Griffin Mining shares dip as fundamentals worsen

Metal mining company Griffin Mining Ltd (LON: GFM) saw its share price dip on a consistent deterioration across its financial fundamental.

On a year-on-year comparison of the first half, the Group’s revenues contracted from US$54.1 million to US$38.6 million. This led a dip in operating profits from $21.1 million to $6.0 million, and a drop in profit after tax from $15.3 million to $4.1 million, for the period ended June 30.

The state of play fro Griffin Mining shareholders was similarly downbeat, with basic EPS following other fundamentals, and falling from 8.95 cents to 2.36 cents.

The Company’s production volumes weren’t as downtrodden but neither were they entirely positive. While lead volumes increased from 459 to 494 tonnes and silver rose from 132,689 to 141,306, zinc fell from 16,873 tonnes to 16,692 and gold decreased from 9,492 ounces to 9,099 ounces.

16,692 tonnes of zinc (30th June 2018 – 16,873 tonnes);

Griffin Mining comments

Chairman Mladen Ninkov stated,

“Although all stakeholders in the Company will be disappointed with the financial results for the first half of 2019, they are directly, and practically solely, attributable to the fall in the zinc price and the tremendously higher smelter treatment charges in the first 6 months of the year. Operations and metal production were generally in line with budget. As is often said, mining is a fixed cost business and, as such, a reduction is sales revenues has a direct and significant effect on the margin of profit. We continue to hope for a higher zinc price and lower treatment charges for 2019 into 2020.”

Investor notes

Following the update, the Company’s shares dipped 4.14% or 3.75p, down to 86.75p per share 16/09/19 11:06 BST. The Group’s p/e ratio is 7.63, their dividend yield is not available.

Elsewhere in the mining and minerals sector, recent updates have come from; Alien Metals Ltd (LON: UFO), Highland Gold Mining Ltd (LON: HGM), Kavango Resources PLC (LON: KAV), URU Metals Ltd (LON: URU), Resolute Mining Limited (LON: RSG), Bisichi Mining PLC (LON: BISI) and Glencore PLC (LON: GLEN).

Previous articleMarkets respond to an eventful weekend: Hulk Boris, Saudi oil and China slumps
Next articleTrinity’s offshore potential
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.