RNS Number:3869T
Griffin Mining Ld
30 April 2008
GRIFFIN MINING LIMITED
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
E mail: griffin@griffinmining.com
30th APRIL 2008
PRELIMINARY RESULTS
DIVIDEND DECLARATION
Griffin Mining Limited ("Griffin" or "the Company") has today published its
preliminary results for the year ended 31 December 2007 and declared a dividend
of three cents per ordinary share.
Highlights:
* Profit before tax of $26.8 million on a declining zinc price
* Ore mined up 43% in 2007 to 430,891 tonnes compared to 301,168 tonnes in
2006
* Ore processed up 36% in 2007 to 409,193 tonnes compared to 301,101 tonnes
in 2006
* Precious metals circuit commissioned with production and sale of a second
concentrate containing lead, silver and gold
* Maiden resource for Zone II announced, located just 1.5 kilometres south
of the existing mine at Zone III
Chairman's Statement:
I am delighted to report that the Company made a profit before tax of $26.8
million, a remarkable performance considering the zinc price fell 46% in 2007,
from $4,100 in January to $2,200 in December. Yet Griffin was generally able to
reproduce its 2006 net profit level and, as such, the Company has been able to
maintain its dividend policy of declaring a $0.03 per share dividend for the
2007 financial year.
2007 witnessed exceptional progress in many areas of the Company's operations
and in its preparation for the future. These include:
1. Production of ore from Zone III at Caijiaying continued to increase.
Mill throughput has now increased over 150% since commissioning with operations
currently processing over 500,000 tonnes per annum and expected to reach 750,000
per annum following the installation of the new primary ball mill in late summer
2008. The mining operations are also expanding to cater for this new production
schedule;
2. Significant effort has been expended in designing, constructing and
installing the new infrastructure needed to deal with the planned increased
production schedules. A new backfill plant has been completed to enable more
efficient extraction of ore, new floatation cells have been installed to handle
the increased volume of zinc and precious metals concentrates and a new crushing
circuit and ball mill will enable greater throughput to be generated by the
Caijiaying mill. In addition, a new accommodation block and administrative
offices have been constructed to cater for the additional staff required as the
mine continues to expand;
3. A new precious metals concentrate containing gold, silver and lead was
commissioned in December 2007. This will become ever more important with the
increasing production of precious metals as the mine accesses higher grade
material and will allow lead to be separated from the zinc concentrate for the
production of a higher quality concentrate with a subsequently higher sale
price;
4. The discovery of a new mineable orebody at Zone II has far reaching
consequences and added exceptional value for shareholders. Firstly, it is only
1.5 kilometres from the Caijiaying processing facilities, allowing easy haulage
at minimum cost. Secondly, it provides an alternate source of ore to ease the
scheduling of mining and haulage timetables at Zone III. Thirdly, and most
importantly, it confirms the long held view that Zone II and III are, in effect,
one orebody. That prospects opens up the possibility of an additional 1.5
kilometres of mineralization. To prove this hypothesis, a new decline is being
driven off the Zone III access directly to the new Zone II orebody, with the
necessary underground drilling being undertaken off that drive. This is an
exciting prospect for all involved; and
5. The continued accumulation of cash by the Company such that Griffin now
has a cash balance exceeding $205 million with no debt.
It should be noted that the Company continues to expend an inordinate amount of
time on new acquisitions. These need to be able to meet the financial,
political, structural, metallurgical and geological parameters required to
provide the shareholders with the returns they have come to expect and deserve.
Needless to say, such acquisitions are difficult to find and even more difficult
to consummate. It is enough to add that the Company will continue to progress
the enormous potential still untapped at Caijiaying whilst continuing to
evaluate and undertake acquisitions which meet these set parameters.
Dividend
A dividend of US$0.03 per share will be paid to shareholders on 6th June 2007.
The ex dividend date being 7 May 2007 and the record date 9 May 2007.
Further information
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Griffin Mining Limited
Adrian Hadden Telephone: +44(0)20 7523 8353
Collins Stewart Europe Limited
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
SUMMARISED CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2007
(expressed in thousands US dollars)
2007
2006
$000
$000
Revenue 37,989
42,802
Cost of sales (7,768)
(8,516)
Gross Profit 30,221
34,286
Net operating expenses (10,078)
(6,142)
Profit from operations 20,143
28,144
Foreign exchange gains 1,012
789
Finance income 5,607
612
Profit before tax 26,762
29,545
Income tax expense -
(75)
Profit after tax attributable to equity share owners for the financial 26,762
29,470
year
Basic earnings per share (cents) from continuing operations 12.08
16.02
Diluted earnings per share (cents) from continuing operations 11.97
15.45
GRIFFIN MINING LIMITED
SUMMARISED CONSOLIDATED BALANCE SHEET
As at 31 December 2007
(expressed in thousands US dollars)
2007 2006
$000 $000
ASSETS
Non-current assets
Property, plant and equipment
44,381 32,087
Intangible assets - Exploration interests
751 842
45,132 32,929
Current assets
Inventories
4,639 1,104
Other current assets
4,155 1,064
Cash and cash equivalents
199,949 34,081
208,743 36,249
Total assets
253,875 69,178
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital
2,615 1,841
Share premium
196,637 39,166
Contributing surplus
3,690 3,690
Share based payments
4,426 2,553
Other reserves
579 297
Foreign exchange reserve
3,109 479
Profit and loss reserve
37,106 16,432
Total equity
248,162 64,458
Non-current liabilities
Long-term provisions
- 384
Current liabilities
Trade and other payables
5,047 4,336
Short term bank overdrafts
666 -
Total liabilities
5,713 4,720
Total equities and liabilities
253,875 69,178
Number of shares in issue
261,509,549 184,061,064
Attributable net asset value / total equity per share
$0.95 $0.35
GRIFFIN MINING LIMITED
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2007
(expressed in thousands US dollars)
Share Share Contributing Share Other Foreign
Profit
Capital Premium surplus based reserves Exchange
and loss Total
payments Reserve
Reserve
$000 $000 $000 $000 $000 $000
$000 $000
At 31 December 2005 1,838 39,040 3,690 842 - 215
(12,740) 32,885
Exchange differences on
translating foreign
operations - - - - - 264
- 264
Net income recognised
directly to equity - - - - - 264
- 264
Profit for the year - - - - - -
29,470 29,470
Total recognised income and
expenses in the year - - - - - 264
29,470 29,734
Regulatory transfer for
future investment - - - - 297 -
(297) -
Issue of share capital 3 126 - - - -
- 129
Cost of share based
payments - - - 1,711 - -
- 1,711
Movement in fair value of
financial assets - - - - - -
(1) (1)
At 31 December 2006 1,841 39,166 3,690 2,553 297 479
16,432 64,458
Exchange differences on
translating foreign
operations - - - - 20 2,630
- 2,650
Net income recognised
directly to equity - - - - 20 2,630
- 2,650
Profit for the year - - - - - -
26,762 26,762
Total recognised income and
expenses in the year - - - - 20 2,630
26,762 29,412
Dividend paid - - - - - -
(5,826) (5,826)
Regulatory transfer for
future investment - - - - 262 -
(262) -
Exercise of options - 1,042 - (1,042) - -
- -
Issue of share capital 774 156,429 - - - -
- 157,203
Cost of share based
payments - - - 2,915 - -
- 2,915
At 31 December 2007 2,615 196,637 3,690 4,426 579 3,109
37,106 248,162
Griffin Mining Limited
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2007
(expressed in thousands US dollars)
2007
2006
$000
$000
Net cash flows from operating activities
Profit before taxation 26,762
29,545
Foreign exchange (gains) (1,012)
(789)
Taxation paid -
(75)
Finance income (5,607)
(612)
Adjustment in respect of share based payments 2,915
1,711
Depreciation, depletion and amortisation 1,351
890
(Increase) / decrease in inventories (3,535)
516
(Increase) in other current assets (3,091)
(117)
Increase in trade and other payables 711
811
Net cash inflow from operating activities 18,494
31,880
Cash flows from investing activities
Interest received 5,607
612
Receipts on sale of investments -
63
Payments to acquire intangible fixed assets - exploration (126)
(414)
interests
Payments to acquire plant and equipment - mineral interests (9,056)
(2,829)
Payments to acquire plant and equipment - plant and equipment (1,854)
(2,504)
Payments to acquire plant and equipment - other -
(9)
Dividends paid (5,826)
-
Net cash (outflow) from investing activities (11,255)
(5,081)
Cash flows from financing activities
Issue of ordinary share capital 157,211
129
Expenses paid in connection with share issue (7)
-
157,204
129
Increase in cash and cash equivalents 164,443
26,928
Cash and cash equivalents at the beginning of the year 34,081
6,663
Effects of exchange rates 759
490
Cash and cash equivalents at the end of the year 199,283
34,081
Cash and cash equivalents comprise:
Bank deposits 199,949
34,081
Short term bank overdrafts (666)
-
Total 199,283
34,081
Notes:
1. This statement has been prepared using accounting policies and
presentation consistent with those applied in the preparation of the statutory
accounts of the Company.
2. The summary accounts set out above do not constitute statutory accounts
as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the
UK Companies Act 1985. The summarised consolidated balance sheet at 31 December
2007 and the summarised consolidated income statement, 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 2007 statutory financial
statements upon which the auditors' opinion is unqualified. The results for the
year ended 31 December 2006 have been extracted from the statutory accounts for
that period, which contain an unqualified auditors' report.
3. The annual report and accounts for 2007 together with the notice of the
Annual General Meeting to be held on 13 June 2008 are being sent by post to all
registered shareholders. Additional copies of the annual report and accounts
are available from the Company's London office, 6th Floor, 60 St James's Street,
London, SW1A 1LE.
4. 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 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:
2007
2006
Earnings Weighted Per Earnings
Weighted Per
Average share
Average share
number of amount
number of amount
shares (cents)
shares (cents)
$000 $000
Basic earnings per share
Earnings
attributable to
ordinary
shareholders 26,762 221,441,986 12.08 29,470
183,931,840 16.02
Dilutive effect of securities
Options 2,153,244
6,820,134
Diluted earnings
per share
26,762 223,595,230 11.97 29,470
190,751,974 15.45
This information is provided by RNS
The company news service from the London Stock Exchange
END
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