Griffin Mining Regulatory News (GFM)

30 Apr 2007 07:01

Griffin Mining Ld30 April 2007 30th APRIL 2007 PRELIMINARY RESULTS RECORD PROFIT US$29.5 MILLION MAIDEN DIVIDEND DECLARED Griffin Mining Limited ("Griffin" or "the Company") has today published itspreliminary results for the year ended 31 December 2006 and declared a maidendividend of three cents per ordinary share. Highlights: • Record profit before tax of US$29.5 million (2005 US$0.3 million) • Maiden dividend of $0.03 per ordinary share • Substantially increased resource base • Substantially increased throughput • Increased production of zinc metal in concentrate • Further substantial increases in throughput and metal production scheduled for 2007 & 2008 • Initial gold, silver and lead production scheduled for 2007 • Ongoing exploration success • Continued evaluation of further acquisitions Chairman's Statement: It gives me enormous pride and real satisfaction to announce a record annualprofit of US$29.5 million for the Company in 2006 and to declare a maidendividend of US$0.03 per share. The further good news is that Caijiaying continues to rapidly improve. Sincecommissioning approximately 18 months ago, throughput has doubled from 200,000tonnes of ore per annum to over 400,000 tonnes of ore per annum. The resourcebase has increased from 1.2 to 3 million tonnes of zinc metal, from 0.2 to 1.6million ounces of gold and from 13.9 to 53.7 million ounces of silver. Animpressive achievement. And 2007 promises to be an even more exciting year. The Company has announcedan upgrade to the Caijiaying mine and facilities to enable the processing ofover 500,000 tonnes of ore per annum by the end of 2007 rising to 750,000 tonnesof ore per annum in 2008. The Company has also announced that in 2007 it willbegin producing a second concentrate which will contain gold, silver and lead.This will be another significant source of revenue for the Company. Lastly, theexploration programme continues underground with exploration and grade controldrilling in zone III, pure underground exploration drilling at zone II in thenewly constructed Fox Incline and exciting above ground diamond drilling betweenzones II and III. Needless to say, the Company continues to endlessly look for further means togrow shareholder value. In that respect, the Company has evaluated a largenumber of mining projects, predominantly in China. The overwhelming majority ofthese projects have not met the rigorous geological, metallurgical, miningengineering and financial standards required by the Company. Nevertheless, theCompany remains ever hopeful of acquiring such a project at some point in thefuture Finally, with US$48 million on the Company's balance sheet at the time ofwriting this statement, no debt, no hedging commitments, continued strongcommodities prices and an expanding mining operation at Caijiaying, the futureof the Company looks particularly exciting. Maiden dividend A maiden dividend of US$0.03 per share will be paid to shareholders on 6th June2007. The ex dividend date being 9 May 2007 and the record date 11 May 2007. 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 8353Collins Stewart Europe 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 Limited Consolidated Income Statement For the year ended 31 December 2006 (expressed in thousands US dollars) 2006 2005 $000 $000 Revenue 42,802 6,120Cost of sales (8,516) (2,440) Gross Profit 34,286 3,680Net operating expenses (6,142) (3,254) Profit from operations 28,144 426Foreign exchange gains / (losses) 789 (411)Finance income 612 296 Profit before tax 29,545 311Income tax expense (75) - Profit after tax attributable to equity share owners for the financial year 29,470 311 Basic earnings per share (cents) 16.02 0.17Diluted earnings per share (cents) 15.45 0.17 Griffin Mining Limited Consolidated Balance Sheet As at 31 December 2006 (expressed in thousands US dollars) 2006 2005 $000 $000ASSETSNon-current assetsProperty, plant and equipment 32,087 27,070Intangible assets - Exploration interests 842 419 32,929 27,489Current assetsInventories 1,104 1,620Other current assets 1,064 947Available-for-sale financial assets - 63Cash and cash equivalents 34,081 6,663 36,249 9,293 Total assets 69,178 36,782 EQUITY AND LIABILITIESEquity attributable to equity holders of the parentShare capital 1,841 1,838Share premium 39,166 39,040Contributing surplus 3,690 3,690Share based payments 2,553 842Other reserves 297 -Foreign exchange reserve 479 215Profit and loss reserve 16,432 (12,740)Total equity 64,458 32,885 Non-current liabilitiesLong-term provisions 384 372 Current liabilitiesTrade and other payables 4,336 3,525 Total liabilities 4,720 3,897 Total equities and liabilities 69,178 36,782 Number of shares in issue 184,061,064 183,827,731 Attributable net asset value / total equity per share $0.35 $0.18 Griffin Mining Limited Consolidated Statement of Changes in Equity For the year ended 31 December 2006 (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 2004 1,773 36,594 3,690 509 - (143) (13,087) 29,336 Exchange differences on - - - - 358 - 358translating foreignoperations -Net income recognised - - - - 358 - 358directly in equity -Profit for the year - - - - - - 311 311Total recognised income and - - - - 358 311 669expenses in the year - Issue of share capital 65 2,446 - - - - - 2,511Cost of share based - - - 333 - - - 333paymentsMovement in fair value of - - - - - - 36 36financial assets At 31 December 2005 1,838 39,040 3,690 842 - 215 (12,740) 32,885 Exchange differences on - - - - 264 264translating foreignoperations -Net income recognised - - - - 264 - 264directly in equity -Profit for the year - - - - - - 29,470 29,470Total recognised income and - - - - - 264 29,470 29,734expenses in the year Transfer - - - - 297 - (297) -Issue of share capital 3 126 - - - - 129Cost of share based - 1,711 - - 1,711paymentsMovement in fair value of - - - - - - (1) (1)financial assetsAt 31 December 2006 1,841 39,166 3,690 2,553 297 479 16,432 64,458 Griffin Mining Limited Consolidated Cash Flow Statement For the year ended 31 December 2006 (expressed in thousands US dollars) 2006 2005 $000 $000Net cash flows from operating activitiesProfit before taxation 29,545 311Foreign exchange (gains) / losses (789) 411Taxation paid (75) -Finance income (612) (296)Adjustment in respect of share based payments 1,711 333Depreciation, depletion and amortisation 890 557Decrease / (increase) in inventories 516 (1,620)(Increase) in other current assets (117) (671)Increase in trade and other payables 811 2,640 Net cash inflow from operating activities 31,880 1,665 Cash flows from investing activities Interest received 612 296Receipts on sale of investments 63 -Payments to acquire intangible fixed assets (414) (376)Payments to acquire tangible fixed assets - mineral interests (2,829) (6,949)Payments to acquire tangible fixed assets - plant and equipment (2,504) (3,409)Payments to acquire tangible fixed assets - other (9) (9)Net cash (outflow) from investing activities (5,081) (10,447) Cash flows from financing activitiesIssue of ordinary share capital 129 2,511 129 2,511 Increase/(decrease) in cash and cash equivalents 26,928 (6,271) Cash and cash equivalents at beginning of the year 6,663 12,985Effects of exchange rate changes 490 (51)Cash and cash equivalents at beginning of the year 34,081 6,663 Notes: 1. This statement has been prepared using accounting policies andpresentation consistent with those applied in the preparation of the statutoryaccounts of the Company. 2. 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. The results for theyear ended 31 December 2005 have been extracted from the statutory accounts forthat period, which contain an unqualified auditors' report. 3. The annual report and accounts for 2006 together with the notice of theAnnual General Meeting to be held on 15 June 2007 are being sent by post to allregistered shareholders. Additional copies of the annual report and accountsare available from the Company's London office, 6th Floor, 60 St James's Street,London, SW1A 1LE. 4. 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 year. 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 of the earnings and weighted average number of shares used in thecalculations are set out below: 2006 2005 Earnings Weighted Per share Earnings Weighted Per amount share Average (cents) Average amount number of number of (cents) $000 shares $000 shares Basic earnings per shareEarnings attributableto ordinary shareholders 29,470 183,931,840 16.02 311 180,639,032 0.17Dilutive effect ofsecuritiesOptions 6,820,134 3,677,894Diluted earnings pershare 29,470 190,751,974 15.45 311 184,316,926 0.17 This information is provided by RNS The company news service from the London Stock Exchange