3rd Feb 2015 08:27
LONDON (Alliance News) - Griffin Mining Ltd saw its shares fall early Tuesday after it warned that its 2014 results had been hit by delays to the expansion of the processing facilities at its Caijiaying zinc-gold mine, although it was bullish about its prospects now that production is ramping up.
In a statement, the company said its 2014 production level and financial results will be "disappointing" after processing was suspended to allow for the upgrade of the processing facilities at the Caijiaying mine and that took six weeks longer than hoped to complete.
It also said it is continuing to experience bureaucratic delays in getting a new mining licence and permit for the Zone III deeps and Zone II areas at Caijiaying, and "continues to actively manage the administrative process involved in the granting of these licences".
However, it said the newly commissioned processing facilities at Caijiaying have now reached the equivalent of approximately 900,000 tonnes a year throughput.
The processing of the expanded name plate capacity throughput of 1.5 million tonnes of ore a year won't be reached until a new 750,000 tonne a year ball mill is delivered and the plant is connected to additional grid power. It said these events are expected to be completed by June 2015.
"The additional time taken to complete the expansion of the processing facilities at Caijiaying will inevitably cause disappointing financial results in 2014," Chairman Mladen Ninkov said in a statement.
"However, the price has been worth paying to position the company to be a globally significant zinc producer with substantial precious metal credits with the expected and much discussed global shortfall in zinc supply expected in 2015 and beyond. It is with this expectation that shareholders should reap the benefits of their patience," he added.
Still, Griffin Mining shares were down 7.6% at 26.00 pence early Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Griffin Mining