Last checked at 4 Aug 2008 07:00
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
TRADING STATEMENT
4th AUGUST 2008.
Griffin Mining Ltd ("Griffin" or "the Company") expects to announce its interim results to 30th June 2008 on
1st September 2008.
In the six months to 30th June 2008 237,435 tonnes (2007 202,840 tonnes) of ore were processed to produce 11,748 tonnes (2007 10,983 tonnes) of zinc metal in concentrate and 15,787 tonnes (2007 10,893 tonnes) were sold. In addition; 550 tonnes of lead were produced and 483 tonnes sold; 98,843 ozs of silver were produced and 76,363 ozs sold; and 806 ozs of gold were produced and 354 ozs sold. No lead, silver or gold were produced in the six months to 30th June 2007.
The results for the six months to 30th June 2008 have been impacted by a 48% reduction in the average price received for zinc concentrate from that received in the six months to 30th June 2007, as a result of falling world market prices for zinc.
The Company has benefited from the receipt of a C$2.5m break fee from Yukon Zinc Corporation in the six months to 30th June 2008.
As a result of disruptions to transport and manufacturing in the Beijing area with the Olympic games, delivery of critical items of plant for the upgrade of the processing facilities at the Caijiaying Mine to a capacity of 750,000 tonnes of ore per annum have been delayed. As a result completion of the upgrade is not now expected until the end of 2008. Delays have also been experienced in accessing and developing the lower levels of the mine where higher grade, particularly gold, mineralisation is expected. As a result of the foregoing matters, production quantities in the second half of 2008 are not expected to exceed those achieved in the first half of 2008 which with lower zinc prices are likely to result in reduced revenues.
In accordance with the joint venture terms, the Company's share of the profits from the Caijiaying mine will be
reduced from 100% to 60% with effect from 25th July 2008.
Chairman Mladen Ninkov commented: "The unprecedented measures taken by the Chinese government to ensure the success of the Beijing Olympic games causing a delay to the delivery of the ball mill and other items to Caijiaying coupled with the dramatic fall in the world zinc price will most likely lead to reduction in the expectations for Griffin's annual results for 2008. Whilst disappointing for all concerned, Caijiaying remains very profitable and well within the lowest cost quartile of zinc producers. I have every confidence in Caijiaying and expect good news in the near future."
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 8350 |
| Collins Stewart 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