Griffin Mining (LSE:GFM) reported unaudited first-half revenue of $77.3 million, up 21% year on year, while operating profit more than doubled to $28.2 million.
The results were recorded while the Caijiaying Mine in China operated at approximately 50% of its annual capacity of 1.5 million tonnes, with throughput currently restricted to 750,000 tonnes per year.
The company reported higher realised prices for zinc, gold, silver and lead, improved grades for most metals and lower smelter treatment charges. Cost of sales declined during the period, while basic earnings per share increased to 11.89 cents.
Griffin also bought back and cancelled more than 3.3 million shares during the first half.
Production volumes for zinc and gold declined as a result of lower throughput. However, higher grades and metal prices affected the group’s revenue mix, with lead and precious metals accounting for more than half of gross revenue before royalties.
Operating cash flow declined to $22.4 million, with the reduction occurring as the company lowered amounts owed to creditors. Griffin continued spending on mine development and equipment during the period and returned $14.2 million to shareholders through share buybacks.
Caijiaying Throughput Remains at 750,000 Tonnes
Throughput at Caijiaying remains restricted to an annualised rate of 750,000 tonnes following tighter mine safety oversight in China after a fatal coal mine explosion.
An increase in production is dependent in part on provincial approval to recommission Tailings Safety Facility 4, or TSF4.
Griffin expects reduced throughput to continue for the remainder of 2026 and into early 2027. The company said its current use of paste-fill for tailings cannot support the higher planned production volumes without TSF4, meaning production levels are expected to remain variable until additional tailings capacity and the required permits are available.
Infrastructure and mine workings for Zone II at Caijiaying have been completed. Griffin expects to receive a Safety Permit from the Environmental and Rescue Bureau during the fourth quarter of 2026.
Following receipt of the required approval, the company intends to increase production towards its previous annual rate of 1.5 million tonnes as soon as practicable.
More about Griffin Mining
Griffin Mining Limited operates the Caijiaying mine in China, which produces zinc, gold, silver and lead.
The mine comprises multiple operating zones and uses paste fill and tailings storage facilities for waste management. Its production capacity is therefore affected by the availability of tailings infrastructure and associated regulatory approvals.
Griffin operates in China through Hebei Hua Ao Mining Industry Company Limited. The company has continued investing in mine development and equipment while also returning capital to shareholders through share buybacks.
Its financial results are affected by factors including commodity prices, ore grades, production volumes and smelter treatment charges.
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