8^th Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom

Telephone: + 44 (0)20 7629 7772  Facsimile:  + 44 (0)20 7629 7773

E mail: [email protected]

12^th September 2024

UNAUDITED INTERIM RESULTS

for the six months ended 30^th June 2024

Griffin Mining Limited ("Griffin" or the "Company") today releases its unaudited results for the six months ended 30th June 2024.

Highlights:

·    Revenues of $85.7 million (30^th June 2023: $69.5 million).

·    Gross Profit of $38.5 million (30^th June 2023: $21.7 million).

·    Operating profit of $19.7 million (30^th June 2023: $9.1 million).

·    Profits before tax, depreciation, and interest of $34.1 million (30^th June 2023: $23.9 million).

·    Profit before tax of $20.5 million (30^th June 2023 $9.6 million).

·    Profit after tax of $11.3 million (30^th June 2023: profit $5.2 million).

·    Basic earnings per share of 5.93 cents (30^th June 2023: 2.77 cents).

·    Cash inflow from operations $24.0 million (30^th June 2023 $21.4 million).

Financial and Trading:

Mining, haulage and processing rates of circa 1.5 million tonnes of ore per annum have been maintained in the first half of 2024 with 764,682 tonnes of ore mined and 736,010 tonnes of ore processed to produce:

-    26,202 tonnes of zinc ( 30^th June 2023 - 28,095 tonnes);

-    731 tonnes of lead (30^th June 2023 - 697 tonnes);

-    164,781 ounces of silver (30^th June 2023 - 151,608 ounces); and

-    11,307 ounces of gold (30^th June 2023 - 7,980 ounces).  

Whilst the average zinc ore grade declined from 3.98% in the first half of 2023 to 3.76% in the first half of 2024, the gold grade improved from 0.53g/t in the first half 2023 to 0.73g/t in the first half of 2024, enabling Griffin to benefit from higher gold prices. Likewise the silver grade increased from 14.0g/t in the first half of 2023 to 14.8g/t in the first half of 2024. Zinc recoveries were marginally down on that in the first half of 2023 whilst gold and silver recoveries improved on that in the first half of 2023.

During the six months to 30^th June 2024:

-    25,653 tonnes of zinc metal in concentrate were sold (30^th June 2023: 28,939 tonnes); 

-    11,257 ozs of gold in concentrate were sold (30^th June 2023: 7,835 ozs);

-    162,202 ozs of silver in concentrate were sold (30^th June 2023: 147,663 ozs); and

-    714 tonnes of lead in concentrate were sold (30^th June 2023 : 670 tonnes).

Turnover increased by 23.3% from $69,518,000 in the first half of 2023 to $85,746,000 in the first half of 2024, with Griffin benefiting from higher metal prices received and increased gold and silver in concentrate production.  Zinc revenues before royalties and resource taxes in the six months to 30^th June 2024 were $59,974,000 (30^th June 2023: $55,443,000).  Lead and precious metals revenues were $30,476,000 (30^th June 2023: $18,179,000).

Average metal prices received in the first half year were:

Costs of sales (mining, haulage and processing costs) decreased by 1% in the first half of 2024 from that in the first half of 2023, despite a 5.8% increase in ore mined and a marginal decrease in ore processed from that in the first six months of 2023. 

Administration costs, excluding the Chinese partners interests and share based incentive charges, increased by 37.0% from $9,999,000 in the first half of 2023  to $13,701,000 in the first half of 2024. This primarily reflects bonuses to personnel on achieving throughput of 1.5 million tonnes per annum.  A charge of $2,149,000 (30^th June 2023: $969,000) has been made in respect of the Company's share incentive scheme and $2,954,000 (30^th June 2023: $1,677,000) has been provided for the Chinese partners service fees based upon Hebei Hua Ao's profits.

Griffin benefited from an  increase in interest received from $565,000 in the first half of 2023 to $826,000 in the first half of 2024, reflecting a rise in bank deposits from $46,887,000 at 30^th June 2023 to $65,250,000 at 30^th June 2024, despite $11,656,000 expended on share buy backs in that period. Mine development and other capital expenditure of $10,628,000 was incurred in the first half of 2024 (30^th June 2023: $9,534,000) primarily on the ongoing development of the Zone II area at Caijiaying expected to bought into production in 2025.

The tax charge of $9,177,000 is disproportionally large compared with pre-tax profits of  $20,473,000 as the tax charge primarily arises on Hebei Hua Ao's profit determined under Chinese Generally accepted Accounting Principles ("GAAP") in the first half of the year, at a rate of 25%.  Accordingly, the share incentive scheme charge and certain other costs incurred outside China are not tax deductible.

Chairman's Statement

Chairman Mladen Ninkov commented, "In what's becoming a well worn cliché, this is yet another outstanding operational and financial performance by the Company and it's Caijiaying Mine. With Operating Profit up 116%, Profit Before Tax up 114% and Profit After Tax up 117% on the same 6 month period from last year, all with a balance sheet without any debt, I couldn't be prouder of the Company's management, employees, contractors and other stakeholders. My heartfelt thanks goes out to all of them."

Further information

Griffin Mining Limited

Mladen Ninkov - Chairman                                                                    Telephone: +44(0)20 7629 7772

Roger Goodwin - Finance Director

Panmure Liberum Limited - Nominated Adviser & Joint Broker                   Telephone: +44 (0)20 7886 2500

             James Sinclair-Ford

             Kieron Hodgson

             Dougie McLeod

Berenberg - Joint Broker                                                                                 Telephone: +44(0)20 3207 7800

                Matthew Armitt

  Jennifer Lee

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014

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

Condensed Consolidated Income Statement

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Comprehensive income

(expressed in thousands US dollars)

Griffin Mining Limited

Condensed Consolidated Statement Of Financial Position

 (expressed in thousands US dollars)