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(Sharecast News) - Griffin Mining reported a drop in full-year profit for 2024 on Thursday, after a fatal accident at its Caijiaying mine in October led to a three-month suspension of operations, disrupting production in the final quarter.
The AIM-traded miner posted a 26% decline in profit before tax to $17.9m, down from $24.5m in 2023.
Revenue fell 7.5% to $135.1m, primarily due to a 31% drop in zinc concentrate sales volumes following the shutdown.
Gross profit held relatively steady at $51.3m, while operating profit declined to $17.3m from $23.8m a year earlier.
Basic earnings per share dropped to 6.08cents from 8.03cents.
Production was halted after a contractor fatality underground in mid-October.
For the full year, ore mined fell 24% to 1.15 million tonnes, with zinc production down 31% to 39,444 tonnes.
Gold, silver, and lead outputs also declined, although higher realised prices partly offset the volume impact.
Zinc prices rose 25% year-on-year to an average $2,414 per tonne, while smelter treatment and transport charges dropped significantly.
Despite the setback, Griffin recorded its 19th consecutive annual operating profit and maintained a debt-free balance sheet.
Net assets per share rose to 147cents from 140cents, while cash balances declined by $11.2m, in part due to a $12.5m share buyback.
Development work at the Caijiaying mine's Zone II, which was halted during the shutdown, had now resumed, the company confirmed.
Ore extraction from the zone was expected to begin in the final quarter of 2025.
The company also highlighted "exceptional" high-grade gold intercepts from drilling beneath existing development, with further exploration underway.
Chairman Mladen Ninkov described the year as a "missed opportunity", noting that the mine had been on track to break records before the interruption.
At 1046 BST, shares in Griffin Mining were down 1.07% at 164.23p.
Reporting by Josh White for Sharecast.com.
