Half-yearly Report

27 August 2015

BISICHI MINING PLC

Interim Results for the period ended 30 June 2015

For the six months ending 30^th June 2015:

• Group Revenues:  £13.879 million           (2014: £12.313 million)

• EBITDA:               £1.232 million            (2014: £1.077 million)

• EPS (basic):         2.56p                        (2014: Loss: 0.26p)    

• EBITDA increased 14% over H1 2014 despite depressed international coal price

• Total production for first 6 months up 21% to 838,000 metric tonnes

• Continuing focus on control of costs and production at Black Wattle Colliery

• Physical demand for Black Wattle coal remains strong despite historically low international coal prices

• UK property portfolio performing well with voids across the portfolio at only 2.3% (2014: 2.9%.

END

For further information, please call:

Andrew Heller/Garrett Casey      Bisichi Mining PLC     020 7415 5030

Bisichi Mining PLC

Half year review – 30 June 2015

For the six month period ending on 30 June 2015, Bisichi Mining achieved earnings before interest, tax, depreciation and amortisation of £1.232million (2014: £1.077 million).

In an environment where we have seen coal prices continue to weaken, to a significant extent these earnings have been achieved due to the continued focus by your management in London and at Black Wattle Colliery, our direct coal mining asset in South Africa, on keeping cost of production low and ensuring adequate levels of production are achieved.

In 2015 to date, although demand for our coal has remained strong, international coal prices have continued to weaken. At the beginning of 2014, the average weekly price of Free on Board (FOB) Coal from Richards Bay Coal Terminal (API4) was US$85. By the end of last year the price had weakened to under US$64. Further weakness in 2015 has seen the coal price go below US$55, less than half the price of US$120 achieved in 2011. A depreciation in the South African Rand against the US Dollar has helped to offset partially this decline. We believe that we can best continue to counter the adverse impact of lower international coal prices through a continuation of our existing management strategy.

As part of Black Wattle’s production plan for the year, the mine has combined production from its existing reserves with coal received from the new reserve at Blue Nightingale, with total production for the first six months of the year of 838,000 metric tonnes (2014: 690,000 metric tonnes). As previously reported, the coal from the new reserve is delivered under an agreement with Blue Nightingale, a South African black owned and managed mining company.

Black Wattle continues to perform well under the Quattro Programme, which allows junior black-economic empowerment coal producers direct access to the coal export market via Richards Bay Coal Terminal. We would like to thank Vunani Limited, our black economic empowered shareholders at Black Wattle, for managing and developing this opportunity.

Finally, the Company's UK retail property portfolio, which is managed by London & Associated Properties PLC, continues to perform well with voids across the portfolio at the low level of 2.3% (2014: 2.9%).

Your directors intend to pay an interim dividend of 1p per share which will be paid on the 5 February 2016, to shareholders on the register at the close of business on 8 January 2016.

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.

Sir Michael Heller                                        Andrew Heller

Chairman                                                         Managing Director

27 August 2015                                              

Bisichi Mining PLC

Consolidated income statement

for the six months ended 30 June 2015

			Unaudited	Unaudited	Audited
			6 months ended	6 month ended	Year ended
			30 June	30 June	31 December
			2015	2014	2014
		Notes	£000	£000	£000
Group revenue		1	13,879	12,313	26,500
Operating costs			(13,450)	(12,858)	(25,049)
Operating profit/(loss) on trading activities			429	(545)	1,451
Decrease in value of investment properties			-	-	(6)
(Decrease)/Increase in value of other investments			(1)	(1)	1
Gains/(Loss) on held for trading investments			-	4	(82)
Operating profit/(loss)		1	428	(542)	1,364
Share of profit in joint ventures			100	285	563
Profit/(Loss) before interest and taxation			528	(257)	1,927
Interest receivable			124	157	234
Interest payable			(245)	(188)	(593)
Profit/(Loss) before taxation		1	407	(288)	1,568
Income tax		2	(87)	159	(365)
Profit/(Loss) for the period			320	(129)	1,203
Attributable to:
Equity holders of the company			273	(28)	1,103
Non-controlling interest			47	(101)	100
Profit/(Loss) for the period			320	(129)	1,203
Earnings/(Loss) per share - basic		3	2.56p	(0.26p)	10.33p
Earnings/(Loss) per share - diluted		3	2.56p	(0.26p)	10.23p

Bisichi Mining PLC

Consolidated statement of comprehensive income

for the six months ended 30 June 2015

		Unaudited	Unaudited	Audited
		6 months ended	6 months ended	Year ended
		30 June	30 June	31 December
		2015	2014	2014
		£000	£000	£000
Profit/(Loss) for the period		320	(129)	1,203
Other comprehensive income:
Exchange differences on translation of foreign operations		(217)	(135)	(121)
Transfer of gain on available for sale investments		-	-	56
Loss on available for sale investments		(28)	-	-
Taxation		6	-	(15)
Other comprehensive income for the period, net of tax		(239)	(135)	(80)
Total comprehensive income for the period		81	(264)	1,123
Attributable to:
Equity shareholders		58	(149)	1,036
Non-controlling interest		23	(115)	87
Total comprehensive income for the period		81	(264)	1,123

Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2015
		Unaudited		Unaudited	Audited
		30 June		30 June	31 December
		2015		2014	2014
Assets		£000		£000	£000
Non-current-assets
	Value of investment properties  attributable to the group	11,620		11,576	11,575
	Fair value of head leases	195		196	195
	Investment property	11,815		11,772	11,770
	Reserves, plant and equipment	6,159		6,212	6,064
	Investments in joint ventures	2,909		3,520	2,898
	Loan to joint venture	1,029		984	1,040
	Other investments	151		153	152
	Total non-current assets	22,063		22,641	21,924
Current assets
	Inventories	1,394		1,130	1,760
	Trade and other receivables	8,496		7,792	6,860
	Corporation tax recoverable	31		33	35
	Available for sale investments	768		826	796
	Cash and cash equivalents	2,789		1,232	2,838
	Total current assets	13,478		11,013	12,289
Total assets		35,541		33,654	34,213
Liabilities
Current liabilities
	Borrowings	(3,115)		(8,173)	(2,139)
	Trade and other payables	(5,738)		(6,315)	(4,986)
	Current tax liabilities	(23)		(2)	(23)
	Total current liabilities	(8,876)		(14,490)	(7,148)
Non-current liabilities
	Borrowings	(5,957)		(49)	(6,013)
	Provision for rehabilitation	(919)		(878)	(930)
	Finance lease liabilities	(195)		(196)	(195)
	Deferred tax liabilities	(2,210)		(1,704)	(2,208)
	Total non-current liabilities	(9,281)		(2,827)	(9,346)
Total liabilities		(18,157)		(17,317)	(16,494)
Net assets		17,384		16,337	17,719
Equity
	Share capital	1,068		1,064	1,068
	Share premium	258		249	258
	Translation reserve	(1,870)		(1,690)	(1,677)
	Available for sale reserves	19		-	41
	Other reserves	663		626	652
	Retained earnings	16,819		15,844	16,973
	Total equity attributable to equity shareholders		16,957	16,093	17,315
	Non-controlling interest	427		244	404
Total equity		17,384		16,337	17,719

Bisichi Mining PLC

Consolidated Cash Flow Statement

For the six months ended 30 June 2015

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2015	2014	2014
		£000	£000	£000
Cash flows from operating activities
Operating profit/(loss)		428	(542)	1,364
Depreciation		704	1,334	2,682
Unrealised (gain)/loss on investments held for trading		-	(4)	82
Unrealised loss/(gain) on other investments		1	1	(1)
Unrealised loss on investment properties		-	-	6
Share based payment expense		11	39	65
Share of profit of joint venture		88	-	-
Increase in working capital		(865)	(515)	(506)
Net interest paid		(79)	(31)	(272)
Income tax paid		-	-	(14)
Cash flow from operating activities		288	282	3,406
Cash flows from investing activities		(1,202)	(764)	(1,903)
Cash flows from financing activities		(218)	(229)	488
Net decrease in cash and cash equivalents		(1,132)	(711)	1,991
Cash and cash equivalents at 1 January		719	(1,322)	(1,322)
Exchange adjustment		95	97	50
Cash and cash equivalents at end of period		(318)	(1,936)	719
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		2,789	1,232	2,838
Bank overdrafts		(3,107)	(3,168)	(2,119)
Cash and cash equivalents at end of period		(318)	(1,936)	719

Bisichi Mining PLC

Consolidated statement of changes in shareholders' equity

for the six months ended 30 June 2015

	Share	Share	Translation	Available for sale	Other	Retained		Non- controlling	Total
	capital	premium	reserve	reserves	reserves	earnings	Total	Interest	Equity
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Balance as at 1 January 2014	1,064	249	(1,569)	-	587	16,297	16,628	359	16,987
Loss for the period	-	-	-	-	-	(28)	(28)	(101)	(129)
Other comprehensive income and expense	-	-	(121)	-	-	-	(121)	(14)	(135)
Total comprehensive  income  for the period	-	-	(121)	-	-	(28)	(149)	(115)	(264)
Dividend	-	-	-	-	-	(425)	(425)	-	(425)
Equity share options	-	-	-	-	39	-	39	-	39
Balance at 30 June 2014	1,064	249	(1,690)	-	626	15,844	16,093	244	16,337
Balance as at 1 January 2014	1,064	249	(1,569)	-	587	16,297	16,628	359	16,987
Revaluation of investment properties	-	-	-	-	-	(6)	(6)	-	(6)
Other income statement movements	-	-	-	-	-	1,109	1,109	100	1,209
Profit for the year	-	-	-	-	-	1,103	1,103	100	1,203
Other comprehensive income and expense	-	-	(108)	41	-	-	(67)	(13)	(80)
Total comprehensive  income  for the year	-	-	(108)	41	-	1,103	1,036	87	(1,123)
Dividend	-	-	-	-	-	(427)	(427)	(42)	(469)
Share issues	4	9	-	-	-	-	13	-	13
Equity share options	-	-	-	-	65	-	65	-	65
Balance at 31 December 2014	1,068	258	(1,677)	41	652	16,973	17,315	404	17,719
Profit for the year	-	-	-	-	-	273	273	47	320
Other comprehensive income and expense	-	-	(193)	(22)	-	-	(215)	(24)	(239)
Total comprehensive  income  for the period	-	-	(193)	(22)	-	273	58	23	81
Dividend	-	-	-	-	-	(427)	(427)	-	(427)
Equity share options	-	-	-	-	11	-	11	-	11
Balance at 30 June 2015	1,068	258	(1,870)	19	663	16,819	16,957	427	17,384

ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:                                                                                                                                                                      

The results for the six months ended 30 June 2015 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 2014.

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
		30 June	30 June	31 December
		2015	2014	2014
		£000	£000	£000
Revenue
Mining		13,377	11,763	25,536
Property		488	526	931
Other		13	24	33
		13,878	12,313	26,500
Operating profit/(loss)
Mining		286	(877)	721
Property		131	310	693
Other		11	25	(50)
		428	(542)	1,364
Share of profit in joint ventures		100	285	563
Interest receivable		124	157	234
Interest payable		(245)	(188)	(593)
Profit/(Loss) before taxation		407	(288)	1,568

2.          Taxation         

		Unaudited	Unaudited	Audited
		30 June	30 June	31 December
		2015	2014	2014
		£000	£000	£000
Based on the results for the period:
Corporation tax at 20.5% (2014: 23.5%)		2	-	16
Prior year adjustment - UK		-	-	20
		2	-	36
Deferred taxation		85	(159)	305
Prior year adjustment - UK		-	-	24
		87	(159)	365

3.          Earnings per share

Both the basic and diluted earnings per share calculations are based on a profit of £273,000 (2014: loss: £28,000). The basic earnings per share has been calculated on a weighted average of 10,676,839 (2014: 10,636,839) ordinary shares being in issue during the year. The diluted earnings per share has been calculated on the weighted average number of shares in issue of 10,676,839 (2014: 10,636,839) plus the dilutive potential ordinary shares arising from share options of nil (2014: nil) totalling 10,676,839 (2014: 10,636,839). In 2014, dilutive potential ordinary shares of 159,648 were excluded from the calculation of diluted ordinary shares as there was no dilutive effect due to the loss for the period.

4.         Investment properties

Investment properties are included at valuation as at 31 December 2014 plus additions in the period ended 30 June 2015.

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 2014. The group paid management fees of £68,750 (30 June 2014: £68,750 31 December 2014: £137,500) 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 2014 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 2015 as were used for the year ended 31 December 2014.

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 areas of estimation and uncertainty in the interim financial statements are in respect of:

• The valuation of investment properties (which are not re-valued at the half year end unless there is evidence of a material change in valuation);
• Depreciation and;
• Provision for rehabilitation (relating to environmental rehabilitation of mining areas)

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 2014, totalling £107,000 was paid on the 6^th of February 2015. The final dividend in respect of 2014, totalling £320,000 was approved  by the shareholders at the Annual General Meeting  held on the 10th June 2015 and was paid on the 31^st July 2015. The final dividend in respect of 2014 is included as a liability in these interim financial statements.

A proposed interim dividend for the year ended 31 December 2015 totalling £107,000 was approved by the Board of Directors on 27th August 2015 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 2014 Annual Report and Accounts. Risks and uncertainties identified by the Group are set out on page 10 of the 2014 Annual Report & Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2015 to the principle risks and uncertainties as set out in the 2014 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 27th August 2015.

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

27 August 2015            

DIRECTORS AND ADVISERS                                                                   

Directors                                              Sir 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 &                                            Garrett Casey CA(SA)                                                   

Registered office                                    24 Bruton Place            

                                                            London W1J 6NE                   

Black Wattle Colliery - Directors             Andrew Heller (Managing Director)       

                                                            Garrett Casey (Finance Director)

                                                            Robert Grobler (Mining Director)          

                                                            Ethan Dube (Commercial Director)       

Registrars and transfer office                  Capita Asset Services    

                                                            The Registry     

                                                            34 Beckenham Road     

                                                            Beckenham      

                                                            Kent  BR3 4TU

                                                            Telephone [phone]         

                                                            (Calls cost 10p per minute + network extras)      

                                                            or [phone] for overseas callers

                                                            Website: www.capitaassetservices.com

                                                            E-mail: [e-mail]          

Company registration number                112155 (Incorporated in England and Wales)     

Web site                                                www.bisichi.co.uk         

E-mail                                                  [e-mail]