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GFM

5.06%
NEUTRAL

Griffin Mining Reports Profit Decline Following Q4 Operations Suspension

Why we think this is neutral

The financial results show a mixed picture for Griffin Mining. While profits and revenue declined in 2024, this was largely due to the suspension of operations in Q4 following a fatality. The company maintains a strong balance sheet with no debt and significant cash reserves. Future prospects look promising with the resumption of operations, planned extraction from Zone II, and exciting high-grade gold discoveries. However, the high valuation and recent share price performance may lead to a negative market reaction to the decreased financial metrics. The company faces ongoing execution and safety risks that need to be carefully managed.

Key Points

  • Revenue decreased by 7.5% to $135.1 million in 2024
  • Profit before tax fell by 26.9% to $17.9 million
  • EPS declined from 8.03 cents to 6.08 cents
  • Operations suspended in Q4 2024 due to a fatality
  • Strong balance sheet with $48.8 million cash and no debt
  • Planned extraction from Zone II to begin in Q4 2025
  • Significant high-grade gold discoveries reported
  • P/E ratio of 32.9 suggests high valuation

Summary

The mining company faced a challenging year with suspended operations in Q4, leading to decreased profits and revenue. Despite this setback, it maintains a strong balance sheet and promising future prospects.

Griffin Mining's 2024 results reflect a challenging year, primarily due to the suspension of operations in Q4 following a fatality. Revenue decreased by 7.5% to $135.1 million, while profit before tax fell by 26.9% to $17.9 million. The company's EPS declined from 8.03 cents to 6.08 cents. Despite these setbacks, Griffin maintains a strong balance sheet with $48.8 million in cash and no debt. Future prospects look promising with the resumption of operations, planned extraction from Zone II in Q4 2025, and significant high-grade gold discoveries. The company's high valuation (P/E ratio of 32.9) and recent share price performance near 52-week highs suggest potential for a market correction following these results.

Key Dates

Q4 2025
Planned commencement of ore extraction from Zone II
June 23, 2025
Annual report to be posted to shareholders
ANNUAL RESULTS