LONDON (ShareCast) - (Sharecast News) - Griffin Mining swung back to profit in the second quarter of 2025, it reported on Tuesday, as operations at its Caijiaying mine in China recovered from a full shutdown late last year, though first-half revenue and production remained well below 2024 levels.
Revenue for the six months ended 30 June fell 26% year-on-year to $63.7m, with sales of zinc concentrate down sharply at 16,447 tonnes compared with 25,653 tonnes a year earlier.

Gold sales fell to 8,216 ounces from 11,257, while silver and lead volumes also declined.

Lower zinc prices further weighed on the top line, leaving zinc revenues 40% lower, although higher precious metal prices lifted combined gold and silver revenues by 1.8%.

Precious metals accounted for 46.5% of gross revenue before royalties.

The group posted a first-half profit before tax of $14.3m, down from $19.6m last year, with profits concentrated in the second quarter.

After a $1.2m pre-tax loss in the first quarter, profits rebounded to $15.5m in the second.

Net profit for the half stood at $8.8m, equal to basic earnings per share of 4.75 cents.

Gross profit for the six months was $25.1m, with margins benefiting from an 18% reduction in costs of sales.

Administrative costs fell 19% to $9.7m, while no share-based incentive charges were booked, compared with $2.1m in the prior period.

Capital expenditure rose to $13.8m, primarily on Zone II development and associated plant and equipment, with commissioning expected in the final quarter of 2025.

Cash balances increased to $69.7m at end-June from $48.8m at year-end.

"As the results clearly show, the complete shutdown of operations in the last quarter of 2024, including the barring of all underground access, impacted operations in the first quarter of 2025 with underground capital development needing to be undertaken prior to mining and production recommencing," said chairman Mladen Ninkov.

"Operations fully recovered by the second quarter of 2025 with the above stated outstanding results.

"It is a credit to the staff at the Caijiaying Mine and the quality of the orebody that the company has returned to 'business as usual.'"

He added that with Zone II infrastructure development almost completed, the firm was "eagerly" awaiting the commissioning of operations and the extraction of ore from Zone II in the last quarter of the year.

"This will be another milestone in the life and production profile of the Caijiaying Mine."

The board said it will no longer publish quarterly trading results, citing distortions from seasonal shutdowns linked to Chinese holidays and government congresses, and would instead report half- and full-year results.

At 1355 BST, shares in Griffin Mining were up 2.62% at 196p.

Reporting by Josh White for Sharecast.com.

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