REG - Griffin Mining Ltd - 2025 FINAL RESULTS
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RNS Number : 8407D Griffin Mining Limited 12 May 2026
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
2025 Final Results
12(th) May 2026
Griffin Mining Limited ("Griffin" or the "Company") has today published its
annual report and accounts for the year ended 31 December 2025 which will be
available shortly on the Company's web site wwww.griffinmining.com and will be
posted to shareholders on 28(th) May 2026.
Chairman's Statement:
In many respects, the last year has been a momentous year for the Company in
guaranteeing it's future prosperity.
The first landmark achievement was the renewal of the Caijiaying Mine's Mining
Licence to 2054 which secured the long term future of the Caijiaying Mine and
allows for the continued extraction of the known resource. The greatly
extended term now matches the Caijiaying Mine's resources with it's tenure
thereby guaranteeing it's long term mineral rights, it's previously approved
mining area, it's production envelopes in Zones II and III and it's vertical
mining boundary over the total Caijiaying Mine area.
The second was the long awaited first production blast in Zone II marking a
key milestone in the commissioning and final safety approval process of Zone
II. I am absolutely certain that all shareholders have become bored in each
successive Annual Report by my continual assertions that this would occur in
the subsequent year. In the Company's defence, Chinese regulations were
amended during the Zone II process by requiring the Company to develop the
whole underground mine and infrastructure for the total known resource in Zone
II, in contrast to Zone III's development, when each level was developed and
mined prior to further development being undertaken. These new regulations
extended the time needed to develop Zone II exponentially and incurred a large
capital commitment to complete. Underground development totalling 19.4
kilometres of drives and ancillary workings and ventilation shafts totalling
625 metres were completed and ore is now expected to be mined from Zone II for
the duration of the current mining licence to 2054.
Thirdly, the drilling of high-grade gold below the existing development at the
Caijiaying Mine during 2025 and 2026 continued to deliver exceptional gold
intercepts. Drilling is ongoing, testing multiple high-grade gold shoots.
Drilling of the Yuan Long high-grade gold lode confirms the down-plunge
continuity of this domain below and along strike from existing development.
The Yuan Long orebody remains open to the south and at depth, with
further diamond drilling and underground development planned to expand the
production footprint. Ongoing drilling continues to materially expand
the contained gold of the Yuan Long system whilst also defining a new,
high‑grade, Fu Long feeder system, which the Company believes could
potentially provide multiple avenues for near-term growth and longer-term
resource expansion.
Fourthly, the Company continued it's leading environmental position in China
under the Chinese Green Mining initiative with the Caijiaying Mine moving to
operate on 100% renewable energy, generated through solar and wind power, and
implementing industry leading waste management practices by placing 100% of
it's tailings underground via paste-fill thereby supporting the Chinese policy
of zero waste residue and environmental footprint minimisation.
Fifthly, the Company continued to return capital to shareholders in the most
tax efficient manner whilst also increasing it's earnings per share. In 2025,
the Company expended $20,350,000 on buying back it's own ordinary shares.
Sixthly, history has clearly shown that the Company has never been driven by
artificially attempting to support it's share price with rhetoric believing
that creating intrinsic asset and cash flow value will eventually be reflected
in a fair value for the share price. This has shown to be the case with the
share price rising in the space of one year from 168.25p in May 2025 to 318p
in April 2026.
That is not to say that operations did not encounter challenges in 2025. They
were affected by certain external factors including delays to the restart of
production following the 2024 fatality, which reduced output in the first
quarter, and further production constraints imposed by Chinese regulatory
authorities, including a Public Security Bureau (police) directive suspending
the use of explosives during central government deliberations, all of which
led to a significant reduction in milling throughput and mine output during
the later part of 2025.
Nevertheless, the Company achieved enviable results, many of which were a
significant increase from the previous year.
· Revenues of $137,496,000 (2024: $135,128,000);
· Gross profit of $60,323,000 (2024: $51,251,000);
· Earnings before depreciation, interest and tax of $52,830,000 (2024:
$41,901,000);
· Operating profit of $30,760,000 (2024: $17,288,000);
· Profit before tax of $32,613,000 (2024: $17,903,000);
· Profit after tax of $22,062,000 (2024: $11,351,000); and
· Basic earnings per share of 12.1 cents (2024: 6.08 cents).
For 2026 the operational outlook is positive with an expected return to 1.5
million tonnes per annum production during the year and new mining areas
coming online. The benefits of investment in people, safety and modern
infrastructure will enable safe, sustainable production well into the future.
Results:
Summary
The results for 2025 were impacted by nationwide restrictions in the supply of
explosives to the Caijiaying Mine imposed by the PRC authorities and slow ramp
up in operations following the suspension in operations during the fourth
quarter of 2024 following a fatality in the mine. As a result, in 2025 the
Company and its subsidiaries (together the "Group") recorded:
· Revenues of $137,496,000 (2024: $135,128,000);
· Gross profit of $60,323,000 (2024: $51,251,000);
· Earnings before depreciation, interest and tax of $52,830,000 (2024:
$41,901,000);
· Operating profit of $30,760,000 (2024: $17,288,000);
· Profit before tax of $32,613,000 (2024: $17,903,000);
· Profit after tax of $22,062,000 (2024: $11,351,000); and
· Basic earnings per share of 12.1 cents (2024: 6.08 cents).
In September 2025, Hebei Hua Ao was requested by the relevant County, City and
Provincial Bureaus, in line with such requests to the majority of mining
operations in China, to reduce operational throughput in support of a safety
initiative that ran until the end of 2025. With a consequent restriction in
the supply of explosives, throughput was reduced by approximately 250,000
tonnes. Cooperation with this initiative was essential to obtaining the
relevant permitting for the commissioning of Zone II and continuing production
from Zone III.
As a result of the foregoing, throughput was down 4.9% on that in 2024 and,
with lower grades, Zinc metal in
concentrate production was down 7.8% on that produced in 2024. With lower
throughput and recoveries, but
marginally better grades, Gold in concentrate production was down 6.5% on that
in 2024. Despite lower throughput, with better grades and recoveries, Silver
in concentrate production was up 23.6% on that produced in 2024. This resulted
in:
· Zinc metal concentrate production down 7.8% on that achieved in 2024
to 36,346 tonnes;
· Gold in concentrate production down 6.5% on that achieved in 2024 to
15,096 ounces;
· Silver in concentrate production up 23.6% on that achieved in 2024 to
340,653 ounces; and
· Lead in concentrate production up 25.2% on that achieved in 2024 to
1,621 tonnes.
Revenue benefited from increases in metal in concentrate prices received,
particularly that for Gold and Silver.
With less ore mined, hauled and processed in 2025, cost of sales (mining,
haulage, and processing, including
depreciation) fell by $6,704,000 (8.0%) from that in 2024.
Operating (administration) expenses fell by $4,400,000 (13.0%) from that
incurred in 2024. Operating costs
include Yuanrun's share of Hebei Hua Ao's profits of $4,271,000 (2024:
$3,510,000).
The Group benefited from interest receipts on bank deposits of $1,712,000 in
2025 (2024: $1,753,000).
With the replacement and upgrade of various facilities at the Caijiaying Mine,
losses on the disposal of equipment amounted to $229,000 (2024: $1,108,000).
Foreign exchange losses, finance and other interest of $3,000 was credited
(2024: charged $42,000). Sundry other income of $368,000 (2024: $527,000) was
received.
As a result, Group profits before tax increased from $17,903,000 in 2024 to
$32,613,000 in 2025.
Revenue
Revenue in 2025 of $137,496,000 was up $2,368,000 (1.8%) on that achieved in
2024 of $135,128,000 and can be summarised as follows:
2025 2024
$000 $000
Zinc concentrate sales 79,721 96,126
Lead and precious metals concentrate sales 64,614 46,473
Royalties and resource taxes (6,839) (7,471)
Total 137,496 135,128
Zinc in concentrate sales were down $16,405,000 (17.1%) on that in 2024 with
36,058 tonnes of Zinc metal in
concentrate sold in 2025 compared with 39,814 tonnes in 2024.
Lead and precious metal in concentrate sales were up $18,141,000 (39.0%) on
that in 2024 reflecting higher Gold, Silver and Lead metal in concentrate
prices received and increased silver produced and sold.
Sales may be summarised as follows:
2025 2024
Zinc metal in concentrate revenue before royalties ($000s) 79,721 96,127
Lead metal in concentrate revenue before royalties ($000s) 4,989 3,522
Silver metal in concentrate revenue before royalties ($000s) 10,800 6,739
Gold metal in concentrate revenue before royalties ($000s) 48,825 36,211
Royalties (6,839) (7,471)
Zinc metal in concentrate sold (tonnes) 36,058 39,814
Lead metal in concentrate sold (tonnes) 1,601 1,300
Silver metal in concentrate sold (ozs) 337,551 276,939
Gold metal in concentrate sold (ozs) 14,914 16,252
Average price received per tonne (zinc) ($) 2,211 2,414
Average price received per tonne (lead) ($) 3,116 2,709
Average price received per ounce (silver) ($) 32.0 24.3
Average price received per ounce (gold) ($) 3,274 2,228
Cost of Sales
With less ore mined, hauled and processed, cost of sales (mining, haulage and
processing, including depreciation) fell by $6,704,000 (8.0%) from that in
2024, with production costs per tonne of ore processed declining from $71.7
per tonne in 2024 to $69.4 per tonne in 2025.
Mining
1,116,266 tonnes of ore were mined in 2025, down 2.9% on that mined in 2024 of
1,149,146 tonnes, reflecting delays to the restart of production following the
2024 contractor fatality and restricted explosives supplies for stoping in the
fourth quarter of 2025. Mining costs increased by 15.0% from $25,993,000 to
$29,886,000 in 2025 reflecting the element of fixed mine service costs and
additional drilling and other geological costs ahead of mining. As a result,
unit costs rose from $22.6 per tonne mined in 2024 to $26.8 per tonne in 2025.
Haulage
1,116,626 tonnes of ore were hauled in 2025, down 5.0% on that hauled in 2024
of 1,174,811 tonnes, in line with ore mined. Haulage costs in 2025 were down
$2,404,000 (18.3%) from those in 2024, resulting in a reduction in unit costs
from $11.2 per tonne hauled in 2024 to $9.6 per tonne in 2025 reflecting a
reduction in average distances hauled.
Processing
1,111,658 tonnes of ore were processed in 2025, down 4.9% on that processed in
2024 of 1,169,098 tonnes, in
line with ore mined and hauled. Processing costs in 2025 were down $1,619,000
(7.8%) on that in 2024, resulting in a reduction in unit costs from $17.8 per
tonne processed in 2024 to $17.3 per tonne in 2025.
Depreciation
Depreciation charges in 2025 were down $2,453,000 (10.8%) on that incurred in
2024 reflecting reduced ore
mined. Mine development costs are depreciated calculated on a unit of
production basis versus plant and equipment costs which are depreciated on a
straight line basis.
Costs of sales may be summarised as follows:
2025 Per tonne 2024 Per tonne
ore ore
$000 $ $000 $
Mining costs 29,886 26.8 25,993 22.6
Haulage costs 10,767 9.6 13,171 11.2
Processing costs 19,205 17.3 20,824 17.8
Depreciation, depletion and amortisation 20,194 22,647
Stock and WIP movements (2,879) 1,242
77,173 69.4 83,877 71.7
Operating Expenses
Operating (administration) expenses fell by $4,400,000 (13.0%) from
$33,963,000 in 2024 to $29,563,000 in 2025. Operating costs include Yuanrun's
share of Hebei Hua Ao's profits which amounted to $4,271,000 (2024:
$3,510,000).
Hebei Hua Ao's operating costs in 2025 of $14,274,000 were down $546,000
(3.7%) on that incurred in 2024 of $14,820,000, in the main reflecting lower
costs associated with reduced activity.
The Company and Griffin Mining (UK Services) Ltd's corporate costs of
$10,470,000 which, despite increased bonuses, were down $4,290,000 (29%) on
those incurred in 2024 of $14,760,000 which included share incentive charges
of $6,165,000 (2025: nil).
China Zinc's operating costs of $433,000 were down $361,000 (45.5%) on that in
2024 of $794,000 due to lower personnel costs.
Profits Before Tax
After interest, foreign exchange adjustments, provisions and other income, a
profit before tax of $32,613,000 was recorded for 2025 compared to $17,903,000
in 2024. This result reflected the following:
· The Group benefited from interest receipts on bank deposits of
$1,712,000 in 2025 (2024: $1,753,000);
· Losses on disposal of equipment of $229,000 (2024: $1,108,000) were
incurred in 2025;
· Foreign exchange translation losses were recorded of $4,000 (2024:
$186,000);
· $36,000 (2024: $265,000) was credited in 2025 in respect of
rehabilitation provisions;
· Other income of $368,000 (2024: $527,000) was recorded in 2025 from
waste sales, indemnities and government subsidies; and
· Finance lease interest charges on the London office of $29,000 (2024:
$37,000) were charged.
Taxation
Taxation of $10,551,000 has been charged in 2025 (2024: $6,552,000). This
comprises: 25% of Hebei Hua Ao's profits amounting to $10,744,000 (2024:
$10,480,000); withholding tax of 5% on intercompany dividends received of
$873,000 (2024: $689,000); a UK corporation tax credit in respect of Griffin
Mining (UK Services) Limited losses of $195,000 (2024: charge: $200,000).
Deferred tax arising on accelerated depreciation of $871,000 has been credited
(2024: credit of $4,804,000).
Earnings Per share
Basic earnings per share has risen from 6.08 cents per share in 2024 to 12.1
cents per share in 2025.
Cash flow
In the year ended 31 December 2025, cash balances decreased by $1,211,000.
$53,927,000 (2024: $19,582,000) was generated from operations in 2025. Capital
expenditure, net of disposals, of $36,116,000 (2024: $20,898,000) was incurred
in 2025. Interest on bank deposits of $1,712,000 (2024: $1,753,000) was
received in 2025. $20,351,000 (2024: $12,515,000) was expended on the buyback
of ordinary shares in 2025.
Net Assets
Attributable net assets per share at 31st December 2025 was $1.58 (2023:
$1.47).
Further information
Griffin Mining Limited - Telephone: +44(0)20 7629 7772
Mladen Ninkov - Chairman
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
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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 2025
(expressed in thousands US dollars)
2025 2024
$000 $000
Revenue 137,496 135,128
Cost of sales (77,173) (83,877)
Gross profit 60,323 51,251
Administration expenses (29,563) (33,963)
Operating Profit 30,760 17,288
Impairment of exploration interests (1) (599)
Losses on disposal of plant and equipment (229) (1,108)
Foreign exchange losses (4) (186)
Finance income 1,748 2,018
Finance costs (29) (37)
Other income 368 527
Profit before tax 32,613 17,903
Income tax expense (10,551) (6,552)
Profit for the year 22,062 11,351
Basic earnings per share (cents) 12.10 6.08
Diluted earnings per share (cents) 12.10 6.08
Griffin Mining Limited
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2025
(expressed in thousands US dollars)
2025 2024
$000 $000
Profit for the year 22,062 11,351
Other comprehensive income / (expense) that will be reclassified to profit or
loss:
Exchange differences on translating foreign operations 3,925 (2,911)
Other comprehensive income / (expense) for the year, net of tax 3,925 (2,911)
Total comprehensive income for the year 25,987 8,440
Griffin Mining Limited
Consolidated Statement of Financial Position
As at 31 December 2025
(expressed in thousands US dollars)
2025 2024
$000 $000
ASSETS
Non-current assets
Mining interests 259,231 242,754
Exploration interests - 1
Deferred taxation 5,757 4,768
Other non-current assets 909 1,215
265,897 248,738
Current assets
Inventories 8,019 5,273
Receivables and other current assets 3,221 2,985
Cash and cash equivalents 47,547 48,758
58,787 57,016
Total assets 324,684 305,754
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital 1,766 1,855
Share premium 44,668 67,318
Contributing surplus 3,690 3,690
Share based payments 9,096 9,096
Shares held in treasury - (2,388)
Chinese statutory re-investment reserve 3,917 3,830
Other reserve on acquisition of non-controlling interests (29,346) (29,346)
Foreign exchange reserve (2,501) (6,339)
Profit and loss reserve 247,017 224,955
Total equity attributable to equity holders of the parent 278,307 272,671
Non-current liabilities
Long-term provisions 1,614 3,822
Lease liabilities 302 465
1,916 4,287
Current liabilities
Trade and other payables 43,403 27,486
Lease liabilities 155 155
Business taxation payable 903 1,155
Total current liabilities 44,461 28,796
Total equities and liabilities 324,684 305,754
Attributable net asset value per share to equity holders of parent 1.58 1.47
Griffin Mining Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
(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 2024 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 - - - (168) - - - - 168 -
Issue of shares on exercise of share options 20 808 - - - - - - - 828
Share based payments 10 - 6,155 - - - - - 6,155
Purchase of shares for treasury - - - (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
Cancellation of shares (12) (2,376) - - 2,388 - - - - -
Purchase of shares for cancellation (77) (20,274) - - - - - - - (20,351)
Transaction with owners (89) (22,650) - 2,388 - - - - (20,351)
Profit for the year - - - - - - - 22,062 22,062
Other comprehensive income:
Exchange differences on translating foreign operations - - - - 87 - 3,838 - 3,925
-
Total comprehensive income - - - - 87 - 3,838 22,062 25,987
At 31 December 2025 1,766 44,668 3,690 9,096 - 3,917 (29,346) (2,501) 247,017 278,307
Griffin Mining limited
Consolidated Cash Flow statement
For the year ended 31 December 2025
(expressed in thousands US dollars)
2025 2024
$000 $000
Net cash flows from operating activities
Profit before taxation 32,613 17,903
Share based payments - 6,165
Foreign exchange losses 4 186
Finance income (1,748) (2,018)
Finance costs 29 37
Impairment of exploration interests 1 599
Depreciation 22,071 24,613
Losses on disposal of equipment 229 1,108
(Increase) / decrease in inventories (2,746) 556
(Increase) in receivables and other assets (27) (99)
Increase / (decrease) in trade and other payables 15,404 (13,881)
Taxation paid (11,903) (15,587)
Net cash inflow from operating activities 53,927 19,582
Cash flows from investing activities
Interest received 1,712 1,753
Decrease in rehabilitation deposits 330 339
Proceeds on disposal of equipment 4 97
Payments to acquire - mineral interests and mine development (30,158) (13,974)
Payments to acquire - property, plant, and equipment (5,962) (6,996)
Payments to acquire - intangible fixed assets - exploration interests - (25)
Net cash outflow from investing activities (34,074) (18,806)
Cash flows from financing activities
Issue of ordinary shares on exercise of options - 828
Interest paid - 216
Purchase of shares for cancellation (20,351) -
Purchase of shares for treasury - (12,515)
Lease liability repayments including interest (168) (156)
Net cash outflow from financing activities (20,519) (11,627)
(Decrease) in cash and cash equivalents (666) (10,851)
Cash and cash equivalents at the beginning of the year 48,758 60,007
Effects of foreign exchange rates (545) (398)
Cash and cash equivalents at the end of the year 47,547 48,758
Cash and cash equivalents comprise bank deposits
Bank deposits 47,547 48,758
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 2025 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 2025 statutory financial
statements.
The annual report and accounts for 2025 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 2025 and 2024
were derived from the Caijiaying zinc gold mine.
2025 2024
$000 $000
Revenue
China 137,496 135,128
Zinc concentrate sales 79,721 96,126
Lead and precious metals concentrate sales 64,614 46,473
Royalties and resource taxes (6,839) (7,471)
137,496 135,128
2025 2024
$000 $000
Cost of Sales - China
Mining costs 29,886 25,993
Haulage costs 10,767 13,171
Processing costs 19,205 20,824
Depreciation (excluding depreciation in administration expenses) 20,194 22,647
Stock movements (2,879) 1,242
77,173 83,877
2025 2024
$000 $000
Administration expenses
China / Hong Kong 19,021 19,140
Australia 63 62
UK / Bermuda 10,479 8,596
29,563 27,798
Fair value of shares issued under share incentive plan - 6,165
29,563 33,963
2025 2024
$000 $000
Total Assets
China 291,340 268,056
Australia 1,262 1,142
UK / Bermuda 32,082 36,556
324,684 305,754
2025 2024
$000 $000
Capital expenditure
China 36,623 20,995
UK / Bermuda 8 -
36,631 20,995
Shares Issued Under Executive Incentive Plan
2025 2024
$000 $000
Fair value of shares issued under share incentive plan - 6,165
Finance Income
2025 2024
$000 $000
Interest on bank deposits 1,712 1,753
Interest on rehabilitation provisions 36 265
1,748 2,018
Finance Costs
2025 2024
$000 $000
Finance lease interest 29 37
Other Income
2025 2024
$000 $000
Scrap, indemnities and sundry other income 368 527
Income Tax Expense
2025 2024
$000 $000
Profit for the year before tax 32,613 17,903
Expected tax expense at a standard rate of PRC income tax of 25% (2022 25%) 8,153 4,476
Adjustment for tax exempt items:
- Expenses outside the PRC not subject to tax 928 2,708
- Expenses subject to tax outside the PRC 599 583
Adjustments for short term timing differences:
- In respect of accounting differences 1,395 3,056
- In respect of other timing differences (368) (142)
Adjustments for permanent timing differences other (330) (26)
Withholding tax on intercompany dividends and charges 873 689
Prior period tax credit 172 12
Current taxation expense 11,422 11,356
Deferred taxation (credit)
Origination and reversal of temporary timing differences (871) (4,804)
(871) (4,804)
Total tax expense 10,551 6,552
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 2025
(25% in 2024) 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 $95.9m (2024: $145.9m) 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:
2025 2024
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 22,062 182,413,453 12.10 11,351 186,599,728 6.08
There were no share purchase options outstanding at 31 December 2025 or at 31
December 2024 and therefore there is no dilutive effect on earnings per share.
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 2024 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
Foreign exchange adjustments 116 3,019 1,248 - 4,383
Additions during the year 766 21,828 14,029 8 36,631
Change in estimate of mine closure costs - (2,232) - - (2,232)
Disposals - - (234) - (234)
Depreciation charge for the year - (15,797) (6,135) (139) (22,071)
At 31 December 2025 5,618 193,173 60,018 422 259,231
At 1 January 2024
Cost 4,699 285,378 103,479 1,558 395,114
Accumulated depreciation - (94,965) (49,183) (866) (144,744)
Net carrying amount 4,699 190,683 54,296 692 250,370
At 31 December 2024
Cost 4,736 296,311 106,323 1,558 408,928
Accumulated depreciation - (109,956) (55,213) (1,005) (166,174)
Net carrying amount 4,736 186,355 51,110 553 242,754
At 31 December 2025
Cost 5,618 320,716 122,244 1,566 450,144
Accumulated depreciation - (127,543) (62,226) (1,144) (190,913)
Net carrying amount 5,618 193,173 60,018 422 259,231
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
resources, 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 $2,376,000 (2024: $19,649,000) of
assets under construction yet to be depreciated.
The offices, furniture and equipment disclosed above relate 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. Management
has identified the Caijiaying mine as the Group's sole 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 2025 (2024: nil). However,
as best practice and in response to an updated Life of Mine Plan ("LOMP"),
management has updated the impairment model taking account of the grant of an
extended mining licence to 2054, 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 mineral interests at 31
December 2025 by reference to the estimated mineral resources at Caijiaying
that may be extracted by 2054 from mineralised Zones II & III only (2024:
to 2045). The current business licence of Hebei Hua Ao expires in 2037,
however, Hebei Hua Ao is required to be converted to a limited liability
company in order to comply with new PRC legislation. The Group is currently
undertaking the process of legally converting the joint venture company into a
limited liability company with an extended business licence to at least 2054.
Accordingly, management has assessed a possible termination of operations in
2037 and concluded that on the basis of the assumptions below no impairment is
indicated.
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 $2,528 (2024: $2,492) per tonne,
gold of $3,110 (2024: $2,190) per troy ounce and silver of $51.1 (2024: $29.1)
per troy ounce;
· Zinc treatment charges of 25% (2024: 25%) of market prices;
· Extraction of measured and indicated resources of 38.1 million tonnes
from mineralised Zones III and II alone (2024: 31.1 million tonnes to 2045) to
2052 with ore mined and processed of circa 1.5 million tonnes (2024: 1.5
million tonnes) of ore per annum;
· Operating costs, recoveries and payables based upon past performance
and that budgeted for 2026 and on internal management forecast, for future
years;
· Capital costs based upon that initially scheduled with sustaining
capital based on future scheduling;
· Post tax discount rate of 10% (2024: 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 6.9 Rmb to $1 (2024: 7.1 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 .
Depreciation
The Group has considered the impact of the non-extension of the business
licence on depreciation of mining assets. The shortening of the mine life to
finish in 2037 would result in an increase in depreciation charge for the year
ended 31 December 2025 of approximately $3.4m (2024: $6.2m). This has been
computed assuming no change in the profile of future capital expenditure which
with a shorter mine life would be minimised thereby significantly reducing
depreciation rates. This sensitivity is therefore considered to be the
"worst-case". Depreciation of mineral property rights held under mining
licences is calculated on a Unit of Production basis. There is judgement in
the quantum of future capital expenditure to be included in the calculation,
to which this calculation is noted as being most sensitive. A 10%
increase/decrease in capital expenditure would result in a corresponding
increase/decrease in depreciation of approximately $0.9m (2024: $1.0m).
Life of mine estimates
The Group has considered the impact of the non-extension of the business
licence on the hypothetical recoverable amount of the Caijiaying cash
generating unit. The shortening of the mine life to 2037 would result in a
reduction in the recoverable amount for the year ended 31 December 2025 of
$156,805,000 (2024: $61,347,000) assuming no other changes to inputs, but
would not result in an impairment. This has been computed assuming no change
in the profile of future capital expenditure - which would be anticipated to
be lower with a shorter mine life - nor any production upside of high-grade
mining and shortened haulage distances across Zones II and III. This
sensitivity is therefore considered to be the "worst-case" and would not have
resulted in an impairment as at 31 December 2025.
Exploration Interests
China - mineral exploration interests
$000
At 31 December 2023 575
Additions during the year 25
Impairment during the year (599)
At 31 December 2024 1
Impairment during the year (1)
At 31 December 2025 -
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
2025 of $278,307,000 ($272,671,000 at 31 December 2024) divided by the number
of ordinary shares in issue at 31 December 2025 of 176,592,171 (185,530,477 at
31 December 2024).
Post Balance Sheet Events
At 31 December 2025 there were no adjusting post balance sheet events (2024:
none). In January 2026 the mining licence over the Caijiaying Mine was
successfully renewed to 28 August 2054.
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