Half-yearly Report

For Immediate Release 28 August 2008 BISICHI MINING PLC Half Year Results to 30 June 2008 OPEN CAST MINING DRIVES PRODUCTION SURGE AT BLACK WATTLE 2008 2007 Profit before interest, taxation and £1,628,000 £2,092,000 depreciation Profit before taxation £803,000 £1,510,000 Diluted earnings per share 5.39 p 10.25 p * Opencast mining commences at Black Wattle Colliery * Excellent prices achieved for international steam coal and metallurgical coal products * Second half starts with major uplift in profitability * Full and final settlement of all claims with former BEE Partner in respect of Black Wattle and Pegasus Commenting on the results, Michael Heller, Chairman of Bisichi Mining said: "The commencement of commercial opencast operations at Black Wattle will have a significant impact on the mine's performance, as evidenced by the results for July when more profit was made in the month than in the entire first six months of the year. This, combined with the very high prices being achieved for our products, gives me very considerable confidence for the future." END For further information, please call: Andrew Heller/Robert Corry/Tom Kearney, Bisichi Mining PLC 020 7415 5030 Christopher Joll, MJ2 Ltd 07721 330730 John Harrison/ James Black, Numis Securities 020 7260 1000 Half year review I am pleased to report that in the six months ended 30 June 2008, Bisichi Mining made a profit of£1,628,000 (2007: £2,092,000) on ordinary activities before interest, taxation, depreciation and amortisation. The 22% decrease in profit compared to the same period in 2007 reflects lower production in the first 3 months of 2008 due to localised flooding and scheduled maintenance on the Voest Alpine Continuous Miner. The first six months of 2008 has been a `story of two halves'. During the first three months production was inhibited by unusually high levels of rainfall, which caused localised flooding in the underground workings, and by the scheduled maintenance of the Voest Alpine Continuous Miner. Fortunately, Black Wattle's operations were only marginally affected by the widely reported power cuts which took place in January and these did not affect the monthly production, exports or sales. During the second three months, our management at the mine dealt successfully with the underground flooding and the Continuous Miner went back into full operation. As a result, the mine is now at full production and the second half of the year, with the open cast coming into operation in June, should be substantially more profitable than the first half. In fact, I am pleased to be able to report to shareholders that Black Wattle made more profit in the month of July than in the entire first six months of the year. The commencement of commercial opencast operations at Black Wattle will have a significant impact on the mine's performance because it will lower the average cost of production, increase average washing plant yields and will allow Black Wattle to mine its reserves more flexibly. In addition, the area being mined contains high yielding export quality thermal coal that will be mined over a 24 month period. A secondary adit was created to link the open cast mining with the existing underground conveyor belt network. This has eliminated the need to transport the coal from our opencast site by road and thus further reduced our production costs. It also gives us the added benefits of reduced dust, noise, and other forms of environmental pollution. Once this open cast block has been mined out we will move on to other opencast blocks. We envisage Black Wattle maintaining an opencast section for the remainder of its life. The two remaining underground sections - both the traditional drill-and-blast and the mechanised section where our Continuous Miner is operating - are producing well and, combined with the opencast, we anticipate producing 130,000 metric tonnes per month on a consistent basis. We are investigating the possibility of expanding our washing plant capacity to accommodate increased production from the various sections. During the period, the market for domestic and internationally-traded coal has been very strong, with prices reaching their highest levels in recent history. In April, we announced a 46 percent increase in the price for our domestic thermal coal and a 42 percent increase in the price for our metallurgical product. We are pleased to report that in July, we negotiated a further 68 percent increase in the price for our metallurgical coal. The price for export coal is also very high and we are taking advantage of the buoyancy in the market by locking in prices when it suits us to do so. The sale of our discard product to the local power industry continues to add a substantial amount of nil cost revenue whilst simultaneously reducing our overall rehabilitation liability In April, we announced the full and final settlement of all disputes with Bisichi's former Black Economic Empowerment (BEE) partner. We are in the process of selecting a new BEE partner for Black Wattle and hope to make an announcement in the near future. Regarding the Pegasus reserve, there is currently nothing further to report to shareholders, except to state that the settlement of the dispute with Endulwini Resources (pty) Ltd, which had 51% of the equity in the contract, has cleared a major impediment to the successful conclusion of this transaction with the vendors. In order to bolster the management of our operations in South Africa and to take advantage of sharp increase in the availability of mineral rights, we have promoted Robert Grobler to Mining Director of Bisichi Mining plc and appointed Luis Pinel to replace him as General Manager at Black Wattle. Despite the downturn in UK property prices, our UK property portfolio, which is managed by London & Associated Properties PLC, is virtually fully let and there has been no reduction in the income we receive from rentals. During the second half of the year management will continue to focus on increasing the levels of profitability at our operations at Black Wattle whilst at the same time continuing to identify opportunities for expansion in South Africa. With commercial production of our opencast operations now under way and coal prices at such high levels, I look to the future with confidence. Michael Heller Andrew Heller Chairman Managing Director 27 August 2008 Bisichi Mining PLC Consolidated income statement for the six months ended 30 June 2008 6 months 6 months Year ended ended 30 ended 30 31 June June December 2008 2007 2007 Notes £000 £000 £000 Group revenue 1 9,076 5,009 16,693 Operating costs (8,097) (3,506) (14,710) Operating profit before 1 979 1,503 1,983 adjustments Decrease in value of investment properties - - (2,588) (Loss)/gains on held for trading (108) 36 31 investments Exceptional items - - 383 Share of profit in joint ventures (25) (6) (204) Operating profit 1 846 1,533 (395) Interest receivable 170 169 394 Interest payable (213) (192) (458) Profit before taxation 803 1,510 (459) Income tax expense 2 (204) (394) 551 Profit for the period 599 1,116 92 Attributable to: Equity shareholders 599 1,116 92 Minority interest - - - Profit for the year 599 1,116 92 Earnings per share - basic 3 5.73 p 10.68 p 0.88 p Earnings per share - diluted 3 5.39 p 10.25 p 0.85 p Bisichi Mining PLC Consolidated Balance Sheet as at 30 June 2008 30 June 30 June 31 December 2008 2007 2007 Restated Assets £000 £000 £000 Non-current-assets Value of investment properties 14,838 17,278 14,725 attributable to the group Fair value of head leases 267 153 267 Property 15,105 17,431 14,992 Reserves, plant and equipment 5,720 5,185 5,859 Investments in joint ventures 3,214 2,786 2,520 Other investments 392 302 471 Total non-current assets 24,431 25,704 23,842 Current assets Inventories 31 78 126 Trade and other receivables 2,992 2,832 2,130 Corporation Tax Recoverable 189 51 174 Held for trading investments 685 736 770 Interest derivative - 39 16 Cash and cash equivalents 2,263 3,804 3,199 Total current assets 6,160 7,540 6,415 Total assets 30,591 33,244 30,257 Liabilities Current liabilities Borrowings (3,414) (3,333) (2,402) Trade and other payables (4,305) (5,605) (5,606) Current tax liabilities (81) (256) (454) Total current liabilities (7,800) (9,194) (8,462) Non-current liabilities Borrowings (3,980) (3,480) (3,139) Finance lease liabilities (267) (153) (267) Deferred tax liabilities (2,991) (4,074) (3,030) Total non-current liabilities (7,238) (7,707) (6,436) Total liabilities (15,038) (16,901) (14,898) Net assets 15,553 16,343 15,359 Equity Share capital 1,045 1,045 1,045 Translation reserve (1,785) (1,340) (1,276) Other reserves 544 189 426 Retained earnings 15,763 16,449 15,164 Total equity attributable to equity shareholders 15,567 16,343 15,359 Minority interest (14) - - Total equity 15,553 16,343 15,359 Bisichi Mining PLC Consolidated Cash Flow Statement for the six months ended 30 June 2008 30 June 30 June 31 December 2008 2007 2007 £000 £000 £000 Cash flows from operating activities Operating profit 846 1,533 (395) Depreciation 782 559 1,196 Unrealised gain on investments held for 108 (36) (31) trading Unrealised gain on investment properties - - 2,588 Share of profit from joint ventures 25 (6) 204 Share based payment expense 118 - 237 Decrease (increase) in net current assets 154 (960) (649) Net interest paid (43) (23) (64) Income tax paid (773) (6) (43) Cash flow from operating activities 1,217 1,061 3,043 Cash flows from investing activities (1,874) (540) (1,695) Cash flows from financing activities (813) (594) (1,088) Net (decrease) increase in cash and cash (1,470) (73) 260 equivalents Cash and cash equivalents at 1 January 1,244 978 978 Exchange adjustment (39) - 6 Cash and cash equivalents at end of period (265) 905 1,244 Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts: Cash and cash equivalents 2,263 3,804 3,199 Bank overdraft (2,528) (2,899) (1,955) Cash and cash equivalents at end of period (265) 905 1,244 Bisichi Mining PLC CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY for the six months ended 30 June 2008 Share Translation Other Retained Minority Total capital reserve reserves earnings Total interest Equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 1 January 1,045 (1,237) 189 15,333 15,330 - 15,330 2007 Movement on fair value - - - (14) (14) - (14) of derivatives Other income statement - - - 1,130 1,130 - 1,130 movements Profit for the period - - - 1,116 1,116 - 1,116 Exchange adjustments - (103) - - (103) - (103) Total recognised income - (103) - 1,116 1,013 - 1,013 and expense for the year Balance at 30 June 2007 1,045 (1,340) 189 16,449 16,343 - 16,343 Balance as at 1 January 1,045 (1,237) 189 15,333 15,330 - 15,330 2007 Revaluation of - - - (2,588) (2,588) - (2,588) investment properties Movement on fair value - - - 16 16 - 16 of derivatives Other income statement - - - 2,664 2,664 - 2,664 movements Profit for the year - - - 92 92 - 92 Exchange adjustments - (39) - - (39) - (39) Total recognised income - (39) - 92 53 - 53 and expense for the year 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 Movement on fair value - - - (16) (16) - (16) of derivatives Other income statement - - - 615 615 - 615 movements Profit for the year - - - 599 599 - 599 Exchange adjustments - (509) - - (509) - (509) Total recognised income - (509) - 599 90 - 90 and expense for the year Equity share options - - 118 - 118 - 118 Purchase of additional - - - - - (14) (14) shares in subsidiary Balance at 30 June 2008 1,045 (1,785) 544 15,763 15,567 (14) 15,553 ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS: The results for the six months ended 30 June 2008 have been prepared in accordance with International Financial Reporting Standards (IFRS). The principal accounting policies applied are the same as those set out in the Financial Statements for the year ended 31 December 2007. 1. Segmental analysis 30 June 30 June 31 December 2008 2007 2007 Restated Revenue Mining 8,539 4,479 15,594 Property 514 505 1,019 Other 23 25 80 9,076 5,009 16,693 Segment result Mining 888 1,215 1,702 Property 97 268 269 Other (6) 20 12 979 1,503 1,983 Operating profit Mining 875 1,215 1,600 Property 97 268 (2,038) Other (126) 50 43 846 1,533 (395) 2. Taxation 30 June 30 June 31 December 2008 2007 2007 Restated Based on the results for the year: Corporation tax at 28% (2007: 30%) 103 437 326 Prior year adjustment - UK - - 4 103 437 330 Deferred taxation 101 (43) (881) 204 394 (551) The prior year restatement of the balance sheet for the six months ending 30th June 2007 is a result of an increased deferred tax charge in the 2006 financial year, which 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. 3. Earnings per share Both the basic and diluted earnings per share calculations are based on a profit of £599,000 (2007: £1,116,000). The basic earnings per share has been calculated on 10,451,506 (2007: 10,451,506) ordinary shares being in issue during the year. The diluted earnings per share has been calculated on the number of shares in issue of 10,451,506 (2007: 10,451,506) plus the dilutive potential ordinary shares arising from share options of 660,798 (2007: 432,175) totaling 11,112,304 (2007: 10,883,681). 4. Properties Properties are included at valuation as at 31 December 2007 plus additions in the period ended 30 June 2008. 5. Legal dispute In April the company announced the settlement of all disputes with its former Black Economic Empowerment partner in South Africa. 6. Financial information The above financial information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 2007 which were prepared under International Financial Reporting Standards, have been delivered to the Registrars of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under section 498(2) and (3) of the Companies Act 2006. As required by the Disclosure and Transparency Rules of the UK's Financial Services Authority, the interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and in accordance with both IAS 34 'Interim Financial Reporting' as adopted by the EU and the disclosure requirements of the Listing Rules. The same accounting policies are used for the six months ended 30 June 2008 as were used for the year ended 31 December 2007. The interim results have not been audited or subject to review by the company's auditors. 7. Dividend The final dividend in respect of 2007, totaling £314,000 was paid on 11 August 2008. 8. Board approval These interim results were approved by the Board of Bisichi Mining on 27 August 2008. DIRECTORS RESPONSIBILITY STATEMENT We confirm to the best of our knowledge a. the condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU; b. the interim management report includes a fair review of the information required by: 1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and 2. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last described in the last annual report that could do so. Michael Heller Andrew Heller Chairman Managing Director 27 August 2008 DIRECTORS AND ADVISERS Directors Michael A Heller MA, FCA (Chairman) Andrew R Heller MA, ACA (Managing Director) Robert Grobler (Mining Director C A Joll MA (Non-executive) Thomas M Kearney (Commercial John A Sibbald BL(Non-executive Secretary Michael C Stevens FCA Registered office 30-35 Pall Mall London SW1Y 5LP Black Wattle Colliery - Directors Robert Corry (Chairman) Andrew Heller (Managing Director) Thomas Kearney David Nkosi General mine manager Luis Pinel Registrars and transfer office Capita Registrars Northern House Woodsome Park Fenay Bridge Huddersfield HD8 0GA Telephone 0871 664 0300 (Calls cost 10p per minute + network extras) or +44 208 639 3399 for overseas callers Website: www.capitaregistrars.com E-mail: ssd@capitaregistrars Company registration number112155 (Incorporated in England and Wales) Web sitewww.bisichi.co.uk E-mailAdmin@bisichi.co.uk

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