China-focused zinc and gold group Griffin Mining scored a �233,500 loss-to-profit turnaround last year and is seeking to expand further.

AIM-quoted Griffin turned a �61,000 loss into pre-tax profits of �172,500 last year on maiden revenues of �3.4 million from China's Caijiaying zinc and gold mine, a project which the company developed, built and commissioned from scratch and now operates. A strong zinc price played a key part in turning operating losses of �900,000 into a �237,000 profit before a move from profit into loss on foreign exchange and lower finance income.

Mladen Ninkov, Griffin's Australian chairman, says the company has increased its processing throughput by 50 per cent at Caijiaying to 500,000 tonnes of ore a year. Zinc has lately fallen from peak levels to below $3,450 a tonne, but Ninkov, a former financier, points out that the feasibility study assumed a zinc price of only $760 a tonne and adds, 'next year's financial statements should admirably exhibit what a zinc price of $3,300 a tonne can do for the financial performance of the company'.

According to Ninkov, Griffin is expanding operations at Caijiaying on the hope of building a second mine there. He says the company, with 'no debt' and (reduced) year-end cash of �3.7 million, is also investigating potential acquisitions, though recently strong commodity prices and frothy stockmarkets have made bargains elusive.

Griffin shares, down 3.75p today at 81.25p, have been affected by the latest market and sector sell-offs, but remain well up on Growth Company Investor's past recommendations at 4.25p, 18.4p and 34.5p. Some profit-taking might be wise, but a resumption of growth is on the cards.

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Griffin Mining	AIM	�282.43m	108.00p	0.00p
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