StockMarketWire.com - Griffin Mining's revenues rose to $35.2m in the six months to the end of June from $33.2m last time but operating profits fell to $6.4m (2014: $7.6m) and profit before tax dropped to $3.7m from $5.8m.

Throughput of 418,950 tonnes of ore in the six months to 30th June 2015 at Griffin's Caijiaying Mine was up 2.5% on that achieved of 408,671 tonnes in the six months to 30th June 2014. With effort directed to improving precious metal recoveries, metal in concentrate production in the period was: · 20,081 tonnes of zinc (2014: 19,147 tonnes);

· 962 tonnes of lead (2014: 609 tonnes);

· 193,098 ounces of silver (2014: 147,901 ounces); and

· 6,274 ounces of gold (2014: 5,999 ounces), a record high.

Metal in concentrate production in the six months to 30th June 2015 compared to that in the six months to 30th June 2014 benefited from better grades and better lead and gold recoveries. Zinc revenues before royalties and resource taxes in the six months to 30th June 2015 were $26,288,000 (2014 $24,860,000) having benefited from higher prices achieved whilst lead and precious metals revenues were $10,799,000 (2014: $10,222,000) with increased quantities sold albeit at lower prices. Cost of sales in the six months to 30th June 2015 was up on the same period in 2014 mainly as a result of increased processing costs with efforts directed at improving precious metal recovery rates. Net operating costs were up with increased regulatory, environmental and social security costs in China. Profits before tax were impacted by: Foreign exchange losses of $24,000 (2014: $26,000) arising from a weaker Renminbi offset by gains on Sterling deposits against the US dollar in the period; interest payable on Chinese bank loans of $2,480,000 (2014: $1,629,000); finance lease interest of $392,000 (2014: $411,000); interest receivable of $106,000 (2014: $126,000); and other income of $36,000 ( 2014: $62,000).

Chairman Mladen Ninkov said: "Operationally, the Company continues to achieve very good results in light of the current downturn in commodity prices with, period to period, increased zinc, lead, silver and gold production, including record gold output, better grades and good recoveries, all this without the imminent commissioning of the new 1.5 million tonnes per annum processing facilities.

"Nevertheless, the continuing severe weakness in commodity prices coupled with the fixed cost nature of mining production inevitably means any costs increases, such as the increased regulatory costs in the first half, impact the profitability of the Company.

"The company eagerly looks forward to any or all of the following occurring: The increased processing and production profile, the long awaited Mining Licence over new production areas and/or a rise in commodity prices."




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