Half-yearly Report
30 August 2012
BISICHI MINING PLC
Interim Results for the period ended 30 June 2012
HIGHLIGHTS
A strong start to 2012
For the six months ending 30 June 2012
* Group Revenues: £16.5 million (H1 2011: £13.2 million)
* PBT: £1.1 million (H1 2011: Loss £1.8 million)
* EPS (basic): 10.9p (H1 2011: Loss per share 11.5p)
* Assets per share: £1.65 (H1 2011: £1.57)
Michael Heller, chairman, commented:
"The opening of a third opencast pit at our South African coal mining
subsidiary, combined with the development of additional domestic and
international markets for a wider range of our coal products has ensured a
strong start to 2012."
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030
Bisichi Mining PLC
Half year review - 30 June 2012
We are pleased to report that for the six month period ended on 30 June 2012,
Bisichi Mining made a profit before taxation of £1.1million (H1 2011: loss of £
1.8million). These results reflect the strong performance of our South African
coal mining subsidiary, Black Wattle Colliery.
As previously reported, the turnaround at Black Wattle Colliery can largely be
attributed to the opening of a third opencast pit early in the second half of
last year and the selling of our coal into new, lower quality, markets.
As a result of the opening of the third opencast pit, the mines' monthly
production for the first six months of this year increased to an average of
150,000 metric tonnes. This compares favourably with the average monthly
production of 110,000 metric tonnes achieved in the same period last year and
135,000 metric tonnes achieved in the second half of 2011.
The establishment of new, lower quality markets for some of our coal has
allowed us to mine coal that would otherwise be unsuitable for supply to our
traditional, higher quality market. The demand for this lower quality product
is strong from both local power utilities and the export market. The latter has
benefited from a substantial improvement in the performance of Transnet, the
State rail provider which delivered 67.5 million metric tonnes of export coal
to Richards Bay Coal Terminal ("RBCT") during the year ended March 2012
compared to 62.1 million metric tonnes in 2011. These improvements are expected
to be ongoing with the rail provider estimated to deliver over 73 million
metric tonnes of export coal to RBCT during its 2012/13 financial year.
In the circular posted to shareholders on 16 March 2012 we informed
shareholders that the estimated date for completion of the disposal of the
company's 49% shareholding in Ezimbokodweni Mining (Pty) Ltd was 15 May 2012.
The transaction has not, as yet, completed but we can confirm that negotiations
for the disposal remain ongoing. A further announcement will be made in due
course.
The company's UK retail property portfolio, which is managed by London &
Associated Properties PLC, continues to perform well. Despite reports of a slow
down in the UK's real estate market, rental voids across our retail property
portfolio remained at a low level of 2.7%.
We are pleased to announce that Bisichi Mining intends to pay an interim
dividend of 1p per share which will be paid on the 1 February 2013, to
shareholders on the register at the close of business on 4 January 2013.
In 2012 to date we have continued to benefit from the higher production at
Black Wattle and the strong demand for our coal which we see continuing for the
rest of the year. We therefore look forward to the future with confidence.
On behalf of the Board we would like to thank all our staff for their hard work
during the first six months of the year.
Michael Heller Andrew Heller
Chairman Managing Director
29 August 2012
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2012
Unaudited 6 Unaudited 6 Audited Year
months ended months ended ended
30 June 30 June 31 December
2012 2011 2011
Notes £000 £000 £000
Group revenue 1 16,477 13,228 29,909
Operating costs (15,268) (14,877) (31,028)
Operating profit/(loss) on 1,209 (1,649) (1,119)
trading activities
Decrease in value of investment - - (42)
properties
(Loss)/gains on held for trading (54) 3 (167)
investments
Operating profit/(loss) 1 1,155 (1,646) (1,328)
Share of profit /(loss) in 47 (1) (10)
joint ventures
Profit/(loss)before interest 1,202 (1,647) (1,338)
and taxation
Interest receivable 122 13 268
Interest payable (205) (197) (380)
Profit/(loss)before taxation 1 1,119 (1,831) (1,450)
Income tax 2 95 631 904
Profit/(loss)for the period 1,214 (1,200) (546)
Attributable to:
Equity holders of the 1,147 (933) (444)
company
Non-controlling interest 67 (267) (102)
Profit/(loss) for the period 1,214 (1,200) (546)
Earnings/loss per share - basic 3 10.86p (11.48)p (4.23)p
Earnings/loss per share - 3 10.57p (11.48)p (4.23)p
diluted
Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2012
Unaudited 6 Unaudited 6 Audited Year
months ended months ended ended
30 June 30 June 31 December
2012 2011 2011
£000 £000 £000
Profit/(Loss)for the period 1,214 (1,200) (546)
Other comprehensive income:
Exchange differences on translation of (143) (175) (575)
foreign operations
Other comprehensive income for the 1,071 (1,375) (575)
period, net of tax
Total comprehensive income for the 1,071 (1,375) (1,121)
period
Attributable to:
Equity shareholders 1,011 (1,092) (958)
Non-controlling interest 60 (283) (163)
Total comprehensive incomefor the 1,071 (1,375) (1,121)
period
Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2012
Unaudited Unaudited Audited
30 June 30 June 31 December
2012 2011 2011
Assets £000 £000 £000
Non-current-assets
Value of investment 12,068 12,110 12,068
properties attributable
to the group
Fair value of head 204 227 222
leases
Property 12,272 12,337 12,290
Reserves, plant and 7,887 9,285 7,926
equipment
Investments in joint 2,592 4,425 2,579
ventures
Other investments 148 150 148
Total non-current 22,899 26,197 22,943
assets
Current assets
Inventories 2,085 811 1,206
Trade and other 7,010 4,620 6,067
receivables
Corporation tax 47 55 133
recoverable
Held for trading 678 899 730
investments
Cash and cash 1,346 4,848 4,041
equivalents
11,166 11,233 12,177
Non-current assets held 1,820 - 1,785
for sale
Total current assets 12,986 11,233 13,962
Total assets 35,885 37,430 36,905
Liabilities
Current liabilities
Borrowings (6,898) (3,087) (8,157)
Trade and other (8,395) (9,352) (8,590)
payables
Current tax liabilities (102) (409) -
Total current (15,395) (12,848) (16,747)
liabilities
Non-current liabilities
Borrowings - (5,209) (86)
Provision for (1,002) (1,038) (965)
rehabilitation
Finance lease (204) (227) (222)
liabilities
Deferred tax (1,624) (1,546) (1,881)
liabilities
Total non-current (2,830) (8,020) (3,154)
liabilities
Total liabilities (18,225) (20,868) (19,901)
Net assets 17,660 16,562 17,004
Equity
Share capital 1,056 1,045 1,056
Share premium 169 - 169
Translation reserve (582) (91) (446)
Other reserves 507 492 500
Retained earnings 16,219 15,005 15,494
Total equity attributable 17,369 16,451 16,773
to equity shareholders
Non-controlling 291 111 231
interest
Total equity 17,660 16,562 17,004
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2012
Unaudited Unaudited Audited
30 June 30 June 31 December
2012 2011 2011
£000 £000 £000
Cash flows from operating activities
Operating profit/(loss) 1,155 (1,646) (1,328)
Depreciation 1,007 1,294 2,488
Unrealised gain/(loss) on investments held 54 (3) 167
for trading
Unrealised gain on investment properties - - 42
Share based payment expense 7 7 15
Realised share of profit in joint venture 33 - 21
(Increase)/ Decrease in working capital (188) 1,291 (713)
Net interest paid (83) (184) (112)
Income tax paid (60) (116) 245
Cash flow from operating activities 1,925 643 825
Cash flows from investing activities (1,153) (2,394) (3,409)
Cash flows from financing activities (2,264) (257) (585)
Net decreasein cash and cash equivalents (1,492) (2,008) (3,169)
Cash and cash equivalents at 1 January 1,114 3,977 3,977
Exchange adjustment 42 65 306
Cash and cash equivalents at end of period (336) 2,034 1,114
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 1,346 4,848 4,041
Bank overdrafts (1,682) (2,814) (2,927)
Cash and cash equivalents at end of period (336) 2,034 1,114
Bisichi Mining PLC
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2012
Non-
Share Share Translation Other Retained controlling Total
capital premium reserve reserves earnings Total Interest Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 1,045 - 68 485 16,356 17,954 394 18,348
January 2011
Loss for the period - - - - (933) (933) (267) (1,200)
Other comprehensive - - (159) - - (159) (16) (175)
income and expense
Total recognised - - (159) - (933) (1,092) (283) (1,375)
income and expense
for the period
Dividend - - - - (418) (418) - (418)
Equity share options - - - 7 - 7 - 7
Balance at 30 June 1,045 - (91) 492 15,005 16,451 111 16,562
2011
Balance as at 1 1,045 - 68 485 16,356 17,954 394 18,348
January 2011
Revaluation of - - - - (42) (42) - (42)
investment properties
Other income - - - - (402) (402) (102) (504)
statement movements
Loss for the year - - - - (444) (444) (102) (546)
Exchange adjustment - - (514) - - (514) (61) (575)
Total comprehensive - - (514) - (444) (958) (163) (1,121)
income for the year
Dividend 11 169 - - (418) (238) - (238)
Equity share options - - - 15 - 15 - 15
Balance at 31 1,056 169 (446) 500 15,494 16,773 231 17,004
December 2011
Profit for the year - - - - 1,147 1,147 67 1,214
Exchange adjustment - - (136) - - (136) (7) (143)
Total comprehensive - - (136) - 1,147 1,011 60 1,071
income for the period
Dividend - - - - (422) (422) - (422)
Equity share options - - - 7 - 7 - 7
Balance at 30 June 1,056 169 (582) 507 16,219 17,369 291 17,660
2012
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2012 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 2011.
1. Segmental analysis
For management purposes, the Group is organised into two operating Divisions,
Mining and Property. These Divisions are the primary basis on which the Group
reports its segment information. This is consistent with the way the Group is
managed and with the format of the Group's internal financial reporting.
Unaudited Unaudited Audited 31
30 June 30 June December
2012 2011 2011
Revenue
Mining 15,950 12,700 28,892
Property 489 491 989
Other 38 37 28
16,477 13,228 29,909
Operatingprofit/(loss)
Mining 834 (1,970) (1,762)
Property 339 288 588
Other (18) 36 (154)
1,155 (1,646) (1,328)
Share of profit/(loss) in 47 (1) (10)
joint ventures
Interest receivable 122 13 268
Interest payable (205) (197) (380)
Profit/(Loss)before 1,119 (1,831) (1,450)
taxation
2. Taxation
Based on the results for the period:
Corporation tax at 26.5%
(2011: 27%) 102 115 -
Prior year adjustment - SA - - (332)
102 115 (332)
Deferred taxation (197) (746) (572)
(95) (631) (904)
3. Earnings per share
Both the basic and diluted earnings per share calculations are based on a
profit of £1,147,000 (2011: loss: £1,200,000). The basic earnings per share has
been calculated on 10,556,839 (2011: 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 10,556,839 (2011: 10,451,506) plus the dilutive
potential ordinary shares arising from share options of 296,255 (2011: nil )
totalling 10,853,094 (2011: 10,451,506).
4. Properties
Properties are included at valuation as at 31 December 2011 plus additions in
the period ended 30 June 2012.
5. Related Parties
The related parties and the nature of costs recharged are as disclosed in the
group's annual financial statements for the year ended 31 December 2011. The
group paid management fees of £103,125 (30 June 2011: £137,500, 31 December
2011: £275,000) to London & Associated Properties PLC, an associated company.
6. Financial information
The above financial information does not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006. The figures for the year
ended 31st December 2011 are based upon the latest statutory accounts, which
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
498(2) or (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
European Union and the disclosure requirements of the Listing Rules.
The half year results have not been audited or subject to review by the
company's auditors.
The annual financial statements of Bisichi Mining PLC are prepared in
accordance with IFRS as adopted by European Union. The same accounting policies
are used for the six months ended 30 June 2012 as were used for the year ended
31 December 2011.
The assessment of new standards, amendments and interpretations issued but not
effective, are not anticipated to have a material impact on the financial
statements.
The largest area of estimation and uncertainty in the interim financial
statements is in respect of the valuation of investment properties (which are
not re-valued at the half year end). Other areas of estimation and uncertainly
are referred to in the group's annual financial statements.
There is no material seasonal impact on the group's financial performance.
Taxes on income in the interim periods are accrued using tax rates expected to
be applicable to total annual earnings.
The interim financial statements have been prepared on the going concern basis
as the Directors are satisfied the group has adequate resources to continue in
operational existence for the foreseeable future.
7 Dividend
The interim dividend in respect of 2011, totalling £105,000 was paid on the 3rd
of February 2012. The final dividend in respect of 2011, totalling £317,000 was
approved by the shareholders at the Annual General Meeting held on the 31st May
2012 and was paid on the 6th August 2012. The final dividend in respect of 2011
is included as a liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2012 totalling £
106,000 was approved by the Board of Directors on 29th August 2012 and has not
been included as a liability in these Interim Financial Statements.
8 Principal risks and uncertainties
The Group has an established risk management process which works within the
corporate governance framework as set out in the 2011 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
12 of the 2011 Annual Report & Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2012 to the
principle risks and uncertainties as set out in the 2011 Annual Report &
Accounts.
The principal risks as stated in the accounts reflect the challenging
environment in which the business operates and are considered under the
following broad headings:
Mining:
- Coal price
- Coal washing process
- Health & safety
- Coal qualities
- Currency movements
- Regulatory requirements & permissions
- Transport
- Power supply
- Flooding
- Environment
- Labour
Property:
- Property valuation
- Occupancy
9 Board approval
These interim results were approved by the Board of Bisichi Mining on 29th
August 2012.
DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKS
AND UNCERTAINITIES
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 annual report that could do so.
Michael Heller Andrew Heller
Chairman Managing Director
29 August 2012
DIRECTORS AND ADVISERS
Directors Michael A Heller MA, FCA (Chairman)
Andrew R Heller MA, ACA (Managing Director)
Robert Grobler PR Cert Eng (Mining Director)
Garrett Casey CA (SA) (Finance Director)
C A Joll MA (Non-executive)
John A Sibbald MA (Non-executive)
Secretary & Heather A Curtis ACIS
Registered office 24 Bruton Place
London W1J 6NE
Black Wattle Colliery - Directors Robert Corry (Chairman)
Andrew Heller (Managing Director)
Garrett Casey (Finance Director)
Robert Grobler (Mining Director)
Ethan Dube
General mine manager Luis Pinel
Registrars and transfer office Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
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.com
Company registration number 112155 (Incorporated in England and Wales)
Web site www.bisichi.co.uk
E-mail admin@bisichi.co.uk
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