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.

GFM has been showing a constant weakness over the past 12 months. With the economy getting more gloomy, I can't see it going to 50p by Christmas. Furthermore, zinc price has been collapsing with increasing smelter costs.

Sell down to 20p.

18p now...with zinc down to $1135...continue sell to 10p

Very well run this little mining company, they don't put a foot wrong, just unlucky with the price of zinc, in good times this would be a gem of a share !.

What's wrong with it now? be patient

THEY HAVE SUSPENDED OPERATIONS FROM MEMORY

Mothballed till march 2009.

LISTEN: Griffin Mining (GFM) - Half yearly report

INTERVIEW

On the move up again after a good RNS - up 5% today with very low volume

GFM break up again shorter time frame.

Why the jump ? Can it solely be the price of zinc and the demand in China itself and nothing to do with the founder resigning

Cant remember which but one broker just after new year told clients to buy buy and buy more GFM.

Zinc in big demand for world recovery.

Looking very strong technicaly here both
med term and long term. Zinc will be in big
demand with the World Economy recovering.

Recentish broker notes..........

http://www.directorstalk.com/griffin-mining-limited-stock-buy-panmure-gordon-tgt-102p/

Thank you for that link - goldfinger - most encouraging!

Griffin Mining - The 101st Minesite Forum, Tuesday 9th December 2014

click hre

StockMarketWire.com
Griffin Mining has warned that 2014 results will be disappointing due to delays over expanding facilities at its Caijiaying zinc-gold mine.

The company says the newly commissioned processing facilities at Caijiaying have now reached the equivalent of approximately 900,000 tonnes per annum throughput.

But it says the processing of the expanded name plate capacity throughput of 1,500,000 tonnes of ore per annum will not be achieved until the delivery of the new 750,000 tonne per annum ball mill and the connection of additional grid power. These events are expected to be completed by June 2015.

It says: "Production, and consequently the financial results, in 2014 have been significantly impacted by the suspension in processing to allow for the upgrade of the processing facilities at the Caijiaying mine from 11th August to 17th November and the subsequent re-commissioning of the plant, a process which took 6 weeks longer to complete than originally envisioned."

Griffin continues to experience bureaucratic delays in the granting of a new mining licence and permit for the Zone III deeps and Zone II areas at Caijiaying and continues to actively manage the administrative process involved in the granting of these licences.

Chairman Mladen Ninkov said: "The additional time taken to complete the expansion of the processing facilities at Caijiaying will inevitably cause disappointing financial results in 2014. However, the price has been worth paying to position the company to be a globally significant zinc producer with substantial precious metal credits with the expected and much discussed global shortfall in zinc supply expected in 2015 and beyond. It is with this expectation that shareholders should reap the benefits of their patience."

Making a great comeback this little company...cursing I didn't buy some at 20p.....

Good increase.....more to come...

One of the 2017 better shares no doubt !.....still kicking myself for not buying a shedload at 20p......aggghhhh.....