Griffin Mining Regulatory News (GFM)

17 Sep 2007 07:01

Griffin Mining Ld17 September 2007 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 17th September 2007 INTERIM STATEMENT FOR THE SIX MONTHS ENDED 30th JUNE 2007 Griffin Mining Limited ("Griffin" or "the Company") is pleased to publish itsinterim results for the six months ended 30th June 2007. Highlights: • Profit before tax of US$18.0 million (30 June 2006 US$9.0 million) • Turnover US$26.4 million (30 June 2006 US$15.7 million) • Ore processed 202,840 tonnes (30 June 2006 129,939 tonnes) Financial and Trading: Results for the six months ended 30th June 2007 show pre-tax profits ofUS$18,010,000, double that achieved in the six months to 30th June 2006 ofUS$9,006,000. Turnover amounted to US$26,404,000 up from US$15,672,000 in the six months to30th June 2006 with increased production and zinc concentrate prices. Despite a reduction in grade following the decision in late 2006 to lower thecut off grade to increase the resource base and enable more efficient extractionof ore, 10,983 tonnes of zinc metal in concentrate were produced compared with8,630 in the six months to 30th June 2006, with increased throughput andimproved recovery rates. Ore throughput has steadily increased during 2007 from31,081 tonnes in January to 37,107 in June and has continued to increase duringthe upgrade of the processing facilities. With increased throughput operatingcosts per tonne of ore processed have fallen. The upgrade of the processing plant is progressing with the expectation of thecommissioning of a precious metals circuit for the production of a gold/silver/lead concentrate by the end of the year. This will allow Griffin to extractmaximum value from any gold located within or below the current mined areas.Diamond drilling in the mine area this year has recorded a number of high gradegold intersections with good geological continuity. With the benefit of the funds raised from the recent placing of shares withCitadel Equity Fund Limited, Griffin is pursuing a number of potentialacquisitions and other mining opportunities in China. In view of this there isno interim dividend, however, the Company anticipates paying a final dividend. Chairman's Statement "These results, for the first six months of 2007, represent an excellent resultfor shareholders and continues to reflect the continuing growth in the Company'soperations at Caijiaying. I look forward to more good news from both Caijiayingand the Company in the future." Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Adrian Hadden Telephone: +44(0)20 7523 8353Collins Stewart Europe Limited 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 30/06/2007 30/06/2006 31/12/2006 Unaudited Unaudited Audited $000 $000 $000 Revenue 26,404 15,672 42,802 Cost of sales (5,020) (4,416) (8,516) Gross Profit 21,384 11,256 34,286 Net operating expenses (4,893) (2,693) (6,142) Profit from operations 16,491 8,563 28,144 Foreign exchange gains 749 289 789Finance income 770 154 612 Profit before tax 18,010 9,006 29,545 Income tax expense - (55) (75) Profit after tax attributable to equity share owners for the 18,010 8,951 29,470financial period Basic earnings per share (cents) 9.34 4.87 16.02 Diluted earnings per share (cents) 9.24 4.71 15.45 Griffin Mining Limited Consolidated Balance Sheet (expressed in thousands US dollars) 30/06/2007 30/06/2006 31/12/2006 Unaudited Unaudited Audited $000 $000 $000 ASSETSNon-current assetsProperty, plant and equipment 36,189 27,952 32,087Intangible assets - Exploration interests 706 803 842 36,895 28,755 32,929Current assetsInventories 1,427 1,501 1,104Other current assets 2,207 1,450 1,064Available-for-sale financial assets - 66 -Cash and cash equivalents 48,397 14,024 34,081 52,031 17,041 36,249 Total assets 88,926 45,796 69,178 EQUITY AND LIABILITIESEquity attributable to equity holders of the parentShare capital 1,933 1,839 1,841Share premium 45,557 39,057 39,166Contributing surplus 3,690 3,690 3,690Share based payments 2,977 1,398 2,553Other reserves 305 - 297Foreign exchange reserve 1,180 340 479Profit and loss reserve 28,615 (3,786) 16,432Total equity 84,257 42,538 64,458 Non-current liabilitiesLong-term provisions 394 375 384 Current liabilitiesTrade and other payables 4,275 2,883 4,336 Total liabilities 4,669 3,258 4,720 Total equities and liabilities 88,926 45,796 69,178 Number of shares in issue 193,327,731 183,861,064 184,061,064 Attributable net asset value / total equity per share $0.46 $0.23 $0.35 Griffin Mining Limited Consolidated Statement of Changes in Equity (expressed in thousands US dollars) Share Share Contributing Share Other Foreign Profit Capital Premium surplus Based Reserves Exchange and loss Total Payments Reserve Reserve $000 $000 $000 $000 $000 $000 $000 $000 At 31 December 2005 1,838 39,040 3,690 842 - 215 (12,740) 32,885 Exchange differences on - - - - - 125 - 125translating foreignoperationsNet income recognised - - - - - 125 - 125directly in equity Profit for the 6 months - - - - - - 8,951 8,951Total recognised income and - - - - - 125 8,951 9,076expenses in the 6 months Movement in fair value of - - - - - - 3 3financial assetsIssue of share capital 1 17 - - - - - 18Cost of share based - - - 556 - - - 556payments At 30 June 2006 1,839 39,057 3,690 1,398 - 340 (3,786) 42,538 Exchange differences on - - - - - 139 - 139translating foreignoperations Net income recognised - - - - - 139 - 139directly in equity Profit for the 6 months - - - - - - 20,519 20,519Total recognised income and - - - - - 139 20,519 20,658expenses in the year Transfer - - - - 297 - (297) -Issue of share capital 2 109 - - - - - 111Cost of share based - 1,155 - - - 1,155paymentsMovement in fair value of - - - - - - (4) (4)financial assets At 31 December 2006 1,841 39,166 3,690 2,553 297 479 16,432 64,458 Exchange differences on - - - - 8 701 - 709translating foreignoperations Net income recognised - - - - 8 701 - 709directly in equity Retained Profit for the 6 - - - - - - 18,010 18,010months Total recognised income and - - - - 8 701 18,010 18,010expenses in the 6 months Dividend paid - - - - - - (5,827) (5,827)Transfer - 1,042 - (1,042) - - - -Issue of share capital 92 5,349 - - - - - 5,441Cost of share based - - - 1,466 - - - 1,466payments At 30 June 2007 1,933 45,557 3,690 2,977 305 1,180 28,615 84,257 Griffin Mining Limited Consolidated Cash Flow Statement (expressed in thousands US dollars) 6 months to 6 months to Year to 30/06/2007 30/06/2006 31/12/2006 Unaudited Unaudited Audited $000 $000 $000Net cash flows from operating activitiesProfit before taxation 18,010 9,006 29,545Foreign exchange (gains) (749) (289) (789)Taxation paid - (55) (75)Finance income (770) (154) (612)Adjustment in respect of share based payments 1,466 556 1,711Depreciation, depletion and amortisation 659 1,022 890(Increase) / decrease in inventories (324) 119 516(Increase) in other current assets (1,143) (503) (117)(Decrease) / increase in trade and other payables (61) (642) 811 Net cash inflow from operating activities 17,088 9,060 31,880 Cash flows from investing activities Interest received 770 154 612Receipts on sale of investments - - 63Payments to acquire intangible fixed assets - (382) (414)Payments to acquire tangible fixed assets - mineral interests (2,852) (689) (2,829)Payments to acquire tangible fixed assets - plant and equipment (642) (1,065) (2,504)Payments to acquire tangible fixed assets - other - (3) (9)Net cash (outflow) from investing activities (2,724) (1,985) (5,081) Cash flows from financing activitiesIssue of ordinary share capital 5,441 18 129Dividend paid (5,827) - - (386) 18 129 Increase in cash and cash equivalents 13,978 7,093 26,928 Cash and cash equivalents at beginning of the period 34,081 6,663 6,663Effects of exchange rate changes 338 268 490Cash and cash equivalents at end of the period 48,397 14,024 34,081 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 2006. 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 statutory accountsas defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of theUK Companies Act 1985. The summarised consolidated balance sheet at 31 December2006 and the summarised consolidated income statement, consolidated statement ofchanges in equity and the summarised consolidated cash flow statement for theyear then ended have been extracted from the Group's 2006 statutory financialstatements upon which the auditors' opinion is unqualified. 4. A dividend of 3 cents per ordinary share in issue at 9 May 2007 of193,327,731, was paid on 6 June 2007. 5. The calculation of the basic earnings per share is based on the earningsattributable to ordinary shareholders divided by the weighted average number ofshares in issue during the period. The calculation of diluted earnings per shareis based on the basic earnings per share on the assumed conversion of alldilutive options and other dilutive potential ordinary shares. Reconciliation ofthe earnings and weighted average number of shares used in the calculations areset out below: 6 months to 6 months to Year to 30/06/2007 30/06/2006 31/12/2006 Unaudited Unaudited Audited Earnings Weighted Per share Weighted Per Earnings Weighted Per share amount share amount $000 average average amount $000 average (cents) number of (cents) number of (cents) number of shares Earnings shares shares $000 Basic earnings per shareEarnings 18,010 192,764,563 9.34 8,951 183,829,204 4.87 29,470 183,931,840 16.02attributable toordinaryshareholders Dilutive effect of securitiesOptions 2,212,230 6,259,847 6,820,134Diluted earnings 18,010 194,976,793 9.24 8,951 190,089,051 4.71 29,470 190,751,974 15.45per share This information is provided by RNS The company news service from the London Stock Exchange