Interim Results

24th September 2002 BISICHI MINING PLC Interim results to 30th June 2002 2002 2001 *Turnover: Â£2,368,000 Â£2,277,000 *Profit before tax and goodwill amortisation: Â£362,000 Â£169,000 *Earnings per share: 2.17 p 0.96 p *Net Asset Value: Â£7,276,000 Â£7,025,000 *Sustained improvement in the performance of Black Wattle Colliery *New coal reserves extend mine life by 15 years *New export facilities in place Commenting, Michael Heller, chairman of Bisichi Mining said: 'Bisichi Mining is in a very sound condition. Our direct mining activities are well established and are facing some very exciting opportunities; our property assets are prospering and expanding. I am confident that the results for the year as a whole will be satisfactory and in line with our expectations.' - more - For further information, please call: Andrew Heller, Bisichi Mining PLC 020 7415 5000 CHAIRMAN'S REVIEW I am pleased to report that, in the 6 months ended 30 June 2002, Bisichi Mining PLC made a profit before tax and goodwill amortisation of Â£362,000 (30.06.01: Â£ 169,000). Net assets as at 30 June have increased to Â£7.276 million (30.06.01: Â£7.025 million) after adjusting listed investments to market values. Shareholders should be aware that these excellent results arise from a sustained improvement in the performance of our 62.5% owned coal mining subsidiary, Black Wattle Colliery (Pty) Ltd, which is located near Middelburg, South Africa. Our confidence in, and commitment to, the ongoing development of our direct mining asset is shown by two recent events. First, in July of this year, Black Wattle acquired additional new coal reserves adjacent to our existing reserves, which should increase the life of the mine, at current production levels, by at least 15 years. We estimate that half of these reserves can be mined to supply our existing markets and half mined to supply power stations (by opencast mining methods). Second, Black Wattle has built a new railway siding and line near to the mine for its exclusive use. This new facility will enable Black Wattle to export coal through the Richards Bay Coal Terminal, if and when opportunities arise. We continue to be one of the largest producers of low phosphorous coal in Southern Africa; low phosphorous coal usually commands a premium price. Shareholders should also be aware that for part of the second half of the year processing yields are likely to be lower as we have to mine through inferior coal in order to reach the better quality coal but the mine should continue to operate at acceptable levels of profitability. Our mining activities and investments have, in the past, been in part financed by Bisichi Mining's retail property investments; these are managed, for a fee, by London & Associated Properties PLC and are fully let. Our property investment portfolio was valued at 31 December 2001 by independent Chartered Surveyors at Â£8.1 million. In the centre of Bradford, Bisichi Mining owns a retail property investment known as 'the Ritz site'. This site now falls within a major redevelopment scheme and it has recently been confirmed to us that the Ritz site will be subject to a compulsory purchase order. We are already looking actively for new properties both to replace the Ritz site and to continue the development of the retail property investment portfolio; we expect to make an announcement in this regard in the very near future In closing, I am pleased to be able to tell shareholders that Bisichi Mining is in a very sound condition. Our direct mining activities are well established and are facing some very exciting opportunities; our property assets are prospering and expanding. Whilst we continue to live in an uncertain world, I am confident that the results for the year as a whole will be satisfactory and in line with our expectations. MICHAEL HELLER Chairman 24th September 2002 BISICHI MINING PLC Consolidated profit and loss account six months ended 30th June 2002 (Restated) (Restated) 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2002 2001 2001 Note Â£'000 Â£'000 Â£'000 Turnover 1 2,368 2,277 4,060 Operating costs (2,006) (2,082) (3,711) Operating profit 1 362 195 349 Exceptional items 2 - 4 4 Income from interests in 37 38 70 joint venture Interest receivable 16 3 5 Interest payable (95) (113) (208) Profit on ordinary activities 320 127 220 before taxation Taxation 3 (80) (36) (82) Profit after taxation 240 91 138 Minority interest (13) 9 19 Profit for the financial 227 100 157 period Earnings per share 4 2.17p 0.96p 1.50 p Dividends per share - - 1.00 p Cost of net dividend - - 105 The turnover and operating profit for the period derive from continuing operations and are made up as follows: Turnover Mining 1,966 1,897 3,298 Property 390 368 733 Share dealing 12 9 22 Other investments - 3 7 2,368 2,277 4,060 Operating profit Mining 232 111 129 Goodwill (42) (42) (85) 190 69 44 Property 168 122 296 Share dealing 4 1 5 Other investments - 3 4 362 195 349 BISICHI MINING PLC Consolidated balance sheet (Restated) (Restated) 30th June 30th June 31stDecember 2002 2001 2001 Note Â£'000 Â£'000 Â£'000 Fixed assets Intangible assets 174 259 216 Properties and other 8,888 8,663 8,632 tangible assets 5 Investments 1,161 1,027 1,109 10,223 9,949 9,957 Current assets Stocks 65 24 13 Debtors 803 896 575 Investments (Market value Â£ 584,000) 6 463 450 474 Bank balances 122 45 64 1,453 1,415 1,126 Creditors - falling due within one (2,775) (2,661) (2,405) year Net current liabilities (1,322) (1,246_ (1,279) Total assets less current 8,901 8,703 8,678 liabilities Creditors - falling due after one (1,816) (2,019) (1,904) year Provisions for liabilities and (50) (38) (43) charges Minority interests 120 170 121 Net assets 7,155 6,816 6,852 Financed by: Equity shareholders' funds 7,155 6,816 6,852 Statement of total recognised gains and losses six months ended 30th June 2002 (Restated) (Restated) 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2002 2001 2001 Â£'000 Â£'000 Â£'000 The company 152 75 130 Subsidiary and joint 75 25 27 venture Profit for the period 227 100 157 Revaluation of investment properties Company - - 268 joint venture - - 101 Exchange adjustments 76 (3) (288) Total gains and losses related to the 303 97 238 period Prior year adjustment (as explained (27) in note 3) Total gains and losses recognised since last annual report 276 BISICHI MINING PLC Group cash flow statement six months ended 30th June 2002 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2002 2001 2001 Â£'000 Â£'000 Â£'000 Net cash inflow from operating activities Operating profit 362 195 349 Depreciation charges and 226 192 299 goodwill amortised Profit on sale of current (4) (1) (5) asset investments (Increase) decrease in net 220 (27) 93 current assets 804 359 736 Dividend from joint venture - - 40 Returns on investments and (79) (110) (196) servicing of finance Taxation - (3) (76) Capital expenditure and (389) (197) (308) financial investment Equity dividends paid - - (105) Cash inflow before financing 336 49 91 Financing (127) (90) (134) 209 (41) (43) Reconciliation of net cash flow to movement in net debt Increase (decrease) in cash 209 (41) (43) in the period Net cash flow from changes 127 90 134 in debt Movements in net debt in the 336 49 91 period Net debt at 1st January 2001 (2,863) (2,954) (2,954) Net debt at 30th June 2002 (2,527) (2,905) (2,863) Analysis of net debt Bank balances in hand 122 45 64 Bank overdraft (701) (837) (854) Debt due within one year (132) (94) (169) Debt due after one year (1,816) (2,019) (1,904) (2,527) (2,905) (2,863) BISICHI MINING PLC Notes to the interim results six months ended 30th June 2002 6 months 6 months Year ended ended ended 30th June 30th June 31st December 2002 2001 2001 Â£'000 Â£'000 Â£'000 1. Geographical analysis Turnover United Kingdom 402 380 762 Southern Africa 1,966 1,897 3,298 2,368 2,277 4,060 Operating profit United Kingdom 172 126 305 Southern Africa 190 69 44 362 195 349 2. Exceptional items Arising in respect of fixed asset investments - gains from disposals - 4 4 3.Taxation (Restated) (Restated) Company and subsidiaries 73 27 66 Joint venture undertaking 7 9 16 80 36 82 The Company is, in the six months ended 30th June 2002, required to comply for the first time with Financial Reporting Standard 19 Deferred Tax ('FRS 19'). Consequently, provision is now made for deferred tax in respect of accelerated capital allowances. This represents a change in accounting policy and the results for the prior periods have been restated accordingly. 4. Earnings per share Earnings per share have been calculated on the issued share capital of 10,451,506 shares throughout the period under review. 5. Properties are included at valuation at 31st December 2001. 6. Investments held as current assets Listed Investment Portfolio at lower of cost or net realisable value 463 450 474 Listed Investment Portfolio 584 659 624 at market value Unrealised surplus of market 121 209 150 value over cost 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 2001 are based upon the latest statutory accounts, as adjusted for FRS 19 (see note 3), 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. Save for the adoption of FRS 19 in 2002, the six months figures use the same accounting policies as previously published for the year ended 31st December 2001. The Six months figures have not been audited or subject to review by the auditors. 8. Board Approval These interim results were approved by the Board of Bisichi Mining PLC on 23rd September 2002. 9. 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.

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