This report is the updated version of the report uploaded on 26 April 2023 at 3:36 PM GMT +1

Griffin Mining Limited

GFM Details

Griffin Mining Limited (LSE: GFM) owns as well as operates through its 88.8% owned Joint Venture in China the Caijiaying Zinc Gold Mine, the profitable mine producing zinc, gold, silver, and lead metals in concentrates.

Production Results for 3 Months Ended 31^st March 2023

• Production in the Q1 FY 2023 was the record for a first quarter of any year since the commissioning of the Caijiaying Mine in 2005. Notably, production output was unimpeded this quarter by the usual Chinese New Year holidays.
• Mining as well as processing rates have been ramped up to now run consistently at the equivalent of around 1.5 million tonnes of ore per annum.

Outlook

It was mentioned that the Caijiaying Mine is clearly showing what it could achieve when it is unencumbered by extraneous events outside the control of the company.

Key Risks

The company is exposed to the risk of changes in commodity prices as well as in particular that for zinc, gold and to the lesser extent silver and lead.

Fundamental Valuation

EV/Sales Multiple Based Relative Valuation

Stock Recommendation

Over the last three months, the stock has given a return of 10.4%. The stock has made a 52-week low and high of GBX 64.0 and GBX 117.875, respectively.

Apart from the commodity risk, the company is exposed to risks such as credit risk, liquidity risk, etc. 

Hence, a ‘Sell’ rating has been provided on the stock at the current price of GBX 95.00 (as of April 26, 2023 at 12:25 PM (GMT +1)).

Technical Overview:

Daily Price Chart

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for share price chart and stock valuation is based on April 26, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.