Griffin Mining H1 2025: revenue down, production back on song, and quarterly updates scrapped
Griffin Mining’s unaudited interim numbers for the six months to 30 June 2025 are a tale of two quarters. Q1 was hampered by the after-effects of a full underground shutdown late last year, but Q2 bounced back to normal run-rate. Revenue fell sharply year-on-year, yet profitability returned in the second quarter and cash rose strongly.
Headline figures investors need to know
| Metric | H1 2025 | H1 2024 |
|---|---|---|
| Revenue | $63.710 million | $85.746 million |
| Gross profit | $25.062 million | $38.458 million |
| Profit before tax | $14.248 million | $20.473 million |
| Profit after tax | $8.784 million | $11.296 million |
| Basic EPS | 4.75c | 5.93c |
| Operating cash flow | $33.713 million | $24.012 million |
| Cash and cash equivalents | $69.651 million (30 Jun 2025) | $65.250 million (30 Jun 2024) |
| NAV per share | $1.53 | $1.48 |
Revenue declined 25.7% year-on-year, driven by lower metal volumes after the Q4 2024 stoppage rippled into Q1. Despite that, Griffin still posted a half-year profit and materially improved its cash position.
Q1 pain, Q2 gain – production normalised by the second quarter
Q1 saw a loss before tax of $1.215 million as underground capital development had to be completed before mining could restart. By Q2, operations recovered to the usual rate of roughly 1.5 million tonnes of ore per annum, delivering profit before tax of $15.463 million. That swing underlines the operational leverage at Caijiaying when the mill is full.
The chairman summed it up plainly: shutdown effects weighed on Q1, but by Q2 it was back to business as usual.
Volumes and prices – precious metals cushioned the blow
- Production H1 2025 vs H1 2024: zinc in concentrate 17,093 tonnes (26,202), gold 8,703 oz (11,307), silver 163,220 oz (164,781), lead 708 tonnes (731).
- Sales in H1 2025: 16,447 tonnes zinc, 8,216 oz gold, 148,466 oz silver, 651 tonnes lead.
- Average realised prices (H1 2025): zinc $2,171/t, gold $3,038/oz, silver $27.9/oz, lead $2,910/t. The company notes lower zinc prices and higher precious metals prices year-on-year.
With gold and silver at historically strong levels, precious metals contributed 46.5% of gross revenues before royalties in the half. That mix helped offset softer zinc pricing and lower zinc volumes, but not enough to prevent the top-line drop.
Costs, margins, tax – what moved under the bonnet
Cost of sales fell 18.2% in line with the 19.9% reduction in throughput. On the reported numbers, gross margin was about 39% in H1 2025 versus roughly 45% last year – understandable given the lower volumes and zinc price.
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.
