StockMarketWire.com - Griffin Mining posts pre-tax losses of $4.1m for the six months to the end of June compared with a profit of $3.7m a year ago.

Revenues fell to $20.8 million from $35.2 million and the group reports an operating loss of $1.8 million compared with a profit of $6.4 million last time.

Griffin said revenues and profits were hit severely by the suspension of mining until 22 January following a fatality at the Caijiaying mine in October and disruption caused by the Chinese new year holidays in February resulting in a lack of ore and low grade ore to process in the first quarter of 2016.

Revenues were further hit by relatively low commodity prices in the first quarter of 2016. The second quarter has seen an increase in the amount of ore mined and consequentially processed which together with rising commodity prices has led to a return to profitability. With 13.5% less ore hauled to surface, throughput of 365,337 tonnes of ore in the six months to 30th June 2016 at the Caijiaying Mine was down 12.8% on that achieved of 418,950 tonnes in the six months to 30th June 2015.

Chairman Mladen Ninkov commented, "The interim results, although by their very nature disappointing, need to be understood in the context of the short and long term consequences of the 5 month shutdown caused by the death of a contractor at Caijiaying in late 2015.

"The cessation of operations not only ceased mining, processing, production, revenues and profits, but also prevented underground clean-up activities and vital capital development to be undertaken in the down period. The effects of the shutdown were being felt, both operationally and financially, until June of this year.

"Barring any further extraneous events, the second half of 2016 is expected to return to normality and, with higher commodity prices, the Company is confident of a very acceptable second half year period. Needless to say, the Company continues to progress the Mining Licence application and remains hopeful of a successful conclusion to this matter."




At 8:08am: [LON:GFM] Griffin Mining share price was -2.25p at 34.25p



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