Interim Results

Bisichi Mining PLC 26 September 2000 BISICHI MINING PLC Interim Results for the 6 months ending 30th June 2000 Highlights Turnover £1,793,000 1999: £1,610,000 Profit before tax and after minority interests £9,000 1999: (£100,000) * Geological problems at Black Wattle successfully overcome and direct mining has now returned to profit * Appointment of new mine manager resulting in increased production and profitability * New reserves producing high grade coal * Coal price is rising * UK property portfolio fully let Michael Heller, chairman of Bisichi Mining comments: 'The management has, as predicted, dealt successfully with the direct mining problems encountered in 1999 and the company can look forward to the future with much optimism.' For further information, call: Andrew Heller or Robert Corry Bisichi Mining PLC +44(0)20 7415 5000 BISICHI MINING PLC Chairman's review Financial Results At the Preliminary Results announcement for the year ending 31st December 1999, I advised shareholders that the losses incurred at our direct mining subsidiary would be reversed through management action. I am pleased to report, therefore, that for the 6 months ended 30 June your company has produced a profit of £9,000, after minority interest and before taxation. This compares with a loss of £100,000 for the same period last year and a loss for the year to 31 December 1999 of £263,000. Direct Mining As shareholders know, it is the Group's strategy to use the surplus cash flow generated from our investments in UK retail property to finance the development and management of direct mining assets. Our principal direct mining investment is in Black Wattle Colliery (Pty) Limited, a coal mine located 120 miles from Johannesburg in the Middelburg region. The geological problems that we encountered at the mine last year, which led directly to the losses, are now behind us. We have been able to switch production swiftly away from the mudwash to the new reserves. The coal seam, which we are now working in these reserves, is producing high quality coal at record and sustainable production levels. However, shareholders should note that this action was not achieved without initial additional short-term losses in production at the beginning of this year. The record levels of production that are now being achieved owe much to the leadership of our new mine manager, Robert Grobler, and the dedication of the mine's work force. In addition, I am pleased to be able to report that there is a currently ready market for this coal in South Africa and, with the market starting to rise for the first time in some three years, we have been able to negotiate higher prices per ton for our production. Taken together, this means that we can look forward to Black Wattle making a significant contribution to the fortunes of this company. Mining Investments In addition to our direct mining activities, our wholly owned share dealing subsidiary, Mineral Products Limited, has continued to manage an equity portfolio with a weighting in mineral and natural resources stocks. This portfolio complements our position in the mining and natural resources sector, and provides us with an easily accessible cash reserve. UK investments Our retail property investment portfolio is fully let with an increasing rent roll. Our property portfolio is made up of 5 shopping centre/precincts which are shown in our accounts at £7.4m. They were independently valued as at 31 December 1999. As shareholders will recall, we own 50% of Dragon Retail Properties Limited jointly with London & Associated Properties PLC. Dragon owns a shopping precinct in the centre of Bromsgrove and following the finalisation of the rent review at the Iceland unit, this unit has been disposed of for £875,000 in September 2000 and plans are already in hand to reinvest the proceeds. The future The management has, as predicted, dealt successfully with the direct mining problems encountered in 1999 and the company can now look forward to the future with much optimism. MICHAEL HELLER Chairman BISICHI MINING PLC Consolidated profit and loss account six months ended 30th June 2000 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2000 1999 1999 Note £000 £000 £000 Turnover 1 1,793 1,610 3,132 Operating costs (1,730) (1,624) (3,416) Operating profit/(Loss) 1 63 (14) (284) Exceptional items 2 - (80) (65) Income from interests in joint venture 20 5 19 Interest receivable 32 10 7 Interest payable (157) (97) (207) Loss on ordinary activities before taxation (42) (176) (530) Taxation 3 (14) (19) (63) Loss after taxation (56) (195) (593) Minority interest 51 76 267 Loss for the financial period (5) (119) (326) Loss per share 4 (0.05)p (1.14)p (3.12)p Dividends per share - - 1.00 p Cost of net dividend - - 105 The turnover and operating profit/(loss) for the period derive from continuing operations, which are made up as follows: Turnover Mining 1,413 1,113 2,190 Rent receivable 346 314 665 Share dealing 30 179 268 Other investments 4 4 9 1,793 1,610 3,132 Operating Profit Mining (56) (194) (667) Property 115 104 267 Share Dealing - 72 110 Other investments 4 4 6 63 (14) (284) BISICHI MINING PLC Consolidated balance sheet 30th June 30th June 31st December 2000 1999 1999 Note £000 £000 £000 Fixed assets Intangible assets 343 428 386 Properties and other tangible assets 5 8,307 7,874 8,409 Investments 769 558 763 9,419 8,860 9,558 Current assets Stocks 68 82 111 Debtors 622 374 328 Investments(Market value £572,000) 6 408 461 420 Bank balances 47 74 48 1,145 991 907 Creditors - falling due within one year (2,244) (2,332) (2,071) Net current liabilities (1,099) (1,341) (1,164) Total assets less current liabilities 8320 7519 8,394 Creditors - falling due after one year (2,154) (1,248) (2,155) Provisions for liabilities and charges (12) (19) (12) Minority interests 176 (65) 129 Net assets 6,330 6,187 6,356 Financed by: Equity shareholders funds 6,330 6,187 6,356 Statement of total recognised gains and losses six months ended 30th June 2000 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2000 1999 1999 £000 £000 £000 The company 39 (76) 6 Subsidiary and joint venture (44) (43) (332) (Loss) for the period (5) (119) (326) Revaluation of investment properties - company - - 295 - joint venture - - 200 Exchange adjustments (21) 10 (4) Total gains and losses recognised in the period (26) (109) 165 BISICHI MINING PLC Group cash flow statement six months ended 30th June 2000 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2000 1999 1999 £000 £000 £000 Net cash inflow from operating activities Operating profit/(loss) 63 (14) (284) Depreciation charges and Goodwill amortised 170 127 272 Profit on sale of current asset investments - (74) (109) (Increase) decrease in current assets (260) 86 391 (27) 125 270 Returns on investments and servicing of finance (125) (87) (200) Taxation - 22 (6) Capital expenditure and financial investment (37) (611) (893) Equity dividends paid - - (105) Cash outflow before financing (189) (551) (934) Financing (46) 409 788 (235) (142) (146) Reconciliation of net cash flow to movement in net debt (Decrease) in cash in the period (235) (142) (146) Net cash flow from changes in debt 46 (409) (788) Movements in net debt in the period (189) (551) (934) Net debt at 1 January 1999 (2,887) (1,953) (1,953) Net debt at 30 June 2000 (3,076) (2,504) (2,887) Analysis of changes in net debt Bank balances in hand 47 74 48 Bank overdraft (969) (755) (735) Debt due within one year - (575) (45) Debt due after one year (2,154) (1,248) (2,155) (3,076) (2,504) (2,887) BISICHI MINING PLC Notes to the interim results six months ended 30th June 2000 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2000 1999 1999 £000 £000 £000 1.Geographical analysis Gross income United Kingdom 380 497 942 Southern Africa 1,413 1,113 2,190 1,793 1,610 3,132 Operating profit United Kingdom 119 180 384 Southern Africa (56) (194) (668) 63 (14) (284) 2.Exceptional items Arising in respect of fixed asset investments - gains from disposals - - 15 - write down - (80) (80) - (80) (65) 3.Taxation Company and subsidiaries 9 18 59 Associated undertakings 5 1 4 14 19 63 4.Earnings per share Earnings per share have been calculated on the issue share capital of 10,451,506 shares throughout the period under review. 5.Properties are included at valuation at 31st December 1999 6.Investments held as current assets Listed Investments Portfolio at lower of cost or net realisable value 408 461 420 Listed Investment Portfolio at market value 572 672 621 Unrealised surplus of market value over cost 164 211 201 7.The above financial information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The figures for the year ended 31st December 1999 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 237(2)or(3)of the Companies Act 1985. The six months figures use the same accounting policies as for the year ended 31 December 1999, and have not been audited or subject to review by the auditors. 8.Posting to shareholders. The interim statement will be posted to shareholders shortly. Copies are available at the Company's Registered Office: 8-10 New Fetter Lane, London EC4A 1AF. 9. Board Approval These interim results were approved by the Board of Bisichi Mining PLC on 25 September 2000.

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