Half-yearly Report

25 September 2007 BISICHI MINING PLC Half Year Results to 30 June 2007 RECORD SIX MONTHS FOR BISICHI MINING 2007 2006 Profit before interest, taxation and £2,092,000 £752,000 depreciation Profit before taxation £1,510,000 £233,000 Diluted earnings per share 10.25 p 2.56 p * Company increases year-on-year profitability by 278% * Record profitability at Black Wattle Colliery, South Africa * Domestic & export coal prices remain strong * New Minerals Act creating exciting opportunities for Bisichi in South Africa Commenting on the results, Michael Heller, Chairman of Bisichi Mining said: "Looking to the second half of the year, management will continue to focus on maintaining the high levels of profitability at our operations at Black Wattle while at the same time continuing to identify opportunities in South Africa. With the mine making record profits and a significant increase in the number of opportunities before us, I look forward to the future with confidence." END For further information, please call: Andrew Heller/Robert Corry/Tom Kearney, Bisichi Mining PLC 020 7415 5030 Christopher Joll, MJ2 Ltd 020 7491 7776 Chairman's Statement I am pleased to report that in the six months ended 30 June 2007, Bisichi Mining made a profit on ordinary activities before interest, taxation, depreciation and amortisation of £2,092,000 (2006: £752,000). This is a 278% increase in profit compared to the same period in 2006 and in large part reflects the strong performance of the Black Wattle Colliery, which contributed the most profitable six months in the mine's history to these excellent results . A number of important decisions taken by your management at the Black Wattle Colliery are continuing to show positive results. Key among these actions was the decision to take direct control of the washing plant from our contractor. Capital investment coupled with intensive management of the facility has resulted in an increase in both the yield and the quality of the washed product coming out of the plant. The net result has been a sizeable increase in the amount of coal available for sale, which, in a strong market, has been particularly profitable. At the operational level, production continues to keep pace with the strong demand for our coal and we are consistently performing at the high end of our monthly target tonnage of 120,000 run of mine tonnes. All sections - both traditional drill-and-blast, and the mechanized section where our continuous miner is operating - are producing well while maintaining an excellent safety record. We are still awaiting final approval from the Department of Minerals and Energy to commence open cast mining at Black Wattle. During the period, the market for coal internationally and within South Africa has been particularly strong. In July, we achieved a 12 percent increase in the price for our premium low phosphorous product which is sold to the domestic ferrochrome industry. The price for export coal has also reached a new three year high and we are taking advantage of the buoyancy in the market by locking in prices when it suits us to do so. We are now selling export coal `Free on Rail' (FOR) at our Uitkyk rail siding, whereas previously we were selling `Free on Board' (FOB) at Richards Bay. Because we no longer have to charge our customers for rail transport and port handling costs, the change in sales terms impacts our overall turnover figure. Accordingly, the turnover figure for the period is lower than that for the same period in 2006 but does not reflect any reduction in sales volumes. In fact, the actual profitability on each tonne sold has increased due to improved yields and the prices we are receiving for export coal on a FOR basis. Coal prices for domestic industrial customers also remain very strong and the sale of our discard product to the local power industry continues to add a substantial amount of revenue at no cost while simultaneously reducing our overall rehabilitation liability. As reported in our 2006 Annual Accounts, the sharp increase in the availability of mineral rights for development has greatly expanded the pipeline of potential projects for us to develop. The satellite office in Middelburg is now fully staffed and is actively pursuing these opportunities as they arise. Constructive discussions have been taking place between all parties concerning the Pegasus Reserve and we believe that we are close to a resolution of this issue. Regarding our shareholder dispute at Black Wattle Colliery, we have nothing further to report to shareholders at this time except to reiterate that this legal action does not affect the operation of Black Wattle Colliery nor its new order mineral rights. Our UK property portfolio, which is managed by London & Associated Properties PLC, is virtually fully let. We have been advised that the final tranche payment following the compulsory purchase of the Ritz site in Bradford will be released to us shortly. This payment will provide the company with additional cash reserves. Looking to the second half of the year, management will continue to focus on maintaining the high levels of profitability at our operations at Black Wattle while at the same time continuing to identify opportunities in South Africa. With the mine making record profits and a significant increase in the number of opportunities before us, I look forward to the future with confidence. Michael Heller Chairman 25 September 2007 Bisichi Mining Plc Consolidated income statement for the six months ended 30 June 2007 Notes 6 months 6 months Year ended Ended Ended 30 June 30 June 31 Dec 2007 2006 2006 £'000 £'000 £`000 Group Revenue * 1 5,009 6,101 13,239 Operating costs (3,506) (5,870) (12,346) ______________ ______________ ______________ Operating profit before 1 1,503 231 893 adjustments Increase in value of investment - - 1,643 properties Gains on held for trading 36 32 81 investments Exceptional items - 7 12 Share of profit in joint venture (6) 77 175 ______________ ______________ ______________ Operating profit 1 1,533 347 2,804 Interest receivable 169 87 232 Interest payable (192) (201) (422) ______________ ______________ ______________ Profit before taxation 1,510 233 2,614 Income tax expense 2 (394) 10 (489) ______________ ______________ ______________ Profit for the period 1,116 243 2,125 ______________ ______________ ______________ Profit attributable to equity 1,116 276 2,125 shareholders (Loss) profit attributable to - (33) - minority interest ______________ ______________ ______________ 1,116 243 2,125 ______________ ______________ ______________ Earnings per share 3 10.68p 2.64p 20.33p ______________ ______________ ______________ Diluted earnings per share 3 10.25p 2.56p 19.68p ______________ ______________ ______________ * Mining revenue for 2007 reflects the export coal sold on a `Free on Rail' (FOR) basis, whereas in 2006 it was on a `Free on Board' (FOB) basis at Richards Bay Coal Terminal, which included additional rail transport and port handing costs. Bisichi Mining Plc Consolidated balance sheet As at 30 June 2007 Notes 30 June 30 June 31 Dec 2007 2006 2006 £'000 £'000 £'000 Assets Non-current assets Value of properties 4 17,278 15,607 17,270 attributable to group Fair value of head leases 153 153 146 Property 17,431 15,760 17,416 Reserves, plant and equipment 5,185 4,430 5,415 Investments in joint venture 2,786 2,028 2,637 Other investments 302 986 391 Deferred tax asset - 313 234 _______________ _______________ _______________ Total non-current assets 25,704 23,517 26,093 _______________ _______________ _______________ Current assets Inventories 78 163 56 Trade and other receivables 2,875 1,965 2,056 Held for trading investments 736 662 700 Interest derivative 39 37 53 Cash and cash equivalents 3,804 3,162 3,275 _______________ _______________ _______________ Total current assets 7,532 5,989 6,140 _______________ _______________ _______________ Total assets 33,236 29,506 32,233 _______________ _______________ _______________ Liabilities Current liabilities Borrowings (3,333) (2,944) (3,302) Trade and other payables (5,605) (3,699) (5,887) Current tax liabilities (248) (60) (33) _______________ _______________ _______________ Total current liabilities (9,186) (6,703) (9,222) _______________ _______________ _______________ Non-current liabilities Borrowings (3,480) (4,319) (3,402) Finance lease liabilities (153) (153) (146) Deferred tax liabilities (2,915) (2,523) (2,974) _______________ _______________ _______________ Total non-current liabilities (6,548) (6,995) (6,522) _______________ _______________ _______________ Total liabilities (15,734) (13,698) (15,744) _______________ _______________ _______________ Net assets 17,502 15,808 16,489 _______________ _______________ _______________ Equity Share capital 1,045 1,045 1,045 Translation reserve (1,344) (699) (1,241) Other reserves 189 125 189 Retained earnings 17,612 14,882 16,496 _______________ _______________ _______________ Total shareholders' equity 17,502 15,353 16,489 Minority interest in equity - 455 - _______________ _______________ _______________ Total equity 17,502 15,808 16,489 _______________ _______________ _______________ Bisichi Mining Plc Consolidated CASH FLOW STATEMENT For the six months ended 30 June 2007 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Cash flows from operating activities Operating profit 1,533 347 2,804 Depreciation 559 405 933 Unrealised gain on investments (36) (32) (81) held for trading Unrealised gain on investment - - (1,643) properties Share of profit from joint (6) (77) (175) venture Hedging - (1) - Share based payment expense - 11 75 (Increase) decrease in net (960) 2,454 1,503 current assets Net interest paid (23) (114) (190) Income tax paid (6) (191) 28 _____________ _____________ _____________ Cash flows from operating 1,061 2,802 3,254 activities Cash flows from investing (540) (636) (1,884) activities Cash flow from financing (594) (281) 647 activities _____________ _____________ _____________ Net (decrease) increase in cash (73) 1,885 2,017 and cash equivalents Cash and cash equivalents at 1 978 (969) (969) January Exchange adjustment - 126 (70) _____________ _____________ _____________ Cash and cash equivalents at 905 1,042 978 period end _____________ _____________ _____________ 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 3,804 3,162 3,275 Bank overdraft (2,899) (2,120) (2,297) _____________ _____________ _____________ Cash and cash equivalents at 905 1,042 978 end of period _____________ _____________ _____________ Bisichi Mining Plc Consolidated STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY For the six months ended 30 June 2007 Share Translation Other Retained Total Minority Total reserve earnings capital reserves interest equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 January 1,045 56 114 14,606 15,821 592 16,413 2006 Movement on fair - - - 37 37 - 37 value of derivatives Other income - - - 239 239 (33) 206 statement movements Profit for the period - - - 276 276 (33) 243 Exchange adjustments - (755) - - (755) (104) (859) Total recognised - (755) - 276 (479) (137) (616) income and expense for the period Equity share options - - 11 - 11 - 11 Balance at 30 June 1,045 (699) 125 14,882 15,353 455 15,808 2006 Balance at 1 January 1,045 56 114 14,606 15,821 592 16,413 2006 Revaluation of - - - 1,643 1,643 - 1,643 investment property Movement on fair - - - 17 17 - 17 value of derivatives Other income - - - 465 465 - 465 statement movements Profit for the year - - - 2,125 2,125 - 2,125 Exchange adjustments - (1,297) - - (1,297) - (1,297) Total recognised - (1,297) - 2,125 828 - 828 income and expense for the year Dividend - - - (235) (235) - (235) Cancellation of - - - - - (592) (592) minority interest Equity share options - - 75 - 75 - 75 Balance at 31 1,045 (1,241) 189 16,496 16,489 - 16,489 December 2006 Movement on fair - - - (14) (14) - (14) value of derivatives Other income - - - 1,130 1,130 - 1,130 statement movements Profit for the period - - - 1,116 1,116 - 1,116 Exchange adjustments - (103) - - (103) - (103) Total recognised - (103) - 1,116 1,013 - 1,013 income and expense for the period Balance at 30 June 1,045 (1,344) 189 17,612 17,502 - 17,502 2007 Bisichi Mining Plc ACOUNTING POLICIES aND NOTES TO ACCOUNTS The results for the six months ended 30 June 2007 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 2006. 1 SEGMENTAL ANALYSIS 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Revenue * Mining 4,479 5,556 12,138 Property 505 524 1,064 Other 25 21 37 _____________ _____________ _____________ 5,009 6,101 13,239 _____________ _____________ _____________ Operating profit before adjustments Mining 1,215 23 534 Property 268 198 350 Other 20 10 9 _____________ _____________ _____________ 1,503 231 893 _____________ _____________ _____________ Operating profit Mining 1,215 42 516 Property 268 262 2,198 Other 50 43 90 _____________ _____________ _____________ 1,533 347 2,804 _____________ _____________ _____________ * Mining revenue for 2007 reflects the export coal sold on a `Free on Rail' (FOR) basis, whereas in 2006 it was on a `Free on Board' (FOB) basis at Richards Bay Coal Terminal, which included additional rail transport and port handing costs. 2 TAXATION 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Based on the results for the year: Corporation tax at 30% (2006: 30%) 437 45 (46) Adjustment in respect of prior - - 143 years -UK _______ _______ _______ Current tax 437 45 97 Deferred tax (43) (55) 392 _______ _______ _______ Total tax in income statement 394 (10) 489 _______ _______ _______ 3 EARNING PER SHARE Both the basic and diluted earnings per share calculations are based on a profit of £1,116,000 (2006: £276,000). 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 432,175 (2006: 340,055) totalling 10,883,681 (2005: 10,791,561). 4 PROPERTIES Properties are included at valuation as at 31 December 2006 plus additions in the period ended 30 June 2007. 5 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 2006 which were prepared under International Financial Reporting Standards, 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. 6 BOARD APPROVAL These half year results were approved by the Board of Bisichi Mining PLC on 25 September 2007. 7 POSTING TO SHAREHOLDERS The half year report will be sent to shareholders by mail. Copies are available at the company's registered office: 30-35 Pall Mall, London 5LH and may also be downloaded from the company's website: www.bisichi.co.uk .

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