Griffin Mining Regulatory News (GFM)

30 Apr 2008 07:01

Griffin Mining Ld30 April 2008 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 30th APRIL 2008 PRELIMINARY RESULTS DIVIDEND DECLARATION Griffin Mining Limited ("Griffin" or "the Company") has today published itspreliminary results for the year ended 31 December 2007 and declared a dividendof three cents per ordinary share. Highlights: • Profit before tax of $26.8 million on a declining zinc price • Ore mined up 43% in 2007 to 430,891 tonnes compared to 301,168 tonnes in 2006 • Ore processed up 36% in 2007 to 409,193 tonnes compared to 301,101 tonnes in 2006 • Precious metals circuit commissioned with production and sale of a second concentrate containing lead, silver and gold • Maiden resource for Zone II announced, located just 1.5 kilometres south of the existing mine at Zone III Chairman's Statement: I am delighted to report that the Company made a profit before tax of $26.8million, a remarkable performance considering the zinc price fell 46% in 2007,from $4,100 in January to $2,200 in December. Yet Griffin was generally able toreproduce its 2006 net profit level and, as such, the Company has been able tomaintain its dividend policy of declaring a $0.03 per share dividend for the2007 financial year. 2007 witnessed exceptional progress in many areas of the Company's operationsand in its preparation for the future. These include: 1. Production of ore from Zone III at Caijiaying continued to increase.Mill throughput has now increased over 150% since commissioning with operationscurrently processing over 500,000 tonnes per annum and expected to reach 750,000per annum following the installation of the new primary ball mill in late summer2008. The mining operations are also expanding to cater for this new productionschedule; 2. Significant effort has been expended in designing, constructing andinstalling the new infrastructure needed to deal with the planned increasedproduction schedules. A new backfill plant has been completed to enable moreefficient extraction of ore, new floatation cells have been installed to handlethe increased volume of zinc and precious metals concentrates and a new crushingcircuit and ball mill will enable greater throughput to be generated by theCaijiaying mill. In addition, a new accommodation block and administrativeoffices have been constructed to cater for the additional staff required as themine continues to expand; 3. A new precious metals concentrate containing gold, silver and lead wascommissioned in December 2007. This will become ever more important with theincreasing production of precious metals as the mine accesses higher gradematerial and will allow lead to be separated from the zinc concentrate for theproduction of a higher quality concentrate with a subsequently higher saleprice; 4. The discovery of a new mineable orebody at Zone II has far reachingconsequences and added exceptional value for shareholders. Firstly, it is only1.5 kilometres from the Caijiaying processing facilities, allowing easy haulageat minimum cost. Secondly, it provides an alternate source of ore to ease thescheduling of mining and haulage timetables at Zone III. Thirdly, and mostimportantly, it confirms the long held view that Zone II and III are, in effect,one orebody. That prospects opens up the possibility of an additional 1.5kilometres of mineralization. To prove this hypothesis, a new decline is beingdriven off the Zone III access directly to the new Zone II orebody, with thenecessary underground drilling being undertaken off that drive. This is anexciting prospect for all involved; and 5. The continued accumulation of cash by the Company such that Griffin nowhas a cash balance exceeding $205 million with no debt. It should be noted that the Company continues to expend an inordinate amount oftime on new acquisitions. These need to be able to meet the financial,political, structural, metallurgical and geological parameters required toprovide the shareholders with the returns they have come to expect and deserve.Needless to say, such acquisitions are difficult to find and even more difficultto consummate. It is enough to add that the Company will continue to progressthe enormous potential still untapped at Caijiaying whilst continuing toevaluate and undertake acquisitions which meet these set parameters. Dividend A dividend of US$0.03 per share will be paid to shareholders on 6th June 2007.The ex dividend date being 7 May 2007 and the record date 9 May 2007. 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 SUMMARISED CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2007 (expressed in thousands US dollars) 2007 2006 $000 $000 Revenue 37,989 42,802 Cost of sales (7,768) (8,516) Gross Profit 30,221 34,286 Net operating expenses (10,078) (6,142) Profit from operations 20,143 28,144 Foreign exchange gains 1,012 789Finance income 5,607 612 Profit before tax 26,762 29,545 Income tax expense - (75) Profit after tax attributable to equity share owners for the financial 26,762 29,470year Basic earnings per share (cents) from continuing operations 12.08 16.02 Diluted earnings per share (cents) from continuing operations 11.97 15.45 GRIFFIN MINING LIMITED SUMMARISED CONSOLIDATED BALANCE SHEET As at 31 December 2007 (expressed in thousands US dollars) 2007 2006 $000 $000ASSETSNon-current assetsProperty, plant and equipment 44,381 32,087Intangible assets - Exploration interests 751 842 45,132 32,929Current assetsInventories 4,639 1,104Other current assets 4,155 1,064Cash and cash equivalents 199,949 34,081 208,743 36,249 Total assets 253,875 69,178 EQUITY AND LIABILITIESEquity attributable to equity holders of the parentShare capital 2,615 1,841Share premium 196,637 39,166Contributing surplus 3,690 3,690Share based payments 4,426 2,553Other reserves 579 297Foreign exchange reserve 3,109 479Profit and loss reserve 37,106 16,432Total equity 248,162 64,458 Non-current liabilitiesLong-term provisions - 384 Current liabilitiesTrade and other payables 5,047 4,336Short term bank overdrafts 666 - Total liabilities 5,713 4,720 Total equities and liabilities 253,875 69,178 Number of shares in issue 261,509,549 184,061,064 Attributable net asset value / total equity per share $0.95 $0.35 GRIFFIN MINING LIMITED SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2007 (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 ontranslating foreignoperations - - - - - 264 - 264 Net income recognised directly to equity - - - - - 264 - 264 Profit for the year - - - - - - 29,470 29,470 Total recognised income andexpenses in the year - - - - - 264 29,470 29,734 Regulatory transfer for future investment - - - - 297 - (297) - Issue of share capital 3 126 - - - - - 129 Cost of share based payments - - - 1,711 - - - 1,711 Movement in fair value of financial assets - - - - - - (1) (1) At 31 December 2006 1,841 39,166 3,690 2,553 297 479 16,432 64,458 Exchange differences ontranslating foreignoperations - - - - 20 2,630 - 2,650 Net income recognised directly to equity - - - - 20 2,630 - 2,650 Profit for the year - - - - - - 26,762 26,762 Total recognised income andexpenses in the year - - - - 20 2,630 26,762 29,412 Dividend paid - - - - - - (5,826) (5,826) Regulatory transfer for future investment - - - - 262 - (262) - Exercise of options - 1,042 - (1,042) - - - - Issue of share capital 774 156,429 - - - - - 157,203 Cost of share based payments - - - 2,915 - - - 2,915 At 31 December 2007 2,615 196,637 3,690 4,426 579 3,109 37,106 248,162 Griffin Mining Limited SUMMARISED CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2007 (expressed in thousands US dollars) 2007 2006 $000 $000 Net cash flows from operating activitiesProfit before taxation 26,762 29,545Foreign exchange (gains) (1,012) (789)Taxation paid - (75)Finance income (5,607) (612)Adjustment in respect of share based payments 2,915 1,711Depreciation, depletion and amortisation 1,351 890(Increase) / decrease in inventories (3,535) 516(Increase) in other current assets (3,091) (117)Increase in trade and other payables 711 811 Net cash inflow from operating activities 18,494 31,880 Cash flows from investing activities Interest received 5,607 612Receipts on sale of investments - 63Payments to acquire intangible fixed assets - exploration (126) (414)interestsPayments to acquire plant and equipment - mineral interests (9,056) (2,829)Payments to acquire plant and equipment - plant and equipment (1,854) (2,504)Payments to acquire plant and equipment - other - (9)Dividends paid (5,826) -Net cash (outflow) from investing activities (11,255) (5,081) Cash flows from financing activitiesIssue of ordinary share capital 157,211 129Expenses paid in connection with share issue (7) - 157,204 129 Increase in cash and cash equivalents 164,443 26,928 Cash and cash equivalents at the beginning of the year 34,081 6,663Effects of exchange rates 759 490Cash and cash equivalents at the end of the year 199,283 34,081 Cash and cash equivalents comprise:Bank deposits 199,949 34,081Short term bank overdrafts (666) -Total 199,283 34,081 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 December2007 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 2007 statutory financialstatements upon which the auditors' opinion is unqualified. The results for theyear ended 31 December 2006 have been extracted from the statutory accounts forthat period, which contain an unqualified auditors' report. 3. The annual report and accounts for 2007 together with the notice of theAnnual General Meeting to be held on 13 June 2008 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: 2007 2006 Earnings Weighted Per Earnings Weighted Per Average share Average share number of amount number of amount shares (cents) shares (cents) $000 $000Basic earnings per shareEarnings attributable toordinaryshareholders 26,762 221,441,986 12.08 29,470 183,931,840 16.02 Dilutive effect of securitiesOptions 2,153,244 6,820,134Diluted earnings per share 26,762 223,595,230 11.97 29,470 190,751,974 15.45 This information is provided by RNS The company news service from the London Stock Exchange