wwww.griffinmining.com and will be posted to shareholders on 28^th May 2026.

Chairman's Statement:

In many respects, the last year has been a momentous year for the Company in guaranteeing it's future prosperity.

The first landmark achievement was the renewal of the Caijiaying Mine's Mining Licence to 2054 which secured the long term future of the Caijiaying Mine and allows for the continued extraction of the known resource. The greatly extended term now matches the Caijiaying Mine's resources with it's tenure thereby guaranteeing it's long term mineral rights, it's previously approved mining area, it's production envelopes in Zones II and III and it's vertical mining boundary over the total Caijiaying Mine area.

The second was the long awaited first production blast in Zone II marking a key milestone in the commissioning and final safety approval process of Zone II. I am absolutely certain that all shareholders have become bored in each successive Annual Report by my continual assertions that this would occur in the subsequent year. In the Company's defence, Chinese regulations were amended during the Zone II process by requiring the Company to develop the whole underground mine and infrastructure for the total known resource in Zone II, in contrast to Zone III's development, when each level was developed and mined prior to further development being undertaken. These new regulations extended the time needed to develop Zone II exponentially and incurred a large capital commitment to complete. Underground development totalling 19.4 kilometres of drives and ancillary workings and ventilation shafts totalling 625 metres were completed and ore is now expected to be mined from Zone II for the duration of the current mining licence to 2054.

Thirdly, the drilling of high-grade gold below the existing development at the Caijiaying Mine during 2025 and 2026 continued to deliver exceptional gold intercepts. Drilling is ongoing, testing multiple high-grade gold shoots. Drilling of the Yuan Long high-grade gold lode confirms the down-plunge continuity of this domain below and along strike from existing development. The Yuan Long orebody remains open to the south and at depth, with further diamond drilling and underground development planned to expand the production footprint. Ongoing drilling continues to materially expand the contained gold of the Yuan Long system whilst also defining a new, high‑grade, Fu Long feeder system, which the Company believes could potentially provide multiple avenues for near-term growth and longer-term resource expansion.

Fourthly, the Company continued it's leading environmental position in China under the Chinese Green Mining initiative with the Caijiaying Mine moving to operate on 100% renewable energy, generated through solar and wind power, and implementing industry leading waste management practices by placing 100% of it's tailings underground via paste-fill thereby supporting the Chinese policy of zero waste residue and environmental footprint minimisation.

Fifthly, the Company continued to return capital to shareholders in the most tax efficient manner whilst also increasing it's earnings per share. In 2025, the Company expended $20,350,000 on buying back it's own ordinary shares.

Sixthly, history has clearly shown that the Company has never been driven by artificially attempting to support it's share price with rhetoric believing that creating intrinsic asset and cash flow value will eventually be reflected in a fair value for the share price. This has shown to be the case with the share price rising in the space of one year from 168.25p in May 2025 to 318p in April 2026.

That is not to say that operations did not encounter challenges in 2025. They were affected by certain external factors including delays to the restart of production following the 2024 fatality, which reduced output in the first quarter, and further production constraints imposed by Chinese regulatory authorities, including a Public Security Bureau (police) directive suspending the use of explosives during central government deliberations, all of which led to a significant reduction in milling throughput and mine output during the later part of 2025.

Nevertheless, the Company achieved enviable results, many of which were a significant increase from the previous year.

·    Revenues of $137,496,000 (2024: $135,128,000);

·    Gross profit of $60,323,000 (2024: $51,251,000);

·    Earnings before depreciation, interest and tax of $52,830,000 (2024: $41,901,000);

·    Operating profit of $30,760,000 (2024: $17,288,000);

·    Profit before tax of $32,613,000 (2024: $17,903,000);

·    Profit after tax of $22,062,000 (2024: $11,351,000); and

·    Basic earnings per share of 12.1 cents (2024: 6.08 cents).

For 2026 the operational outlook is positive with an expected return to 1.5 million tonnes per annum production during the year and new mining areas coming online. The benefits of investment in people, safety and modern infrastructure will enable safe, sustainable production well into the future.

Results:

Summary

The results for 2025 were impacted by nationwide restrictions in the supply of explosives to the Caijiaying Mine imposed by the PRC authorities and slow ramp up in operations following the suspension in operations during the fourth quarter of 2024 following a fatality in the mine. As a result, in 2025 the Company and its subsidiaries (together the "Group") recorded:

·    Revenues of $137,496,000 (2024: $135,128,000);

·    Gross profit of $60,323,000 (2024: $51,251,000);

·    Earnings before depreciation, interest and tax of $52,830,000 (2024: $41,901,000);

·    Operating profit of $30,760,000 (2024: $17,288,000);

·    Profit before tax of $32,613,000 (2024: $17,903,000);

·    Profit after tax of $22,062,000 (2024: $11,351,000); and

·    Basic earnings per share of 12.1 cents (2024: 6.08 cents).

In September 2025, Hebei Hua Ao was requested by the relevant County, City and Provincial Bureaus, in line with such requests to the majority of mining operations in China, to reduce operational throughput in support of a safety initiative that ran until the end of 2025. With a consequent restriction in the supply of explosives, throughput was reduced by approximately 250,000 tonnes. Cooperation with this initiative was essential to obtaining the relevant permitting for the commissioning of Zone II and continuing production from Zone III.

As a result of the foregoing, throughput was down 4.9% on that in 2024 and, with lower grades, Zinc metal in

concentrate production was down 7.8% on that produced in 2024. With lower throughput and recoveries, but

marginally better grades, Gold in concentrate production was down 6.5% on that in 2024. Despite lower throughput, with better grades and recoveries, Silver in concentrate production was up 23.6% on that produced in 2024. This resulted in:

·    Zinc metal concentrate production down 7.8% on that achieved in 2024 to 36,346 tonnes;

·    Gold in concentrate production down 6.5% on that achieved in 2024 to 15,096 ounces;

·    Silver in concentrate production up 23.6% on that achieved in 2024 to 340,653 ounces; and

·    Lead in concentrate production up 25.2% on that achieved in 2024 to 1,621 tonnes.

Revenue benefited from increases in metal in concentrate prices received, particularly that for Gold and Silver.

With less ore mined, hauled and processed in 2025, cost of sales (mining, haulage, and processing, including

depreciation) fell by $6,704,000 (8.0%) from that in 2024.

Operating (administration) expenses fell by $4,400,000 (13.0%) from that incurred in 2024. Operating costs

include Yuanrun's share of Hebei Hua Ao's profits of $4,271,000 (2024: $3,510,000).

The Group benefited from interest receipts on bank deposits of $1,712,000 in 2025 (2024: $1,753,000).

With the replacement and upgrade of various facilities at the Caijiaying Mine, losses on the disposal of equipment amounted to $229,000 (2024: $1,108,000).

Foreign exchange losses, finance and other interest of $3,000 was credited (2024: charged $42,000). Sundry other income of $368,000 (2024: $527,000) was received.

As a result, Group profits before tax increased from $17,903,000 in 2024 to $32,613,000 in 2025.

Revenue

Revenue in 2025 of $137,496,000 was up $2,368,000 (1.8%) on that achieved in 2024 of $135,128,000 and can be summarised as follows:

	2025		2024
	$000		$000
Zinc concentrate sales	79,721		96,126
Lead and precious metals concentrate sales	64,614		46,473
Royalties and resource taxes	(6,839)		(7,471)
Total	137,496		135,128

Zinc in concentrate sales were down $16,405,000 (17.1%) on that in 2024 with 36,058 tonnes of Zinc metal in

concentrate sold in 2025 compared with 39,814 tonnes in 2024.

Lead and precious metal in concentrate sales were up $18,141,000 (39.0%) on that in 2024 reflecting higher Gold, Silver and Lead metal in concentrate prices received and increased silver produced and sold.

Sales may be summarised as follows:

	2025	2024
Zinc metal in concentrate revenue before royalties ($000s)	79,721	96,127
Lead metal in concentrate revenue before royalties ($000s)	4,989	3,522
Silver metal in concentrate revenue before royalties ($000s)	10,800	6,739
Gold metal in concentrate revenue before royalties ($000s)	48,825	36,211
Royalties	(6,839)	(7,471)
Zinc metal in concentrate sold (tonnes)	36,058	39,814
Lead metal in concentrate sold (tonnes)	1,601	1,300
Silver metal in concentrate sold (ozs)	337,551	276,939
Gold metal in concentrate sold (ozs)	14,914	16,252
Average price received per tonne (zinc) ($)	2,211	2,414
Average price received per tonne (lead) ($)	3,116	2,709
Average price received per ounce (silver) ($)	32.0	24.3
Average price received per ounce (gold) ($)	3,274	2,228

Cost of Sales

With less ore mined, hauled and processed, cost of sales (mining, haulage and processing, including depreciation) fell by $6,704,000 (8.0%) from that in 2024, with production costs per tonne of ore processed declining from $71.7 per tonne in 2024 to $69.4 per tonne in 2025.

Mining

1,116,266 tonnes of ore were mined in 2025, down 2.9% on that mined in 2024 of 1,149,146 tonnes, reflecting delays to the restart of production following the 2024 contractor fatality and restricted explosives supplies for stoping in the fourth quarter of 2025. Mining costs increased by 15.0% from $25,993,000 to $29,886,000 in 2025 reflecting the element of fixed mine service costs and additional drilling and other geological costs ahead of mining. As a result, unit costs rose from $22.6 per tonne mined in 2024 to $26.8 per tonne in 2025.

Haulage

1,116,626 tonnes of ore were hauled in 2025, down 5.0% on that hauled in 2024 of 1,174,811 tonnes, in line with ore mined. Haulage costs in 2025 were down $2,404,000 (18.3%) from those in 2024, resulting in a reduction in unit costs from $11.2 per tonne hauled in 2024 to $9.6 per tonne in 2025 reflecting a reduction in average distances hauled.

Processing

1,111,658 tonnes of ore were processed in 2025, down 4.9% on that processed in 2024 of 1,169,098 tonnes, in

line with ore mined and hauled. Processing costs in 2025 were down $1,619,000 (7.8%) on that in 2024, resulting in a reduction in unit costs from $17.8 per tonne processed in 2024 to $17.3 per tonne in 2025.

Depreciation

Depreciation charges in 2025 were down $2,453,000 (10.8%) on that incurred in 2024 reflecting reduced ore

mined. Mine development costs are depreciated calculated on a unit of production basis versus plant and equipment costs which are depreciated on a straight line basis.

Costs of sales may be summarised as follows:

	2025	Per tonne	2024	Per tonne
		ore		ore
	$000	$	$000	$
Mining costs	29,886	26.8	25,993	22.6
Haulage costs	10,767	9.6	13,171	11.2
Processing costs	19,205	17.3	20,824	17.8
Depreciation, depletion and amortisation	20,194		22,647
Stock and WIP movements	(2,879)		1,242
	77,173	69.4	83,877	71.7

Operating Expenses

Operating (administration) expenses fell by $4,400,000 (13.0%) from $33,963,000 in 2024 to $29,563,000 in 2025. Operating costs include Yuanrun's share of Hebei Hua Ao's profits which amounted to $4,271,000 (2024: $3,510,000).

Hebei Hua Ao's operating costs in 2025 of $14,274,000 were down $546,000 (3.7%) on that incurred in 2024 of $14,820,000, in the main reflecting lower costs associated with reduced activity.

The Company and Griffin Mining (UK Services) Ltd's corporate costs of $10,470,000 which, despite increased bonuses, were down $4,290,000 (29%) on those incurred in 2024 of $14,760,000 which included share incentive charges of $6,165,000 (2025: nil).

China Zinc's operating costs of $433,000 were down $361,000 (45.5%) on that in 2024 of $794,000 due to lower personnel costs.

Profits Before Tax

After interest, foreign exchange adjustments, provisions and other income, a profit before tax of $32,613,000 was recorded for 2025 compared to $17,903,000 in 2024. This result reflected the following:

·    The Group benefited from interest receipts on bank deposits of $1,712,000 in 2025 (2024: $1,753,000);

·    Losses on disposal of equipment of $229,000 (2024: $1,108,000) were incurred in 2025;

·    Foreign exchange translation losses were recorded of $4,000 (2024: $186,000);

·    $36,000 (2024: $265,000) was credited in 2025 in respect of rehabilitation provisions;

·    Other income of $368,000 (2024: $527,000) was recorded in 2025 from waste sales, indemnities and government subsidies; and

·    Finance lease interest charges on the London office of $29,000 (2024: $37,000) were charged.

Taxation

Taxation of $10,551,000 has been charged in 2025 (2024: $6,552,000). This comprises: 25% of Hebei Hua Ao's profits amounting to $10,744,000 (2024: $10,480,000); withholding tax of 5% on intercompany dividends received of $873,000 (2024: $689,000); a UK corporation tax credit in respect of Griffin Mining (UK Services) Limited losses of $195,000 (2024: charge: $200,000). Deferred tax arising on accelerated depreciation of $871,000 has been credited (2024: credit of $4,804,000).

Earnings Per share

Basic earnings per share has risen from 6.08 cents per share in 2024 to 12.1 cents per share in 2025.

Cash flow

In the year ended 31 December 2025, cash balances decreased by $1,211,000.

$53,927,000 (2024: $19,582,000) was generated from operations in 2025. Capital expenditure, net of disposals, of $36,116,000 (2024: $20,898,000) was incurred in 2025. Interest on bank deposits of $1,712,000 (2024: $1,753,000) was received in 2025. $20,351,000 (2024: $12,515,000) was expended on the buyback of ordinary shares in 2025.

Net Assets

Attributable net assets per share at 31st December 2025 was $1.58 (2023: $1.47).

Further information

Griffin Mining Limited - Telephone: [phone]

Mladen Ninkov - Chairman  

Roger Goodwin - Finance Director

Panmure Liberum Limited - Nominated Adviser & Joint Broker - Telephone: [phone]

             James Sinclair-Ford

              Zak Wadud

Berenberg - Joint Broker - Telephone: [phone]

  Matthew Armitt

Jennifer Lee

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

 

Griffin Mining Limited

Consolidated Income Statement

For the year ended 31 December 2025

(expressed in thousands US dollars)

		2025		2024
		$000		$000
Revenue		137,496		135,128
Cost of sales		(77,173)		(83,877)
Gross profit		60,323		51,251
Administration expenses		(29,563)		(33,963)
Operating Profit		30,760		17,288
Impairment of exploration interests		(1)		(599)
Losses on disposal of plant and equipment		(229)		(1,108)
Foreign exchange losses		(4)		(186)
Finance income		1,748		2,018
Finance costs		(29)		(37)
Other income		368		527
Profit before tax		32,613		17,903
Income tax expense		(10,551)		(6,552)
Profit for the year		22,062		11,351
Basic earnings per share (cents)		12.10		6.08
Diluted earnings per share (cents)		12.10		6.08

Griffin Mining Limited

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2025

(expressed in thousands US dollars)

		2025		2024
		$000		$000
Profit for the year		22,062		11,351
Other comprehensive income / (expense) that will be reclassified to profit or loss:
Exchange differences on translating foreign operations		3,925		(2,911)
Other comprehensive income / (expense) for the year, net of tax		3,925		(2,911)
Total comprehensive income for the year		25,987		8,440

Griffin Mining Limited

Consolidated Statement of Financial Position

As at 31 December 2025

(expressed in thousands US dollars)

		2025		2024
		$000		$000
ASSETS
Non-current assets
Mining interests		259,231		242,754
Exploration interests		-		1
Deferred taxation		5,757		4,768
Other non-current assets		909		1,215
		265,897		248,738
Current assets
Inventories		8,019		5,273
Receivables and other current assets		3,221		2,985
Cash and cash equivalents		47,547		48,758
		58,787		57,016
Total assets		324,684		305,754
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital		1,766		1,855
Share premium		44,668		67,318
Contributing surplus		3,690		3,690
Share based payments		9,096		9,096
Shares held in treasury		-		(2,388)
Chinese statutory re-investment reserve		3,917		3,830
Other reserve on acquisition of non-controlling interests		(29,346)		(29,346)
Foreign exchange reserve		(2,501)		(6,339)
Profit and loss reserve		247,017		224,955
Total equity attributable to equity holders of the parent		278,307		272,671
Non-current liabilities
Long-term provisions		1,614		3,822
Lease liabilities		302		465
		1,916		4,287
Current liabilities
Trade and other payables		43,403		27,486
Lease liabilities		155		155
Business taxation payable		903		1,155
Total current liabilities		44,461		28,796
Total equities and liabilities		324,684		305,754
Attributable net asset value per share to equity holders of parent		1.58		1.47

Griffin Mining Limited

Consolidated Statement of Changes in Equity

For the year ended 31 December 2025

(expressed in thousands US dollars)

	Share	Share	Contributing	Share	Shares	Chinese	Other	Foreign	Profit	Total
	Capital	Premium	surplus	Based payments	held in treasury	statutory 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 1 January 2024	1,928	78,550	3,690	3,109	(2,017)	3,529	(29,346)	(3,480)	213,789	269,752
Regulatory transfer for future investment	-	-	-	-	-	353	-	-	(353)	-
Cancellation of shares	(103)	(12,040)	-	-	12,143	-	-	-	-	-
Issue of shares on cancellation of share purchase options	-	-	-	(168)	-	-	-	-	168	-
Issue of shares on exercise of share options	20	808	-	-	-	-	-	-	-	828
Share based payments	10		-	6,155	-	-	-	-	-	6,155
Purchase of shares for treasury	-		-	-	(12,514)	-	-	-	-	(12,514)
Transaction with owners	(73)	(11,232)	-	5,987	(371)	353	-	-	(185)	(5,521)
Profit for the year	-	-	-	-	-	-	-	-	11,351	11,351
Other comprehensive income:
Exchange differences on translating foreign operations	-	-	-	-	-	(52)	-	(2,859)	-	(2,911)
Total comprehensive income	-	-	-	-		(52)	-	(2,859)	11,351	8,440
At 31 December 2024	1,855	67,318	3,690	9,096	(2,388)	3,830	(29,346)	(6,339)	224,955	272,671
Cancellation of shares	(12)	(2,376)	-	-	2,388	-	-	-	-	-
Purchase of shares for cancellation	(77)	(20,274)	-	-	-	-	-	-	-	(20,351)
Transaction with owners	(89)	(22,650)	-		2,388	-	-	-	-	(20,351)
Profit for the year	-	-	-	-	-	-	-		22,062	22,062
Other comprehensive income:
Exchange differences on translating foreign operations	-	-	-	-	-	87	-	3,838	-	3,925
Total comprehensive income	-	-	-	-		87	-	3,838	22,062	25,987
At 31 December 2025	1,766	44,668	3,690	9,096	-	3,917	(29,346)	(2,501)	247,017	278,307

Griffin Mining limited

Consolidated Cash Flow statement

For the year ended 31 December 2025

(expressed in thousands US dollars)

		2025		2024
		$000		$000
Net cash flows from operating activities
Profit before taxation		32,613		17,903
Share based payments		-		6,165
Foreign exchange losses		4		186
Finance income		(1,748)		(2,018)
Finance costs		29		37
Impairment of exploration interests		1		599
Depreciation		22,071		24,613
Losses on disposal of equipment		229		1,108
(Increase) / decrease in inventories		(2,746)		556
(Increase) in receivables and other assets		(27)		(99)
Increase / (decrease) in trade and other payables		15,404		(13,881)
Taxation paid		(11,903)		(15,587)
Net cash inflow from operating activities		53,927		19,582
Cash flows from investing activities
Interest received		1,712		1,753
Decrease in rehabilitation deposits		330		339
Proceeds on disposal of equipment		4		97
Payments to acquire - mineral interests and mine development		(30,158)		(13,974)
Payments to acquire - property, plant, and equipment		(5,962)		(6,996)
Payments to acquire - intangible fixed assets - exploration interests		-		(25)
Net cash outflow from investing activities		(34,074)		(18,806)
Cash flows from financing activities
Issue of ordinary shares on exercise of options		-		828
Interest paid		-		216
Purchase of shares for cancellation		(20,351)		-
Purchase of shares for treasury		-		(12,515)
Lease liability repayments including interest		(168)		(156)
Net cash outflow from financing activities		(20,519)		(11,627)
(Decrease) in cash and cash equivalents		(666)		(10,851)
Cash and cash equivalents at the beginning of the year		48,758		60,007
Effects of foreign exchange rates		(545)		(398)
Cash and cash equivalents at the end of the year		47,547		48,758
Cash and cash equivalents comprise bank deposits
Bank deposits		47,547		48,758

Notes to the Summarised Financial Statements:

This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory financial statements of the Group.

The summary financial statements set out above do not constitute statutory financial statements as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006.  The Summarised Consolidated Statement of Financial Position at 31 December 2025 and the Summarised Consolidated Income Statement, Summarised Consolidated Statement of Comprehensive Income, Summarised Consolidated Statement of Changes in Equity and the Summarised Consolidated Cash Flow Statement for the year then ended have been extracted from the Group's audited 2025 statutory financial statements.

The annual report and accounts for 2025 is being sent by post to all registered shareholders.  Additional copies of the annual report and accounts are available from the Company's London office, 8^th Floor, 54 Jermyn Street, London, SW1Y 6LX and are available on Griffin Mining Ltd.'s web site www.griffinmining.com

The Group has one business segment, the Caijiaying zinc gold mine in the People's Republic of China.  All revenues and costs of sales in 2025 and 2024 were derived from the Caijiaying zinc gold mine.

	2025		2024
	$000		$000
Revenue
China	137,496		135,128
Zinc concentrate sales	79,721		96,126
Lead and precious metals concentrate sales	64,614		46,473
Royalties and resource taxes	(6,839)		(7,471)
	137,496		135,128
	2025		2024
	$000		$000
Cost of Sales - China
Mining costs	29,886		25,993
Haulage costs	10,767		13,171
Processing costs	19,205		20,824
Depreciation (excluding depreciation in administration expenses)	20,194		22,647
Stock movements	(2,879)		1,242
	77,173		83,877
	2025		2024
	$000		$000
Administration expenses
China / Hong Kong	19,021		19,140
Australia	63		62
UK / Bermuda	10,479		8,596
	29,563		27,798
Fair value of shares issued under share incentive plan	-		6,165
	29,563		33,963

	2025		2024
	$000		$000
Total Assets
China	291,340		268,056
Australia	1,262		1,142
UK / Bermuda	32,082		36,556
	324,684		305,754
	2025		2024
	$000		$000
Capital expenditure
China	36,623		20,995
UK / Bermuda	8		-
	36,631		20,995

Shares Issued Under Executive Incentive Plan

	2025		2024
	$000		$000
Fair value of shares issued under share incentive plan	-		6,165

Finance Income

	2025		2024
	$000		$000
Interest on bank deposits	1,712		1,753
Interest on rehabilitation provisions	36		265
	1,748		2,018

Finance Costs

	2025		2024
	$000		$000
Finance lease interest	29		37

Other Income

	2025		2024
	$000		$000
Scrap, indemnities and sundry other income	368		527

Income Tax Expense

	2025		2024
	$000		$000
Profit for the year before tax	32,613		17,903
Expected tax expense at a standard rate of PRC income tax of 25% (2022 25%)	8,153		4,476
Adjustment for tax exempt items:
- Expenses outside the PRC not subject to tax	928		2,708
- Expenses subject to tax outside the PRC	599		583
Adjustments for short term timing differences:
- In respect of accounting differences	1,395		3,056
- In respect of other timing differences	(368)		(142)
Adjustments for permanent timing differences other	(330)		(26)
Withholding tax on intercompany dividends and charges	873		689
Prior period tax credit	172		12
Current taxation expense	11,422		11,356
Deferred taxation (credit)
Origination and reversal of temporary timing differences	(871)		(4,804)
	(871)		(4,804)
Total tax expense	10,551		6,552

The parent company is not resident in the United Kingdom for taxation purposes. Hebei Hua-Ao paid income tax in the PRC at a rate of 25% in 2025 (25% in 2024) based upon the profits calculated under Chinese Generally Accepted Accounting Principles (Chinese "GAAP"). Withholding tax is recognised as a current tax charge when paid. As the Company can control the timing of payments giving rise to withholding tax, deferred tax liabilities for unpaid withholding taxes on unremitted earnings and undistributed dividend payments are recognised using a 'probable' threshold (based on the recognition threshold in IAS 12) and are reflected at the amount expected to be paid to taxation authorities. Unremitted earnings and undistributed dividend payments from the Group's Chinese mining operation total $95.9m (2024: $145.9m) upon which PRC withholding tax, currently 5%, may be deducted on distribution.

Earnings per share

The calculation of the basic earnings per share is based upon the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. 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:

				2025						2024
	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
Basic earnings attributable to ordinary shareholders	22,062			182,413,453		12.10		11,351		186,599,728		6.08

There were no share purchase options outstanding at 31 December 2025 or at 31 December 2024 and therefore there is no dilutive effect on earnings per share.

Mining Interests

	Mineral Interests held under retention licences			Mineral Interests held under mining licence		Mill & mobile mine equipment		Offices furniture & equipment		Total
	$000			$000		$000		$000		$000
At 1 January 2024		4,699		190,683		54,296		692		250,370
Foreign exchange adjustments		(69)		(1,919)		(780)		-		(2,768)
Additions during the year		106		13,868		6,996		-		20,970
Disposals		-		-		(1,205)		-		(1,205)
Depreciation charge for the year		-		(16,277)		(8,197)		(139)		(24,613)
At 31 December 2024		4,736		186,355		51,110		553		242,754
Foreign exchange adjustments		116		3,019		1,248		-		4,383
Additions during the year		766		21,828		14,029		8		36,631
Change in estimate of mine closure costs		-		(2,232)		-		-		(2,232)
Disposals		-		-		(234)		-		(234)
Depreciation charge for the year		-		(15,797)		(6,135)		(139)		(22,071)
At 31 December 2025		5,618		193,173		60,018		422		259,231
At 1 January 2024
Cost		4,699		285,378		103,479		1,558		395,114
Accumulated depreciation		-		(94,965)		(49,183)		(866)		(144,744)
Net carrying amount		4,699		190,683		54,296		692		250,370
At 31 December 2024
Cost		4,736		296,311		106,323		1,558		408,928
Accumulated depreciation		-		(109,956)		(55,213)		(1,005)		(166,174)
Net carrying amount		4,736		186,355		51,110		553		242,754
At 31 December 2025
Cost		5,618		320,716		122,244		1,566		450,144
Accumulated depreciation		-		(127,543)		(62,226)		(1,144)		(190,913)
Net carrying amount		5,618		193,173		60,018		422		259,231

Mineral interests comprise the Group's interest in the Caijiaying ore bodies including costs on acquisition, plus subsequent expenditure on licences, concessions, exploration, appraisal and construction of the Caijiaying mine including expenditure for the initial establishment of access to mineral resources, commissioning expenditure, and direct overhead expenses prior to commencement of commercial production and together with the end of life restoration costs.

Mill and mobile mine equipment include $2,376,000 (2024: $19,649,000) of assets under construction yet to be depreciated.

The offices, furniture and equipment disclosed above relate solely to the fixed assets, including leased offices, of Griffin Mining (UK Services) Limited.

The Group assesses the carrying value of the mineral interests, mill and mobile mine equipment at least annually, and more frequently in the event of any indications of impairment, by reference to discounted cash flow forecasts of future revenue and expenditure for each cash generating unit. Management has identified the Caijiaying mine as the Group's sole cash generating unit. These forecasts are based upon both past and expected future performance, available resources and expectations for future markets. Management determined there were no impairment indicators at 31 December 2025 (2024: nil). However, as best practice and in response to an updated Life of Mine Plan ("LOMP"), management has updated the impairment model taking account of the grant of an extended mining licence to 2054, latest forecast metal prices smelter treatment charges, and revisions to mine development costs.  In determining any indications of impairment in the carrying value of the Caijiaying Mine the directors have reassessed the net carrying value of mineral interests at 31 December 2025 by reference to the estimated mineral resources at Caijiaying that may be extracted by 2054 from mineralised Zones II & III only (2024: to 2045). The current business licence of Hebei Hua Ao expires in 2037, however, Hebei Hua Ao is required to be converted to a limited liability company in order to comply with new PRC legislation. The Group is currently undertaking the process of legally converting the joint venture company into a limited liability company with an extended business licence to at least 2054. Accordingly, management has assessed a possible termination of operations in 2037 and concluded that on the basis of the assumptions below no impairment is indicated.

In estimating the discounted future cash flows from the continuing operations at the Caijiaying mine the following principal assumptions have been made:

·    Future market prices for zinc of $2,528 (2024: $2,492) per tonne, gold of $3,110 (2024: $2,190) per troy ounce and silver of $51.1 (2024: $29.1) per troy ounce;

·    Zinc treatment charges of 25% (2024: 25%) of market prices;

·    Extraction of measured and indicated resources of 38.1 million tonnes from mineralised Zones III and II alone (2024: 31.1 million tonnes to 2045) to 2052 with ore mined and processed of circa 1.5 million tonnes (2024: 1.5 million tonnes) of ore per annum;

·    Operating costs, recoveries and payables based upon past performance and that budgeted for 2026 and on internal management forecast, for future years;

·    Capital costs based upon that initially scheduled with sustaining capital based on future scheduling;

·    Post tax discount rate of 10% (2024: 10%);

·    Continued maintenance and grant of applicable licences and permits;

·    No significant impact as a result of climate change, earthquakes or other natural events; and

·    A Renminbi to US dollar exchange rate of 6.9 Rmb to $1 (2024: 7.1 Rmb to $1).

Having considered the impact of climate change, the directors consider that there will not be any significant adverse impact on future operations from climate change. Whilst the directors consider the assumptions reasonable, sensitivities have been considered to assess the impact of changes in key assumptions including, forecast metal prices, foreign exchange and discount rates, and have concluded that there were no reasonable possible changes to the key assumptions that could result in an impairment .

Depreciation

The Group has considered the impact of the non-extension of the business licence on depreciation of mining assets. The shortening of the mine life to finish in 2037 would result in an increase in depreciation charge for the year ended 31 December 2025 of approximately $3.4m (2024: $6.2m). This has been computed assuming no change in the profile of future capital expenditure which with a shorter mine life would be minimised thereby significantly reducing depreciation rates. This sensitivity is therefore considered to be the "worst-case". Depreciation of mineral property rights held under mining licences is calculated on a Unit of Production basis. There is judgement in the quantum of future capital expenditure to be included in the calculation, to which this calculation is noted as being most sensitive. A 10% increase/decrease in capital expenditure would result in a corresponding increase/decrease in depreciation of approximately $0.9m (2024: $1.0m).

Life of mine estimates

The Group has considered the impact of the non-extension of the business licence on the hypothetical recoverable amount of the Caijiaying cash generating unit. The shortening of the mine life to 2037 would result in a reduction in the recoverable amount for the year ended 31 December 2025 of $156,805,000 (2024: $61,347,000) assuming no other changes to inputs, but would not result in an impairment. This has been computed assuming no change in the profile of future capital expenditure - which would be anticipated to be lower with a shorter mine life - nor any production upside of high-grade mining and shortened haulage distances across Zones II and III. This sensitivity is therefore considered to be the "worst-case" and would not have resulted in an impairment as at 31 December 2025.

Exploration Interests

China - mineral exploration interests

					$000
At 31 December 2023					575
Additions during the year					25
Impairment during the year					(599)
At 31 December 2024					1
Impairment during the year					(1)
At 31 December 2025					-

Intangible assets represent cost on acquisition, plus subsequent expenditure on licences, concessions, exploration, appraisal and development work in respect of regional exploration in China. Where expenditure on an area of interest is determined as unsuccessful such expenditure is written off to profit or loss. The recoverability of these assets depends, initially, on successful appraisal activities, details of which are given in the report on operations. The outcome of such appraisal activity is uncertain. Upon economically exploitable mineral deposits being established, sufficient finance will be required to bring such discoveries into production.

Attributable net asset value per share to total equity per holders of parent shares

The attributable net asset value / total equity per share has been calculated from the consolidated net assets / total equity of the Group at 31 December 2025 of $278,307,000 ($272,671,000 at 31 December 2024) divided by the number of ordinary shares in issue at 31 December 2025 of 176,592,171 (185,530,477 at 31 December 2024).

Post Balance Sheet Events

At 31 December 2025 there were no adjusting post balance sheet events (2024: none). In January 2026 the mining licence over the Caijiaying Mine was successfully renewed to 28 August 2054.

 

END