Griffin Mining Regulatory News (GFM)

26 Nov 2007 07:00

Griffin Mining Ld26 November 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 26th NOVEMBER 2007 TRADING STATEMENT Griffin Mining Limited ("Griffin" or "the Company") announces that, in the lightof what the Company believes to be a temporary retracement in the zinc price, ithas decided to suspend all sales of zinc concentrates until the New Year. TheCompany believes that the relatively low zinc concentrate prices currently beingoffered are a function of the significantly greater exports of physical zincfrom China as exporters seek to gain financial benefits which will be abolishedat year end. The Company expects this situation to continue until the end of2007 before the 5% rebate for Chinese zinc exporters ends on 1st January 2008and a rumoured 5% export tariff is imposed. Similar changes to lead andaluminium regulations caused the lead price to move from $2500 to $3500 and thealuminium price to move from $2500 to $2650 this year. Consequently, the Company has taken the commercial decision to maximise value bystockpiling zinc concentrate at Caijiaying in China in the short term ratherthan continuing sales at current prices. Under the accounting policies of theCompany, no sales are recorded until revenue is actually received from buyers ofthose concentrates. Therefore, the suspension of concentrate sales will cause asignificant timing impact on the financial results of the Company, with salespreviously anticipated to fall in 2007 now being reported in 2008. As a resultof this management decision, sales and profitability for the year ending 31December 2007 will be below current market expectations. The Company expects thenormal resumption of concentrate sales in 2008, with accelerated sales andprofitability in the first half following the sale of stockpiled concentrate. Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772 Roger Goodwin - Finance Director Griffin Mining Limited Adrian Hadden Telephone: +44(0)20 7523 8353 Collins 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 This information is provided by RNS The company news service from the London Stock Exchange