Griffin Mining shares slump as it reports drop in first-half profit

Shares in Griffin Mining fell after it posted a drop in first-half pre-tax profit despite rising revenue, as interest payable on Chinese loans and foreign exchange losses dented its results.

Pre-tax profit for the six months ended 30 June was $3.7m, down from $5.8m in the same period last year, although revenue grew to $35.2m from $33.2m.

The company said pre-tax profit was impacted by foreign exchange losses and a rise in interest payable on Chinese bank loans to $2.48m from $1.6m last year.

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.”

At 1022 BST, the company's shares were down 5.3% at 35.50p.