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Griffin Mining Ld (GFM)

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Monday 09 August, 2021

Griffin Mining Ld

Unaudited Interim Results - 30 June 2021

RNS Number : 9191H
Griffin Mining Ld
09 August 2021
 

 

 

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

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

E mail: [email protected]

 

9th AUGUST 2021

UNAUDITED INTERIM RESULTS

for the six months ended 30th 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 (30th June 2020: $21.3 million), an increase of 154%.

 

· Gross Profit of $25.7 million (30th June 2020: $4.2 million), an increase of 512%.

 

· Profit before tax of $15.5 million (30th June 2020: Loss $3.0 million).

 

· Profit after tax of $10.3 million (30th June 2020: Loss $3.8 million).

 

· Basic earnings per share of 5.88 cents (30th June 2020: Basic loss per share 2.22 cents).

 

 

Financial and Trading:

 

The results for the six months to 30th 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 (30th 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 ( 30th June 2020: 13,448 tonnes);

· 561 tonnes of lead (30th June 2020: 631 tonnes);

· 144,705 ounces of silver (30th June 2020: 110,832 ounces); and

· 7,584 ounces of gold (30th 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 30th June 2021 were $42,102,000 (30th June 2020: $17,008,000) with 19,062 tonnes of zinc metal in concentrate sold (30th June 2020: 13,046 tonnes).  Precious metals and lead revenues were $15,136,000 (30th June 2020: $5,279,000). 

 

During the six months to 30th June 2021:

 

· 462,632 tonnes of ore were mined (30th June 2020: 314,690 tonnes);

· 471,423 tonnes of ore were hauled (30th June 2020: 321,514 tonnes); and

· 475,785 tonnes of ore were processed (30th 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 (30th June 2020: loss of 2.22 cents per share).  At 30th June 2021, attributable net assets per share amounted to 141 cents (30th June 2020: 121 cents).

 

Cash flows from operations in the period of $16,818,000 (30th 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 30th June 2021 (30th 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 30th June 2021 on Monday 9th 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

 

Telephone: +44 (0)20 7629 7772

Mladen Ninkov - Chairman

Roger Goodwin - Finance Director

 


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 to

30/06/2021

Unaudited


6 months to

30/06/2020

Unaudited


Year to

31/12/2020

Audited

$000


$000


$000






54,072


21,321


75,403







Cost of sales

(28,401)


(17,153)


(42,737)












25,671


4,168


32,666







Net operating expenses

(10,209)


(7,204)


(17,518)












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











15,406


(3,826)


14,515






(5,148)


-


(5,605)











10,258


(3,826)


8,910











5.88


(2.22)


5.16






5.43


(2.22)


4.88

 



Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

 

6 months to

30/06/2021

Unaudited


6 months to

30/06/2020

Unaudited


Year to

31/12/2020

Audited

$000


$000


$000






10,258


(3,826)


8,910


















Exchange differences on translating foreign operations

2,514


(1,891)


9,662






 

2,514


 

(1,891)


 

9,662






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
















Property, plant and equipment

268,930


225,898


266,709

Intangible assets - exploration interests

349


325


325

269,279


226,223


267,034






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







304,854


242,745


295,477
















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

246,691


209,227


233,706











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






Trade and other payables

38,842


25,311


42,342

Finance leases

43


1,714


383

Total liabilities

38,885


27,025


42,725







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

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

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)












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











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











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 to

30/06/21

Unaudited


6 months to

30/06/2020

Unaudited


Year to

31/12/2020

Audited

 


$000


$000


$000






 

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)

 

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)

 

(8,644)


(4,359)


(24,327)

 







 






 

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)

 

(245)


(929)


(2,566)

 






 

7,929

(9,547)


(2,495)

 







 

16,435


19,885


19,885

 

Effects of exchange rate changes

779


13


(955)

 

25,143


10,351


16,435

 






 






 

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 31st 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, 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 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 30th June 2020. Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:

 

6 months to

30/06/2021

Unaudited

6 months to

30/06/2020

Unaudited

Year to

31/12/2020

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)



(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




 

Options


14,374,897

(0.45)





9,861,227

(0.28)

 

10,258

188,785,241

5.43




8,910

182,649,647

4.88

 

6.  As at 30th June 2021 there were no adjusting post balance sheet events. Since 30th June the Company bought in 40,000 shares to be held in treasury at a cost of $54,000.

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