Griffin Mining Regulatory News (GFM)

31 Aug 2006 07:01

Griffin Mining Ld31 August 2006 Griffin Mining Limited 60 St James's Street, London SW1A 1LE, United Kingdom Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773 E mail: griffin@griffinmining.com 31st August 2006 INTERIM STATEMENT FOR THE SIX MONTHS TO 30th JUNE 2006 RECORD SIX MONTHLY PROFIT Griffin Mining Limited ("Griffin"or the "Company") has today published itsinterim results for the six months ended 30th June 2006. Highlights: • Profit before tax of US$9,006,000 • Caijiaying mine commissioning phase successfully completed • Increased mine, processing and concentrate production • Improving profitability with throughput and price increases Financial and Trading: Results for the six months ended 30th June 2006 show pre-tax profits ofUS$9,006,000 (2005 loss restated US$966,000). Comparative figures for the six months ended 30th June 2005 cover the period upto the commencement of production at Caijiaying, prior to this no miningrevenues were generated. Turnover amounted to US$15,672,000 (2005 nil) up from US$6,120,000 in theprevious six months to 31st December 2005 with increased production and zincconcentrate prices. Operating profit US$8,563,000 (2005 loss restated US$858,000), up fromUS$1,283,000 in the previous six months to 31st December 2005. The financial results reflect the increase in production and sales at theCaijiaying mine. 146,557 tonnes of ore were mined in the period compared with107,879 in the previous six months to 31st December 2005. 129,939 tonnes of orewere processed in the period compared with 92,096 in the previous six months.8,679 tonnes of zinc metal in concentrate were sold in the period compared with6,676 in the previous six months. Ongoing improvements in profitability continue to be achieved. The Cajiayingplant continues to operate above design specifications, without any detrimentaleffects to zinc metal production, even as the Company continues to increase thehourly tonnages through the mill. With the continued buoyancy in the world zincprice and the increasing production, even more significant profit results areexpected for the full calendar year. Chairman's statement "The first six month results, reflecting the ramp up in operations at theCaijiaying mine after wet commissioning, is a wonderful result that vindicatesthe faith and patience the shareholders have shown in Caijiaying and theCompany. I look forward to an even more impressive result for the full 2006year." Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Adrian Hadden / Christopher Rollason Telephone: +44(0)20 7523 8350Collins Stewart Limited Hugo de Salis / Isabel Crossley Telephone: +44(0) 20 7242 4477St Brides Media & Finance Ltd Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). The Company's news releases are available on the Company's web site: www.griffinmining.com Griffin Mining Limited Consolidated Income Statement (expressed in thousands US dollars) 6 months to 6 months to Year to 30/06/2006 30/06/2005 31/12/2005 Unaudited Unaudited Audited Restated $000 $000 $000 Revenue 15,672 - 6,120 Cost of sales 4,416 - (2,440) Gross Profit 11,256 - 3,680 Net operating expenses (2,693) (858) (3,254) Profit / (loss) from operations 8,563 (858) 426 Foreign exchange gains / (losses) 289 (272) (411)Finance income 154 164 296 Profit / (loss) before tax 9,006 (966) 311 Income tax expense (55) - - Profit / (loss) after tax attributable to equity share owners for the financial year 8,951 (966) 311 Basic earnings / (loss) per share (cents) 4.87 (0.5) 0.17 Diluted earnings / (loss) per share (cents) 4.71 (0.5) 0.17 Griffin Mining Limited Consolidated Balance Sheet (expressed in thousands US dollars) 30/06/2006 30/06/2005 31/12/2005 Unaudited Unaudited Audited Restated $000 $000 $000ASSETSNon-current assetsProperty, plant and equipment 27,952 21,451 27,070Intangible assets - Exploration interests 803 39 419 28,755 21,490 27,489Current assetsInventories 1,501 39 1,620Other current assets 1,450 521 947Available-for-sale financial assets 66 35 63Cash and cash equivalents 14,024 7,489 6,663 17,041 8,084 9,293 Total assets 45,796 29,574 36,782 EQUITY AND LIABILITIESEquity attributable to equity holders of the parentShare capital 1,839 1,783 1,838Share premium 39,057 36,968 39,040Contributing surplus 3,690 3,690 3,690Share based payments 1,398 790 842Foreign exchange reserve 340 (118) 215Profit and loss reserve (3,786) (14,044) (12,740)Total equity 42,538 29,069 32,885 Non-current liabilitiesLong-term provisions 375 - 372 Current liabilitiesTrade and other payables 2,883 505 3,525 Total liabilities 3,258 505 3,897 Total equities and liabilities 45,796 29,574 36,782 Number of shares in issue 183,861,064 178,327,731 183,827,731 Attributable net asset value / total equity per share $0.23 $0.16 $0.18 Griffin Mining Limited Consolidated Statement of Changes in Equity (expressed in thousands US dollars) Share Share Contributing Share Foreign Profit Total capital Premium surplus based Exchange and payments Reserve loss $000 $000 $000 $000 $000 $000 $000 At 31 December 2004 1,773 36,594 3,690 509 (143) (13,087) 29,336 RestatedExchange differences - - - - 25 - 25on translatingforeign operationsLoss for the 6 months - - - - - (966) (966)Movement in fair 9 9value of financialassetsIssue of share 10 374 - - - - 384capitalCost of share based - - - 281 - - 281payments At 30 June 2005 1,783 36,968 3,690 790 (118) (14,044) 29,069Exchange differences - - - - 333 - 333on translatingforeign operationsProfit for the 6 - - - - - 1,276 1,276monthsMovement in fair 28 28value of financialassetsIssue of share 55 2,072 - - - - 2,127capitalCost of share based - - - 52 - - 52payments At 31 December 2005 1,838 39,040 3,690 842 215 (12,740) 32,885Exchange differences - - - - 125 - 125on translatingforeign operationsProfit for the 6 - - - - - 8,951 8,951monthsMovement in fair - - - - - 3 3value of financialassetsIssue of share 1 17 - - - - 18capitalCost of share based - - - 556 - - 556payments At 30 June 2006 1,839 39,057 3,690 1,398 340 (3,786) 42,538 Griffin Mining Limited Consolidated Cash Flow Statement (expressed in thousands US dollars) 6 months to 6 months to Year to 30/06/2006 30/06/2005 31/12/2005 Unaudited Unaudited Audited Restated $000 $000 $000 Net cash flows from operating activitiesProfit/(loss) before taxation 9,006 (966) 311Foreign exchange losses (21) (7) 360Finance income (154) (164) (296)Taxation paid (55) - -Adjustment in respect of share options 556 281 333Depreciation, depletion and amortisation 1,022 2 557Decrease / (increase) in inventories 119 (38) (1,620)(Increase) in other current assets (503) (245) (671)(Decrease) / increase in trade and other payables (642) (380) 2,640 Net cash inflow / (outflow) from operating activities 9,328 (1,517) 1,614 Cash flows from investing activities Interest received 154 164 296Payments to acquire intangible fixed assets (382) - (376)Payments to acquire tangible fixed assets - mineral (689) (3,007) (6,949)interestsPayments to acquire tangible fixed assets - plant and (1,065) (1,518) (3,409)equipmentPayments to acquire tangible fixed assets - other (3) (2) (9)Net cash (outflow) from investing activities (1,985) (4,363) (10,447) Cash flows from financing activitiesIssue of ordinary share capital 18 384 2,511Expenses paid in connection with share issue - - - 18 384 2,511 Increase/(decrease) in cash and cash equivalents 7,361 (5,496) (6,322) Griffin Mining Limited Notes to the Interim Statement 1. This statement has been prepared using accounting policies andpresentation consistent with those applied in the preparation of the accounts ofthe Company for the year ended 31 December 2005. 2. Copies of this interim report are being sent to all registeredshareholders. Additional copies are available from the Company's London office,60 St James's Street, London, SW1A 1LE. 3. The summary accounts set out above do not constitute statutoryaccounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section240 of the UK Companies Act 1985. The summarised consolidated balance sheet at31 December 2005 and the summarised consolidated income statement, consolidatedstatement of changes in equity and the summarised consolidated cash flowstatement for the year then ended have been extracted from the Group's 2005statutory financial statements upon which the auditors' opinion is unqualified. 4. The calculation of the basic earnings/(loss) per share is based onthe earnings attributable to ordinary shareholders divided by the weightedaverage number of shares in issue during the year. The calculation of dilutedearnings per share is based on the basic earnings per share on the assumedconversion of all dilutive options and other dilutive potential ordinary shares.Reconciliations of the earnings and weighted average number of shares used inthe calculations are set out below: 6 months to 6 months to Year to 30/06/2006 30/06/2005 31/12/2005 Unaudited Unaudited Audited Restated Weighted Per Weighted Per Weighted Per average share average share average share Earnings number of amount Loss number of amount Earnings number of amount $000 shares (cents) $000 shares (cents) $000 shares (cents) Basic earnings/(loss)per shareEarnings attributableto ordinaryshareholders 8,951 183,829,204 4.87 (966) 178,135,423 (0.5) 311 180,639,032 0.17 Dilutiveeffect ofsecuritiesOptions 6,259,847 3,677,894 Diluted earnings/(loss) pershare 8,951 190,089,051 4.71 (966) 178,135,423 (0.5) 311 184,316,926 0.17 This information is provided by RNS The company news service from the London Stock Exchange