Interim Results
13 September 2004
BISICHI MINING PLC
INTERIM RESULTS
Six months ending 30 June 2004
Bisichi Mining PLC, the mining investment company, announces its results for
the first six months of 2004.
FINANCIAL HIGHLIGHTS
2004 2003
Turnover £5,117,000 £4,163,000
Profit before tax, depreciation and
Amortization £1,043,000 £1,166,000
Diluted Net Assets per Share 111.6 p 84.5 p
Diluted earnings per share 4.68 p 4.73 p
- Black Wattle Colliery commences exporting coal through Richards Bay Coal
Terminal, South Africa
- Long term FOB export contract locks in significant profit margin
- Average selling price of Black Wattle Colliery's coal now 21% higher than in
2nd half 2003
- SA Rand 25 million financing arranged to support a broad programme of capex
at Black Wattle Colliery to increase production including the purchase of a
Continuous Miner
Commenting, Michael Heller, chairman of Bisichi Mining said:
"With the major investment we have made at the Black Wattle Colliery to
increase production and with strong prices secured for both our domestic and
our export coal I am confident that the results for the full year will be
good."
END
For further information, please call:
Andrew Heller, Tom Kearney or Robert Corry, Bisichi Mining +44 (0)20 7415 5000
Chairman's Review
I am pleased to report that in the 6 months ended 30 June 2004, Bisichi Mining
PLC made a profit on ordinary activities before taxation, depreciation, and
amortisation of £1,043,000 (2003: £1,166,000); this performance was broadly
similar to the equivalent period in 2003 and resulted from the need to move all
three mining sections at the Black Wattle Colliery during the period, two of
which as at the date of this report have been moved. Diluted net assets per
share, including listed shares at market value, increased to 111.6 pence at 30
June 2004, up 32 % from 84.5 pence in the comparable period in 2003.
During the first six months of 2004 there were a number of significant and
positive developments at the Black Wattle Colliery, our direct coal mining
investment in South Africa which have, I believe, laid a firm foundation for
strong future earnings.
The first of these developments took place on 1 April 2004, when the Black
Wattle Colliery, in conjunction with our partner Endulwini Resources, began to
export coal via the Richard's Bay Coal Terminal as part of a multi-year program
for black economic empowerment mines. The timing of this export program could
not have been better, as international coal prices reached historically high
levels during the second quarter of 2004 and presently remain very strong. In
order to take advantage of these high prices and, more importantly, lock in
significant margins over the next few years, I can now inform shareholders that
we have entered into a long-term FOB export contract with a leading
international trading company for our entire export volume.
Our coal export activities have not, however, distracted us from the South
African domestic market, where we have also had considerable successes,
achieving the highest long term pricing levels to date for our low phosphorus
product. The combined effect of the export and domestic price increases has
meant that our average selling prices in the first half of 2004 were 21 %
higher than in the second half of 2003.
With the strong demand for our coal, with long term supply offtake contracts in
place and with coal prices at unprecedented levels, the second significant
development during the first half of 2004 was that we committed to various
measures to increase production at the Black Wattle Colliery . In particular,
we concluded a SA Rand 25 Million financing facility with ABSA Bank to support
a broad programme of capital investment at the mine, including the purchase of
a Voest Alpine Continuous Miner. This machine was commissioned at the beginning
of September and I anticipate that it will materially increase production
during the last quarter of 2004.
Our UK retail property portfolio, which is managed by London & Associated
Properties plc, has continued to provide us with a reliable income stream. The
equities portfolio in Mineral Products Limited has performed broadly in line
with UK equity markets and continue to provide us with a ready source of cash
should it be needed.
With the major investment we have made at the Black Wattle Colliery to increase
production and with strong prices secured for both our domestic and our export
coal I am confident that the results for the full year will be good.
Michael Heller
Chairman
10 September 2004
BISICHI MINING PLC
Consolidated profit and loss account
six months ended 30th June 2004
6 months 6 months Year
ended ended ended
30th June 30th June 31st
2004 2003 December
Note £'000 £'000 2003
£'000
Turnover 1 5,117 4,163 8,781
Operating costs (4,234) (3,160) (6,896)
Operating profit 1 883 1,003 1,885
Income from interests in joint 45 (40) 10
venture
Interest receivable 8 4 9
Interest payable (210) (221) (429)
Profit on ordinary activities 726 746 1,475
before taxation
Taxation 2 (244) (219) (436)
Profit after taxation 482 527 1,039
Minority interest 16 (30) (40)
Profit for the financial period 498 497 999
Earnings per share - basic 3 4.76 p 4.76 p 9.56 p
- diluted 4.68 p 4.73 p 9.45 p
Dividends per share - - 1.80 p
Cost of net dividend - - 188
The turnover and operating profit for the period derive from continuing
operations and are made up as follows:
Turnover
Mining 4,501 3,599 7,571
Property 531 532 1,092
Share dealing 110 31 105
Other investments - 1 13
5,117 4,163 8,781
Operating Profit
Mining 593 768 1,353
Goodwill (42) (42) (85)
551 726 1,268
Property 245 252 587
Share dealing 87 24 20
Other investments - 1 10
883 1,003 1,885
BISICHI MINING PLC
Consolidated balance sheet
30th June 30th June 31st
2004 2003 December
Note £'000 £'000 2003
£'000
Fixed assets
Intangible assets 5 90 47
Properties and other tangible 4 16,906 13,682 16,255
assets
Investment in joint venture
Share of gross assets 2,646 2,227 2,616
Share of gross liabilities (1,204) (1,176) (1,208)
1,442 1,051 1,408
Other investments 352 314 336
18,705 15,137 18,046
Current assets
Stocks 33 80 50
Debtors 2,259 1,772 1,977
Investments (Market value £ 5 453 465 419
546,000)
Bank balances 246 191 126
2,991 2,508 2,572
Creditors - falling due within (5,443) (3,871) (5,058)
one year
Net current liabilities (2,452) (1,363) (2,486)
Total assets less current 16,253 13,774 15,560
liabilities
Creditors - falling due after (4,523) (4,959) (4,452)
one year
Provisions for liabilities and (56) (60) (57)
charges
Minority interests 140 122 116
Net assets 11,814 8,877 11,167
Financed by:
Equity shareholders' funds 11,814 8,877 11,167
BISICHI MINING PLC
Statement of total recognised gains and losses
six months ended 30th June 2004
6 months 6 months Year
ended ended ended
30th June 30th June 31st
2004 2003 December
£'000 £'000 2003
£'000
The company 385 448 902
Subsidiary and joint ventures 113 49 97
Profit for the period 498 497 999
Revaluation of investment
properties
- company - - 1,619
- joint venture - - 360
Tax on disposal of investment - - (28)
properties in joint venture
Exchange adjustments 149 184 209
Total gains and losses relating to the 647 681 3,159
period
BISICHI MINING PLC
Group cash flow statement
six months ended 30th June 2004
6 months 6 months Year
ended ended ended
30th June 30th June 31st
2004 2003 December
£'000 £'000 2003
£'000
Net cash inflow from operating
activities
Operating profit 883 1,003 1,885
Depreciation charges and goodwill 317 420 942
amortised
Profit on sale of current asset (81) (22) (16)
investments
Increase (decrease) in net 875 (85) (637)
current liabilities
1,994 1,316 2,174
Dividend from joint venture - - 42
Returns on investments and servicing of (202) (217) (420)
finance
Taxation (58) - (178)
Capital expenditure and financial (706) (492) (1,824)
investment
Equity dividends paid - - (157)
Cash inflow (outflow) before 1,028 607 (363)
financing
Financing (34) (414) (126)
994 193 (489)
Reconciliation of net cash flow to movement in net
debt
Increase in cash in the 994 193 (489)
period
Net cash flow from changes in 34 414 126
debt
Movement in net debt in the 1,028 607 (363)
period
Net debt at 1 January 2003 (6,584) (6,221) (6,221)
Net debt at 30 June 2003 (5,556) (5,614) (6,584)
Analysis of net debt
Bank balances in hand 246 191 126
Bank overdraft (431) (687) (1,305)
Debt due within one year (847) (159) (953)
Debt due after one year (4,524) (4,959) (4,452)
(5,556) (5,614) (6,584)
BISICHI MINING PLC
Notes to the interim results
six months ended 30th June 2004
6 months 6 months Year
ended ended ended
30th June 30th June 31st
2004 2003 December
£'000 £'000 2003
£'000
1. Geographical analysis
Turnover
United Kingdom 616 564 1,210
Southern Africa 4,501 3,599 7,571
5,117 4,163 8,781
Operating profit
United Kingdom 332 277 617
Southern Africa 551 726 1,268
883 1,003 1,885
2. Taxation
Based on the results for the year:
Corporation tax at 30% (2003 : 30%) 234 211 463
Adjustment in respect of prior years - - (15)
- UK
Joint venture 10 18 1
244 229 449
Deferred taxation - (10) (13)
244 219 436
3. Earnings per share
Both the basic and diluted earnings per share calculations are based on a
profit of £498,000 (2003: £497,000). The basic earnings per share has been
calculated on 10,451,506 (2003: 10,451,506) ordinary shares being in issue
during the period. The diluted earnings per share has been calculated on the
number of shares in issue of 10,451,506 (2003: 10,451,506) plus the dilutive
potential ordinary shares arising from share options of 200,088 (2003:
48,602) totalling 10,651,594 (2003: 10,500,108).
4. Properties are included at valuation at 31st December 2003.
BISICHI MINING PLC
Notes to the interim results (continued)
six months ended 30th June 2004
6 months 6 months Year
ended ended ended
30th June 30th June 31st
2004 2003 December
£'000 £'000 2003
£'000
5. Investments held as current
assets
Listed Investment Portfolio at lower
of cost and
net realisable value 453 465 419
Listed Investment Portfolio at 546 487 518
market value
Unrealised surplus of market value 93 22 99
over cost
6. Financial information
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 2003 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
31December 2003, and have not been audited or subject to review by the
auditors.
7. Board approval
These interim results were approved by the Board of Bisichi Mining PLC on 10
September 2004.
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.
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