2024 Final Results

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

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)

Griffin Mining Limited

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2024

(expressed in thousands US dollars)

Griffin Mining Limited

Consolidated Statement of Financial Position

As at 31 December 2024

(expressed in thousands US dollars)

Griffin Mining Limited

Consolidated Statement of Changes in Equity

For the year ended 31 December 2023

(expressed in thousands US dollars)

Griffin Mining limited

Consolidated Cash Flow statement

For the year ended 31 December 2024

(expressed in thousands US dollars)

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, 8th 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.

Impairment of Exploration costs

Shares Issued Under Executive Incentive Plan

Finance Income

Finance Costs

Other Income

Income Tax Expense

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:

Mining Interests

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

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.