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.

not too bothered either way as i am currently not a holder but how can they receive cash in advance when the buyer does not know the ultimate price. If they know the ultimate price then gfm has hedged future production

The price is the price the local market is prepared to pay. In December 2007 GFM suspended zinc sales as the market price was too low, sales resumed at the end of December when the price recovered.

Please refer now back to post 1100 !

GOOES BACK TO APPOX LAST OCT WHEN THEY STATED TO DROP THINK WHEN RESULTS WERE ISSUED THEN THEY STARTED TO DROP

It must be all down to the talks they are having with their Chinese partners.

Griffin Mining 6 April 2008, 12:50pm


But even in troubled times there are companies whose long-term prospects are immune from the turmoil. One such is likely to be Griffin Mining.

Industry sources say the firm, which operates a mine in north-east China, is set to announce a major mineral find close to its existing site. The new find could amount to thousands of tons of zinc, lead, silver and gold, with a total value of about 300m, all on top of its already profitable operations.

Quite what the new find will add its profits will depend on extraction costs and whether commodity prices stay high. But this unexpected news comes just as Griffin's shares hit a one-year low of 65p on Friday, valuing the group at just 171m.

A bounce seems likely.

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=438032&in_page_id=3&position=moretopstories

morninig all this should be 1+ in a week or so.good news.

LONDON (Thomson Financial) - Shares in Griffin Mining added 5.5 pence at 71 following good news regarding a new mine in China.

Griffin Mining said it has found a new economically extractable, mineral discovery at Zone 2 at Caijiaying in China, only 1.5 km from the existing Caijiaying processing facilities.

The company said it is intensifying its exploration efforts with a new drive and follow-up underground drilling in a bid to prove the convergence of these two zones of mineralization.

Yes and the company has in excess of $200 million dollars in the bank....that's why even with zinc only at $2300 per ton... I cannot believe how low the sp is !

Big boys buying Griffin Mining up 9.25p still lots to come from this one should be 1+ as said by required $200 million dollars and lots of gold to sell .

Griffin Mining up 11.00p (16.79%) in 2hr trading.

Griffin Mining now trading @ 13.00p (19.85%) up.

What a great day. All 5 of my "Miners" have become "Majors" this morning

Griffin Mining now trading @ 14.50p (22.14%) up @ mid-day .

Griffin Mining now trading @ 81.00p up 15.50p (23.66%) can see this @ 90p+ tomorrow.

nice close to the day trading 81.50p ....16.00p (24.43%) up on the day how bad is that fill ther should be more to come tomorrow ..........let's hope ;-))

GONE BACK UP TO 81.5 THIS MORN @9.32AM SEE UP MOVE UP FUTHER BACK TOWARDS ITS OLD YEAR HIGH

That would be nice - yesterday was not too surprisingly for profit taking - the future looks good.

Results very soon....hoping to see increased production.....and an increased dividend....would be nice to see 5c this year at least and the possibility of an interim dividend to be announced later.....! (dream on required field ).

Climbing at long last....well overdue !

GFM also starting there next leg up todays 88p to buy 87.5p to sell a lot of ? on the sp mm buy some up. looking strong for 90p + today..........;-)