Final Results

31 March 2007 BISICHI MINING PLC Preliminary Results for the year ended 31 December 2007 RECORD PERFORMANCE ACHIEVED BY SOUTH AFRICAN COAL MINE * Bisichi ends year in strongest ever financial position * Bisichi Mining generates trading profit in excess of £2.3 million * Group gearing falls from 22.4% to 15.2% * £3 million held in cash * Open cast coal mining expected to commence shortly at Black Wattle Colliery in South Africa * Memorandum of Understanding signed with Barclays Capital Commodities Principal Invest Area to fund future mining investments * Strong pipeline of potential coal reserve acquisitions * Investment property portfolio revaluation disguises exceptionally strong performance * Dividend increased by 20% to 3.0p per share Commenting on the results, Michael Heller, chairman of Bisichi Mining PLC said: "2007 has been an excellent year for Bisichi and, with a strong platform for growth now in place in South Africa, we look forward to the coming year with confidence." END For further information, please call: Andrew Heller, Robert Corry, Tom Kearney, Bisichi Mining PLC 020 7415 5030 Christopher Joll BLJ Financial 020 7259 0503/07721 330730 BISICHI MINING PLC Preliminary Results for Year ending 31st December 2007 CHAIRMAN'S STATEMENT I am pleased to be able to inform shareholders that Bisichi Mining has never been in a stronger financial position. Bisichi made a trading profit in 2007 in excess of £2.3 million, group gearing fell from 22.4% to 15.2%, we have over £3 million on deposit, we expect shortly to commence open cast mining at Black Wattle Colliery, opportunities to acquire new coal reserves in South Africa have never been better, and income from our property portfolio remained steady. The headline loss for the full year, which arises from the way in which we now have to treat unrealised gains and losses in our property portfolio, therefore disguises an exceptionally strong performance by your company. The success of the past year rests firmly on the strong performance of Black Wattle. With production averaging 110,000 metric tonnes per month, we have been able to take advantage of the substantial strengthening of prices for steam coal and metallurgical coal, both within South Africa and in the international export market. Although Black Wattle suffered only minimal disruptions from power cuts by the national electricity supplier Eskom, these have had no effect on Black Wattle's monthly production, sales or exports. We have received approval from the Department of Minerals and Energy (DME) for open cast mining at Black Wattle, and expect to commence these operations shortly. When combined with the benefits we are now deriving from our direct management of the washing plant, open cast mining will further improve yields and product quality. The signing of a Memorandum of Understanding (MOU) with Barclays Capital Commodities Principal Investment Area (Barclays Capital CPIA) for the expansion of Bisichi's operations in South Africa represents an important step in our growth strategy in South Africa. We hope to announce the first transaction for this investment framework in the near future. As I stated last year, the prospect of obtaining additional mineral reserves has never been better. The full implementation of the Mineral and Petroleum Resource Development Act (MPRDA) of 2004 has resulted in the transfer of a substantial number of coal reserves to empowered companies. We have a pipeline of prospective acquisitions that is continually growing. We are in the process of acquiring an additional drill rig and have put in place a technical team in Middelburg solely dedicated to the review and assessment of these reserves. Moreover, with the support and cooperation of our partner, Barclays Capital CPIA, we have a successful transaction model in place that will allow us to move quickly when opportunities present themselves. To support our growth strategy in South Africa, we have invited Robert Grobler, our General Mine Manager at Black Wattle, to join the Bisichi Board of Directors and to take on the role of Director of Mining with the responsibility to oversee all of our operations in South Africa. With regard to the legal issues surrounding the removal of our former partner at Black Wattle, there is nothing further to report other than to reiterate that court proceedings have been initiated in South Africa to obtain a declaration that the Mhlaba Dube Memorial Trust is no longer a shareholder. This legal action does not affect the operation of Black Wattle nor its mineral rights granted under the MPRDA. As stated previously, once this matter has been resolved, we will invite a new partner to join us as a shareholder in Black Wattle. We are proud of our commitment to, and track record in, the area of Black Economic Empowerment (BEE) and look forward to concluding more transactions with BEE groups as we grow in South Africa. Bisichi's UK retail property portfolio, managed by London & Associated Properties PLC, continues to contribute substantial cash to the company and is virtually fully let. Although there has been a significant downturn in the UK property market and, more specifically, in the valuation of Bisichi's property portfolio, we have not seen any effect on rental income or on the lettings within the portfolio. To underline our confidence in the future of Bisichi, your directors are recommending a dividend of 3.0p, compared to 2.50p per share in the previous year, an increase of 20 %. This will be paid on 11 August 2008 to shareholders on the register as of 4 July 2008. 2007 has been an excellent year for Bisichi, and, with a strong platform for growth now in place within South Africa, we look forward to the coming year with confidence. MICHAEL HELLER Chairman MINING REVIEW As the Chairman has stated, 2007 was an excellent year for Bisichi Mining PLC in South Africa. Our direct mining asset, the Black Wattle Colliery, had its most profitable year ever, supported by strong domestic and international coal markets, as well by improved yields and product quality as a result of investments we have made in our washing plant. We are hoping to commence open cast operations at Black Wattle, having recently received permission from the Department of Minerals and Energy (DME) to do so. The DME have recently concluded a compliance audit at the mine, as part of a nationwide Presidential audit of all operating mines, and Black Wattle received a favourable rating. Production The two conventional sections and the single continuous miner underground section performed well in 2007. Despite minor disruptions to our power supply, these had no impact on the mine's overall monthly production or sales contracts. Run of mine production was 1.33 million tonnes in 2007, an increase of 10.9% over 2006. We will increase production and yields at the mine once opencast operations commence. After nearly four years of operation, the continuous miner needs a major overhaul. We will carry out this work once the open cast section is operating so that any lost tonnage can be easily replaced. Markets 2007 witnessed an unprecedented strengthening of the coal market, a trend driven by growth in global demand, infrastructure constraints within the major coal basins, a high freight basis, weakening of the US dollar and substantial increases in the prices for competing fuels. At the beginning of 2007, the average weekly price for Free-on-Board (FOB) Coal from Richards Bay Coal Terminal (API4) stood at approximately US$50.00 per tonne. By the end of 2007, this price had nearly doubled. Obviously, this trend has had a major impact on the prices Black Wattle receives for both its steam and low phosphorous metallurgical coal products. On top of the strong price increases we benefited from in 2007, we have successfully negotiated a 64% increase in price from Q2 2008 to Q1 2009 for our steam coal, and a 42% increase in price from Q1 2008 to Q3 2008 for our metallurgical coal. The price increases should enhance substantially our profitability for the duration of 2008. Memorandum of Understanding (MOU) with Barclays Capital Commodities Principal Investment Area (Barclays Capital CPIA) As the Chairman has stated, the signing of the MOU with Barclays Capital CPIA in December 2007, for the acquisition and development of coal reserves within the Black Economic Empowerment (BEE) framework in South Africa, represents a major step forward for Bisichi. Barclays CPIA was established in 2006 with a mandate to invest in commodity-based projects and companies worldwide. Barclays CPIA is funded solely by Barclays and to date has made direct equity investments totalling circa US $650 million in coal mining, gold mining, oil & gas and biofuels. We expect to announce our first BEE transaction in partnership with Barclays CPIA in the near future. Acquisition of Coal Reserves We have seen a marked increase in the number and quality of coal reserves that have become available following the implementation of the Mineral and Petroleum Resources Development Act (MPRDA) of 2004. The team in our Middelburg office is reviewing a long pipeline of opportunities and, in consequence, we are in the process of acquiring another drill rig to support our prospecting efforts in the area. There is nothing further to report concerning the Pegasus Reserve other than that constructive discussions between all parties concerned are continuing. Community Support and Social Development Black Wattle is committed to improving the living conditions of its employees and the residents of the local community. We have been actively involved in the provision of various municipal services to our surrounding community, including waste removal, road repair, free bus services and emergency water supply assistance. In support of the creation of sustainable local industry, Black Wattle is establishing a brickmaking facility on the mine's property which will employ local residents who will be engaged in the production of bricks and blocks for sale to the local housing industry. Black Wattle will be providing assistance in the provision of raw materials including sand, water and electricity and will also be providing the initial capital equipment required for this facility. We hope that this local industry will be expanded as the market for bricks and blocks increases and Black Wattle will assist it with any expansion plans. Procurement Black Wattle has implemented a BEE-focussed procurement policy which strongly encourages our suppliers to establish and maintain strong BEE credentials. We monitor closely our monthly BEE expenditure and encourage potential BEE suppliers to compete for equipment and service contracts at Black Wattle. We are also actively engaged in the sale of our products to BEE enterprises, as is evidenced by our long term sales agreement with a BEE company for the purchase of our discard product for on-sale to Eskom. Employment Equity Bisichi takes its Employment Equity responsibilities at Black Wattle very seriously. At present, over 12 percent of the workforce consists of women, including those serving as artisans and electricians. Black Wattle's Workplace Skills Plan and Annual Training Report has been approved by the Mining Qualifications Agency. Skills Training Black Wattle has constructed a computer-equipped training centre which is currently carrying out Adult Basic Education Training (ABET), HIV/AIDS education and other training activities for the mining workforce. It is Black Wattle's intention to extend these training activities into the local community as soon as possible. People In order to take advantage of the many opportunities becoming available in South Africa, we are strengthening Bisichi's management team. Robert Grobler, who has served as General Mine Manager at Black Wattle for over 8 years, has been promoted to Director of Mining and joins the Bisichi Board of Directors. In addition to overseeing all of our operations in South Africa, Robert will be leading the expansion of our presence in the coal sector there. As a result of this promotion, we are currently interviewing for a replacement mine manager at Black Wattle. We have also recently appointed a Group Finance Manager, who will be based in London. Prospects When the opencast mining begins, it will have a dramatic effect on Black Wattle's mining operations, mining yield and profitability. With historically high prices being achieved for our products and new prospects becoming available for acquisition, I am confident that 2008 will be a successful year for our South African operations. ANDREW HELLER Managing Director Bisichi Mining Plc Consolidated income statement for the year ended 31 December 2007 Notes Year Year ended 31 Dec 2007 Ended 31 Dec Realised Unrealised Total 2006 £'000 £'000 £'000 £`000 Restated Group revenue 1 16,693 - 16,693 13,239 Operating costs (14,710) - (14,710) (12,346) __________ __________ __________ __________ Operating profit before 1 1,983 - 1,983 893 adjustments Increase in value of - (2,588) (2,588) 1,643 investment property Gains on held for trading - 31 31 81 investments Exceptional items 2 383 - 383 12 Share of profit in joint - (204) (204) 175 ventures __________ __________ __________ __________ Operating profit 1 2,366 (2,761) (395) 2,804 Interest receivable 394 - 394 232 Interest payable (458) - (458) (422) __________ __________ __________ __________ Profit before tax 2,302 (2,761) (459) 2,614 Taxation 3 (472) 1,023 551 (677) __________ __________ __________ __________ Profit for the period 1,830 (1,738) 92 1,937 __________ __________ __________ __________ Earnings per share 5 17.51p (16.63)p 0.88p 18.53p __________ __________ __________ __________ Diluted earnings per share 5 16.81p (15.97)p 0.845p 17.94p __________ __________ __________ __________ The 2006 Income statement has been restated to adjust a change in the deferred tax charge in the year. Realised income reflects all the mining and property operations. Unrealised income reflects the fixed asset revaluations and joint ventures, where the income has not actually been received. Bisichi Mining Plc Consolidated balance sheet As at 31 December 2007 2007 2006 £'000 £'000 Assets Restated Non-current assets Value of investment properties 14,725 17,270 attributable to group Fair value of head lease 267 146 Property 14,992 17,416 Reserves, plant and equipment 5,859 5,415 Investments in Joint Ventures 2,520 2,637 Other Investments 471 391 Total non-current assets 23,842 25,859 Current assets Inventories 126 56 Trade and other receivables 2,130 2,030 Corporation tax recoverable 174 26 Held for trading investments 770 700 Interest derivative 16 53 Cash and cash equivalents 3,199 3,275 6,415 6,140 Total assets 30,257 31,999 Liabilities Current liabilities Borrowings (2,402) (3,302) Trade and other payables (5,606) (5,887) Current tax liabilities (454) (33) (8,462) (9,222) Non-current liabilities Borrowings (3,139) (3,402) Finance lease liabilities (267) (146) Deferred tax liabilities (3,030) (3,899) (6,436) (7,447) (14,898) (16,669) Net assets 15,359 15,330 Equity Share capital 1,045 1,045 Translation reserve (1,276) (1,237) Other reserves 426 189 Retained earnings 15,164 15,333 Total equity 15,359 15,330 The 2006 balance sheet has been restated to reflect a change to the deferred tax provision. Bisichi Mining Plc Consolidated CASH FLOW STATEMENT For the year ended 31 December 2007 Year Year ended ended 31 December 31 December 2007 2006 £'000 £'000 Cash flows from operating activities Operating (loss) profit (395) 2,804 Depreciation 1,196 933 Share based payment expense 237 75 Unrealised gain on investment held for (31) (81) trading Unrealised loss (gain) on investment 2,588 (1,643) properties Share of profit of joint ventures - (175) ___ ___ Cash flow before working capital 3,595 1,913 Change in inventories (69) 57 Change in trade and other receivables (87) 1,780 Change in trade and other payables (454) (382) Change in provisions - 38 Acquisitions of held for trading 115 - investments Proceeds from held for trading investments 50 10 ___ ___ Cash generated from operations 3,150 3,416 Interest received 394 232 Interest paid (458) (422) Income tax paid (43) 28 ___ ___ Cash flow from operating activities 3,043 3,254 ___ ___ Acquisition of reserves, plant and (1,775) (1,893) equipment Proceeds from sale of investment 158 19 properties, reserves, plant and equipment Acquisitions of investments (78) (10) ___ ___ Cash flow from investing activities (1,695) (1,884) ___ ___ Cash flow from financing activities Borrowings drawn 163 1,380 Borrowings repaid (990) (498) Equity dividends paid (261) (235) ___ ___ Cash flow from financing activities (1,088) 647 ___ ___ Net increase in cash and cash equivalents 260 2,017 ___ ___ Cash and cash equivalents at 1 January 978 (969) Exchange adjustment 6 (70) ___ ___ Cash and cash equivalents at 31 December 1,244 978 ___ ___ Bisichi Mining Plc Consolidated STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY For the year ended 31 December 2007 Share Translation Other Retained Total Minority Total equity reserve earnings interest capital reserves £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 1 January 1,045 56 114 14,606 15,821 592 16,413 2006 Restatement - (218) - (533) (751) (451) (1,202) _____________ _____________ ____________ ____________ ____________ ____________ ____________ Restated opening balance 1,045 (162) 114 14,073 15,070 141 15,211 Revaluation of investment - - - 1,643 1,643 - 1,643 properties Movement on fair value of - - - 17 17 - 17 derivatives Other income statement - - - 465 465 - 465 movements Profit for the year - - - 2,125 2,125 - 2,125 Exchange adjustment - (1,297) - - (1,297) - (1,297) _____________ _____________ ____________ ____________ ____________ ____________ ____________ Total recognised income - (1,297) - 2,125 828 - 828 and expense for the period Dividend - - - (235) (235) - (235) Cancellation of minority - - - - - (141) (141) interest Equity share options - - 75 - 75 - 75 _____________ _____________ ____________ ____________ ____________ ____________ ____________ Balance at 31 December 1,045 (1,459) 189 15,963 15,738 - 15,738 2006 Prior restatement - in - 222 - (630) (408) - (408) year effect _____________ _____________ ____________ ____________ ____________ ____________ ____________ Restated prior year 1,045 (1,237) 189 15,333 15,330 - 15,330 balance Revaluation of investment - - - (2,588) (2,588) - (2,588) properties Movement on fair value of - - - 16 16 - 16 derivatives Other income statement - - - 2,664 2,664 - 2,664 movements Profit for the year - - - 92 92 - 92 Exchange adjustment - (39) - - (39) - (39) _____________ _____________ ____________ ____________ ____________ ____________ ____________ Total recognised income - (39) - 92 53 - 53 and expense for the period Dividend - - - (261) (261) - (261) Equity share options - - 237 - 237 - 237 _____________ _____________ ____________ ____________ ____________ ____________ ____________ Balance at 31 December 1,045 (1,276) 426 15,164 15,359 - 15,359 2007 _____________ _____________ ____________ ____________ ____________ ____________ ____________ The 2006 Reserves have been restated to adjust a change in the deferred tax charge in the year. Bisichi Mining Plc ACOUNTING POLICIES aND NOTES TO ACCOUNTS Basis of accounting The results for the year ended 31 December 2007 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The principal accounting policies applied are the same as those set out in the Financial Statements for the year ended 31 December 2006. 1 SEGMENTAL ANALYSIS 31 December 31 December 2007 2006 £'000 £'000 Revenue Mining 15,594 12,138 Property 1,019 1,064 Other 80 37 _______ _______ 16,693 13,239 _______ _______ Operating profit before adjustments Mining 1,702 534 Property 269 350 Other 12 9 _______ _______ 1,983 893 _______ _______ Operating profit Mining 1,600 516 Property (2,072) 2,198 Other 43 90 _______ _______ (429) 2,804 _______ _______ 2 EXCEPTIONAL ITEMS 31 December 31 December 2007 2006 £'000 £'000 Gain on sale of investment 383 12 properties _______ _______ 3 TAXATION 31 December 31 December 2007 2006 £'000 £'000 Based on the results for the Restated year: Corporation tax at 30% (2005: 326 (46) 30%) Adjustment in respect of prior 4 143 years - UK _______ _______ 330 97 Deferred tax (881) 580 _______ _______ (551) 677 _______ _______ The deferred tax prior year restatement relates to the recognition of the liability on the difference between the book value of the plant and equipment and the written down tax value on which capital allowances have been claimed. As a result of the profitability of the mine the directors have determined that the previous basis of calculation was not appropriate and required correction. This full provision will equalise the tax charge in future years. The financial effect of the restatement on the prior years is set out in the Consolidated Statement of Changes in Share holders' Equity. * DIVIDEND A final dividend in respect of 2007 of 3.0p (2006: 2.5p) per share amounting to a total of £314,000 (2006: £261,000) is proposed by the board. The dividend proposed is not accounted for until it has been approved at the Annual General Meeting. The amount will be accounted for as an appropriation of revenue reserves in the year ending 31 December 2008. * EARNING PER SHARES Both the basic and diluted earnings per share calculations are based on a profit of £92,000 (2006: profit £1,937,000). The basic earnings per share have been calculated on 10,451,506 (2006: 10,451,506) ordinary shares being in issue during the period. The diluted earnings per share have been calculated on the number of shares in issue of 10,451,506 (2006: 10,451,506) plus the dilutive potential ordinary shares arising from share options of 433,438 (2006: 347,466) totalling 10,884,944 (2006: 10,798,972). * FINANCIAL INFORMATION The above financial information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The financial information has been extracted from the group's annual report and accounts for the year ended 31 December 2007 on which the auditors have not yet expressed an opinion, but for which an unqualified report is expected. Statutory accounts for the year ended 31 December 2006 which were prepared under IFRS, have been delivered to the Registrar of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. * Board approval These preliminary results were approved by the Board of Bisichi Mining PLC on 31 March 2008.

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