REG - Griffin Mining Ltd - 2024 Final Results
05/06/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250605:nRSE4663La&default-theme=true
RNS Number : 4663L Griffin Mining Limited 05 June 2025
Royal Trust house, 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
2024 Final Results
5(th) June 2025
Griffin Mining Limited ("Griffin" or the "Company") has today published its
annual report and accounts for the year ended 31 December 2024 which will be
available shortly on the Company's web site wwww.griffinmining.com and will be
posted to shareholders on 23(rd) June 2025.
Chairman's Statement:
It is with an overwhelming sense of "a missed opportunity" that I report on
the Annual Report and Accounts of the Company ("Griffin" or the "Company") for
the 2024 calendar and financial year (the "Annual Report").
The "missed opportunity" I refer to was the chance to break all operating and
financial records in 2024. The Caijiaying Mine, which had thundered through
the first three quarters of 2024 and was on course to mine and process 1.5
million tonnes of ore, came abruptly to a halt on the 11(th) October 2024 with
the unfortunate death underground of an employee of the mining contractor. The
ensuing shutdown of all mining, processing and development until the start of
2025 did significant damage to the year's financial results and to underground
mine development, which had further repercussions for operations into the
first 2 months of 2025.
Nevertheless, such is the strength of the Caijiaying Mine that operations
which can be shut down for 3 months can still produce the following financial
results:
· Revenues of $135,128,000;
· Gross profit of $51,251,000;
· Earnings before depreciation, interest and tax of $41,901,000;
· Operating profit of $17,288,000;
· Profit before tax of $17,903,000; and
· Profit after tax of $11,351,000;
Similarly, in only 9 months of production, operational results still included
ore mined of 1,149,146 tonnes (all of which was extracted from Zone III) and
ore processed of 1,169,098 tonnes, resulting in production of:
· 39,444 tonnes of zinc;
· 16,142 ounces of gold;
· 275,697 ounces of silver; and
· 1,295 tonnes of lead.
Amazingly, the Company was still able to generate it's 19(th) continuous
operating profit for the year and it's 18(th) net profit whilst still holding
significant cash balances in China and offshore with no debt on its balance
sheet.
Another consequence of the 3(rd) quarter shut down was the stoppage of all
development work in Zone II. That has now recommenced with underground
workings, services installation and the South Ventilation Shaft nearing
completion. This means that extraction of ore from Zone II will now begin in
the last quarter of 2025 when we look forward to a new, large source of ore
being available for mining and processing.
I also think it's worth stating that in the current environment of record
world gold prices amidst global economic uncertainty, the continued discovery
of substantial and significant gold mineralization at the Caijiaying Mine has
been tremendously exciting. These are some of the most extraordinary gold
intersections many of us have ever seen in our careers. As the Company's
announcement on the 15(th) April 2025 stated:
"Drilling of high-grade gold domains below the existing development at the
Caijiaying Mine during 2024-25 continues to deliver exceptional gold
intercepts. Drilling is ongoing, testing multiple high-grade gold shoots.
Drilling of the Yuan Long high-grade gold domain confirms the down-plunge
continuity of this domain below and along strike from existing development,
with significant intercepts including:
· UGCJY-6268: 20.4m @ 24.4 g/t Au (true width)
· UGCJY-6318: 25.7m @ 8.90 g/t Au (true width)
· YL1270-472E: 14.0m @ 25.0 g/t Au (true width)
· UGCJY-6194: 26.4m @ 4.30 g/t Au (true width estimated at 20m)
· UGCJY-6200: 31.7m @ 3.80 g/t Au (true width)
· UGCJY-6201: 17.6m @ 5.20 g/t Au (true width)
· UGCJY-6260: 12.6m @ 5.10 g/t Au (true width)"
We excitedly await what further gold drilling will confirm and uncover.
The Company's share buy-back program continued in 2024 with the excess cash
generated by operations and $12,515,000 was expended on the buy-back of
ordinary shares during the year, reducing the Company's shares outstanding and
seeking to improve the Company's earnings per share.
RESULTS SUMMARY
The results for 2024 were severely impacted by the suspension in operations at
the Caijiaying Mine during the fourth quarter of 2024 following the fatality
of an employee of a contractor underground on 11 October 2024. As a result
in 2024 the Company and its subsidiaries (together the "Group") recorded;
· Revenues of $135,128,000 (2023: $146,023,000);
· Gross profit of $51,251,000 (2023: $51,842,000);
· Earnings before depreciation, interest and tax of $41,901,000 (2023:
$51,863,000)
· Operating profit of $17,288,000 (2023: $23,837,000);
· Profit before tax of $17,903,000 (2023: $24,486,000);
· Profit after tax of $11,351,000 (2023: $15,236,000); and
· Basic earnings per share of 6.08 cents (2023: 8.03 cents).
Ore mined was down 23.7% from that in 2023 to 1,149,146 tonnes, all of which
was extracted from Zone III and ore processed was down 22.8% on that achieved
in 2023 to 1,169,098 tonnes, resulting in:
· Zinc metal concentrate production was down 30.7% on that achieved in
2023 to 39,444 tonnes;
· Gold metal in concentrate production was down 5.3% on that achieved
in 2022 to 16,142 ozs;
· Silver metal in concentrate production was down 12.4% on that
achieved in 2023 to 275,697 ozs; and
· Lead metal in concentrate production was down 16.2% on that
achieved in 2022 to 1,295 tonnes.
LME zinc prices for 2024 were 5.3% higher than that in 2023. Smelter treatment
charges and transport costs fell in 2024 from 27.0% of LME in 2023 to 13.4% in
2024. Gold prices increased throughout 2024 as did silver and lead prices
with Hebei Hua Ao receiving a premium price on lead and gold in concentrate
sales.
With less ore mined, hauled and processed as a result of the suspension in
operations in the fourth quarter of 2024, cost of sales (mining, haulage, and
processing, including depreciation) fell by $10,304,000 (10.9%) from that in
2023.
Operating (administration) expenses, excluding the Chinese partners
remuneration and share incentive scheme charges, rose by $3,206,000 (15.2%)
from that in 2023. The Chinese partners remuneration for services rendered
decreased by $394,000 (10.9%) from that in 2023. A full year charge of
$6,165,000 (2023: $3,019,000) was made in respect of the Group's share
incentive plan.
The Group benefited from interest receipts on bank deposits of $1,753,000 in
2024 compared with $1,394,000 in 2023.
Full provision has been made in 2024 of $599,000 against costs capitalised in
respect of the Siding zinc venture in southern China with an impasse reached
in progressing this venture any further.
With the replacement and upgrade of various facilities at the Caijiaying Mine,
including the backfill plant and workshops, losses on the disposal of
equipment of $1,108,000 (2023:$784,000) were incurred.
Foreign exchange losses, finance and other interest costs of $42,000 (2023:
$289,000) were recorded. Other income of $527,000 (2023: 352,000) was
received.
As a result, Group profits before tax declined from $24,486,000 in 2023 to
$17,903,000 in 2024.
Revenue
Revenue in 2024 of $135,128,000 was down $10,895,000 (7.5%) on that achieved
in 2023 of $146,023,000. This reflects zinc in concentrate sales down
$15,882,000 (14.2%) with 39,814 tonnes of zinc metal in concentrate sold in
2024 compared with 56,993 tonnes in 2023, a decrease of 31.4% reflecting lower
production with the suspension in production in the fourth quarter and lower
head grades. The average zinc metal in concentrate prices received rose from
$1,931 in 2023 to $2,414 in 2024, a rise of 25.0%. This reflects a rise in
the average LME price from $2,647 in 2023 to $2,786 in 2024, whilst smelter
treatment charges and transport costs have fallen from 27.0% of LME in 2023 to
13.4% in 2024.
Lead and precious metal in concentrate sales in 2024 of $46,473,000 were up
$4,045,000 (9.5%) on that achieved in 2023 of $42,428,000. This reflects
higher metal prices received despite lower production.
Sales may be summarised as follows:
2024 2023
Zinc metal in concentrate revenue before royalties ($000s) 96,127 112,008
Lead metal in concentrate revenue before royalties ($000s) 3,522 3,949
Silver metal in concentrate revenue before royalties ($000s) 6,739 6,172
Gold metal in concentrate revenue before royalties ($000s) 36,211 32,306
Royalties (7,471) (8,413)
Zinc metal in concentrate sold (tonnes) 39,814 57,998
Lead metal in concentrate sold (tonnes) 1,300 1,557
Silver metal in concentrate sold (ozs) 276,939 317,348
Gold metal in concentrate sold (ozs) 16,252 17,107
Average price received per tonne (zinc) ($) 2,414 1,931
Average price received per tonne (lead) ($) 2,709 2,535
Average price received per ounce (silver) ($) 24.3 20.1
Average price received per ounce (gold) ($) 2,228 1,952
Cost of Sales
With less ore mined, hauled and processed as a result of the suspension in
operations in the fourth quarter of 2024, cost of sales (mining, haulage, and
processing, including depreciation) fell by $10,304,000 (10.9%) from that in
2023 with production costs per tonne of ore processed rising from $62.2 per
tonne in 2023 to $71.7 per tonne in 2024. This in the main reflects the
impact of the suspension of operations in the fourth quarter with ongoing
fixed costs.
Costs of sales may be summarised as follows:
2024 Per tonne 2023 Per tonne
ore ore
$000 $ $000 $
Mining costs 25,993 22.6 25,579 17.0
Haulage costs 13,171 11.2 18,098 12.0
Processing costs 20,824 17.8 23,197 15.4
Depreciation depletion and amort' 22,647 25,385
Stock and WIP movements 1,242 1,922
83,877 71.7 94,181 62.6
Mining
1,149,146 tonnes of ore were mined in 2024, down 23.8% on that mined in 2023
of 1,505,642 tonnes, reflecting the suspension in operations in the fourth
quarter of 2024. Mining costs remained much in line with that in 2023
reflecting the element of fixed mine service costs and the engagement of
additional personnel. As a result of less ore mined at broadly the same
cost, unit costs rose from $17.0 per tonne mined in 2023 to $22.6 per tonne in
2024.
Haulage
1,174,811 tonnes of ore were hauled in 2024, down 22.2% on that hauled in 2023
of 1,509,098 tonnes, tracking ore mined. Haulage costs in 2024 were down
$4,927,000 (27.2%) on that in 2023, resulting in a reduction in unit costs
from $12.0 per tonne hauled in 2023 to $11.2 per tonne in 2024 reflecting a
reduction in average distances hauled.
Processing
1,169,098 tonnes of ore were processed in 2024, down 22.8% on that processed
in 2023 of 1,513,977 tonnes, tracking ore mined and hauled. Processing costs
in 2024 were down $2,374,000 (10.2%) on that in 2023, resulting in an
increase in unit costs from $15.3 per tonne processed in 2023 to $17.8 per
tonne in 2023, reflecting fixed costs.
Depreciation
Depreciation charges in 2024 were down $2,738,000 (10.8%) on that incurred in
2023 reflecting reduced ore mined upon which mine development costs are
depreciated calculated on a unit of production basis, whilst plant and
equipment costs are depreciated on a straight line basis.
Operating Expenses
Operating (administration) costs (excluding the minority interest charges and
share incentive scheme charges) in 2024 of $24,289,000 were up $2,841,000
(15.2%) on that incurred in 2023 of $21,083,000.
Hebei Hua Ao's operating costs in 2024 of $14,820,000 were up $427,000 (3.0%)
on that incurred in 2023 of $14,393,000. Increased personnel costs have been
offset by savings in local partner service and consultancy fees.
Griffin and Griffin Mining (UK Services) Ltd company corporate costs of
$8,595,000 (excluding share incentive scheme charges) were up $2,715,000
(26.2%) on that incurred in 2023 of $5,880,000.
China Zinc Ltd.'s operating costs of $794,000 were up $71,000 (9.8%) on that
in 2023 of $723,000, with additional personnel costs.
The Chinese partners remuneration for services rendered decreased by $394,000
(10.1%) from that in 2023 reflecting lower Hebei Hua Ao profits.
$6,165,000 (2023 $3,019,000) has been provided relating to a full years share
incentive plan charges.
Profits Before Tax
After interest, foreign exchange adjustments, impairment and other income, a
profit before tax of $17,903,000 was recorded for 2024 compared to $24,486,000
in 2023. The profit before tax in 2024 was after charging / crediting;
· Impairment of $599,000 against costs capitalised in respect of the
Siding venture in southern China with an impasse in progressing this venture
and the redundancy of the business development manager overseeing this
project.
· The Group benefited from interest receipts on bank deposits of
$1,753,000 in 2024 (2023: $1,394,000).
· Losses on disposal of equipment of $1,108,000 (2023: $784,000) were
incurred primarily on redundant equipment being upgraded.
· Foreign exchange translation losses were recorded of $186,000 (2023:
$136,000) primarily on the weakening of the Renminbi.
· An interest credit of $265,000 (2023: $110,000) arose in respect of
rehabilitation provisions.
· Other income of $527,000 (2023: 352,000) was recorded from waste
sales, indemnities and government subsidies.
· Finance lease interest charges on the London Office of $37,000 (2023:
$42,000) were charged.
Taxation
Taxation of $6,552,000 has been charged in 2024 (2023: $9,250,000). This
comprises: 25% of Hebei Hua Ao's profits under Chinese accounting standards
amounting to $10,480,000 (2023: $11,130,000); withholding tax of 5% on
intercompany dividends received of $689,000 (2023: $897,000); and UK
corporation tax on Griffin Mining (UK Services) Limited profits of $200,000
(2023: $179,000). China Zinc Ltd benefited from a tax credit of $13,000.
Deferred tax arising on accelerated depreciation of $4,804,000 has been
credited (2023: credit of $2,694,000).
Earnings Per share
Basic earnings per share fell from 8.03 cents per share in 2023 to 6.08 cents
per share in 2024 and diluted earnings per share from 7.98 cents in 2023 to
3.42 cents in 2024.
Cash flow
In the year ended 31 December 2024 cash balances decreased by $11,249,000.
$19,582,000 (2023: $48,377,000) was generated from operations in 2024. Capital
expenditure, net of disposals, of $20,898,000 (2023: $23,279,000), was
incurred in 2024. Interest on bank deposits of $1,753,000 (2023: 1,394,000)
was received in 2023. $828,000 was received on the issue of new ordinary
shares on the exercise of share purchase options. $12,515,000 (2023:
$373,000) was expended on the buyback of ordinary shares in 2024
Net Assets
Attributable net assets per share at 31st December 2024 was $1.47 (2023:
$1.40).
About Griffin Mining Limited
Griffin Mining Limited's shares are quoted on the Alternative Investment
Market (AIM) of the London Stock Exchange (symbol GFM). Griffin Mining Limited
owns and operates in China, through its 88.8% owned Joint Venture stock
company, the Caijiaying Zinc Gold Mine, a profitable mine producing zinc,
gold, silver, and lead metals in concentrates. For more information, please
visit the Company's website www.griffinmining.com.
Further information
Further information
Griffin Mining Limited
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Panmure Liberum Limited
Telephone: +44 (0)20 7886 2500
James Sinclair-Ford
Berenberg Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Lee
Deltir Elezi
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014
Griffin Mining Limited
Consolidated Income Statement
For the year ended 31 December 2024
(expressed in thousands US dollars)
2024 2023
$000 $000
Revenue 135,128 146,023
Cost of sales (83,877) (94,181)
Gross profit 51,251 51,842
Administration expenses (33,963) (28,005)
Operating Profit 17,288 23,837
Impairment of exploration interest (599)
Losses on disposal of plant and equipment (1,108) (784)
Foreign exchange (losses) (186) (136)
Finance income 2,018 1,394
Finance costs (37) (177)
Other income 527 352
Profit before tax 17,903 24,486
Income tax expense (6,552) (9,250)
Profit for the year 11,351 15,236
Basic earnings per share (cents) 6.08 8.03
Diluted earnings per share (cents) 6.08 7.98
Griffin Mining Limited
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
(expressed in thousands US dollars)
2024 2023
$000 $000
Profit for the year 11,351 15,236
Other comprehensive (expense) that will be reclassified to profit or loss
Exchange differences on translating foreign operations (2,911) (2,912)
Other comprehensive (expense) for the year, net of tax (2,911) (2,912)
Total comprehensive income for the year 8,440 12,324
Griffin Mining Limited
Consolidated Statement of Financial Position
As at 31 December 2024
(expressed in thousands US dollars)
2024 2023
$000 $000
ASSETS
Non-current assets
Mining interests 242,754 250,370
Exploration interests 1 575
Deferred taxation 4,768 -
Other non-current assets 1,215 1,554
248,738 252,499
Current assets
Inventories 5,273 5,828
Receivables and other current assets 2,985 2,886
Cash and cash equivalents 48,758 60,007
57,016 68,721
Total assets 305,754 321,220
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital 1,855 1,928
Share premium 67,318 78,550
Contributing surplus 3,690 3,690
Share based payments 9,096 3,109
Shares held in treasury (2,388) (2,017)
Chinese statutory re-investment reserve 3,830 3,529
Other reserve on acquisition of non-controlling interests (29,346) (29,346)
Foreign exchange reserve (6,339) (3,480)
Profit and loss reserve 224,955 213,789
Total equity attributable to equity holders of the parent 272,671 269,752
Non-current liabilities
Other payables - 3,106
Long-term provisions 3,822 3,929
Lease liabilities 465 570
4,287 7,605
Current liabilities
Trade and other payables 27,486 38,308
Business taxation payable 155 5,386
Lease liabilities 1,155 169
Total current liabilities 28,796 43,863
Total equities and liabilities 305,754 321,220
Attributable net asset value per share to equity holders of parent 1.47 1.40
Griffin Mining Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
(expressed in thousands US dollars)
Share Share Contributing Share Shares Chinese Other Foreign Profit Total
Capital Premium surplus Based held in statutory reserve on exchange and loss reserve attributable to equity holders of parent
payments treasury re-investment acquisition of non-controlling interests reserve
reserve
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 1 January 2022 1,749 69,334 3,690 168 (1,644) 2,992 (29,346) (618) 199,140 245,465
Regulatory transfer for future investment - - - - - 587 - - (587) -
Issue of shares on cancellation of share purchase options 101 9216 - - - - - 9,317
- -
Share based payments 78 - - 2,941 - - - - 3,019
Purchase of shares for treasury - - - - (373) - - - - (373)
Transaction with owners 179 9,216 - 2,941 (373) 587 - - (587) 11,963
Profit for the year - - - - - - - - 15,236 15,236
Other comprehensive income:
Exchange differences on translating foreign operations - - - - (50) (2,862) - (2,912)
- -
Total comprehensive income - - - - - (50) - (2,862) 15,236 12,324
At 31 December 2023 1,928 78,550 3,690 3,109 (2,017) 3,529 (29,346) (3,480) 213,789 269,752
Regulatory transfer for future investment - - - - - 353 - - (353) -
Cancellation of shares (103) (12,040) - - 12,143 - - - - -
Issue of shares on cancellation of share purchase options 10 - - (168) - - 168 10
- -
Issue of shares on exercise of options 20 808 - - - - - - - 828
Share based payments - - - 6,155 - - - - - 6,155
Purchase of shares - - - (12,514) - - - - (12,514)
Transaction with owners (73) (11,232) - 5,987 (371) 353 - - (185) (5,521)
Profit for the year - - - - - - - - 11,351 11,351
Other comprehensive income:
Exchange differences on translating foreign operations - - - - (52) (2,859) - (2,911)
- -
Total comprehensive income - - - - - (52) - (2,859) 11,351 8,440
At 31 December 2024 1,855 67,318 3,690 9,096 (2,388) 3,830 (29,346) (6,339) 224,955 272,671
Griffin Mining limited
Consolidated Cash Flow statement
For the year ended 31 December 2024
(expressed in thousands US dollars)
2024 2023
$000 $000
Net cash flows from operating activities
Profit before taxation 17,903 24,486
Share based payments 6,165 3,019
Foreign exchange losses 186 136
Finance income (2,018) (1,394)
Finance costs (37) 177
Impairment of exploration interests 599 -
Depreciation 24,613 28,026
Losses on disposal of equipment 1,108 784
Decrease / (increase) in inventories 556 2,249
(Increase) / decrease in receivables and other assets (99) 547
(Decrease) in trade and other payables (13,881) (415)
Taxation paid (15,587) (9,238)
Net cash inflow from operating activities 19,582 48,377
Cash flows from investing activities
Interest received 1,753 1,394
Decrease in rehabilitation deposits 339 -
Proceeds / (costs) on disposal of equipment 97 (263)
Payments to acquire - mineral interests and development (13,974) (16,792)
Payments to acquire - property, plant, and equipment (6,996) (6,056)
Payments to acquire - intangible fixed assets - exploration interests (25) (168)
Net cash outflow from investing activities (18,806) (21,885)
Cash flows from financing activities
Issue of ordinary shares on exercise of options 828 -
Interest paid 216 (27)
Purchase of shares for treasury (12,515) (373)
Bank loan advances - 4,271
Repayment of bank loans - (4,271)
Lease liability repayments including interest (156) (155)
Net cash outflow from financing activities (11,627) (555)
Increase / (decrease) in cash and cash equivalents (10,851) 25,937
Cash and cash equivalents at the beginning of the year 60,007 34,138
Effects of foreign exchange rates (398) (68)
Cash and cash equivalents at the end of the year 48,758 60,007
Notes to the Summarised Financial Statements:
This statement has been prepared using accounting policies and presentation
consistent with those applied in the preparation of the statutory financial
statements of the Group.
The summary financial statements set out above do not constitute statutory
financial statements as defined by Section 84 of the Bermuda Companies Act
1981 or Section 435 of the UK Companies Act 2006. The Summarised
Consolidated Statement of Financial Position at 31 December 2024 and the
Summarised Consolidated Income Statement, Summarised Consolidated Statement of
Comprehensive Income, Summarised Consolidated Statement of Changes in Equity
and the Summarised Consolidated Cash Flow Statement for the year then ended
have been extracted from the Group's audited 2024 statutory financial
statements.
The annual report and accounts for 2024 is being sent by post to all
registered shareholders. Additional copies of the annual report and accounts
are available from the Company's London office, 8(th) Floor, 54 Jermyn Street,
London, SW1Y 6LX and are available on Griffin Mining Ltd.'s web site
www.griffinmining.com
The Group has one business segment, the Caijiaying zinc gold mine in the
People's Republic of China. All revenues and costs of sales in 2024 and 2023
were derived from the Caijiaying zinc gold mine.
2024 2023
$000 $000
Revenues
China 135,128 146,023
Zinc concentrate sales 96,126 112,008
Lead and precious metals concentrate sales 46,473 42,428
Royalties and resource taxes (7,471) (8,413)
135,128 146,023
2024 2023
$000 $000
Cost of Sales - China
Mining costs 25,993 25,579
Haulage costs 13,171 18,098
Processing costs 20,824 23,197
Depreciation (excluding depreciation in administration expenses) 22,647 25,385
Stock movements 1,242 1,922
83,877 94,181
2024 2023
$000 $000
Administration expenses
China / Hong Kong 19,140 19,023
Australia 62 77
UK / Bermuda 8,596 5,886
27,798 24,986
Fair value of shares issued under share incentive plan 6,165 3,019
33,963 28,005
2024 2023
$000 $000
Total Assets
China 268,056 299,094
Australia 1,142 1,201
UK / Bermuda 36,556 20,925
305,754 321,220
2024 2023
$000 $000
CAPITAL EXPENDITURE
China 20,995 23,016
Impairment of Exploration costs
2024 2023
$000 $000
Provision against costs incurred in respect of the Siding project in the PRC 599 -
Shares Issued Under Executive Incentive Plan
2024 2023
$000 $000
Fair value of shares issued under share incentive plan 6,165 3,019
Finance Income
2024 2023
$000 $000
Interest on bank deposits 1,753 1,394
Discount rate adjustment on rehabilitation provisions 265 -
2,018 1,394
Finance Costs
2024 2023
$000 $000
Interest payable on short term bank loans - (24)
Discount rate adjustment on rehabilitation provisions - (110)
Lease interest (37) (43)
(37) (177)
Other Income
2024 2023
$000 $000
Scrap and sundry other revenues 527 352
Income Tax Expense
2024 2023
$000 $000
Profit for the year before tax 17,903 24,486
Expected tax expense at a standard rate of PRC income tax of 25% (2022 25%) 4,476 6,121
Adjustment for tax exempt items:
- (Income) and expenses outside the PRC not subject to tax 2,708 2,088
- (Income) and expenses subject to tax outside the PRC 583 (103)
Adjustments for short term timing differences:
- In respect of accounting differences 3,056 2,851
- In respect of other timing differences (142) (25)
Adjustments for permanent timing differences other (26) 129
Withholding tax on intercompany dividends and charges 689 897
Prior period tax credit 12 (14)
Current taxation expense 11,356 11,944
Deferred taxation expense (credit)
Origination and reversal of temporary timing differences (4,804) (2,694)
(4,804) (2,694)
Total tax expense 6,552 9,250
The parent company is not resident in the United Kingdom for taxation
purposes. Hebei Hua-Ao paid income tax in the PRC at a rate of 25% in 2023
(25% in 2022) based upon the profits calculated under Chinese Generally
Accepted Accounting Principles (Chinese "GAAP").
Withholding tax is recognised as a current tax charge when paid. As the
Company can control the timing of payments giving rise to withholding tax,
deferred tax liabilities for unpaid withholding taxes on unremitted earnings
and undistributed dividend payments are recognised using a 'probable'
threshold (based on the recognition threshold in IAS 12) , and are reflected
at the amount expected to be paid to taxation authorities. Unremitted earnings
and undistributed dividend payments from the Group's Chinese mining operation
total $145.9m (2023: $127.0m) upon which PRC withholding tax, currently 5%,
may be deducted on distribution.
Earnings per share
The calculation of the basic earnings per share is based upon the earnings
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the year. 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.
Reconciliation of the earnings and weighted average number of shares used in
the calculations are set out below:
2024 2023
Earnings Weighted Per share amount (cents) Earnings Weighted Per share amount (cents)
Average number of shares Average number of shares
$000
$000
Basic earnings per share
Basic earnings attributable to ordinary shareholders 11,351 186,599,728 6.08
15,236 189,771,884 8.03
Dilutive effect of securities
Options - - - - 1,234,740 (0.05)
Diluted earnings per share 11,351 186,599,728 6.08 15,236 191,006,624 7.98
Mining Interests
Mineral Interests held under retention licences Mineral Mill & mobile mine equipment Offices furniture & equipment Total
Interests held under mining licence
$000 $000 $000 $000 $000
At 1 January 2023 4,687 196,451 56,070 833 258,041
Foreign exchange adjustments (79) (2,190) (929) - (3,198)
Change in estimate of mine closure costs - 1,226 - - 1,226
Additions during the year 91 16,701 6,056 6 22,848
Disposals - - (521) - (521)
Depreciation charge for the year - (21,505) (6,380) (141) (28,026)
At 31 December 2023 4,699 190,683 54,296 692 250,370
Foreign exchange adjustments (69) (1,919) (780) - (2,768)
Additions during the year 106 13,868 6,996 - 20,970
Disposals - - (1,205) - (1,205)
Depreciation charge for the year - (16,277) (8,197) (139) (24,613)
At 31 December 2024 4,736 186,355 51,110 553 242,754
At 1 January 2023
Cost 4,687 275,250 101,763 1,106 378,119
Accumulated depreciation - (74,112) (45,693) (273) (120,078)
Net carrying amount 4,687 201,138 56,070 833 258,041
At 31 December 2023
Cost 4,699 290,077 103,479 1,558 395,114
Accumulated depreciation - (94,965) (49,183) (866) (144,744)
Net carrying amount 4,699 195,382 54,296 692 250,370
At 31 December 2024
Cost 4,736 301,047 106,323 1,558 408,928
Accumulated depreciation - (109,956) (55,213) (1,005) (166,174)
Net carrying amount 4,736 191,091 51,110 553 242,754
Mineral interests comprise the Group's interest in the Caijiaying ore bodies
including costs on acquisition, plus subsequent expenditure on licences,
concessions, exploration, appraisal and construction of the Caijiaying mine
including expenditure for the initial establishment of access to mineral
reserves, commissioning expenditure, and direct overhead expenses prior to
commencement of commercial production and together with the end of life
restoration costs.
Mill and mobile mine equipment include $19,649,000 (2023: $3,416,000) of
assets under construction yet to be depreciated.
The offices, furniture and equipment disclosed above relates solely to the
fixed assets, including leased offices, of Griffin Mining (UK Services)
Limited.
The Group assesses the carrying value of the mineral interests, mill and
mobile mine equipment at least annually, and more frequently in the event of
any indications of impairment, by reference to discounted cash flow forecasts
of future revenue and expenditure for each Cash Generating Unit. These
forecasts are based upon both past and expected future performance, available
resources and expectations for future markets. Management determined there
were no impairment indicators at 31 December 2024 (2023: nil). However, as
best practice and in response to an updated Life of Mine Plan, management have
updated the impairment model for latest forecast metal prices, smelter
treatment charges , and revisions to mine development costs. In determining
any indications of impairment in the carrying value of the Caijiaying Mine the
directors have reassessed the net carrying value of property plant and
equipment at 31 December 2024 by reference to the estimated mineral resources
at Caijiaying that may be extracted by 2045 from mineralised Zones II &
III only (2022: 2050 all Zones). The current business licence of Hebei Hua Ao
expires in 2037 but Hebei Hua Ao is required to be converted to an equity
joint venture company with an indefinite life in order to comply with new PRC
legislation. Accordingly, a Life of Mine Plan has been prepared by the Company
that indicates the continued extraction of ore until at least 2045.However,
management have considered the termination of operations in 2037 and concluded
that on the basis of the following assumptions no impairment is required.
In estimating the discounted future cash flows from the continuing operations
at the Caijiaying mine the following principal assumptions have been made:
· Future market prices for zinc of $2,493 (2023: $2,654) per tonne,
gold of $2,190 (2023: $2,000) per troy ounce and silver of $29.1 (2023: $23.4)
per troy ounce;
· Zinc treatment charges of 25% (2023: 25%) of market prices;
· Extraction of measured and indicated resources of 31.1 million tonnes
from mineralised Zones III and II alone (2023: 41.2 million tonnes from all
Zones) to 2045 (2023: 2050) with ore mined and processed of circa 1.5 million
tonnes (2023: 1.5 million tonnes) of ore per annum;
· Operating costs, recoveries and payables based upon past performance
and that budgeted for 2025 and on internal management forecast, for future
years;
· Capital costs based upon that initially scheduled with sustaining
capital based on future scheduling;
· Discount rate of 10% (2023: 10%); • Continued maintenance and grant
of applicable licences and permits;
· No significant impact as a result of climate change, earthquakes or
other natural events; and
· A Renminbi to US dollar exchange rate of 7.1 Rmb to $1 (2023: 7 Rmb
to $1)
Having considered the impact of climate change, the directors consider that
there will not be any significant adverse impact on future operations from
climate change. Whilst the directors consider the assumptions reasonable,
sensitivities have been considered to assess the impact of changes in key
assumptions including, forecast metal prices, foreign exchange and discount
rates, and have concluded that there were no reasonable possible changes to
the key assumptions that could result in an impairment.
Exploration Interests
China - mineral exploration interests
$000
At 1 January 2023 407
Additions during the year 168
At 31 December 2023 575
Additions during the year 25
Impairment during the year (599)
At 31 December 2024 1
Intangible assets represent cost on acquisition, plus subsequent expenditure
on licences, concessions, exploration, appraisal and development work in
respect of regional exploration in China. Where expenditure on an area of
interest is determined as unsuccessful such expenditure is written off to
profit or loss. The recoverability of these assets depends, initially, on
successful appraisal activities, details of which are given in the report on
operations. The outcome of such appraisal activity is uncertain. Upon
economically exploitable mineral deposits being established, sufficient
finance will be required to bring such discoveries into production.
Attributable net asset value per share to total equity per holders of parent
shares
The attributable net asset value / total equity per share has been calculated
from the consolidated net assets / total equity of the Group at 31 December
2024 of $272,671,000 ($269,752,000 at 31 December 2023) divided by the number
of ordinary shares in issue at 31 December 2024 of 185,530,477 (192,828,420 at
31 December 2023).
Post Balance Sheet Events
At 31 December 2024 there were no adjusting post balance sheet events (2023:
none) or non-adjusting post balance sheet events requiring disclosure.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR DDGDLBXGDGUSRecent news on Griffin Mining
See all newsREG - Griffin Mining Ltd - RECORD GOLD & SILVER PRODUCTION
AnnouncementREG - Griffin Mining Ltd - Result of AGM
AnnouncementREG - Griffin Mining Ltd - Transaction in Own Shares
AnnouncementREG - Griffin Mining Ltd - SHARE BUY BACK PROGRAMME
AnnouncementREG - Griffin Mining Ltd - ANNUAL GENERAL MEETING
Announcement