Griffin Mining reports 'spectacular' year at Caijiaying

17th Jan 2024 14:56

(Sharecast News) - Griffin Mining released production results for the Caijiaying Zinc Gold Mine for the three months and year ended 31 December on Wednesday, reporting impressive achievements.

The AIM-traded firm said that in 2023, Caijiaying saw a significant boost in production, setting new records.

Ore mined surged 76.6% to reach 1,505,642 tonnes, while ore processing experienced substantial growth, rising by 82.1% to 1,513,977 tonnes.

Zinc metal concentrate production increased by 25,146 tonnes, marking an impressive 79.1% growth compared to 2022, while gold in concentrate production saw a substantial uptick of 6,915 ounces, representing a 68.2% increase over the previous year.

Silver in concentrate production rose by 90,080 ounces, reflecting a 40.1% increase from 2022, and lead in concentrate production witnessed a robust growth of 606 tonnes, marking a 64.5% increase compared to the previous year.

While the market prices for zinc had stabilised, Griffin said it benefitted from reduced smelter treatment charges and lower transport costs, primarily driven by Chinese smelters' preference for clean local concentrate.

As a result, the company reported an average increase of $174 per tonne, or 9.8%, in zinc prices received during the final quarter of 2023.

In addition to zinc, Griffin Mining said it also experienced positive developments in precious metal and lead markets.

Precious metals, including gold and silver, showed continued price growth throughout the last quarter of 2023.

Gold prices received by the company increased $45 per ounce, or 2.4%, while silver prices received rose by $1.1 per ounce, or 5.7%.

"Spectacular - that is the only word that can adequately describe what has been achieved by the management and staff of the company in 2023, as reflected in the production results published today," said chairman Mladen Ninkov.

"To say that I am humbled and proud of what has been achieved would be an understatement.

"From a company that has only ever raised net capital of under $30m and no debt in its 26 year history to now have a world class, modern, underground mine, producing over 1.5 million tonnes of ore per year is an extraordinary and, frankly, unheard of, achievement in the mining industry."

At 1222 GMT, shares in Griffin Mining were up 1.72% at 93.99p.

Reporting by Josh White for Sharecast.com.