Griffin Mining warns of hit from commodity prices

Griffin Mining Ltd. (GFM.LN) said Tuesday that its first-half pretax profit declined 3.4% on year and that the second half of the year will be challenging if commodity prices remain subdued.

The company posted a pretax profit of $21.3 million for the six months ended June 30 compared with $22.1 million for the year-earlier period. It said costs rose because of ore extraction from greater depth and backfilling of waste material.

Revenue rose to $54.1 million from $52.3 million a year earlier as the company said a fall in zinc metal prices was offset by record production of gold in concentrate.

Net profit fell to $15.3 million from $15.8 million for the same period in 2017, the company said.

Shares at 0728 GMT were down 13% at 124 pence.

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