(Alliance News) - Griffin Mining Ltd shares rose on Friday after the miner reported a sharp increase in full-year profit on higher volumes of zinc and other metals sold, as well as higher average prices.
Shares were trading 7.9% higher at 99.24 pence each on Friday morning in London.
Griffin Mining is a mine operator focused on China. It has one business segment, the Caijiaying zinc gold mine located near Beijing. It is an operating zinc, gold, silver and lead mine.
Griffin recorded a pretax profit of USD36.5 million in 2021, more than doubled from USD14.5 million in 2020.
This was on revenue of USD121.6 million in 2021, up 61% from USD75.4 million.
The company credited its performance to higher tonnes of zinc metal in concentrate sold in 2021, reporting that sales stood at USD43.9 million, up 83% year-on-year.
Griffin sold 41,949 tonnes of zinc metal in concentrate in 2021, reflecting a 30% increase from 32,276 tonnes in 2020. Further, the average zinc metal in concentrate price received in 2021 rose 40% to USD2,311 per tonne versus USD1,645 in 2020.
In addition, lead and precious metal in concentrate sales in 2021 were up 23% to USD31.9 million from USD26.0 million.
"This reflects increased gold metal in concentrate sold and increased lead and silver in concentrate prices received despite lower gold prices received," the company explained.
Griffin did not declare any dividend for 2021. "The directors have discussed and will further consider a dividend policy later this year when current political, social and economic circumstances permit enabling such a policy to be instituted and executed over a consistent, long term basis," it stated.
Going forward, the company will focus on developing zone 2 and 3 of the area at Caijiaying.
"In terms of the company's financial and operational performance, it has been a stellar year, even more, extraordinary considering zone 2 has yet to be fully developed or brought into production and in light of the continuing restrictions imposed by the Covid-19 pandemic in China," Chair Mladen Ninkov said.
"This bodes very well for the future results of the company when Zone 2 is commissioned and in full production."
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Griffin Mining (GFM)