Griffin Mining Reports 25.7% Revenue Drop in H1 2025, to Cease Quarterly Reporting

Administration expenses reduced to $11.479 million from $18.804 million. Excluding Chinese partners’ service fees and any share-based charges, Griffin points to a 19.0% underlying reduction to $9.718 million. There were no share-based incentive charges in H1 2025, compared with $2.149 million in H1 2024.

The tax line remains chunky: $5.464 million on $14.248 million of pre-tax profit. The company explains this is mainly due to tax being assessed on Hebei Hua Ao under Chinese GAAP at 25%, with some costs outside China not tax deductible. The effective rate therefore looks elevated.

Cash, capex and balance sheet – stronger footing ahead of Zone II

Cash rose to $69.651 million from $48.758 million at 31 December 2024, helped by $33.713 million of operating cash flow. Capital expenditure of $13.801 million was directed primarily at the Zone II development and associated plant at Caijiaying, targeted for commissioning in the last quarter of 2025. Finance income of $0.826 million reflects lower interest rates but a bigger cash pile.

Net assets increased to $282.149 million, equating to $1.53 per share. Shares in issue stood at 184,253,481 after further buybacks and cancellations during the period.

Operational update – production metrics at a glance

• Ore mined: 582,683 tonnes (H1 2024: 764,683).
• Ore processed: 588,852 tonnes (736,010).
• Q2 outperformed Q1 across the board as underground access and development normalised.

The big operational catalyst from here is Zone II. Management says infrastructure is almost complete, with first ore expected in the last quarter of 2025. If delivered, Zone II should be a step-change in mine flexibility and production profile.

Griffin will stop quarterly reporting – what that means for investors

Griffin plans to cease publishing quarterly trading updates, citing the natural variability caused by the long Chinese New Year shutdown and periodic suspensions during government congress sessions. The company argues half-year and full-year figures provide a more balanced view.

Pros and cons from an investor’s standpoint:

• Positive – less noise from quarter-to-quarter timing effects, and lower reporting costs.
• Negative – reduced transparency between halves, which can raise uncertainty during operational hiccups or commodity price swings.

The next scheduled results will be for the year to 31 December 2025.

My take – why this update matters

There are two messages in this RNS. First, the mine is back at normal output after a difficult Q1. Q2 profitability shows the asset can still generate healthy cash when running steady, helped by strong precious metal prices. Second, the investment case is increasingly tied to the successful commissioning of Zone II in Q4.

On the cautious side, revenue is still well below last year, zinc prices remain softer, and the effective tax rate is high. The decision to drop quarterlies trims visibility, so execution on Zone II and steady H2 production will be crucial to keep confidence up.

On the positive side, the balance sheet has strengthened materially – $69.651 million of cash gives flexibility, and NAV per share has nudged up to $1.53. If Q2 is the new baseline and Zone II comes in on time, H2 should look meaningfully better than H1.

What to watch into year-end 2025

• Zone II commissioning – timing and ramp-up in the last quarter of 2025.
• Sustained production at circa 1.5 million tonnes per annum run-rate.
• Commodity mix – continued support from gold and silver prices versus zinc softness.
• Cash trajectory – capex needs versus the growing cash balance.
• Any operational suspensions linked to national events in China that could affect H2.

In short, a messy start, a strong Q2 recovery, and a clear near-term catalyst. Keep an eye on Zone II and the year-end print for the next decisive read-through.