Griffin Mining

GFM is now within 10 days of commencing production and as it has stock piled zinc ore during the mine construction period the company should be in a position to forecast with confidence that it will comfortably beat not only the brokers current forecast but also the later extrapolated projections prepared by me to reflect the prevailing higher zinc price. Those projections were for earnings of 3.33p this year and 12.1p for 2006.
The income will also facilitate a more extensive drilling and exploration programme, not just for more zinc, but also gold so there is scope for a steady and positive news flow after the 15 May production start date and the publication of their results around that time.
The shares have been overlooked by the market as the current price does not reflect the transition from pure exploration company to production/income producing status.

All,

Just arrived home from the AGM, VERY intersting, well worth the trip IMHO.

Have to rush out, but will update later.

I attended the Griffin Mining AGM today, and was very pleased with what I heard.

From memory, the bullet points were;

The chairman is VERY bullish about the next four weeks, as well as the longer term. He is extremely confident of a rerating for the SP.

The share has been shorted, and is oversold.

Griffin have a licence to mine all base metals, including gold, up to 3% of total weight of the base metals mined, provided it's as a result of base metal mining.

Griffin DO NOT have a licence to mine gold as a precious metal!

Griffin have a JV with a local Chinese partner (required by law) to explore for gold, with a 90:10 split in favour of Griffin. This partner is effectively a government department, and as such no problems are anticipated in acquiring a gold mining licence, should a comercially viable orebody be found.

Griffin are confident that gold will be found, and mined, and the principal activity will become gold, rather then zinc mining, in the future.

Such is the demand for, and defecit suppply of, zinc, Griffin are being bid up to $1700 per ton, (LME$1,300!), and the buyer will pay in advance, and pick up from the factory gate!

By not having to deliver to the buyer, Griffin save $24 per ton.

The processing plant has been over engineered so that production can double utilising the present facility, and increase further beyond that, upon expenditure of around only $1 million.

Griffin are evaluating other projects with the Chinese government, which were cherry picked by the goverment in the past, and as such are high quality.

The mine will be featured in a MOS article in a couple of weeks time, and will feature all aspects of the mine, and it's workers, and will show a favourable account of Griffin's activities in China.

Mine visits are possible, if requested in advance of course!

Overall, I was VERY impressed with the management and the project, and I feel confident the SP will rise in the next few months as the word spreads.



Griffin Mining AGM Powerpoint Presentation;

http://www.griffinmining.com/gmnews20050610.htm

Andy, sorry to not have met you there today. I agree it was really heartening hearing what Mladin Nincov, chairman, had to say. I have started a new thread tonight to replace the earlier one I started to reflect the latest news.

Sharesure,

Yes I was hoping to meet you too!

I sat in the second row, 3/4 to the left as you faced the table, jacket off as too hot, where were you?

new thread looks good, reflects the new status of the company IMHO.

Andy, I was sandwiched between a friend (the one who asked most of the questions - perhaps too many - although being an ex mining director from Canada he does have years of experience) and the company's broker. That was slightly embarassing as I was the one calling for his firm's and the PR firm's replacement. Catch up with you another time. Will have to agree a recognition system!