Griffin Mining Regulatory News (GFM)

5 Sep 2005 07:01

Griffin Mining Ld05 September 2005 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 5th September 2005 INTERIM STATEMENT FOR THE 6 MONTHS TO 30 JUNE 2005 Griffin Mining Limited ("Griffin"or the "Company") has today published itsinterim results for the 6 months ended 30th June 2005. Highlights: • Start of production at the Caijiaying zinc gold mine ("Caijiaying") in China • Initial production rate of 600 tonnes of ore per day achieved • First sales of zinc concentrate made to local Chinese smelters in July 2005 • $13.8m incurred on construction of the mine and processing facilities at Caijiaying to 30th June 2005 compared with estimates of $15.7m • Commencement of extensive surface drill programme to assess known gold prospects • Gold intersections from underground resource definition drilling include 8.8m @ 19.2 g/t and 6.2m @ 14.2g/t Financial: The interim financial results cover the period up to the commencement ofproduction at Caijiaying. No mining revenues were generated prior to 30th June2005. The Company recorded a loss for the 6 months ended 30th June 2005 of $684,000compared with a profit of $138,000 in the same period in 2004. Exchange lossesof $272,000 (2004 gains $408,000) were recorded on foreign currency deposits,caused by a strengthening of the US dollar, whilst interest income of $164,000(2004 $283,000) was lower with funds being utilised to construct the Caijiayingzinc gold mine and processing facilities. Operating costs in the 6 months to 30th June 2005 increased marginally to$576,000 (2004 $553,000) with increased activity at Caijiaying. At 30th June 2005, $13.8m had been incurred on construction of the mine andprocessing facilities at Caijiaying. With production starting at Caijiaying atthe end of June 2005, this compares favourably with pre production and workingcapital estimates in the feasibility study of $15.7m. Good progress has been made in bringing Caijiaying into production at an initialproduction rate of 200,000 tonnes of ore per annum. Chairman's statement I am delighted to report on the Company's progress in the six months to 30 June2005, a period which represents a turning point in Griffin's history. It sawthe start of production at Caijiaying and, since the period end, the first saleof zinc concentrate to local Chinese smelters. The Company continues to strive to achieve consistency in achieving the plannedinitial production rate of 600 tonnes of ore per day and the scheduled zincrecovery rate. In addition the Company is actively pursuing means by whichproduction can be increased as further ore is delineated via undergrounddrilling. The leases at Caijiaying contain highly prospective epithermal gold targets andcontinued prospective base metals targets. As a result, the Company hascommenced a comprehensive regional exploration programme consisting of 18,000metres of reverse circulation drilling due to be completed by the end of thesummer. At the same time, ongoing underground resource definition drilling hasproduced significant gold intersections including one drill hole with 8.8m @19.2 g/t and 6.2m @ 14.2 g/t. In the search for growth in our region and in our area of expertise, the Companycontinues to pursue and evaluate other world class mining projects. In light of the above, your Board looks forward to an exciting future. Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Andrew Smith/Martin Eales Telephone:+44(0)20 7523 8350Collins Stewart Limited Hugo de Salis 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 LIMITEDCONSOLIDATED CONDENSED PROFIT AND LOSS ACCOUNT (expressed in thousands US dollars) 6 months to 6 months to Year to 30/06/2005 30/06/2004 31/12/2004 Unaudited Unaudited Audited $000 $000 $000Turnover - - -Cost of sales - - - Gross profit - - - Net operating expenses (576) (553) (1,048) Operating (Loss) (576) (553) (1,048) Foreign exchange (losses) / profits (272) 408 939Interest receivable and similar income 164 283 507 (Loss) / profit on ordinary activities beforetaxation (684) 138 398 Taxation on (loss) / profit on ordinary - - -activities (Loss) / profit for the financial period (684) 138 398 (Loss) / profit per share (cents) (0.4) 0.1 0.23 GRIFFIN MINING LIMITEDCONSOLIDATED CONDENSED BALANCE SHEET (expressed in thousands US dollars) 30/6/2005 30/6/2004 31/12/2004 Unaudited Unaudited Audited $000 $000 $000 Fixed AssetsIntangible assets - exploration interests 39 37 39Tangible assets - mining properties 14,411 8,735 11,770Tangible assets - plant and equipment 7,026 798 5,109Tangible assets - other 14 15 15 21,490 9,585 16,933 Current AssetsStocks 39 - -Portfolio investments 35 38 27Accounts receivable 343 42 108Prepaid expenses 178 169 168Cash and deposits 7,489 19,908 12,985 8,084 20,157 13,288 Creditors: amounts falling due within one year (505) (720) (885) Net current assets 7,579 19,437 12,403 Total net assets 29,069 29,022 29,336 Capital and reservesShare capital 1,783 1,768 1,773Share premium 36,968 36,472 36,594Contributing surplus 3,690 3,690 3,690Investment revaluation reserve (838) (836) (846)Foreign exchange reserve (118) (80) (143)Profit & loss account (12,416) (11,992) (11,732) Shareholders' equity interests 29,069 29,022 29,336 Attributable net assets per share (cents) 16 16 17 Number of shares in issue 178,327,731 176,827,731 177,327,731 GRIFFIN MINING LIMITED CONSOLIDATED CONDENSED CASH FLOW STATEMENT (expressed in thousands US dollars) 6 months to 6 months to Year to 30/06/2005 30/06/2004 31/12/2004 Unaudited Unaudited Audited $000 $000 $000 Net cash (outflow) / inflow from operatingactivities (1,517) 373 611 Investing activitiesInterest received 164 283 507Payments to acquire intangible fixed assets - - (557)Payments to acquire tangible mining fixed assets (4,525) (3,067) (10,020)Payments to acquire other tangible fixed assets (2) (15) (17)Net cash (outflow) from investing activities (4,363) (2,799) (10,087) Net cash (outflow) before financing (5,880) (2,426) (9,476) FinancingIssue of ordinary share capital 384 16,255 16,391Expenses paid in connection with share issue - (752) (761) 384 15,503 15,630 (Decrease) / Increase in cash and cash equivalents (5,496) 13,077 6,154 Reconciliation of operating (loss) to net cash(outflow) / inflow from operating activitiesOperating loss (576) (553) (1,048)Depreciation 2 2 5(Increase) in stocks (38) - -(Increase) in debtors and prepayments (245) (112) (177)(Decrease) / increase in creditors (380) 635 799Other non-cash income, including exchangedifferences (280) 401 1,032 (1,517) 373 611 GRIFFIN MINING LIMITEDSTATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (expressed in thousands US dollars) 6 months to 6 months to Year to 30/06/2005 30/06/2004 31/12/2004 Unaudited Unaudited Audited $000 $000 $000 (Loss) / profit for the period (684) 138 398Unrealised gains / (losses) on investments 8 (25) (35)Currency translation differences in foreign currencynet investments 25 41 (22) Total (losses) / gains recognised in the period (651) 154 341 Losses and profits for the financial year are the same as those on an historicalcost basis. GRIFFIN MINING LIMITEDNOTES TO THE INTERIM FINANCIAL STATEMENT 1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Company. 2. Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company's London office, 60 St James's Street, London, SW1A 1LE. 3. (Losses) / earnings per share have been calculated on the basis of the net (loss) after taxation of $684,000 (2003 profit $138,000) and the weighted average number of shares in issue in the period ended 30 June 2005 of 178,135,423 (2004 164,023,885). There is no dilutive effect of outstanding share purchase options. 4. The condensed accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the UK Companies Act 1985. The condensed balance sheet at 31 December 2004 and the condensed profit and loss account, condensed cash flow statement and condensed statement of total recognised gains and losses for the year then ended have been extracted from the Group's 2004 statutory financial statements upon which the auditors' opinion is unqualified. 5. Reconciliation of shareholders' funds. 6 months to 6 months to Year to 30/06/2005 30/06/2004 31/12/2004 Unaudited Unaudited Audited $000 $000 $000 Total (losses) / gains recognised in the period (651) 154 341Issue of Ordinary Shares in the period 384 15,503 15,630 Net (reduction in) additions to shareholders'funds (267) 15,657 15,971Opening shareholders' funds 29,336 13,365 13,365 Closing shareholders' funds 29,069 29,022 29,336 This information is provided by RNS The company news service from the London Stock Exchange