Half-year Financial Report

8^th Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom

Telephone: + 44 (0)20 7629 7772 Facsimile:  + 44 (0)20 7629 7773

Email: griffin@griffinmining.com

 

10^th September 2026

Unaudited Interim Results for the six months ended 30^th June 2026

Caijiaying Mine Produces Record 1^st Half Operating Profit

Progress on Recommissioning of Tailings Safety Facility 4 & Safety Permit for Zone II

Griffin Mining Limited ("Griffin" or the "Company") today announces its unaudited results for the six months ended 30^th June 2026.  The financial results represent a 1^st half record result for Griffin with the Caijiaying Mine reporting the highest revenues and profits in the 1^st half of any year in operation, despite only operating at 50% of full throughput capacity throughout the period. Had the Caijiaying Mine been able to operate at its full throughput capacity of 1.5 million tonnes per annum for the period, the directors estimate that operating profit for the 1^st half would have been in the range of $60 million to $65 million, reflecting the benefit of scale in reduced costs per tonne of ore processed in conjunction with higher revenues.

Summary results for the six months ended 30^th June 2026 (vis-à-vis 30^th June 2025):

·    Revenues:                    $77,286,000    (2025: $63,710,000);

·    Gross profit:                $42,565,000    (2025: $25,062,000);

·    EBITD:                       $36,281,000    (2025: $25,048,000);

·    Operating profit:          $28,236,000    (2025: $13,583,000);

·    Profit before tax:         $28,542,000    (2025: $14,248,000);

·    Profit after tax:            $20,981,000    (2025: $8,784,000); and

·    Basic EPS                  11.89 cents      (2025: 4.75 cents).

During the six months to 30^th June 2026, 433,591 tonnes of ore (2025: 582,683) were mined and 419,128 tonnes of ore (2025: 588,852) processed to produce, in concentrate:

·    13,606 tonnes of Zinc                           (2025: 17,093 tonnes);

·    1,420 tonnes of Lead                           (2025: 708 tonnes);

·    161,402 ounces of Silver                     (2025: 163,220 ounces); and

·    6,011 ounces of Gold                          (2025: 8,703 ounces)  

The decline in Zinc production arising from ore processed was partly offset by an increase in the Zinc ore grade from 3.06% in 2025 to 3.43% in 2026. The Lead ore grade increased from 0.16% in 2025 to 0.39% in 2026, the Silver ore grade improved from 16.58g/t in 2025 to 19.85g/t in 2026, whilst the Gold ore grade declined from 0.72g/t in 2025 to 0.66 g/t in 2026. Whilst there was a marginal decline in Zinc recoveries, Lead and precious metal recoveries improved.

During the six months to 30^th June 2026 the following were sold in concentrate:

·    13,650 tonnes of Zinc                         (2025: 16,447 tonnes); 

·    6,098 ozs of Gold                                (2025: 8,216 ozs);

·    162,406 ozs of Silver                          (2025: 148,466 ozs); and

·    1,410 tonnes of Lead                           (2025: 708 tonnes).

With higher market prices and lower smelter treatment charges, revenue increased by 21% from $63,710,000 in the first half of 2025 to $77,286,000 in the first half of 2026.  Lead and precious metals revenues amounted to 54.8% of gross revenues before royalties in the six months to 30^th June 2026 (2025: 46.5%).

Average metal prices received in the six months to 30^th June were:

Cost of Sales (mining, haulage and processing costs) have decreased by 10.2% in the first half of 2026 from that in the first half of 2025 reflecting a 29% reduction in throughput with fixed costs restricting cost reductions.

Administration costs, excluding the Chinese partners interests, increased by 18.6% from $9,718,000 in the first half of 2025 to $11,527,000 in the first half of 2026. This primarily reflects increased payroll costs with additional staff to comply with regulatory requirements.

$2,802,000 (30^th June 2025: $1,761,000) has been provided for the Chinese partners service fees based upon Hebei Hua Ao Mining Industry Company Limited's ("HHA") profits and included in administration costs.

Griffin benefited from interest received of $541,000 in the first half of 2026 (2025: $826,000) reflecting lower interest rates and reduced bank deposits following funds expended on share buy backs.

Income taxes of $7,561,000 were charged in the six months to 30^th June 2026 (2025: $5,464,000). The income tax charges are disproportionally large compared with pre-tax profits as the tax charge primarily arises on HHA's profit determined under Chinese Generally accepted Accounting Principles ("GAAP") with Chinese partners service fees and costs incurred outside China not tax deductible.

Cash of $22,446,000 was generated from operations in the six months to 30^th June 2026 (2025: $33,713,000) with trade and other creditors reduced by $6,585,000 in the six months to 30^th June 2026 (2025: $11,530,000 increase). $14,809,000 was expended on mine development and equipment purchases in the six months to 30^th June 2026 (2025: $13,801,000). $14,184,000 was expended on share buy backs in the six months to 30^th June 2026 (2025: $25,000) with 3,304,338 shares bought in for cancellation (2025:10,000).

Progress on Recommissioning of Tailings Safety Facility 4 ("TSF4") & Safety Permit for Zone II

Following the tragic Liushenyu Coal Mine gas explosion in Qinyuan County, Shanxi Province, on 22^nd May 2026, resulting in 82 reported fatalities, mining operations across China have been subject to significantly enhanced regulatory scrutiny, inspection requirements and approval processes. Consequently, in spite of the record operating profit per tonne achieved in the first half of 2026, and as outlined in the Company's announcement of the 10^th March 2026, production at the Caijiaying Mine continued to operate at a 50% reduced level of 750,000 tonnes per annum. The Company now expects it's reduced throughput rate to be maintained for the remainder of 2026 and into early 2027 as the Company awaits Provincial Environmental and Rescue Bureau ("ERB") approval for the use of it's already constructed and previously approved TSF4, after which the Company intends to raise production to the previous 1,500,000 tonnes per annum rate as soon as practicably possible.

The current paste fill tailings management practice is incapable of being continued through 2027 without the flexibility provided by TSF4, particularly in light of the budgeted higher throughput level. Until TSF4 is approved, production levels are expected to remain variable and dependent upon operational and tailings management limitations. The Company is implementing robust processes to ensure continued production and profitability within the regulatory constraints.

Construction of all the necessary infrastructure and workings at Zone II of the Caijiaying Mine have been completed. Full budgeted production from Zone II will commence once the necessary Safety Permit has been issued by the ERB, which is expected at some point in the last quarter of 2026.

Chairman's Statement

Chairman Mladen Ninkov commented, "Another outstanding and unmatched operational performance from the Caijiaying Mine. Unshackled, it is extraordinary what the orebody and our people can deliver. The Company now awaits the necessary approvals allowing for the reopening of TSF4 and the Safety Permit for the Zone II area, with which, the strength of the Caijiaying Mine can be set free to reach its full potential."

Further information

Griffin Mining Limited

Mladen Ninkov - Chairman                                                                    Telephone: +44 (0)20 7629 7772

Roger Goodwin - Finance Director

Panmure Liberum Limited - Nominated Adviser & Joint Broker                 Telephone: +44 (0)20 7886 2500

             James Sinclair-Ford

              Zak Wadud

Berenberg - Joint Broker                                                                               Telephone: +44 (0)20 3207 7800

                Matthew Armitt

Jennifer Lee

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

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

Condensed Consolidated Income Statement

(expressed in thousands US dollars)

 

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive Income

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

 (expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement of Changes in Equity

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

 (expressed in thousands US dollars)

 

Griffin Mining Limited Notes to the Interim Statement

1.     These unaudited condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31^st December 2025.  

2.     This interim report will be available on the Company's web site, www.griffinmining.com. Hard copies are available from the Company's London office, 8^th Floor, Royal Trust House, 54 Jermyn Street, London. SW1Y 6LX.

3.     The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 434 of the UK Companies Act 2006.  The consolidated statement of financial position at 31^st December 2025 and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and the consolidated cash flow statement for the year then ended have been extracted from the Group's 2025 statutory financial statements upon which the auditors' opinion is unqualified, and should be read in conjunction with the accompanying notes contained therein.

4.     The summary accounts have been prepared on a going concern basis. Whilst it is difficult to accurately predict future profitability and liquidity, particularly regarding the impact of metal prices, the directors consider that at current metal prices and with the benefit of existing cash resources and agreed banking facilities the Group can continue as a going concern for the foreseeable future without the need to curtail operations.and that the Group will be able to meet its liabilities as they fall due.

5.     The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The calculation of diluted earnings per share is based on the basic earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.

6.     Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:

7.   As at 30^th June 2026 there were no adjusting post balance sheet events.