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.

http://www.basemetals.com/

Aldwick,

Well done, perhaps sharesure can now add the link to the header please?

1118 GMT [Dow Jones] Vedanta Resources (VED.LN) +2.5% at 578p amid concerns Hurricane Katrina may have impacted zinc warehousing in New Orleans, says London-based mining analyst. "If it's underwater there could be a squeeze in the zinc market," he adds. LME zinc currently $1,404/ton, +2.8% from the previous PM kerb. (JR)

That explains the recent rapid rise for zinc...
Shame GFM's sp isn't benefiting yet.

Sharesure, as you speak to the co. I thought I'd ask you, have they mentioned when the interims or update may be this month?

dibbles, No, I am not sure of a date. I haven't contacted them very recently as I didn't want to become a nuisance! I suspect that the interims will come out when they are ready to update on drilling news. My guess would be early October since that would have given them 2.5 months with their RC drilling programme. When I last spoke to them they confirmed that production of zinc was building up well and of course they are benefiting from a much higher zinc price. The real extra news will be any confirmation of the earlier promising gold cores they drilled. That would confirm the Chairman's AGM comments earlier this year.

OK Sharesure, thanks.
Just wondered as many on the other bb seem to think 7th sept. is a likely date due to last years timing although the year before it was 29th so could be anytime imo.

Hi Sharesure,

"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."

Was any indication of gold reserve size mentioned?

Also thanks for the AGM update, beneficial to all monitoring this thread.

explosive, Not as such that would make it worth relying on. It would have been easy for there to have been a few lucky early strikes which maybe gave the Chairman reason to make his 'personal' comment about the company moving more towards being a gold producer. His only other comment was that he thought the geology where they had drilled first did resemble the geology of another site he had had experience of in the past. Nothing more firm than that. In my view the gold prospects are not in the price at this level; the volumes and cashflow from the zinc are good enough for that.

Apparently there are new photo's on the website..
I can't see them yet but obviously some can.

dibbles, try this link http://www.griffinmining.co.uk/gmphoto.htm

One of these shows some very yellow rock!

Dynamite, explosive , what next semtex.

Maybe if mixed with Aldwick!!

Griffin Mining Ld
05 September 2005


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

5th September 2005


INTERIM STATEMENT FOR THE 6 MONTHS TO 30 JUNE 2005


Griffin Mining Limited ('Griffin'or the 'Company') has today published its
interim results for the 6 months ended 30th June 2005.


Highlights:

Start of production at the Caijiaying zinc gold mine ('Caijiaying') in
China

Initial production rate of 600 tonnes of ore per day achieved

First sales of zinc concentrate made to local Chinese smelters in July 2005

$13.8m incurred on construction of the mine and processing facilities at
Caijiaying to 30th June 2005 compared with estimates of $15.7m

Commencement of extensive surface drill programme to assess known gold
prospects

Gold intersections from underground resource definition drilling include
8.8m @ 19.2 g/t and 6.2m @ 14.2g/t


Financial:

The interim financial results cover the period up to the commencement of
production at Caijiaying. No mining revenues were generated prior to 30th June
2005.

The Company recorded a loss for the 6 months ended 30th June 2005 of $684,000
compared with a profit of $138,000 in the same period in 2004. Exchange losses
of $272,000 (2004 gains $408,000) were recorded on foreign currency deposits,
caused by a strengthening of the US dollar, whilst interest income of $164,000
(2004 $283,000) was lower with funds being utilised to construct the Caijiaying
zinc gold mine and processing facilities.

Operating costs in the 6 months to 30th June 2005 increased marginally to
$576,000 (2004 $553,000) with increased activity at Caijiaying.

At 30th June 2005, $13.8m had been incurred on construction of the mine and
processing facilities at Caijiaying. With production starting at Caijiaying at
the end of June 2005, this compares favourably with pre production and working
capital estimates in the feasibility study of $15.7m.

Good progress has been made in bringing Caijiaying into production at an initial
production rate of 200,000 tonnes of ore per annum.


Chairman's statement

I am delighted to report on the Company's progress in the six months to 30 June
2005, a period which represents a turning point in Griffin's history. It saw
the start of production at Caijiaying and, since the period end, the first sale
of zinc concentrate to local Chinese smelters.

The Company continues to strive to achieve consistency in achieving the planned
initial production rate of 600 tonnes of ore per day and the scheduled zinc
recovery rate. In addition the Company is actively pursuing means by which
production can be increased as further ore is delineated via underground
drilling.

The leases at Caijiaying contain highly prospective epithermal gold targets and
continued prospective base metals targets. As a result, the Company has
commenced a comprehensive regional exploration programme consisting of 18,000
metres of reverse circulation drilling due to be completed by the end of the
summer. At the same time, ongoing underground resource definition drilling has
produced significant gold intersections including one drill hole with 8.8m @
19.2 g/t and 6.2m @ 14.2 g/t.

In the search for growth in our region and in our area of expertise, the Company
continues to pursue and evaluate other world class mining projects.

In light of the above, your Board looks forward to an exciting future.


Further information

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

Andrew Smith/Martin Eales Telephone:+44(0)20 7523 8350
Collins Stewart Limited

Hugo de Salis 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




GRIFFIN MINING LIMITED
CONSOLIDATED CONDENSED PROFIT AND LOSS ACCOUNT

(expressed in thousands US dollars)

6 months to 6 months to Year to
30/06/2005 30/06/2004 31/12/2004
Unaudited Unaudited Audited
$000 $000 $000
Turnover - - -
Cost of sales - - -

Gross profit - - -

Net operating expenses (576) (553) (1,048)

Operating (Loss) (576) (553) (1,048)

Foreign exchange (losses) / profits (272) 408 939
Interest receivable and similar income 164 283 507

(Loss) / profit on ordinary activities before
taxation (684) 138 398

Taxation on (loss) / profit on ordinary - - -
activities

(Loss) / profit for the financial period (684) 138 398

(Loss) / profit per share (cents) (0.4) 0.1 0.23


GRIFFIN MINING LIMITED
CONSOLIDATED CONDENSED BALANCE SHEET


(expressed in thousands US dollars)

30/6/2005 30/6/2004 31/12/2004
Unaudited Unaudited Audited
$000 $000 $000

Fixed Assets
Intangible assets - exploration interests 39 37 39
Tangible assets - mining properties 14,411 8,735 11,770
Tangible assets - plant and equipment 7,026 798 5,109
Tangible assets - other 14 15 15

21,490 9,585 16,933

Current Assets
Stocks 39 - -
Portfolio investments 35 38 27
Accounts receivable 343 42 108
Prepaid expenses 178 169 168
Cash and deposits 7,489 19,908 12,985

8,084 20,157 13,288

Creditors: amounts falling due within one year (505) (720) (885)

Net current assets 7,579 19,437 12,403

Total net assets 29,069 29,022 29,336

Capital and reserves
Share capital 1,783 1,768 1,773
Share premium 36,968 36,472 36,594
Contributing surplus 3,690 3,690 3,690
Investment revaluation reserve (838) (836) (846)
Foreign exchange reserve (118) (80) (143)
Profit & loss account (12,416) (11,992) (11,732)

Shareholders' equity interests 29,069 29,022 29,336

Attributable net assets per share (cents) 16 16 17

Number of shares in issue 178,327,731 176,827,731 177,327,731



GRIFFIN MINING LIMITED
CONSOLIDATED CONDENSED CASH FLOW STATEMENT

(expressed in thousands US dollars)

6 months to 6 months to Year to
30/06/2005 30/06/2004 31/12/2004
Unaudited Unaudited Audited
$000 $000 $000

Net cash (outflow) / inflow from operating
activities (1,517) 373 611

Investing activities
Interest received 164 283 507
Payments to acquire intangible fixed assets - - (557)
Payments to acquire tangible mining fixed assets (4,525) (3,067) (10,020)
Payments to acquire other tangible fixed assets (2) (15) (17)
Net cash (outflow) from investing activities (4,363) (2,799) (10,087)

Net cash (outflow) before financing (5,880) (2,426) (9,476)

Financing
Issue of ordinary share capital 384 16,255 16,391
Expenses paid in connection with share issue - (752) (761)
384 15,503 15,630

(Decrease) / Increase in cash and cash equivalents (5,496) 13,077 6,154

Reconciliation of operating (loss) to net cash
(outflow) / inflow from operating activities
Operating loss (576) (553) (1,048)
Depreciation 2 2 5
(Increase) in stocks (38) - -
(Increase) in debtors and prepayments (245) (112) (177)
(Decrease) / increase in creditors (380) 635 799
Other non-cash income, including exchange
differences (280) 401 1,032

(1,517) 373 611



GRIFFIN MINING LIMITED
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


(expressed in thousands US dollars)

6 months to 6 months to Year to
30/06/2005 30/06/2004 31/12/2004
Unaudited Unaudited Audited
$000 $000 $000

(Loss) / profit for the period (684) 138 398
Unrealised gains / (losses) on investments 8 (25) (35)
Currency translation differences in foreign currency
net investments 25 41 (22)

Total (losses) / gains recognised in the period (651) 154 341


Losses and profits for the financial year are the same as those on an historical
cost basis.



GRIFFIN MINING LIMITED
NOTES TO THE INTERIM FINANCIAL STATEMENT


1. This statement has been prepared using accounting policies and presentation
consistent with those applied in the preparation of the statutory accounts
of the Company.

2. Copies of this interim report are being sent to all registered
shareholders. Additional copies are available from the Company's London
office, 60 St James's Street, London, SW1A 1LE.

3. (Losses) / earnings per share have been calculated on the basis of the net
(loss) after taxation of $684,000 (2003 profit $138,000) and the weighted
average number of shares in issue in the period ended 30 June 2005 of
178,135,423 (2004 164,023,885). There is no dilutive effect of outstanding
share purchase options.

4. The condensed accounts set out above do not constitute statutory accounts
as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240
of the UK Companies Act 1985. The condensed balance sheet at 31 December
2004 and the condensed profit and loss account, condensed cash flow
statement and condensed statement of total recognised gains and losses for
the year then ended have been extracted from the Group's 2004 statutory
financial statements upon which the auditors' opinion is unqualified.

5. Reconciliation of shareholders' funds.
6 months to 6 months to Year to
30/06/2005 30/06/2004 31/12/2004
Unaudited Unaudited Audited
$000 $000 $000

Total (losses) / gains recognised in the period (651) 154 341
Issue of Ordinary Shares in the period 384 15,503 15,630

Net (reduction in) additions to shareholders'
funds (267) 15,657 15,971
Opening shareholders' funds 29,336 13,365 13,365

Closing shareholders' funds 29,069 29,022 29,336




This information is provided by RNS
The company news service from the London Stock Exchange

Financial Mail on sun
"The devastated city of New Orleans is a vital port. Its warehouses hold 25% of all America's coffee bean stores and almost half of all the zinc traded on the London Metals Exchange.
In London's Liffe market, where contracts are traded for future commodity supplies, the price of coffee beans soared 8%, while zinc jumped 5% last week."

Would have thought GFM would have moved up more this morning.

Aldwickk, so would I. The early gold drilling results look quite good; some mines make money on a fraction of those figures. Gold in the ground is worth between $25-$50/troy ounce depending on depth. So there is plenty of scope for the Chairman's view re increasingly becoming a gold producer, being realised.

aldwick, sharesure,

well i though tthe most pertinent part of the RNS was this;

----------------------------

The Company continues to strive to achieve consistency in achieving the planned
initial production rate of 600 tonnes of ore per day and the scheduled zinc recovery rate.

----------------------------

IMHO, this suggests that the company have not consistently achieved either, yet, and is probably the reason for the drop this morning!