(Alliance News) - Griffin Mining Ltd on Thursday said it will not meet market expectations for 2019 if zinc prices and smelter treatment charges stay flat.
Shares in Griffin were down 13% at 83.00 pence in afternoon trade.
The miner said its revenue has suffered from higher smelter treatment charges, including a 65% year-on-year rise in zinc smelter charges.
Griffin said the increase results from the closure of a number of Chinese smelters "primarily for environmental reasons", which has hurt demand for zinc concentrate in China.
However, the company's zinc and gold in concentrate production costs are set to meet market expectations.
According to Griffin, if zinc prices and smelter treatment charges remain as they are, it "will inevitably lead to the company failing to meet market expectations for its 2019 full year results".
Griffin Mining (GFM)