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.

Andy,

Post 580, Aknightmight not Evil knivel.

Aldwick,

ok, lol!

Price seems to have firmed for now, hopefully this market will soon head north again, this is awful.

Just bought 20,000 at 47.20, which is showing as a sell.

Just recently bought heavily into Birch Mountain Resources (BMR) on the AMEX and TSX at around $4.5 broker upgrades in last 24 hours suggest could go to $12.50. Currently holding both GFM & KMR - sorry if off topic - but this co, is now starting to produce considerable amounts of Limestone to oil producing Canadian majors. Believed the tar sands area of central Canada could produce sufficient oil reserves to supply the US for a generation. Excellent website - well worth a look.

Nice to see this one moving back north. Big volume aswell.

cheers GF.

should form a nice pennant between 48 - 58
for those TA's amongst us, theres a loverly rising pennant on YOO

Nice weekend all!!

Amities / d'accord completement . Perhaps a tad more conservative than my calculations but to all intents and purposes much the same A trading parameter of 46.5 to 59. mais personne ne sait exactement.ll n'est pas certain . ,,Quite ironically a mathamatician friend of mine brought YOO to my attention only yesterday. { sitting on my hands at the moment on that one ) ,,a' la semaine prochaine ,,,,bonne chance ,,,@+ J .. { As an aside i think CSM merits a long look-esp in light of how thier latest acquistion was bought. -lts both an aggresive yet defensive play } .

interresant....

Zinc price is well ahead at $1460/tonne. This should cause GFM to bounce back all it lost recently and then move on as the gold drilling programme gets into its last phase. GFM is looking set to go much higher this month and next.

very bullish sharesure!

016622, Yes, but with good reason. I like GFM because it has its core zinc business locted in the right place for both deposits, low production costs and market for its product. It is expanding its production into a market where the price for its product is rising. It has added interest because of its gold drilling and then at some time a competitor is sure to try to make a grab for it.
Potential downside? The world economy, but then that affects everything.

Thank you sharesure....got partially stopped out this week but may up my stake again in the near future. Feel like letting it settle for a while unless we start pushing 60p again.
Regards.

Looking strong today, have we got takeover rumours again?

dibbles, don't think so. The day there are this will be much stronger than it is today in my opinion. Think its just restoring its poise after last week's general market sell off or quite likely a sniff that another drilling result is close. Would be welcome to get another confirmed gold drilling result between the extremities of the other two released so far. That cannot be long away.

Amities / As regards todays trading it seems that mms are extremely reluctant to lower the " bid " price from 53p; Offer price is a little wobbly.But all seems well in the house of GFM ....Cant beat a mining company with NIL gearing; and in production. l expect great things from this commodity rich mine .Great things. Thier market dynamics remind me of monterrico or Cambrain mining . @+ J

OK Sharesure, thanks.
Haven't been paying much attention for a few days as my lad has been in hospital but at least my faithful GFM have cheered me up.

TFC, totally agree.

Today's Times quotes zinc just short of $1500/tonne. $800/tonne profit even allowing for depreciation. GFM's bank account must be growing rapidly!

Looks like GFM is in the final phase of its corrective decline, so could see a good buying op below 45.75p...possibly a cheap as 42p! Then we should see the bulls back in for a rally through 59p

Amities / Slt .! l somewhat agree. .But can i simply add that over the years this has had a very volatile and rocky ride . From 2p to 16p and then back again to 2p in its first roller coaster ride ; and from 16p to 30p and then back again to 16p in its second climb ,,On this occassion it reached a zenith of 59p only to retrace to 49p ...,,,,But in saying that i hasten to add that this is now a producing mine and not a speculative punt: and if did fall to a nadir of 42p i would be a little surprised And re-mortgaging my house. . Seems to have tangible support at the 49p level at the moment . Let us hope this is merely hope this will act as a platform to break through the rather fragile resistance level of 59p,,,,,and then blue skies to 80p which may deter its numerous predators. . From whatever vantage point you view this stock and whatever tools you employ in attemting to call its fair and realistic s/p it has a rosy and spectacular future. ...Bonne chance / .Sois sages ,,,,a/b @+ J ...

And ZOX as done alright these last few days 4p up on the bid today, 157 to 162.