Half-yearly Report
28 August 2014
BISICHI MINING PLC
Interim Results for the period ended 30 June 2014
For the six months ending 30th June 2014
* Group Revenues: £12.313 million (2013: £19.097 million)
* EBITDA: £1.077 million (2013: £3.184 million)
* EPS (basic): 0.26p (2013: 10.07p)
* Assets per share: £1.51 (2013: £1.67)
* Mining in South Africa impacted in first half by heavy rainfall
* Profitability expected to improve in the second half of the year
* UK property portfolio performing well
Michael Heller, chairman, states:
"Although we continue to operate in an environment of extremely low coal
prices, we expect the changes implemented at Black Wattle to result in a
stronger performance from our South African operations for some time to come."
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030
Bisichi Mining PLC
Half year review - 30 June 2014
For the six month period ending on 30 June 2014, Bisichi Mining achieved
earnings before interest, tax, depreciation and amortisation of £1.1million
(2013: £3.2 million).
As previously reported, at the end of last year the open cast mining operations
at Black Wattle, our South African coal mining subsidiary, were severely
impacted when one of our main production pits ran into unrecorded old
underground workings. A turnaround plan was put in place to ensure the mine
returned to acceptable levels of profitability by the second half of 2014.
As part of that turnaround plan, Black Wattle swiftly relocated machinery to
two of our profitable production pits in order to increase production from
these areas. In addition, the development of the new reserve at Blue
Nightingale was initiated.
The turnaround plan suffered a short-term set-back caused by the unusually
heavy rainfall in the first quarter of 2014. This inevitably has had an adverse
impact on profitability in the first half of the year but, as a direct result
of prompt action by our mine management, the mine had returned to profitability
by the end of the second quarter.
The Blue Nightingale reserve, referred to above consists of approximately 2.3
million tonnes of coal and we are pleased to report that the reserve is
expected to begin to deliver Run of Mine of coal by the end of the third
quarter. This coal can be sold either directly to local power utilities or
transported to Black Wattle where it will be washed and sold into our existing
domestic and export markets.
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. In addition, we are pleased to report
that Black Wattle is now a level 4 contributor to Broad Based Black Economic
Empowerment ("BBBEE"). We would like to thank our staff for their hard work in
achieving this status as well as for their continued efforts in improving our
BBBEE rating and credentials.
Although we continue to operate in an environment of historically low coal
prices, we expect the changes implemented at Black Wattle to result in a
stronger performance from our South African operations for some time to come.
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 2.9%.
Your directors intend to pay an interim dividend of 1p per share which will be
paid on the 6 February 2015, to shareholders on the register at the close of
business on 9 January 2015.
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 2014
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2014
Unaudited 6 Unaudited 6 Audited Year
months ended months ended ended 31
30 June 30 June December
2014 2013 2013
Notes £000 £000 £000
Group revenue 1 12,313 19,097 35,105
Operating costs (12,858) (17,492) (34,968)
Operating (loss)/profit on (545) 1,605 137
trading activities
Decrease in value of investment - - (53)
properties
Decrease in value of other (1) - (1)
investments
Gains/(Loss) on held for trading 4 (48) 40
investments
Operating (loss)/profit 1 (542) 1,557 123
Share of profit in joint 285 34 99
ventures
(Loss)/Profit before interest (257) 1,591 222
and taxation
Interest receivable 157 154 326
Interest payable (188) (170) (446)
(Loss)/Profit before taxation 1 (288) 1,575 102
Income tax 2 159 (404) 262
(Loss)/Profit for the period (129) 1,171 364
Attributable to:
Equity holders of the (28) 1,063 355
company
Non-controlling interest (101) 108 9
(Loss)/ Profit for the (129) 1,171 364
period
(Loss)/Earnings per share - 3 (0.26p) 10.07p 3.35p
basic
(Loss)/Earnings per share - 3 (0.26p) 9.92p 3.30p
diluted
Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2014
Unaudited 6 Unaudited 6 Audited Year
months ended months ended ended 31
30 June 30 June December
2014 2013 2013
£000 £000 £000
(Loss)/Profit for the period (129) 1,171 364
Other comprehensive income:
Exchange differences on translation of (135) (367) (858)
foreign operations
Other comprehensive income for the (135) (367) (858)
period, net of tax
Total comprehensive income for the (264) 804 (494)
period
Attributable to:
Equity shareholders (149) 738 (409)
Non-controlling interest (115) 66 (85)
Total comprehensive incomefor the (264) 804 (494)
period
Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2014
Unaudited 30 June Unaudited 30 Audited 31
June December
2014 2013 2013
Assets £000 £000 £000
Non-current-assets
Value of investment 11,576 11,612 11,559
properties attributable
to the group
Fair value of head 196 198 196
leases
Investment property 11,772 11,810 11,755
Reserves, plant and 6,212 8,764 7,096
equipment
Investments in joint 3,520 3,125 3,235
ventures
Loan to joint venture 984 1,080 984
Other investments 153 158 151
Total non-current assets 22,641 24,937 23,221
Current assets
Inventories 1,130 1,185 1,756
Trade and other 7,792 7,926 8,659
receivables
Corporation tax 33 45 36
recoverable
Held for trading 826 737 822
investments
Cash and cash 1,232 2,540 1,707
equivalents
Total current assets 11,013 12,433 12,980
Total assets 33,654 37,370 36,201
Liabilities
Current liabilities
Borrowings (8,173) (7,840) (8,042)
Trade and other payables (6,315) (7,477) (8,080)
Current tax liabilities (2) (118) (2)
Total current (14,490 ) (15,435) (16,124)
liabilities
Non-current liabilities
Borrowings (49) - (118)
Provision for (878) (960) (874)
rehabilitation
Finance lease (196) (198) (196)
liabilities
Deferred tax liabilities (1,704) (2,606) (1,902)
Total non-current (2,827) (3,764) (3,090)
liabilities
Total liabilities (17,317) (19,199) (19,214)
Net assets 16,337 18,171 16,987
Equity
Share capital 1,064 1,056 1,064
Share premium 249 169 249
Translation reserve (1,690) (1,130) (1,569)
Other reserves 626 558 587
Retained earnings 15,844 17,008 16,297
Total equity 16,093 17,661 16,628
attributable to equity
shareholders
Non-controlling interest 244 510 359
Total equity 16,337 18,171 16,987
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2014
Unaudited Unaudited Audited 31
30 June 30 June December
2014 2013 2013
£000 £000 £000
Cash flows from operating activities
Operating (loss)/profit (542) 1,557 123
Depreciation 1,334 1,593 2,817
Unrealised (gain)/loss on investments held (4) 48 (40)
for trading
Unrealised loss on other investments 1 - 1
Unrealised loss on investment properties - - 53
Share based payment expense 39 30 120
Realised share of profit in joint venture - 34 -
Increase in working capital (515) (1,489) (1,752)
Net interest paid (31) (16) (31)
Income tax (paid) /received - - 11
Cash flow from operating activities 282 1,757 1,302
Cash flows from investing activities (764) (2,484) (3,162)
Cash flows from financing activities (229) (371) (455)
Net decreasein cash and cash equivalents (711) (1,098) (2,315)
Cash and cash equivalents at 1 January (1,322) 718 718
Exchange adjustment 97 93 275
Cash and cash equivalents at end of period (1,936) (287) (1,322)
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 1,232 2,540 1,707
Bank overdrafts (3,168) (2,827) (3,029)
Cash and cash equivalents at end of period (1,936) (287) (1,322)
Bisichi Mining PLC
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2014
Non-
Share Share Translation Other Retained controlling Total
capital premium reserve reserves earnings Total Interest Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 1,056 169 (805) 528 16,367 17,315 444 17,759
January 2013
Profit for the period - - - - 1,063 1,063 108 1,171
Other comprehensive - - (325) - - (325) (42) (367)
income and expense
Total recognised - - (325) - 1,063 738 66 804
income and expense
for the period
Dividend - - - - (422) (422) - (422)
Equity share options - - - 30 - 30 - 30
Balance at 30 June 1,056 169 (1,130) 558 17,008 17,661 510 18,171
2013
Balance as at 1 1,056 169 (805) 528 16,367 17,315 444 17,759
January 2013
Revaluation of - - - - (53) (53) - (53)
investment properties
Other income - - - - 408 408 9 417
statement movements
Profit for the year - - - - 355 355 9 364
Exchange adjustment - - (764) - - (764) (94) (858)
Total comprehensive - - (764) - 355 (409) (85) (494)
income for the year
Dividend - - - - (425) (425) - (425)
Share issues 8 80 - - - 88 - 88
Equity share options - - - 59 - 59 - 59
Balance at 31 1,064 249 (1,569) 587 16,297 16,628 359 16,987
December 2013
Loss for the year - - - - (28) (28) (101) (129)
Exchange adjustment - - (121) - - (121) (14) (135)
Total comprehensive - - (121) - (28) (149) (115) (264)
income for the period
Dividend - - - - (425) (425) - (425)
Equity share options - - - 39 - 39 - 39
Balance at 30 June 1,064 249 (1,690) 626 15,844 16,093 244 16,337
2014
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2014 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 2013.
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 31
30 June 30 June December
2014 2013 2013
Revenue
Mining 11,763 18,597 34,117
Property 526 484 953
Other 24 16 35
12,313 19,097 35,105
Operating (loss) /profit
Mining (877) 1,319 (545)
Property 310 270 596
Other 25 (32) 72
(542) 1,557 123
Share of profit in joint 285 34 99
ventures
Interest receivable 157 154 326
Interest payable (188) (170) (446)
(Loss)/ Profitbefore (288) 1,575 102
taxation
2. Taxation
Based on the results for the period:
Corporation tax at 23.5% (2013: - 114 -
23.5%)
Prior year adjustment - UK - (1) -
- 113 -
Deferred taxation (159) 291 (213)
Prior year adjustment - UK - - (49)
(159) 404 (262)
3. Earnings per share
Both the basic and diluted earnings per share calculations are based on a loss
of £28,000 (2013: Profit: £1,063,000). The basic earnings per share has been
calculated on 10,636,839 (2013: 10,556,839) ordinary shares being in issue
during the year. The diluted earnings per share has been calculated on the
number of shares in issue of 10,636,839 (2013: 10,556,839) plus the dilutive
potential ordinary shares arising from share options of nil (2013: 155,712)
totalling 10,636,839 (2013: 10,712,551). 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 year.
4. Investment properties
Investment properties are included at valuation as at 31 December 2013 plus
additions in the period ended 30 June 2014.
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 2013. The
group paid management fees of £68,750 (30 June 2013: £68,750, 31 December 2013:
£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 2013 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 2014 as were used for the year ended
31 December 2013.
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.
In terms of the group's financial position, in the UK discussions are
continuing with regard to the extension of the current UK banking facilities,
being a £5million term facility and a £1million overdraft facility. The
previous extension to the facility expired on the 30th June 2013. The directors
consider that a new loan will be agreed in the near future and that the group
has sufficient available resources in the interim.
7 Dividend
The interim dividend in respect of 2013, totalling £106,000 was paid on the
31st January 2014. The final dividend in respect of 2013, totalling £319,000
was approved by the shareholders at the Annual General Meeting held on the 11th
June 2014 and was paid on the 1st August 2014. The final dividend in respect of
2013 is included as a liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2014 totalling £
106,000 was approved by the Board of Directors on 27th August 2014 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 2013 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
11 of the 2013 Annual Report & Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2014 to the
principle risks and uncertainties as set out in the 2013 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 2014.
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 2014
DIRECTORS AND ADVISERS
Directors 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 & Heather A Curtis ACIS
Registered office 24 Bruton Place
London W1J 6NE
Black Wattle Colliery - Directors Robert Corry (Chairman)
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 0871 664 0300
(Calls cost 10p per minute + network extras)
or +44 208 639 3399 for overseas callers
Website: www.capitaregistrars.com
E-mail: shareholderenquiries@capita.co.uk
Company registration number 112155 (Incorporated in England and Wales)
Web site www.bisichi.co.uk
E-mail admin@bisichi.co.uk
Wednesday, 15th May 2024
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