(Alliance News) - Griffin Mining Ltd on Wednesday said its earnings shrank in 2019 due to lower prices of metals.
The London-based investment company, focused on China, reported revenue of USD82.3 million for 2019, down 17% from USD99.1 million a year earlier, taking pretax profit down by two-thirds to USD11.7 million from USD34.8 million.
The lower profit in 2019 was primarily the result of falling zinc prices and significantly higher smelter treatment charges, Griffin said.
Despite greater quantities of zinc metal in concentrate being produced and sold, zinc metal in concentrate sales before royalties and resource taxes in 2019 amounted to USD55.6 million, down 29% compared with USD78.8 million in 2018. The average zinc metal price per tonne was USD1,471, down from USD2,149 a year earlier.
Lead and precious metal in concentrate sales amounted to USD29.9 million compared, up 20% from USD24.9 million in 2018. The price of lead metal per tonne dropped to USD1,575 from USD2,250 in 2018.
"The last three months has seen a large closure of marginal zinc mines and world zinc production falling by at least 10%. This trend will inevitably get worse before it gets better, but it bodes well for the zinc price," said Chair Mladen Ninkov.
AIM-listed Griffin shares were trading 5.8% lower in London on Wednesday at 48.02 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Griffin Mining (GFM)