Griffin Mining LimitedLSE: GFM

Unaudited interim results

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

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

E mail: griffin@griffinmining.com

 

9th September 2025

UNAUDITED INTERIM RESULTS

for the six months ended 30th June 2025

Griffin Mining Limited ("Griffin" or the "Company") today released its unaudited results for the six months ended 30th June 2025.

Summary:

1st Qtr ($000s)

     2nd Qtr ($000s)

6mth

($000s)

Revenue

20,414

43,296

63,710

Gross profit

3,862

21,200

25,062

Profit/(loss) before tax

(1,215)

15,463

14,248

Profit/(loss) after tax

(1,466)

10,250

8,784

Basic earnings per share

-

-

$0.0475








Financial and Trading:

The first 6 months of 2025 was dominated by the recovery in production in the second quarter of 2025 to the normal operational rate of circa 1.5 million tonnes of ore per annum. First quarter production was severely impacted by the repercussions of the total suspension of all underground development and operations in the last quarter of 2024. This included suspended underground capital development to access ore which prevented full production rates and the consequent negative flow-on effects into the first quarter of 2025.

Future Quarterly Production Results

In light of the variable nature of the quarterly results of the Company due to the lengthy Chinese New Year holiday period and the twice yearly suspension of operations due to Central Government Congresses and Committee meetings, the Company believes  its half yearly and annual results give a more balanced view of production. Accordingly, Griffin will no longer publish quarterly trading results, with the next scheduled financial results being the Company's results to 31 December 2025.

Quarterly results may be summarised as follows:

Condensed Consolidated Income Statement

(expressed in thousands US dollars)

3 months to

31/03/2025

Unaudited

3 months to

30/06/2025

Unaudited

6 months to

30/06/2025

Unaudited

6 months to

30/06/2024

Unaudited

$000

$000

$000

$000

Revenue

20,414

43,296

63,710

85,746

Cost of sales

(16,552)

(22,096)

(38,648)

(47,288)

Gross profit 

3,862

21,200

25,062

38,458

Administration expenses

(5,553)

(5,926)

(11,479)

(18,804)

Profit / (loss) from operations

(1,691)

15,274

13,583

19,654

Losses on disposal of equipment

(9)

(158)

(167)

(82)

Foreign exchange losses

(11)

(8)

(19)

(40)

Finance income

445

381

826

826

Finance costs

(8)

(80)

(88)

(73)

Other income

59

54

113

188

Profit / (loss) before tax

(1,215)

15,463

14,248

20,473

Income tax expense

(251)

(5,213)

(5,464)

(9,177)

Profit / (loss) for the period

(1,466)

10,250

8,784

11,296

3 months to 31 March 2025

3 months to 30 June 2025

6 months to 30 June 2025

6 months to 30 June 2024

Ore mined (Tonnes)

223,745

358,938

582,683

764,683

Ore processed (Tonnes)

241,344

347,508

588,852

736,010

Zinc in concentrate Produced (Tonnes)

6,552

10,541

17,093

26,202

Gold in concentrate produced (Ozs)

2,433

6,270

8,703

11,307

Silver in concentrate produced (Ozs)

43,618

119,602

163,220

164,781

Lead in concentrate produced (Tonnes)

251

457

708

731

Average zinc price received per tonne $

2,278

2,114

2,197

2,307

Average gold price received per oz $

2,740

3,156

3,074

2,154

Average silver price received per oz $

26.9

28.3

28.2

23.2

Average lead price received per tonne $

2,634

3,071.3

2,945

2,866

During the six months to 30th June 2025:

-    16,447 tonnes of zinc metal in concentrate were sold (30th June 2024: 25,653 tonnes); 

-    8,216 ozs of gold in concentrate were sold (30th June 2024: 11,257 ozs);

-    148,466 ozs of silver in concentrate were sold (30th June 2024: 162,202 ozs); and

-    651 tonnes of lead in concentrate were sold (30th June 2024 :714 tonnes).

With historically high gold prices, precious metals revenues amounted to 46.5% of gross revenues before royalties in the six months to 30 June 2025.

Revenue decreased by 25.7% from $85,746,000 in the first half of 2024 to $63,710,000 in the first half of 2025, reflecting lower metal in concentrate produced.  Lower zinc metal prices received, resulted in zinc revenues down 40.4% on that in the first half of 2024. Lead and precious metal revenues were up 1.8%  with Griffin benefiting from higher precious metal prices received

Average metal prices received in the first half year were:

30 June

30 June

2025

2024

$

$

Zinc per tonne

2,171

2,338

Gold per oz

3,038

2,183

Silver per oz

27.9

23.5

Lead per tonne

2,910

2,904

Costs of sales (mining, haulage and processing costs) have decreased by 18.2% in the first half of 2025 from that in the first half of 2024, reflecting a 19.9% reduction in throughput with fixed costs restricting cost reductions.

Administration costs, excluding the Chinese partners interests and share based incentive charges, decreased by 19.0% from $13,071,000 in the first half of 2024  to $9,718,000 in the first half of 2025. No share based incentive charges were made in the first half of 2025 compared with $2,149,000 in the first half of 2024.  $1,761,000 (30th June 2024: $2,954,000) has been provided for the Chinese partners service fees based upon Hebei Hua Ao's profits.

Griffin benefited from interest received of $826,000 in the first half of 2025 (2024: $826,000) reflecting lower interest rates with bank deposits rising from $48,758,000 at 31st December 2024 to $69,651,000 at 30th June 2025. Mine development and other capital expenditure of $13,801,000 was incurred in the first half of 2025 (30th June 2024: $10,628,000) primarily on the ongoing development of the Zone II area and associated plant and equipment at Caijiaying expected to brought into production in 2025.

The tax charge of $5,463,000 (2024: $9,177,000) is disproportionally large compared with pre-tax profits of  $14,248,000 as the tax charge primarily arises on Hebei Hua Ao's profit determined under Chinese Generally accepted Accounting Principles ("GAAP") in the first half of the year, at a rate of 25%.  Accordingly, costs incurred outside China are not tax deductible.

Chairman's Statement

Chairman Mladen Ninkov commented, "As the results clearly show, the complete shutdown of operations in the last quarter of 2024, including the barring of all underground access, impacted operations in the first quarter of 2025 with underground capital development needing to be undertaken prior to mining and production recommencing. Operations fully recovered by the second quarter of 2025 with the above stated outstanding results. It is a credit to the staff at the Caijiaying Mine and the quality of the orebody that the Company has returned to "business as usual."

With Zone II infrastructure development almost completed, we eagerly await the commissioning of operations and the extraction of ore from Zone II in the last quarter of this year. This will be another milestone in the life and production profile of the Caijiaying Mine."

 

 

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)

6 months to

30/06/2025

Unaudited

6 months to

30/06/2024

Unaudited

Year to

31/12/2024

Audited

$000

$000

$000

Revenue

63,710

85,746

135,128

Cost of sales

(38,648)

(47,288)

(83,877)

Gross profit 

25,062

38,458

51,251

Administration expenses

(11,479)

(18,804)

(33,963)

Profit from operations

13,583

19,654

17,288

Impairment of exploration interest

-

-

(599)

Losses on disposal of equipment

(167)

(82)

(1,108)

Foreign exchange (losses)

(19)

(40)

(186)

Finance income

826

826

2,018

Finance costs

(88)

(73)

(37)

Other income

113

188

527

Profit before tax

14,248

20,473

17,903

Income tax  expense

(5,464)

(9,177)

(6,552)

Profit for the period

8,784

11,296

11,351

Basic earnings per share (cents)

4.75

5.93

6.08

Diluted earnings per share (cents)

4.75

5.93

6.08

 

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

6 months to

30/06/2025

Unaudited

6 months to

30/06/2024

Unaudited

Year to

31/12/2024

Audited

$000

$000

$000

Profit for the financial period

8,784

11,296

11,351

Other comprehensive income / (expense) that will be reclassified to profit or loss

Exchange differences on translating foreign operations

719

422

(2,911)

Other comprehensive income / (expense) for the period, net of tax

719

422

(2,911)

Total comprehensive income for the period

9,503

11,718

8,440


Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

 (expressed in thousands US dollars)

30/06/2025

30/06/2024

31/12/2024

Unaudited

Unaudited

Audited

$000

$000

$000

ASSETS

Non-current assets

Property, plant and equipment

245,630

245,258

242,754

Intangible assets - exploration interests

-

600

1

Deferred taxation

4,788

-

4,768

Other non-current assets

893

1,471

1,215

251,311

247,329

248,738

Current assets

Inventories

6,539

7,862

5,273

Receivables and other current assets

3,083

3,984

2,985

Cash and cash equivalents

69,651

65,250

48,758

79,273

77,096

57,016

Total assets

330,584

324,425

305,754

EQUITY AND LIABILITIES

Equity attributable to equity holders of the parent

Share capital

1,843

1,845

1,855

Share premium

64,917

67,318

67,318

Contributing surplus

3,690

3,690

3,690

Share based payments

9,096

5,090

9,096

Shares held in treasury

-

(1,157)

(2,388)

Chinese statutory re-investment reserve

3,846

3,507

3,830

Other reserve on acquisition of non-controlling interests

(29,346)

(29,346)

(29,346)

Foreign exchange reserve

(5,636)

(3,036)

(6,339)

Profit and loss reserve

233,739

225,253

224,955

Total equity attributable to equity holders of the parent

282,149

273,164

272,671

Non-current liabilities

Other payables

-

3,087

-

Long-term provisions

3,912

3,961

3,822

Finance leases

377

519

465

4,289

7,567

4,287

Current liabilities

Trade and other payables

39,030

36,530

27,486

Lease liabilities

173

158

155

Business taxation payable

4,943

7,006

1,155

Total current liabilities

44,146

43,694

28,796

Total equities and liabilities

330,584

324,425

305,754

Number of shares in issue

184,253,481

184,530,477

185,530,477

Attributable net asset value / total equity per share

$1.53

$1.48

$1.47

Griffin Mining Limited

Condensed Consolidated Statement of Changes  in Equity

(expressed in thousands US dollars)

Share

Share

Contributing

Share

Shares

Chinese

Other

Foreign

Profit

Total

Capital

Premium

surplus

based

payments

held in

treasury

re investment

reserve

reserve on

acquisition of

non-controlling

interests

exchange

reserve

and loss

reserve

attributable

to equity holders

of parent

$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

At 31st December 2023

1,928

78,550

3,690

3,109

(2.017)

3,529

(29,346)

(3,480)

213,789

269,752

Issue of shares on cancellation of share options

20

808

-

-

-

-

-

-

-

828

Transfer on exercise of options

-

-

-

(168)

-

-

-

-

168

-

Share based payments

-

-

-

2,149

-

-

-

-

-

2,148

Purchase of shares for treasury

-

-

-

(11,283)

-

-

-

-

(11,283)

Cancellation of shares

(103)

(12,040)

-

12,143

-

-

-

-

-

Transaction with owners

(83)

(11,232)

-

1,981

860

-

-

-

168

(8,306)

Retained profit for the 6 months

-

-

-

-

-

-

-

-

11,296

11,296

Other comprehensive income:

Exchange differences on translating foreign operations

-

-

-

-

-

(22)

-

444

-

422

Total comprehensive income for the period

-

-

-

-

-

(22)

-

444

11,296

11,718

At 30th June 2024  (Unaudited)

1,845

67,318

3,690

5,090

(1,157)

3,507

(29,346)

(3,036)

225,253

273,164

Share based payments

-

-

-

4,006

-

-

-

-

-

4,006

Issue of shares on cancellation of share purchase options

10

-

-

-

-

-

-

-

=

10

Purchase of shares for treasury

-

-

-

-

(1,231)

-

-

-

-

(1,231)

Regulatory transfer for future investment

-

-

-

-

-

353

-

-

(353)

-

Transaction with owners

10

-

-

4,006

(1,231)

353

-

-

(353)

2,785

Retained profit for the 6 months

-

-

-

-

-

-

-

-

55

55

Other comprehensive income:

Exchange differences on translating foreign operations

-

-

-

-

-

(30)

-

(3,303)

-

(3,333)

Total comprehensive income for the period

-

-

-

-

-

(30)

-

(3,303)

55

(3,278)

At 31st December 2024

1,855

67,318

3,690

9,096

(2,388)

3,830

(29,346)

(6,339)

224,955

272,671

Share based payments

Purchase of shares for treasury

-

-

-

-

(25)

-

-

-

(25)

Cancellation of shares

(12)

(2,401)

-

-

2,413

-

-

-

-

Transaction with owners

(12)

(2,401)

-

-

2,388

-

-

-

(25)

Retained profit for the 6 months

-

-

-

-

-

-

-

8,784

8,784

Other comprehensive income:

Exchange differences on translating foreign operations

-

-

-

-

-

16

-

703

-

719

Total comprehensive income for the period

-

-

-

-

-

16

-

703

8,784

9,503

At 30th June 2025  (Unaudited)

1,843

64,917

3,690

9,096

-

3,846

(29,346)

(5,636)

233,739

282,149

Griffin Mining Limited

Condensed Consolidated Cash Flow Statement

 (expressed in thousands US dollars)

6 months to

30/06/25

6 months to

30/06/2024

Year to

31/12/2024

$000

$000

$000

Net cash flows from operating activities

Profit before taxation

14,248

20,473

17,903

Issue of shares under share incentive scheme

-

2,149

6,165

Foreign exchange losses

19

40

186

Finance income

(826)

(826)

(2,018)

Finance costs

88

73

(37)

Impairment of exploration interests

-

-

599

Depreciation, depletion and amortisation

11,538

14,487

24,613

Losses on disposal of equipment

167

82

1,108

Decrease / (increase) in inventories

(1,266)

(2,033)

556

Decrease / (increase) in receivables and other assets

(98)

(1,098)

(99)

(Decrease) in trade and other payables

11,530

(1,778)

(13,881)

Taxation paid

(1,687)

(7,557)

(15,587)

Net cash inflow from operating activities

33,713

24,012

19,582

 

Cash flows from investing activities

Interest received

826

826

1,753

Refund of rehabilitation deposits

327

-

-

Proceeds / (costs) on disposal of equipment

-

8

339

Payments to acquire - mineral interests and mine development

(1,379)

(8,838)

97

Payments to acquire - property, plant & equipment

(12,422)

(1,790)

(13,974)

Payments to acquire - office lease, furniture and equipment

-

-

(6,996)

Payments to acquire - intangible assets - exploration interests

-

(25)

(25)

Net cash (outflow) from investing activities

(12,648)

(9,819)

(18,806)

Cash flows from financing activities

Issue of shares on exercise of options

-

828

828

Interest paid

-

-

216

Purchase of shares for treasury / cancellation

(25)

(11,283)

(12,515)

Lease repayments including interest

(83)

(80)

(156)

Net cash (outflow) from financing activities

(108)

(10,535)

(11,627)

Increase in cash and cash equivalents

20,957

3,658

(10,851)

Cash and cash equivalents at beginning of the period

48,758

60,007

60,007

Effects of exchange rate changes

64

1,585

(398)

Cash and cash equivalents at end of the period

69,651

65,250

48,758
 

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 31st December 2024.  

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, 8th 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 31st December 2024 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 2024 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:

6 months to

30/06/2025

Unaudited

6 months to

30/06/2024

Unaudited

Year to

31/12/2024

Audited

Earnings

$000

Weighted

average number of shares

Per share amount

(cents)

Earnings

$000

Weighted

average number of shares

Per share amount (cents)

Earnings

$000

Weighted

average number of shares

Per share amount (cents)

Basic (loss) / earnings per share

Earnings  attributable to ordinary shareholders

8,784

184,253,481

4.75

11,296

190,505,932

5.93

11,351

186,599,728

6.08

Dilutive effect of securities

Options

-

-

-

-

-

-

-

-

-

Diluted earnings per share

8,784

184,253,481

4.75

11,296

190,505,932

5.93

11,351

156,599,728

6.08












7.   As at 30th June 2025 there were no adjusting post balance sheet events.