(Alliance News) - Griffin Mining Ltd on Tuesday remained optimistic for the future, despite seeing pretax profit half in 2022 due to internal disruptions in China.
Griffin is a mining company based in China which owns the Caijaying Zinc Gold Mine, a profitable mine producing zinc, gold, silver, and lead metals.
For 2022, pretax profit declined by 58% to USD15.3 million from USD36.5 million a year prior, after operations were suspended for nearly five months at the Caijaying Zinc Gold Mine. These delays were caused by enforced suspensions for Chinese Lunar New Year holiday celebrations, as well as the Winter Olympics and Paralympics.
Operations were also suspended between September 22 and November 17, after Chinese authorities restricted the supply and use of explosives for the duration of the Chinese Communist National Party Congress.
Revenue decreased 22% to USD94.4 million from USD121.6 million the year before.
Directors did not recommend the payment of a dividend, but promised that all possible options would be considered in 2023 to increase shareholder value or to return all excess cash to shareholders.
Chair Mladen Ninkov said: "'Taking into consideration that operations were suspended at the Cajiaying Mine for a full five months... the Griffin Mining Limited was still able to generate its 18th continuous operating profit for the year and its 17th net profit, whilst currently holding USD47 million in cash and no debt."
"With production running at an annualised 1.5 million tonne throughput since November 2022 through to the date of this statement, I predict 2023 will break all operating and financial records for the company including tonnes mined, hauled, processed and zinc, gold, silver and lead produced. I look forward to being able to deliver that news as the year progresses."
Griffin Mining Ltd was trading 3.1% higher at 94.73 pence in London on Tuesday at noon.
By Will Neill, Alliance News reporter
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Griffin Mining (GFM)