gfm5 May 2011 10:11
Griffin recovers
Created: 4 May 2011 Written by: Martin Li
China-based Griffin Mining substantially improved its fortunes in 2010, despite suspending operations at its Caijiaying site for four months from August following two fatalities. Production of zinc concentrate fell just short of 2008's record 22,922 tonnes and was significantly up on 2009.
Griffin processed 389,496 tonnes of ore, an increase of more than 40 per cent on 2009, and upgraded processing facilities should enable significantly more throughput to be processed in future. A 90 per cent increase in gold production to a record 7,067 ounces and 77 per cent increase in silver output helped boost pre-tax profit by 55 per cent to $11.2m (£6.8m).
More share tips and updates...
SHARE TIP UPDATE:
Buy
At 60p, the shares remain well below our long-standing buy advice (105p, 31 August 2007), although operations have improved and have the potential to grow further, and the global zinc market is forecast to tighten beyond next year. Buy.
Last IC view: Buy, 44p, 7 September 2010