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.

A nice worry :-) Am I right i thinking results are due early May?

Dynamite - yes thats right, although Griffin sp results are currently weekly in the climb field anyway. Currently 150% up as been in since the 33p days the first time round when they fell... :-) Best performer on my portfolio also.

up up and away...GFM still going great guns :-)

I placed a stop loss at 80 today, can't understand why ZOX is not higher.

Thank goodness for GFM rest of my lot looking very "bloody"

Another 9% rise today, have Griffin filed for a gold mining license I wonder??

aldwickk, Yes, I knew when I was doing it that I might live to regret it; on the other hand I did buy GFM at 2.75p so it did me well.
As for Chaco (CHP) it has fallen victim to t/y/e profit taking, shorters etc. The deal it announced should have heralded a move to higher sp levels and will yet, but with hindsight I needn't have been in such a hurry! I am pleased to see GFM doing well and suspect there is still a lot more upside to come, so good luck to you all. When you do sell, come over to CHP for what should be a brilliant way of continuing that good fortune.

Well I was so top heavy GFM due to profits that I was in danger of falling over. I sold my orginal stake bought at 29p yesterday at 89.35p...I have still kept a much bigger free carry but at least I have some cash to diversify as 70% of my portfolio in one share was very dangerous. I still think GFM has a long upward rise and my free carry is going net a packet more :-)
Di

Dynamite,Have you thought about trying CHP with some of your profits; your timing could be excellent. The potential, coupled with their mgt team, partic. ex Lasmo exploration director, looks too good to miss out on. Taper relief applies if you decide to stay on board for more than 12 months.

sharesure...you are doing a good job on CHP but I already bought in last week with profits from NOP
Di

Dynamite - I understand 70% of your portfolio in GFM is very dangerous and your reasons for selling but couldn't you have given us some notice. SP fell 6.11% today and the only possible explaination I can find is your sell.... :-( Now really with all that extra cash have a look at BGF................... Please!!

Dynamite, Not too late to buy some more CHP today either. Doubt the bear squeeze on it has any further to go, whereas the potential for a rebound is high.

Sorry to be off-thread but having supported and championed GFM all the way up from its humble beginnings I don't feel too guilty. Good luck to those who remain on board although I would be looking at the chances of GFM doubling from here, and the timeframe, set against what else is available.

Shares Mag. gives a good mention on GFM this week; what is amusing is that they admit that they only first tipped GFM at 35p. I cannot remember how many times I pointed out this company to them as being a really good stock, but when they were at around 8p. Still, they are now firm believers so that should benefit those who are still enjoying the ride.
So where should they be looking next? I cannot remember how many times I have pointed out CHP (Chaco Resources) to them as being a really good stock, but long ago when they were 6p and since; they are now 15p. But, like GFM, they will now climb much higher and I would stake my reputation on them ending up having a higher sp than GFM by the year end. So if you feel that GFM will not go up 6 fold frm where it is now, take alook at the CHP thread.

Surprised I didn't get an earful for my suggestion that maybe, good as GFM is as a company, it might be timely to switch to another stock. I suggested CHP (Chaco Resources). Next few weeks in Chaco should prove to be very exciting if you are looking for capital growth, and even more if you decide to remain for the remainder of the year. I know I risk being accused of being off thread (sorry for that) and ramping (I am not, CHP has some very serious potential)

Sharesure,

Agree CHP has great prospects, so why not mitigate risk and hold shares in both GFM and CHP :-)

Sunday Telegraph gave GFM a great mention. Price target 1.21; so precise! Should be good for a continued lift today. Once that has happenned don't overlook the potential to switch some of your profits to CHP where they are about to have a really good series of presentations and press coverage for their South American interests. A worthy successor to GFM.

1 by end of next week?

Was thinking that also..

At least the Offer price just has - lets hope the big holders hold their nerve and we finish the day at this excellent barrier and with good news to come.

Buys over the 1 mark going through now, two at 101....