Griffin Mining’s (GFM) torturous wait for a new licence at its Caijiaying underground mine in China is over. The company revaled that it was “extraordinarily pleased” to say the Chinese natural resources ministry has accepted the lodgement of the licence for zone II at the polymetallic mine. It has been a long time coming and this was reflected by Griffin chairman Mladen Ninkov going beyond the usual RNS-speak in his statement. “It is with a great sense of joy and relief to be able to announce that our [application] has been accepted and is in compliance with regulatory provisions,” he said. “I couldn’t be happier for everyone involved in the company.”
The company's shares were up 30 per cent on the news, although this has not brought it back to the April levels of more than 110p. Griffin has spent the years in application limbo in production at other Caijiaying zones, producing 36,672 tonnes (t) of zinc, 16,206 ounces (oz) of gold, 279,632oz silver and 1,027t of lead in 2018.
All of these figures were down on a strong production performance from the year before and 2019 was set to be tougher again based on a cost and production warning from June. Griffin said zinc smelter charges and the metal’s weak price would hit expected earnings. The zinc price is now under $2,500/t (£2,054) after a recovery in April to around $3,000/t did not hold. The metal provided 76 per cent of the company’s sales in 2018.
The Zone II licence would be approved and issued within 40 days, Mr Griffin said.
