Griffin Mining moves into the red

1st Sep 2009 08:36

Griffin Mining posted a pre-tax loss for the six months ended 30 June 2009 after mining operations at the Caijiaying zinc-gold mine in China were suspended.The group reported a pre-tax loss of US$1,354,000 compared to a profit of $13,047,000 the same time a year earlier.Operations at Caijiaying were suspended from January to May 2009 inclusive to allow for upgrade and maintenance work, Griffin explained.48,129 tonnes of low grade ore was processed in the first two months of 2009 from stockpiles mined and hauled in 2008. 33,152 tonnes of ore was processed in June following recommencement of operations, the group said. Commenting on the results Griffin said, "These results, for the first six months of 2009 were to be expected considering Caijiaying was shut down during most of the reporting period. Much has been achieved in the first six months of 2009 to improve operations at Caijiaying. The full benefits of the maintenance work, cost review and ore block re-modelling earlier this year, together with the increase in commodity prices, should be reflected in the results for the second half of 2009."In light of the fall in commodity prices in 2008/2009, a comprehensive review of costs and procedures was undertaken during the suspension of operations with a view to see if it was possible to further reduce the already very low operating costs at Caijiaying. This included the opportunity to renegotiate terms with contractors and to retrench superfluous personnel, the group added.