Griffin Mining (AIM:GFM), operator of the Caijiaying zinc, gold, silver and lead mine in China, reported revenue of $77.3 million for the six months to 30 June, up from $63.7 million a year earlier.
Operating profit nearly doubled to $28.2 million from $13.6 million, while profit after tax rose to $21 million from $8.8 million, lifting basic earnings per share to 11.89 cents from 4.75 cents.
The gains came despite Caijiaying running at 50% of its 1.5 million tonne annual throughput capacity throughout the period, a constraint the directors say cost the business dearly: had the mine operated at full capacity, they estimate operating profit would have reached $60 million to $65 million.
Higher metal prices and lower smelter treatment charges drove the revenue increase, with lead and precious metals now accounting for 54.8% of gross revenues, up from 46.5% a year earlier.
Cash generated from operations fell to $22.4 million from $33.7 million, while the company spent $14.2 million buying back 3.3 million shares for cancellation.
Enhanced regulatory scrutiny following a fatal coal mine explosion in Shanxi Province in May has kept the reduced throughput rate in place, with the company now expecting it to persist through the rest of 2026 and into early 2027 pending approval to use its Tailings Safety Facility 4.
A separate Safety Permit needed to unlock full production from the completed Zone II development is expected in the fourth quarter, chairman Mladen Ninkov noting: "Unshackled, it is extraordinary what the orebody and our people can deliver."
News Intelligence what this means for the company
Griffin Mining's Caijiaying mine achieved record first-half operating profit of $28.2 million—nearly double the prior year—despite running at only 50% capacity due to Chinese safety approvals following a fatal coal mine explosion in Shanxi Province. The company's own estimate suggests operating profit could reach $60–65 million at full capacity, implying current results represent less than half the mine's earning potential once regulatory constraints lift.
The bull case hinges entirely on regulatory release: if Caijiaying gains approval for Tailings Safety Facility 4 and the Zone II Safety Permit (expected Q4 2026), the company could roughly double operating profit from current levels. Until those approvals materialize—expected to persist through early 2027—the upside remains theoretical and the company remains hostage to Chinese regulatory discretion.
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