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.

Nice day for my miners except MRP and LRL - GFM and AUL are both making steady progress which is the way I like it

GFM ,, 91.50p .........3.50p (3.98%) up on the day looking good for 94p before testing barrier ...........some good news would be welcome and then 1.11p next stop........................;-)

great finish to the day set up for agood start tomorrow i think...........3.50p up could be back in the bule soon ...............;-)

i'm 10% up already this week.........its better than working doing this!

Well...there we are : they have acquired Yukon Zinc (never heard of them) but it looks good !.

we need to brake the 94p barrier today then i see this @ 1+ but we must hit 96p+ today on the new's to leave the Brear's behind. trading @ 94.17 +6.95% up

I think they should have invested in China not Canada, maybe a bid or tie up with Leyshon [ LRL ]. Mining in China is what they know best, they have been and done it with GFM.

Perhaps LRL did not want GFM's help...am holding in both, but this looks like a good move though !

Maybe final results now due will disappoint.

Going forward looks fantastic....no debt !

I hope they don't mean "you con zinc" for Yukon Zinc.

Well...!, my previous post might mean something now...but either way GFM should be a winner....!.

I must say they are taking an awful long time about it

sorry duplicate

If you mean 4pm ....don't forget they are talking about Western Canadian time !

No suprise with the results...(though I thought that the dividend could have been increased ), but they should get a million pounds or so from the Yukon Zinc takeover debacle,....now what are they going to do with their huge cash pile ?, even with the mine extension development taking a certain amount , they will be left with a massive amount in the bank !

does this ever go up?

even on great news with share buyback, nothing happens.....this should be nearer a pound

I agree scotinvestor....one of the best aim stocks....very successful company....disappointing sp....just won't go up....perhaps we need the price of zinc to start moving up rapidly to get things moving again !.

does anyone know why the shareprice drifts lower but does not rebound.is this being shorted..or demand for zinc falling off.

zinc has been lower.....however it went up 6.6% yesterday but sp still stagnant.