Griffin Mining swings to full-year profit

Griffin Mining's shares slipped as it reported a swing to full-year 2016 pre-tax profit, but said lower zinc, lead and silver concentrate was produced and sold than in 2015.

"Although record throughput was achieved in 2016, lower zinc, lead and silver head grades caused by restricted mine access following the suspension in mining operations, resulted in lower zinc, lead and silver in concentrate being produced and sold than in 2015," it said.

However, Griffin said gold in concentrate production was up 22.1% on 2015 to a record 12,654 ounces.

Pre-tax profit for the year was $10.4m, from a year-ago loss of $940,000. Revenues totalled $66.3m, from $59.8m. Cost of sales was $37.9m, from $42.9m, with the reduction reflecting some economies of scale.

Griffin added that metal in concentrate prices received were significantly higher in 2016 than in 2015 with zinc metal in concentrate prices received of $1,520 per tonne up 27.6% on that received in 2015 of $1,191.

It said silver of $13.25 per oz was up 10.9% from that received in 2015 of $11.95, while gold of $1154 per oz was up 10.6% on that received in 2015 of $1,043. "This reflects higher market prices and a tightening of concentrate supply in China," the company said.

Griffin further said 817,506 tonnes of ore were mined in 2016, up 43.0% from 2015, with 874,983 tonnes of ore processed in 2016, up 4.2%.

At 12:32 GMT, shares in Griffin Mining were down 2.54% to 57.5p each.