News Column

Griffin Mining 2013 Profit Drops On Weak Metal Prices

May 13, 2014

Tom McIvor

LONDON (Alliance News) - Griffin Mining Ltd Tuesday said its pretax profit almost halved in 2013 as revenues fell on lower metal prices, costs increased, and the company was hit by a large charge after the disposal of interest in an associated company.

The mining and exploration company which produces zinc, gold, silver, and lead, said its pretax profit fell 46% to USD14.8 million in 2013 from USD27.2 million in 2012, as revenues fell 7.5% to USD71.1 million from USD76.9 million.

The company said its revenues fell as record gold production levels could not offset lower prices for all of its metals during the period, including a 2% fall in the average price received for zinc, an 18% fall in the gold price and a 26% fall in the price for silver.

Griffin Mining said its cost of sales also increased 15% during the period to USD40.1 million from USD34.8 million as a direct result of increased amounts of ore being mined in an attempt to offset the lower prices.

The company was also hit by a USD2.2 million charge on the disposal of its interest in Spitfire Oil Ltd at the end of 2013.

Griffin Mining increased its total tonnage of ore being mined during the period by 11%, with gold in concentrate production up 38% to 11,468 ounces from 8,322 ounces the previous year.

However, the company said its zinc, silver and lead production levels were all down during the period.

The company recommended that no dividend be declared at this time in order to put further investment into its Caijiaying Mine in China, to repay bank loans, and to settle amounts due to non-controlling interests.

Griffin Mining shares were down 5.1% to 28.82 pence Tuesday.

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Source: Alliance News

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