Griffin Mining - golden future! http://www.basemetals.com/

GFM deserves a new thread after todays AGM. For the first time the venue was packed with shareholders, a tribute to the interest and support the company has for what the Board has achieved. For those unable to be at the meeting here are some of the points I noted which may interest folk on this BB.

Production: dry and wet testing now completed and zinc concentrate comes through the smelter next week. Zinc price on the LME is currently $1300/ton. GFM is being offered $1700/ton at the mine gate. This premium reflects the demand and difficulty local industry has in sourcing this basic metal ( As an aside the chairman reported that zinc is not easily and efficiently extracted as a recycled metal so newly mined zinc is always required). Cost of production is $595/ton ($700/ton if all depreciation costs are included). Labour costs are $1000/worker pa cf an Aussie underground worker of $130,000/worker pa. Apparently the 20m.pa worker migration from agricultural to industrial jobs means that there are queues of applicants wanting jobs at the mine; wage inflation is not an issue. 240+ employees on site to run the mine on a 24/7 basis.
Production can be increased w/o further investment for a throughput of 400,000 tons of ore pa; An increase to 500,000tons pa would require further investment of between $1m and $2m . All plant has been purposely over-engineered to ensure capacity can rise reliably and with back-up facilities (eg 3 boilers, 2 of which are back-up)
H&S is to world stds., setting an example to the rest of the Chinese mining industry which has a poor record currently because of the number of small private mines.

Reserves: 14.5years supply on current zone rising to 25 years in zone 3. Chairman showed an independent report which believes that the closure of many existing zinc mines is now producing a supply gap which will continue to improve the zinc price cycle to year 2012.

Profits: No problems known or foreseen to the repatriation of profits. However the chairman stated that the profits might achieve more for shareholders if the company uses these for further exploration and possibly buying back the companys shares. The latter move might help resolve the current shorting problem where it is thought that between 6 or 7 million shares are currently being shorted. This move could have a highly geared effect on increasing the share price and help deter the shorters/stock bashers from further activity.

Exploration: Chairman says company will be drilling a further 18,000m over the coming summer months and in his personal view he expects the company to steadily move towards becoming a gold mining concern, with some of the profits from the zinc smelting funding that work. An RC rig which costs 33% of the cost of a diamond drilling rig has been brought on to site.
Future exploration areas always being looked at + changes in Chinese Ministry of Land & Resources policy towards funding means that GFM will likely be offered many more prime government held assets in the near future.

Personal view is that GFM is a well and responsibly run mining company which is now likely to really grab a lot more attention as the profits start to flow as of next week. I am sure others on this BB at the meeting can fill the gaps where I have missed anything.

Yup nice rise today :>)

Down a lot today
On another bb a poster has stated GFM are about to withdraw from China.
Is there any truth in this?

SMWAK

Gold price is down and US$ weaker ..... UK interest rates up; ECB to follow suit tomorrow ..... therefore some see better returns from cash

Slap - Now why would GFM want to do that, all there money and resources is tied up there.... Thats got to be the most stupid statement I've heard this year, worthy of the doughnut award!!

Explosive,

The "squelch" key is quite useful!

Unlike ADVFN, you can't even see that they have posted!

Also remember 40% of the mine to be lost in 1 years time.

Slap

Slap- your statement regarding 40% loss in 1 years time is not true,

Griffin has 100% of the mine profits for 3 years from start of production in June 2005, so still another 2 years to go.
In 2 years time production from gold and zinc will be so high,that even 60% of the profit would be fine by me.
Griff.

Lets wait and see.

Goodness it's been a bit handbags at dawn on here recently ;>)
Well I'm back in GFM again, been in, made a profit and sold more then once, not to say it isn't a good long term hold, IMHO it is, but I don't buy and hold for long.
Gained a little today folks :>)

Welcome back stockbunny......... DOL, too late hes gone again!!

Nice move again this morning, spread a tad iffy but you can't have everything LOL

ANYONE KNOW WHAT A FAIR SP IS FOR THE GRIFF

There is a certain logic that says, a fair price is what someone else is prepared to pay you for it, so on that basis a fair price today is fractionally more then yesterday but is always changing.

Depends what you mean by a fair price??

NAV? Doesn't price in future growth/potential though?

Exactly or the price they may get in time for the zinc or any number of other variables, it is really tricky to try and do.

BASED ON FORWARD EARNINGS WOULD BE GOOD FOR ME
MANY THANKS

Sorry can't help, I purely judge by market value as I don't hold long term, hopefully someone else will be able to help. Good Luck.

The Times recently suggested 120 ish, have a look back through the posts and you'll most likely find the article. Agree with Stockbunny though, whats fair over whats predicted is very different. At the moment though we all sit tight and await news.....

1.20 WOULD BE GOOD
DREAM ON
MANY THANKS

Griffin Mining Ld
31 August 2006



Griffin Mining Limited
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
E mail: griffin@griffinmining.com
31st August 2006

INTERIM STATEMENT FOR THE SIX MONTHS TO 30th JUNE 2006

RECORD SIX MONTHLY PROFIT

Griffin Mining Limited ('Griffin'or the 'Company') has today published its
interim results for the six months ended 30th June 2006.

Highlights:

Profit before tax of US$9,006,000

Caijiaying mine commissioning phase successfully completed

Increased mine, processing and concentrate production

Improving profitability with throughput and price increases

Financial and Trading:

Results for the six months ended 30th June 2006 show pre-tax profits of
US$9,006,000 (2005 loss restated US$966,000).

Comparative figures for the six months ended 30th June 2005 cover the period up
to the commencement of production at Caijiaying, prior to this no mining
revenues were generated.

Turnover amounted to US$15,672,000 (2005 nil) up from US$6,120,000 in the
previous six months to 31st December 2005 with increased production and zinc
concentrate prices.

Operating profit US$8,563,000 (2005 loss restated US$858,000), up from
US$1,283,000 in the previous six months to 31st December 2005.

The financial results reflect the increase in production and sales at the
Caijiaying mine. 146,557 tonnes of ore were mined in the period compared with
107,879 in the previous six months to 31st December 2005. 129,939 tonnes of ore
were processed in the period compared with 92,096 in the previous six months.
8,679 tonnes of zinc metal in concentrate were sold in the period compared with
6,676 in the previous six months.

Ongoing improvements in profitability continue to be achieved. The Cajiaying
plant continues to operate above design specifications, without any detrimental
effects to zinc metal production, even as the Company continues to increase the
hourly tonnages through the mill. With the continued buoyancy in the world zinc
price and the increasing production, even more significant profit results are
expected for the full calendar year.



Chairman's statement

'The first six month results, reflecting the ramp up in operations at the
Caijiaying mine after wet commissioning, is a wonderful result that vindicates
the faith and patience the shareholders have shown in Caijiaying and the
Company. I look forward to an even more impressive result for the full 2006
year.'


Further information

Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Griffin Mining Limited

Adrian Hadden / Christopher Rollason Telephone: +44(0)20 7523 8350
Collins Stewart Limited

Hugo de Salis / Isabel Crossley Telephone: +44(0) 20 7242 4477
St Brides Media & Finance Ltd



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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