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2024 Final Results

RNS Number : 4663L

Griffin Mining Limited

05 June 2025

Royal Trust house, 54 Jermyn Street, London SW1Y 6LX, United Kingdom

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

E mail: griffin@griffinmining.com

2024 Final Results

5^th June 2025

Griffin Mining Limited ("Griffin" or the "Company") has today published its annual report and accounts for the year ended 31 December 2024 which will be available shortly on the Company's web site wwww.griffinmining.com and will be posted to shareholders on 23^rd June 2025.

Chairman's Statement:

It is with an overwhelming sense of "a missed opportunity" that I report on the Annual Report and Accounts of the Company ("Griffin" or the "Company") for the 2024 calendar and financial year (the "Annual Report").

The "missed opportunity" I refer to was the chance to break all operating and financial records in 2024. The Caijiaying Mine, which had thundered through the first three quarters of 2024 and was on course to mine and process 1.5 million tonnes of ore, came abruptly to a halt on the 11^th October 2024 with the unfortunate death underground of an employee of the mining contractor. The ensuing shutdown of all mining, processing and development until the start of 2025 did significant damage to the year's financial results and to underground mine development, which had further repercussions for operations into the first 2 months of 2025.

Nevertheless, such is the strength of the Caijiaying Mine that operations which can be shut down for 3 months can still produce the following financial results:

· Revenues of $135,128,000;

· Gross profit of $51,251,000;

· Earnings before depreciation, interest and tax of $41,901,000;

· Operating profit of $17,288,000;

· Profit before tax of $17,903,000; and

· Profit after tax of $11,351,000;

Similarly, in only 9 months of production, operational results still included ore mined of 1,149,146 tonnes (all of which was extracted from Zone III) and ore processed of 1,169,098 tonnes, resulting in production of:

· 39,444 tonnes of zinc;

· 16,142 ounces of gold;

· 275,697 ounces of silver; and

· 1,295 tonnes of lead.

Amazingly, the Company was still able to generate it's 19^th continuous operating profit for the year and it's 18^th net profit whilst still holding significant cash balances in China and offshore with no debt on its balance sheet.

Another consequence of the 3^rd quarter shut down was the stoppage of all development work in Zone II. That has now recommenced with underground workings, services installation and the South Ventilation Shaft nearing completion. This means that extraction of ore from Zone II will now begin in the last quarter of 2025 when we look forward to a new, large source of ore being available for mining and processing.

I also think it's worth stating that in the current environment of record world gold prices amidst global economic uncertainty, the continued discovery of substantial and significant gold mineralization at the Caijiaying Mine has been tremendously exciting. These are some of the most extraordinary gold intersections many of us have ever seen in our careers. As the Company's announcement on the 15^th April 2025 stated:

"Drilling of high-grade gold domains below the existing development at the Caijiaying Mine during 2024-25 continues to deliver exceptional gold intercepts. Drilling is ongoing, testing multiple high-grade gold shoots. Drilling of the Yuan Long high-grade gold domain confirms the down-plunge continuity of this domain below and along strike from existing development, with significant intercepts including:

· UGCJY-6268: 20.4m @ 24.4 g/t Au (true width)

· UGCJY-6318: 25.7m @ 8.90 g/t Au (true width)

· YL1270-472E: 14.0m @ 25.0 g/t Au (true width)

· UGCJY-6194: 26.4m @ 4.30 g/t Au (true width estimated at 20m)

· UGCJY-6200: 31.7m @ 3.80 g/t Au (true width)

· UGCJY-6201: 17.6m @ 5.20 g/t Au (true width)

· UGCJY-6260: 12.6m @ 5.10 g/t Au (true width)"

We excitedly await what further gold drilling will confirm and uncover.

The Company's share buy-back program continued in 2024 with the excess cash generated by operations and $12,515,000 was expended on the buy-back of ordinary shares during the year, reducing the Company's shares outstanding and seeking to improve the Company's earnings per share.

RESULTS SUMMARY

The results for 2024 were severely impacted by the suspension in operations at the Caijiaying Mine during the fourth quarter of 2024 following the fatality of an employee of a contractor underground on 11 October 2024. As a result in 2024 the Company and its subsidiaries (together the "Group") recorded;

· Revenues of $135,128,000 (2023: $146,023,000);

· Gross profit of $51,251,000 (2023: $51,842,000);

· Earnings before depreciation, interest and tax of $41,901,000 (2023: $51,863,000)

· Operating profit of $17,288,000 (2023: $23,837,000);

· Profit before tax of $17,903,000 (2023: $24,486,000);

· Profit after tax of $11,351,000 (2023: $15,236,000); and

· Basic earnings per share of 6.08 cents (2023: 8.03 cents).

Ore mined was down 23.7% from that in 2023 to 1,149,146 tonnes, all of which was extracted from Zone III and ore processed was down 22.8% on that achieved in 2023 to 1,169,098 tonnes, resulting in:

· Zinc metal concentrate production was down 30.7% on that achieved in 2023 to 39,444 tonnes;

· Gold metal in concentrate production was down 5.3% on that achieved in 2022 to 16,142 ozs;

· Silver metal in concentrate production was down 12.4% on that achieved in 2023 to 275,697 ozs; and

· Lead metal in concentrate production was down 16.2% on that achieved in 2022 to 1,295 tonnes.

LME zinc prices for 2024 were 5.3% higher than that in 2023. Smelter treatment charges and transport costs fell in 2024 from 27.0% of LME in 2023 to 13.4% in 2024. Gold prices increased throughout 2024 as did silver and lead prices with Hebei Hua Ao receiving a premium price on lead and gold in concentrate sales.

Operating (administration) expenses, excluding the Chinese partners remuneration and share incentive scheme charges, rose by $3,206,000 (15.2%) from that in 2023. The Chinese partners remuneration for services rendered decreased by $394,000 (10.9%) from that in 2023. A full year charge of $6,165,000 (2023: $3,019,000) was made in respect of the Group's share incentive plan.

The Group benefited from interest receipts on bank deposits of $1,753,000 in 2024 compared with $1,394,000 in 2023.

Full provision has been made in 2024 of $599,000 against costs capitalised in respect of the Siding zinc venture in southern China with an impasse reached in progressing this venture any further.

With the replacement and upgrade of various facilities at the Caijiaying Mine, including the backfill plant and workshops, losses on the disposal of equipment of $1,108,000 (2023:$784,000) were incurred.

Foreign exchange losses, finance and other interest costs of $42,000 (2023: $289,000) were recorded. Other income of $527,000 (2023: 352,000) was received.

As a result, Group profits before tax declined from $24,486,000 in 2023 to $17,903,000 in 2024.

Revenue

Revenue in 2024 of $135,128,000 was down $10,895,000 (7.5%) on that achieved in 2023 of $146,023,000. This reflects zinc in concentrate sales down $15,882,000 (14.2%) with 39,814 tonnes of zinc metal in concentrate sold in 2024 compared with 56,993 tonnes in 2023, a decrease of 31.4% reflecting lower production with the suspension in production in the fourth quarter and lower head grades. The average zinc metal in concentrate prices received rose from $1,931 in 2023 to $2,414 in 2024, a rise of 25.0%. This reflects a rise in the average LME price from $2,647 in 2023 to $2,786 in 2024, whilst smelter treatment charges and transport costs have fallen from 27.0% of LME in 2023 to 13.4% in 2024.

Lead and precious metal in concentrate sales in 2024 of $46,473,000 were up $4,045,000 (9.5%) on that achieved in 2023 of $42,428,000. This reflects higher metal prices received despite lower production.

Sales may be summarised as follows:

	2024	2023
Zinc metal in concentrate revenue before royalties ($000s)	96,127	112,008
Lead metal in concentrate revenue before royalties ($000s)	3,522	3,949
Silver metal in concentrate revenue before royalties ($000s)	6,739	6,172
Gold metal in concentrate revenue before royalties ($000s)	36,211	32,306
Royalties	(7,471)	(8,413)
Zinc metal in concentrate sold (tonnes)	39,814	57,998
Lead metal in concentrate sold (tonnes)	1,300	1,557
Silver metal in concentrate sold (ozs)	276,939	317,348
Gold metal in concentrate sold (ozs)	16,252	17,107
Average price received per tonne (zinc) ($)	2,414	1,931
Average price received per tonne (lead) ($)	2,709	2,535
Average price received per ounce (silver) ($)	24.3	20.1
Average price received per ounce (gold) ($)	2,228	1,952

Cost of Sales

With less ore mined, hauled and processed as a result of the suspension in operations in the fourth quarter of 2024, cost of sales (mining, haulage, and processing, including depreciation) fell by $10,304,000 (10.9%) from that in 2023 with production costs per tonne of ore processed rising from $62.2 per tonne in 2023 to $71.7 per tonne in 2024. This in the main reflects the impact of the suspension of operations in the fourth quarter with ongoing fixed costs.

Costs of sales may be summarised as follows:

	2024	Per tonne	2023	Per tonne
		ore		ore
	$000	$	$000	$
Mining costs	25,993	22.6	25,579	17.0
Haulage costs	13,171	11.2	18,098	12.0
Processing costs	20,824	17.8	23,197	15.4
Depreciation depletion and amort'	22,647		25,385
Stock and WIP movements	1,242		1,922
	83,877	71.7	94,181	62.6

Mining

1,149,146 tonnes of ore were mined in 2024, down 23.8% on that mined in 2023 of 1,505,642 tonnes, reflecting the suspension in operations in the fourth quarter of 2024. Mining costs remained much in line with that in 2023 reflecting the element of fixed mine service costs and the engagement of additional personnel. As a result of less ore mined at broadly the same cost, unit costs rose from $17.0 per tonne mined in 2023 to $22.6 per tonne in 2024.

Haulage

1,174,811 tonnes of ore were hauled in 2024, down 22.2% on that hauled in 2023 of 1,509,098 tonnes, tracking ore mined. Haulage costs in 2024 were down $4,927,000 (27.2%) on that in 2023, resulting in a reduction in unit costs from $12.0 per tonne hauled in 2023 to $11.2 per tonne in 2024 reflecting a reduction in average distances hauled.

Processing

1,169,098 tonnes of ore were processed in 2024, down 22.8% on that processed in 2023 of 1,513,977 tonnes, tracking ore mined and hauled. Processing costs in 2024 were down $2,374,000 (10.2%) on that in 2023, resulting in an increase in unit costs from $15.3 per tonne processed in 2023 to $17.8 per tonne in 2023, reflecting fixed costs.

Depreciation

Depreciation charges in 2024 were down $2,738,000 (10.8%) on that incurred in 2023 reflecting reduced ore mined upon which mine development costs are depreciated calculated on a unit of production basis, whilst plant and equipment costs are depreciated on a straight line basis.

Operating Expenses

Operating (administration) costs (excluding the minority interest charges and share incentive scheme charges) in 2024 of $24,289,000 were up $2,841,000 (15.2%) on that incurred in 2023 of $21,083,000.

Hebei Hua Ao's operating costs in 2024 of $14,820,000 were up $427,000 (3.0%) on that incurred in 2023 of $14,393,000. Increased personnel costs have been offset by savings in local partner service and consultancy fees.

Griffin and Griffin Mining (UK Services) Ltd company corporate costs of $8,595,000 (excluding share incentive scheme charges) were up $2,715,000 (26.2%) on that incurred in 2023 of $5,880,000.

China Zinc Ltd.'s operating costs of $794,000 were up $71,000 (9.8%) on that in 2023 of $723,000, with additional personnel costs.

The Chinese partners remuneration for services rendered decreased by $394,000 (10.1%) from that in 2023 reflecting lower Hebei Hua Ao profits.

$6,165,000 (2023 $3,019,000) has been provided relating to a full years share incentive plan charges.

Profits Before Tax

After interest, foreign exchange adjustments, impairment and other income, a profit before tax of $17,903,000 was recorded for 2024 compared to $24,486,000 in 2023. The profit before tax in 2024 was after charging / crediting;

· Impairment of $599,000 against costs capitalised in respect of the Siding venture in southern China with an impasse in progressing this venture and the redundancy of the business development manager overseeing this project.

· The Group benefited from interest receipts on bank deposits of $1,753,000 in 2024 (2023: $1,394,000).

· Losses on disposal of equipment of $1,108,000 (2023: $784,000) were incurred primarily on redundant equipment being upgraded.

· Foreign exchange translation losses were recorded of $186,000 (2023: $136,000) primarily on the weakening of the Renminbi.

· An interest credit of $265,000 (2023: $110,000) arose in respect of rehabilitation provisions.

· Other income of $527,000 (2023: 352,000) was recorded from waste sales, indemnities and government subsidies.

· Finance lease interest charges on the London Office of $37,000 (2023: $42,000) were charged.

Taxation

Taxation of $6,552,000 has been charged in 2024 (2023: $9,250,000). This comprises: 25% of Hebei Hua Ao's profits under Chinese accounting standards amounting to $10,480,000 (2023: $11,130,000); withholding tax of 5% on intercompany dividends received of $689,000 (2023: $897,000); and UK corporation tax on Griffin Mining (UK Services) Limited profits of $200,000 (2023: $179,000). China Zinc Ltd benefited from a tax credit of $13,000. Deferred tax arising on accelerated depreciation of $4,804,000 has been credited (2023: credit of $2,694,000).

Earnings Per share

Basic earnings per share fell from 8.03 cents per share in 2023 to 6.08 cents per share in 2024 and diluted earnings per share from 7.98 cents in 2023 to 3.42 cents in 2024.

Cash flow

In the year ended 31 December 2024 cash balances decreased by $11,249,000. $19,582,000 (2023: $48,377,000) was generated from operations in 2024. Capital expenditure, net of disposals, of $20,898,000 (2023: $23,279,000), was incurred in 2024. Interest on bank deposits of $1,753,000 (2023: 1,394,000) was received in 2023. $828,000 was received on the issue of new ordinary shares on the exercise of share purchase options. $12,515,000 (2023: $373,000) was expended on the buyback of ordinary shares in 2024

Net Assets

Attributable net assets per share at 31st December 2024 was $1.47 (2023: $1.40).

About Griffin Mining Limited

Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). Griffin Mining Limited owns and operates in China, through its 88.8% owned Joint Venture stock company, the Caijiaying Zinc Gold Mine, a profitable mine producing zinc, gold, silver, and lead metals in concentrates. For more information, please visit the Company's website www.griffinmining.com.

Further information

Griffin Mining Limited

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

Roger Goodwin - Finance Director

Panmure Liberum Limited Telephone: +44 (0)20 7886 2500

James Sinclair-Ford

Berenberg Telephone: +44(0)20 3207 7800

Matthew Armitt

Jennifer Lee

Deltir Elezi

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

Griffin Mining Limited

Consolidated Income Statement

For the year ended 31 December 2024

(expressed in thousands US dollars)

	2024	2023
	$000	$000

Revenue	135,128	146,023

Cost of sales	(83,877)	(94,181)


Gross profit	51,251	51,842

Administration expenses	(33,963)	(28,005)


Operating Profit	17,288	23,837

Impairment of exploration interest	(599)
Losses on disposal of plant and equipment	(1,108)	(784)
Foreign exchange (losses)	(186)	(136)
Finance income	2,018	1,394
Finance costs	(37)	(177)
Other income	527	352


Profit before tax	17,903	24,486

Income tax expense	(6,552)	(9,250)


Profit for the year	11,351	15,236


Basic earnings per share (cents)	6.08	8.03

Diluted earnings per share (cents)	6.08	7.98

Griffin Mining Limited

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2024

(expressed in thousands US dollars)

	2024	2023
	$000	$000

Profit for the year	11,351	15,236

Other comprehensive (expense) that will be reclassified to profit or loss

Exchange differences on translating foreign operations	(2,911)	(2,912)

Other comprehensive (expense) for the year, net of tax	(2,911)	(2,912)

Total comprehensive income for the year	8,440	12,324

Griffin Mining Limited

Consolidated Statement of Financial Position

As at 31 December 2024

(expressed in thousands US dollars)

	2024	2023
	$000	$000
ASSETS
Non-current assets
Mining interests	242,754	250,370
Exploration interests	1	575
Deferred taxation	4,768	-
Other non-current assets	1,215	1,554
	248,738	252,499
Current assets
Inventories	5,273	5,828
Receivables and other current assets	2,985	2,886
Cash and cash equivalents	48,758	60,007
	57,016	68,721

Total assets	305,754	321,220

EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital	1,855	1,928
Share premium	67,318	78,550
Contributing surplus	3,690	3,690
Share based payments	9,096	3,109
Shares held in treasury	(2,388)	(2,017)
Chinese statutory re-investment reserve	3,830	3,529
Other reserve on acquisition of non-controlling interests	(29,346)	(29,346)
Foreign exchange reserve	(6,339)	(3,480)
Profit and loss reserve	224,955	213,789
Total equity attributable to equity holders of the parent	272,671	269,752

Non-current liabilities
Other payables	-	3,106
Long-term provisions	3,822	3,929
Lease liabilities	465	570
	4,287	7,605
Current liabilities
Trade and other payables	27,486	38,308
Business taxation payable	155	5,386
Lease liabilities	1,155	169
Total current liabilities	28,796	43,863

Total equities and liabilities	305,754	321,220

Attributable net asset value per share to equity holders of parent	1.47	1.40

Griffin Mining Limited

Consolidated Statement of Changes in Equity

For the year ended 31 December 2023

(expressed in thousands US dollars)

	Share	Share	Contributing	Share	Shares	Chinese	Other	Foreign	Profit	Total
	Capital	Premium	surplus	Based payments	held in treasury	statutory re-investment reserve	reserve on acquisition of non-controlling interests	exchange reserve	and loss reserve	attributable to equity holders of parent
	$000	$000	$000	$000	$000	$000	$000	$000	$000	$000
At 1 January 2022	1,749	69,334	3,690	168	(1,644)	2,992	(29,346)	(618)	199,140	245,465

Regulatory transfer for future investment	-	-	-	-	-	587	-	-	(587)	-
Issue of shares on cancellation of share purchase options	101	9216	-	-	-	-	-	-	-	9,317
Share based payments	78	-	-	2,941		-	-	-	-	3,019
Purchase of shares for treasury	-	-	-	-	(373)	-	-	-	-	(373)
Transaction with owners	179	9,216	-	2,941	(373)	587	-	-	(587)	11,963

Profit for the year	-	-	-	-	-	-	-	-	15,236	15,236
Other comprehensive income:
Exchange differences on translating foreign operations	-	-	-	-	-	(50)	-	(2,862)	-	(2,912)
Total comprehensive income	-	-	-	-	-	(50)	-	(2,862)	15,236	12,324
At 31 December 2023	1,928	78,550	3,690	3,109	(2,017)	3,529	(29,346)	(3,480)	213,789	269,752

	Regulatory transfer for future investment	-	-	-	-	-	353	-	-	(353)	-
	Cancellation of shares	(103)	(12,040)	-	-	12,143	-	-	-	-	-
	Issue of shares on cancellation of share purchase options	10	-	-	(168)	-	-	-	-	168	10
	Issue of shares on exercise of options	20	808	-	-	-	-	-	-	-	828
	Share based payments	-	-	-	6,155	-	-	-	-	-	6,155
	Purchase of shares	-	-	-		(12,514)	-	-	-	-	(12,514)
	Transaction with owners	(73)	(11,232)	-	5,987	(371)	353	-	-	(185)	(5,521)
	Profit for the year	-	-	-	-	-	-	-	-	11,351	11,351
	Other comprehensive income:
	Exchange differences on translating foreign operations	-	-	-	-	-	(52)	-	(2,859)	-	(2,911)
	Total comprehensive income	-	-	-	-	-	(52)	-	(2,859)	11,351	8,440
At 31 December 2024		1,855	67,318	3,690	9,096	(2,388)	3,830	(29,346)	(6,339)	224,955	272,671

Griffin Mining limited

Consolidated Cash Flow statement

For the year ended 31 December 2024

(expressed in thousands US dollars)

	2024	2023
	$000	$000

Net cash flows from operating activities
Profit before taxation	17,903	24,486
Share based payments	6,165	3,019
Foreign exchange losses	186	136
Finance income	(2,018)	(1,394)
Finance costs	(37)	177
Impairment of exploration interests	599	-
Depreciation	24,613	28,026
Losses on disposal of equipment	1,108	784
Decrease / (increase) in inventories	556	2,249
(Increase) / decrease in receivables and other assets	(99)	547
(Decrease) in trade and other payables	(13,881)	(415)
Taxation paid	(15,587)	(9,238)
Net cash inflow from operating activities	19,582	48,377

Cash flows from investing activities
Interest received	1,753	1,394
Decrease in rehabilitation deposits	339	-
Proceeds / (costs) on disposal of equipment	97	(263)
Payments to acquire - mineral interests and development	(13,974)	(16,792)
Payments to acquire - property, plant, and equipment	(6,996)	(6,056)
Payments to acquire - intangible fixed assets - exploration interests	(25)	(168)
Net cash outflow from investing activities	(18,806)	(21,885)

Cash flows from financing activities
Issue of ordinary shares on exercise of options	828	-
Interest paid	216	(27)
Purchase of shares for treasury	(12,515)	(373)
Bank loan advances	-	4,271
Repayment of bank loans	-	(4,271)
Lease liability repayments including interest	(156)	(155)
Net cash outflow from financing activities	(11,627)	(555)

Increase / (decrease) in cash and cash equivalents	(10,851)	25,937

Cash and cash equivalents at the beginning of the year	60,007	34,138
Effects of foreign exchange rates	(398)	(68)
Cash and cash equivalents at the end of the year	48,758	60,007

Notes to the Summarised Financial Statements:

This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory financial statements of the Group.

The summary financial statements set out above do not constitute statutory financial statements as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The Summarised Consolidated Statement of Financial Position at 31 December 2024 and the Summarised Consolidated Income Statement, Summarised Consolidated Statement of Comprehensive Income, Summarised Consolidated Statement of Changes in Equity and the Summarised Consolidated Cash Flow Statement for the year then ended have been extracted from the Group's audited 2024 statutory financial statements.

The annual report and accounts for 2024 is being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company's London office, 8^th Floor, 54 Jermyn Street, London, SW1Y 6LX and are available on Griffin Mining Ltd.'s web site www.griffinmining.com

The Group has one business segment, the Caijiaying zinc gold mine in the People's Republic of China. All revenues and costs of sales in 2024 and 2023 were derived from the Caijiaying zinc gold mine.

	2024	2023
	$000	$000
Revenues
China	135,128	146,023

Zinc concentrate sales	96,126	112,008
Lead and precious metals concentrate sales	46,473	42,428
Royalties and resource taxes	(7,471)	(8,413)
	135,128	146,023

	2024	2023
	$000	$000
Cost of Sales - China
Mining costs	25,993	25,579
Haulage costs	13,171	18,098
Processing costs	20,824	23,197
Depreciation (excluding depreciation in administration expenses)	22,647	25,385
Stock movements	1,242	1,922
	83,877	94,181

	2024	2023
	$000	$000
Administration expenses
China / Hong Kong	19,140	19,023
Australia	62	77
UK / Bermuda	8,596	5,886
	27,798	24,986
Fair value of shares issued under share incentive plan	6,165	3,019
	33,963	28,005

	2024	2023
	$000	$000
Total Assets
China	268,056	299,094
Australia	1,142	1,201
UK / Bermuda	36,556	20,925
	305,754	321,220

	2024	2023
	$000	$000
CAPITAL EXPENDITURE
China	20,995	23,016

Impairment of Exploration costs

	2024	2023
	$000	$000
Provision against costs incurred in respect of the Siding project in the PRC	599	-

Shares Issued Under Executive Incentive Plan

	2024	2023
	$000	$000
Fair value of shares issued under share incentive plan	6,165	3,019

Finance Income

	2024	2023
	$000	$000
Interest on bank deposits	1,753	1,394
Discount rate adjustment on rehabilitation provisions	265	-
	2,018	1,394

Finance Costs

	2024	2023
	$000	$000
Interest payable on short term bank loans	-	(24)
Discount rate adjustment on rehabilitation provisions	-	(110)
Lease interest	(37)	(43)
	(37)	(177)

Other Income

	2024	2023
	$000	$000
Scrap and sundry other revenues	527	352

Income Tax Expense

	2024	2023
	$000	$000
Profit for the year before tax	17,903	24,486

Expected tax expense at a standard rate of PRC income tax of 25% (2022 25%)	4,476	6,121
Adjustment for tax exempt items:
- (Income) and expenses outside the PRC not subject to tax	2,708	2,088
- (Income) and expenses subject to tax outside the PRC	583	(103)

Adjustments for short term timing differences:
- In respect of accounting differences	3,056	2,851
- In respect of other timing differences	(142)	(25)

Adjustments for permanent timing differences other	(26)	129

Withholding tax on intercompany dividends and charges	689	897

Prior period tax credit	12	(14)

Current taxation expense	11,356	11,944

Deferred taxation expense (credit)
Origination and reversal of temporary timing differences	(4,804)	(2,694)
	(4,804)	(2,694)

Total tax expense	6,552	9,250

The parent company is not resident in the United Kingdom for taxation purposes. Hebei Hua-Ao paid income tax in the PRC at a rate of 25% in 2023 (25% in 2022) based upon the profits calculated under Chinese Generally Accepted Accounting Principles (Chinese "GAAP").

Withholding tax is recognised as a current tax charge when paid. As the Company can control the timing of payments giving rise to withholding tax, deferred tax liabilities for unpaid withholding taxes on unremitted earnings and undistributed dividend payments are recognised using a 'probable' threshold (based on the recognition threshold in IAS 12) , and are reflected at the amount expected to be paid to taxation authorities. Unremitted earnings and undistributed dividend payments from the Group's Chinese mining operation total $145.9m (2023: $127.0m) upon which PRC withholding tax, currently 5%, may be deducted on distribution.

Earnings per share

The calculation of the basic earnings per share is based upon the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.

Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below:

		2024			2023
	Earnings $000	Weighted Average number of shares	Per share amount (cents)	Earnings $000	Weighted Average number of shares	Per share amount (cents)
Basic earnings per share
Basic earnings attributable to ordinary shareholders	11,351	186,599,728	6.08	15,236	189,771,884	8.03
Dilutive effect of securities
Options	-	-	-	-	1,234,740	(0.05)
Diluted earnings per share	11,351	186,599,728	6.08	15,236	191,006,624	7.98

Mining Interests

	Mineral Interests held under retention licences	Mineral Interests held under mining licence	Mill & mobile mine equipment	Offices furniture & equipment	Total
	$000	$000	$000	$000	$000
At 1 January 2023	4,687	196,451	56,070	833	258,041
Foreign exchange adjustments	(79)	(2,190)	(929)	-	(3,198)
Change in estimate of mine closure costs	-	1,226	-	-	1,226
Additions during the year	91	16,701	6,056	6	22,848
Disposals	-	-	(521)	-	(521)
Depreciation charge for the year	-	(21,505)	(6,380)	(141)	(28,026)
At 31 December 2023	4,699	190,683	54,296	692	250,370

Foreign exchange adjustments	(69)	(1,919)	(780)	-	(2,768)
Additions during the year	106	13,868	6,996	-	20,970
Disposals	-	-	(1,205)	-	(1,205)
Depreciation charge for the year	-	(16,277)	(8,197)	(139)	(24,613)
At 31 December 2024	4,736	186,355	51,110	553	242,754

At 1 January 2023
Cost	4,687	275,250	101,763	1,106	378,119
Accumulated depreciation	-	(74,112)	(45,693)	(273)	(120,078)
Net carrying amount	4,687	201,138	56,070	833	258,041

At 31 December 2023
Cost	4,699	290,077	103,479	1,558	395,114
Accumulated depreciation	-	(94,965)	(49,183)	(866)	(144,744)
Net carrying amount	4,699	195,382	54,296	692	250,370

At 31 December 2024
Cost	4,736	301,047	106,323	1,558	408,928
Accumulated depreciation	-	(109,956)	(55,213)	(1,005)	(166,174)
Net carrying amount	4,736	191,091	51,110	553	242,754

Mineral interests comprise the Group's interest in the Caijiaying ore bodies including costs on acquisition, plus subsequent expenditure on licences, concessions, exploration, appraisal and construction of the Caijiaying mine including expenditure for the initial establishment of access to mineral reserves, commissioning expenditure, and direct overhead expenses prior to commencement of commercial production and together with the end of life restoration costs.

Mill and mobile mine equipment include $19,649,000 (2023: $3,416,000) of assets under construction yet to be depreciated.

The offices, furniture and equipment disclosed above relates solely to the fixed assets, including leased offices, of Griffin Mining (UK Services) Limited.

The Group assesses the carrying value of the mineral interests, mill and mobile mine equipment at least annually, and more frequently in the event of any indications of impairment, by reference to discounted cash flow forecasts of future revenue and expenditure for each Cash Generating Unit. These forecasts are based upon both past and expected future performance, available resources and expectations for future markets. Management determined there were no impairment indicators at 31 December 2024 (2023: nil). However, as best practice and in response to an updated Life of Mine Plan, management have updated the impairment model for latest forecast metal prices, smelter treatment charges , and revisions to mine development costs. In determining any indications of impairment in the carrying value of the Caijiaying Mine the directors have reassessed the net carrying value of property plant and equipment at 31 December 2024 by reference to the estimated mineral resources at Caijiaying that may be extracted by 2045 from mineralised Zones II & III only (2022: 2050 all Zones). The current business licence of Hebei Hua Ao expires in 2037 but Hebei Hua Ao is required to be converted to an equity joint venture company with an indefinite life in order to comply with new PRC legislation. Accordingly, a Life of Mine Plan has been prepared by the Company that indicates the continued extraction of ore until at least 2045.However, management have considered the termination of operations in 2037 and concluded that on the basis of the following assumptions no impairment is required.

In estimating the discounted future cash flows from the continuing operations at the Caijiaying mine the following principal assumptions have been made:

· Future market prices for zinc of $2,493 (2023: $2,654) per tonne, gold of $2,190 (2023: $2,000) per troy ounce and silver of $29.1 (2023: $23.4) per troy ounce;

· Zinc treatment charges of 25% (2023: 25%) of market prices;

· Extraction of measured and indicated resources of 31.1 million tonnes from mineralised Zones III and II alone (2023: 41.2 million tonnes from all Zones) to 2045 (2023: 2050) with ore mined and processed of circa 1.5 million tonnes (2023: 1.5 million tonnes) of ore per annum;

· Operating costs, recoveries and payables based upon past performance and that budgeted for 2025 and on internal management forecast, for future years;

· Capital costs based upon that initially scheduled with sustaining capital based on future scheduling;

· Discount rate of 10% (2023: 10%); • Continued maintenance and grant of applicable licences and permits;

· No significant impact as a result of climate change, earthquakes or other natural events; and

· A Renminbi to US dollar exchange rate of 7.1 Rmb to $1 (2023: 7 Rmb to $1)

Having considered the impact of climate change, the directors consider that there will not be any significant adverse impact on future operations from climate change. Whilst the directors consider the assumptions reasonable, sensitivities have been considered to assess the impact of changes in key assumptions including, forecast metal prices, foreign exchange and discount rates, and have concluded that there were no reasonable possible changes to the key assumptions that could result in an impairment.

Exploration Interests

China - mineral exploration interests

					$000
At 1 January 2023					407
Additions during the year					168
At 31 December 2023					575
Additions during the year					25
Impairment during the year					(599)
At 31 December 2024					1

Intangible assets represent cost on acquisition, plus subsequent expenditure on licences, concessions, exploration, appraisal and development work in respect of regional exploration in China. Where expenditure on an area of interest is determined as unsuccessful such expenditure is written off to profit or loss. The recoverability of these assets depends, initially, on successful appraisal activities, details of which are given in the report on operations. The outcome of such appraisal activity is uncertain. Upon economically exploitable mineral deposits being established, sufficient finance will be required to bring such discoveries into production.

Attributable net asset value per share to total equity per holders of parent shares

The attributable net asset value / total equity per share has been calculated from the consolidated net assets / total equity of the Group at 31 December 2024 of $272,671,000 ($269,752,000 at 31 December 2023) divided by the number of ordinary shares in issue at 31 December 2024 of 185,530,477 (192,828,420 at 31 December 2023).

Post Balance Sheet Events

At 31 December 2024 there were no adjusting post balance sheet events (2023: none) or non-adjusting post balance sheet events requiring disclosure.

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2024 Final Results - Griffin Mining Limited | RNS | Ticker