Half-year Financial Report
Summary by AI BETAClose X
8th Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
Email: griffin@griffinmining.com
10th September 2026
Unaudited Interim Results for the six months ended 30th June 2026
Caijiaying Mine Produces Record 1st Half Operating Profit
Progress on Recommissioning of Tailings Safety Facility 4 & Safety Permit for Zone II
Griffin Mining Limited ("Griffin" or the "Company") today announces its unaudited results for the six months ended 30th June 2026. The financial results represent a 1st half record result for Griffin with the Caijiaying Mine reporting the highest revenues and profits in the 1st half of any year in operation, despite only operating at 50% of full throughput capacity throughout the period. Had the Caijiaying Mine been able to operate at its full throughput capacity of 1.5 million tonnes per annum for the period, the directors estimate that operating profit for the 1st half would have been in the range of $60 million to $65 million, reflecting the benefit of scale in reduced costs per tonne of ore processed in conjunction with higher revenues.
Summary results for the six months ended 30th June 2026 (vis-à-vis 30th June 2025):
· Revenues: $77,286,000 (2025: $63,710,000);
· Gross profit: $42,565,000 (2025: $25,062,000);
· EBITD: $36,281,000 (2025: $25,048,000);
· Operating profit: $28,236,000 (2025: $13,583,000);
· Profit before tax: $28,542,000 (2025: $14,248,000);
· Profit after tax: $20,981,000 (2025: $8,784,000); and
· Basic EPS 11.89 cents (2025: 4.75 cents).
During the six months to 30th June 2026, 433,591 tonnes of ore (2025: 582,683) were mined and 419,128 tonnes of ore (2025: 588,852) processed to produce, in concentrate:
· 13,606 tonnes of Zinc (2025: 17,093 tonnes);
· 1,420 tonnes of Lead (2025: 708 tonnes);
· 161,402 ounces of Silver (2025: 163,220 ounces); and
· 6,011 ounces of Gold (2025: 8,703 ounces)
The decline in Zinc production arising from ore processed was partly offset by an increase in the Zinc ore grade from 3.06% in 2025 to 3.43% in 2026. The Lead ore grade increased from 0.16% in 2025 to 0.39% in 2026, the Silver ore grade improved from 16.58g/t in 2025 to 19.85g/t in 2026, whilst the Gold ore grade declined from 0.72g/t in 2025 to 0.66 g/t in 2026. Whilst there was a marginal decline in Zinc recoveries, Lead and precious metal recoveries improved.
During the six months to 30th June 2026 the following were sold in concentrate:
· 13,650 tonnes of Zinc (2025: 16,447 tonnes);
· 6,098 ozs of Gold (2025: 8,216 ozs);
· 162,406 ozs of Silver (2025: 148,466 ozs); and
· 1,410 tonnes of Lead (2025: 708 tonnes).
With higher market prices and lower smelter treatment charges, revenue increased by 21% from $63,710,000 in the first half of 2025 to $77,286,000 in the first half of 2026. Lead and precious metals revenues amounted to 54.8% of gross revenues before royalties in the six months to 30th June 2026 (2025: 46.5%).
Average metal prices received in the six months to 30th June were:
|
|
30th June |
|
30th June |
|
|
2026 |
|
2025 |
|
|
$ |
|
$ |
|
|
|
|
|
|
Zinc per tonne |
2,830 |
|
2,171 |
|
Gold per oz |
4,267 |
|
3,038 |
|
Silver per oz |
69.5 |
|
27.9 |
|
Lead per tonne |
3,549 |
|
2,910 |
Cost of Sales (mining, haulage and processing costs) have decreased by 10.2% in the first half of 2026 from that in the first half of 2025 reflecting a 29% reduction in throughput with fixed costs restricting cost reductions.
Administration costs, excluding the Chinese partners interests, increased by 18.6% from $9,718,000 in the first half of 2025 to $11,527,000 in the first half of 2026. This primarily reflects increased payroll costs with additional staff to comply with regulatory requirements.
$2,802,000 (30th June 2025: $1,761,000) has been provided for the Chinese partners service fees based upon Hebei Hua Ao Mining Industry Company Limited's ("HHA") profits and included in administration costs.
Griffin benefited from interest received of $541,000 in the first half of 2026 (2025: $826,000) reflecting lower interest rates and reduced bank deposits following funds expended on share buy backs.
Income taxes of $7,561,000 were charged in the six months to 30th June 2026 (2025: $5,464,000). The income tax charges are disproportionally large compared with pre-tax profits as the tax charge primarily arises on HHA's profit determined under Chinese Generally accepted Accounting Principles ("GAAP") with Chinese partners service fees and costs incurred outside China not tax deductible.
Cash of $22,446,000 was generated from operations in the six months to 30th June 2026 (2025: $33,713,000) with trade and other creditors reduced by $6,585,000 in the six months to 30th June 2026 (2025: $11,530,000 increase). $14,809,000 was expended on mine development and equipment purchases in the six months to 30th June 2026 (2025: $13,801,000). $14,184,000 was expended on share buy backs in the six months to 30th June 2026 (2025: $25,000) with 3,304,338 shares bought in for cancellation (2025:10,000).
Progress on Recommissioning of Tailings Safety Facility 4 ("TSF4") & Safety Permit for Zone II
Following the tragic Liushenyu Coal Mine gas explosion in Qinyuan County, Shanxi Province, on 22nd May 2026, resulting in 82 reported fatalities, mining operations across China have been subject to significantly enhanced regulatory scrutiny, inspection requirements and approval processes. Consequently, in spite of the record operating profit per tonne achieved in the first half of 2026, and as outlined in the Company's announcement of the 10th March 2026, production at the Caijiaying Mine continued to operate at a 50% reduced level of 750,000 tonnes per annum. The Company now expects it's reduced throughput rate to be maintained for the remainder of 2026 and into early 2027 as the Company awaits Provincial Environmental and Rescue Bureau ("ERB") approval for the use of it's already constructed and previously approved TSF4, after which the Company intends to raise production to the previous 1,500,000 tonnes per annum rate as soon as practicably possible.
The current paste fill tailings management practice is incapable of being continued through 2027 without the flexibility provided by TSF4, particularly in light of the budgeted higher throughput level. Until TSF4 is approved, production levels are expected to remain variable and dependent upon operational and tailings management limitations. The Company is implementing robust processes to ensure continued production and profitability within the regulatory constraints.
Construction of all the necessary infrastructure and workings at Zone II of the Caijiaying Mine have been completed. Full budgeted production from Zone II will commence once the necessary Safety Permit has been issued by the ERB, which is expected at some point in the last quarter of 2026.
Chairman's Statement
Chairman Mladen Ninkov commented, "Another outstanding and unmatched operational performance from the Caijiaying Mine. Unshackled, it is extraordinary what the orebody and our people can deliver. The Company now awaits the necessary approvals allowing for the reopening of TSF4 and the Safety Permit for the Zone II area, with which, the strength of the Caijiaying Mine can be set free to reach its full potential."
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman Telephone: +44 (0)20 7629 7772
Roger Goodwin - Finance Director
Panmure Liberum Limited - Nominated Adviser & Joint Broker Telephone: +44 (0)20 7886 2500
James Sinclair-Ford
Zak Wadud
Berenberg - Joint Broker Telephone: +44 (0)20 3207 7800
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
Griffin Mining Limited
Condensed Consolidated Income Statement
(expressed in thousands US dollars)
|
|
6 months to 30/06/2026 Unaudited |
|
6 months to 30/06/2025 Unaudited |
|
Year to 31/12/2025 Audited |
|
|
$000 |
|
$000 |
|
$000 |
|
|
|
|
|
|
|
|
Revenue |
77,286 |
|
63,710 |
|
137,496 |
|
|
|
|
|
|
|
|
Cost of sales |
(34,721) |
|
(38,648) |
|
(77,173) |
|
|
|
|
|
|
|
|
Gross profit |
42,565 |
|
25,062 |
|
60,323 |
|
|
|
|
|
|
|
|
Administration expenses |
(14,329) |
|
(11,479) |
|
(29,563) |
|
|
|
|
|
|
|
|
Profit from operations |
28,236 |
|
13,583 |
|
30,760 |
|
|
|
|
|
|
|
|
Impairment of exploration interest |
- |
|
- |
|
(1) |
|
Losses on disposal of equipment |
(433) |
|
(167) |
|
(229) |
|
Foreign exchange gains / (losses) |
130 |
|
(19) |
|
(4) |
|
Finance income |
541 |
|
826 |
|
1,748 |
|
Finance costs |
(30) |
|
(88) |
|
(29) |
|
Other income |
98 |
|
113 |
|
368 |
|
|
|
|
|
|
|
|
Profit before tax |
28,542 |
|
14,248 |
|
32,613 |
|
|
|
|
|
|
|
|
Income tax expense |
(7,561) |
|
(5,464) |
|
(10,551) |
|
|
|
|
|
|
|
|
Profit for the period |
20,981 |
|
8,784
|
|
22,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (cents) |
11.89 |
|
4.75 |
|
12.10 |
|
|
|
|
|
|
|
|
Diluted earnings per share (cents) |
11.89 |
|
4.75 |
|
12.10 |
Griffin Mining Limited
Condensed Consolidated Statement Of Comprehensive Income
(expressed in thousands US dollars)
|
|
6 months to 30/06/2026 Unaudited |
|
6 months to 30/06/2025 Unaudited |
|
Year to 31/12/2025 Audited |
|
|
$000 |
|
$000 |
|
$000 |
|
|
|
|
|
|
|
|
Profit for the financial period |
20,981 |
|
8,784 |
|
22,062 |
|
|
|
|
|
|
|
|
Other comprehensive income that will be reclassified to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
4,950 |
|
719 |
|
3,925 |
|
Other comprehensive income for the period, net of tax |
4,950 |
|
719 |
|
3,925 |
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
25,931 |
|
9,503 |
|
25,987 |
Griffin Mining Limited
Condensed Consolidated Statement Of Financial Position
(expressed in thousands US dollars)
|
|
30/06/2026 |
|
30/06/2025 |
|
31/12/2025 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
$000 |
|
$000 |
|
$000 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
271,043 |
|
245,630 |
|
259,231 |
|
Deferred taxation |
5,941 |
|
4,788 |
|
5,757 |
|
Other non-current assets |
1,226 |
|
893 |
|
909 |
|
|
278,210 |
|
251,311 |
|
265,897 |
|
Current assets |
|
|
|
|
|
|
Inventories |
9,091 |
|
6,539 |
|
8,019 |
|
Receivables and other current assets |
7,840 |
|
3,083 |
|
3,221 |
|
Cash and cash equivalents |
39,607 |
|
69,651 |
|
47,547 |
|
|
56,538 |
|
79,273 |
|
58,787 |
|
|
|
|
|
|
|
|
Total assets |
334,748 |
|
330,584 |
|
324,684 |
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
Equity attributable to equity holders of the parent |
|
|
|
|
|
|
Share capital |
1,733 |
|
1,843 |
|
1,766 |
|
Share premium |
30,517 |
|
64,917 |
|
44,668 |
|
Contributing surplus |
3,690 |
|
3,690 |
|
3,690 |
|
Share based payments |
9,096 |
|
9,096 |
|
9,096 |
|
Chinese statutory re-investment reserve |
4,043 |
|
3,846 |
|
3,917 |
|
Other reserve on acquisition of non-controlling interests |
(29,346) |
|
(29,346) |
|
(29,346) |
|
Foreign exchange reserve |
2,323 |
|
(5,636) |
|
(2,501) |
|
Profit and loss reserve |
267,998 |
|
233,739 |
|
247,017 |
|
Total equity attributable to equity holders of the parent |
290,054 |
|
282,149 |
|
278,307 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Long-term provisions |
1,685 |
|
3,912 |
|
1,614 |
|
Lease liabilities |
230 |
|
377 |
|
302 |
|
|
1,915 |
|
4,289 |
|
1,916 |
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
40,541 |
|
39,030 |
|
43,403 |
|
Lease liabilities |
154 |
|
173 |
|
155 |
|
Business taxation payable |
2,084 |
|
4,943 |
|
903 |
Total current liabilities |
42,779 |
|
44,146 |
|
44,461 |
|
|
|
|
|
|
|
|
Total equities and liabilities |
334,748 |
|
330,584 |
|
324,684 |
|
|
|
|
|
|
|
|
Number of shares in issue |
173,287,833 |
|
184,253,481 |
|
176,592,171 |
|
|
|
|
|
|
|
Attributable net asset value / total equity per share |
$1.67 |
|
$1.53 |
|
$1.58 |
|
|
|
|
|
|
|
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 payments |
held in treasury |
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 31st December 2024 |
1,855 |
67,318 |
3,690 |
9,096 |
(2,388) |
3,830 |
(29,346) |
(6,339) |
224,955 |
272,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based payments |
|
|
|
|
|
|
|
|
|
|
|
Purchase of shares for treasury |
- |
- |
- |
- |
(25) |
- |
- |
|
- |
(25) |
|
Cancellation of shares |
(12) |
(2,401) |
- |
- |
2,413 |
- |
- |
|
- |
- |
|
Transaction with owners |
(12) |
(2,401) |
- |
- |
2,388 |
- |
- |
|
- |
(25) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained profit for the 6 months |
- |
- |
- |
- |
- |
- |
- |
|
8,784 |
8,784 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
16 |
- |
703 |
- |
719 |
|
Total comprehensive income for the period |
- |
- |
- |
- |
- |
16 |
- |
703 |
8,784 |
9,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30th June 2025 (Unaudited) |
1,843 |
64,917 |
3,690 |
9,096 |
- |
3,846 |
(29,346) |
(5,636) |
233,739 |
282,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancellation of shares |
- |
25 |
- |
- |
(25) |
- |
- |
- |
- |
- |
|
Purchase of shares for cancellation |
(77) |
(20,274) |
- |
- |
25 |
- |
- |
- |
- |
(20,326) |
|
Transaction with owners |
(77) |
(20,249) |
- |
- |
- |
- |
- |
- |
- |
(20,326) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained profit for the 6 months |
- |
- |
- |
- |
- |
- |
- |
- |
13,278 |
13,278 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
71 |
- |
3,135 |
- |
3,206 |
|
Total comprehensive income for the period |
- |
- |
- |
- |
- |
71 |
- |
3,135 |
13,278 |
16,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2025 |
1,766 |
44,668 |
3,690 |
9,096 |
- |
3,917 |
(29,346) |
(2,501) |
247,017 |
278,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancellation of shares |
(33) |
(14,151) |
- |
- |
- |
- |
- |
- |
- |
(14,184) |
|
Transaction with owners |
(33) |
(14,151) |
- |
- |
- |
- |
- |
- |
- |
(14,184) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained profit for the 6 months |
- |
- |
- |
- |
- |
- |
- |
- |
20,981 |
20,981 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
- |
- |
- |
- |
- |
126 |
- |
4,824 |
- |
4,950 |
|
Total comprehensive income for the period |
- |
- |
- |
- |
- |
126 |
- |
4,824 |
20,981 |
25,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30th June 2026 (Unaudited) |
1,733 |
30,517 |
3,690 |
9,096 |
- |
4,043 |
(29,346) |
2,323 |
267,998 |
290,054 |
Griffin Mining Limited
Condensed Consolidated Cash Flow Statement
(expressed in thousands US dollars)
|
|
6 months to 30/06/2026 |
|
6 months to 30/06/2025 |
|
Year to 31/12/2025 |
|
|
|
$000 |
|
$000 |
|
$000 |
|
|
Net cash flows from operating activities |
|
|
|
|
|
|
|
Profit before taxation |
28,542 |
|
14,248 |
|
32,613 |
|
|
Foreign exchange (gains) / losses |
(130) |
|
19 |
|
4 |
|
|
Finance income |
(541) |
|
(826) |
|
(1,748) |
|
|
Finance costs |
30 |
|
88 |
|
29 |
|
|
Impairment of exploration interests |
- |
|
- |
|
1 |
|
|
Depreciation |
8,249 |
|
11,538 |
|
22,071 |
|
|
Losses on disposal of equipment |
433 |
|
167 |
|
229 |
|
|
(Increase) in inventories |
(1,072) |
|
(1,266) |
|
(2,746) |
|
|
(Increase) in receivables and other assets |
(1,730) |
|
(98) |
|
(27) |
|
|
(Decrease)/ increase in trade and other payables |
(6,585) |
|
11,530 |
|
15,404 |
|
|
Taxation paid |
(4,750) |
|
(1,687) |
|
(11,903) |
|
|
Net cash inflow from operating activities |
22,446 |
|
33,713 |
|
53,927 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Interest received |
541 |
|
826 |
|
1,712 |
|
|
(Increase)/ decrease in rehabilitation deposits |
(285) |
|
327 |
|
330 |
|
|
Proceeds on disposal of equipment |
109 |
|
- |
|
4 |
|
|
Payments to acquire - mineral interests and mine development |
(11,464) |
|
(1,379) |
|
(30,158) |
|
|
Payments to acquire - property, plant & equipment |
(3,345) |
|
(12,422) |
|
(5,962) |
|
|
Net cash (outflow) from investing activities |
(14,444) |
|
(12,648) |
|
(34,074) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Purchase of shares for treasury / cancellation |
(14,184) |
|
(25) |
|
(20,351) |
|
|
Finance lease repayments including interest |
(83) |
|
(83) |
|
(168) |
|
|
Net cash (outflow) from financing activities |
(14,267) |
|
(108) |
|
(20,519) |
|
|
|
|
|
|
|
|
|
|
(Decrease)/ increase in cash and cash equivalents |
(6,265) |
|
20,957 |
|
(666) |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the period |
47,547 |
|
48,758 |
|
48,758 |
|
|
Effects of exchange rate changes |
(1,675) |
|
(64) |
|
(545) |
|
|
Cash and cash equivalents at end of the period |
39,607 |
|
69,651 |
|
47,547 |
|
|
|
|
|
|
|
|
|
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 31st December 2025.
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, 8th 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 31st December 2025 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 2025 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. Whilst it is difficult to accurately predict future profitability and liquidity, particularly regarding the impact of metal prices, the directors consider that at current metal prices and with the benefit of existing cash resources and agreed banking facilities the Group can continue as a going concern for the foreseeable future without the need to curtail operations.and 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.
6. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:
|
|
6 months to 30/06/2026 Unaudited |
6 months to 30/06/2025 Unaudited |
Year to 31/12/2025 Audited |
||||||||
|
|
Earnings $000 |
Weighted average number of shares |
Per share amount (cents) |
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 |
|
|
|||||||||
|
Earnings attributable to ordinary shareholders |
20,981 |
176,427,867 |
11.89 |
8,784 |
184,253,481 |
4.75 |
22,062 |
182,413,453 |
12.10 |
||
|
Dilutive effect of securities |
|
|
|
|
|||||||
|
Options |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||
|
Diluted earnings per share |
20,981 |
176,427,867 |
11.89 |
8,784 |
184,253,481 |
4.75 |
22,062 |
182,413,453 |
12.10 |
||
7. As at 30th June 2026 there were no adjusting post balance sheet events.
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