Half-year Financial Report

Griffin Mining Limited

10 September 2026

 

8^th Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom

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

Email: [e-mail]

 

10^th September 2026

Unaudited Interim Results for the six months ended 30^th June 2026

Caijiaying Mine Produces Record 1^st 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 30^th June 2026.  The financial results represent a 1^st half record result for Griffin with the Caijiaying Mine reporting the highest revenues and profits in the 1^st 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 1^st 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 30^th June 2026 (vis-à-vis 30^th 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 30^th 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 30^th 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 30^th June 2026 (2025: 46.5%).

Average metal prices received in the six months to 30^th 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 (30^th 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 30^th 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 30^th June 2026 (2025: $33,713,000) with trade and other creditors reduced by $6,585,000 in the six months to 30^th June 2026 (2025: $11,530,000 increase). $14,809,000 was expended on mine development and equipment purchases in the six months to 30^th June 2026 (2025: $13,801,000). $14,184,000 was expended on share buy backs in the six months to 30^th 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 22^nd 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 10^th 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: [phone]

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

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 31^st 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, 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 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 30^th June 2026 there were no adjusting post balance sheet events.

 

END