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Shares in AIM-listed Griffin Mining (LON:GFM) dropped by 14.35% to 121.62p (as of 14:20 BST) as revenue growth slowed to 3.44% for the six months ended 30th June as the company’s product mix changed due to falling zinc prices and higher grade gold ores.
Operating profits fell to $21.1 million from $23.5 million as mining costs increased due to digging deeper and backfilling waste. Current cash flows are being used to pay down debts and fund development of the firm’s new project in China.
Chairman Mladen Ninkov commented: “This is a wonderful result in light of the 21% fall in the zinc since the beginning of the year. The second half of the year will remain challenging if commodity prices remain subdued. However, the recent signing of the Contract of Transfer and the progress towards the issue of the new Mining Licence over Zone II, sets the stage for an exciting 2019“.