China-based Griffin Mining achieved strong production in the first six months. Output of zinc in concentrate rose 6 per cent in the period to 16,069 tonnes, while output of silver concentrate rose 11 per cent to 117,036 ounces. Yet chairman Mladen Ninkov says Griffin is only just starting to tap the potential of the company's Caijiaying mine, 250km north-west of Beijing. With the completion of the upgrade of its processing plant allowing increased throughput, Mr Ninkov expects even better results over the second half.
Gold production of 4,493 ounces was marginally lower, although Griffin reports that gold recoveries and the concentration of metal in ore have begun to improve significantly. Profitability was further helped by a reduction in operating costs to $5.47m (£3.38m) in the half year, which fell from $5.83m in the same period last year.
Griffin is looking to increase mining and throughput rates further, and is also reviewing expansion options through acquisition. Work is also well advanced towards making an application for a mining licence at the Zone II deposit just over a kilometre to the south of the existing mine. Griffin bought back 5.04m of its shares during the period at a cost of $4.98m.
| GRIFFIN MINING (GFM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 47p | MARKET VALUE: | £82.5m | |
| TOUCH: | 46-49p | 12-MONTH HIGH: | 75p | LOW: 33p |
| DIVIDEND YIELD: | nil | PE RATIO: | 15 | |
| NET ASSET VALUE: | 82¢ | NET CASH: | $74.7m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 27.0 | 8.66 | 1.12 | nil |
| 2011 | 33.9 | 17.9 | 4.79 | nil |
| % change | +26 | +107 | +328 | - |
£1=$1.62 | ||||
