REG-Bisichi Mining PLC: Report on Payments to Governments

BisichiAnnouncement

18/06/2019 07:35

Bisichi Mining plc

Report on payments to governments for the year 2018

Bisichi Mining plc together with its subsidiaries issues the following report
on payments to governments for the year ended 31 December 2018.

INTRODUCTION

This Report provides an overview of the payments to governments made by
Bisichi Mining plc and its subsidiaries for the year ended 31 December 2018 as
required under the UK Reports on Payments to Governments Regulation 2014 and
its amendment in December 2015 (the UK Regulations). This Report is also
intended to satisfy the requirements of the Disclosure and Transparency Rules
of the Financial Conduct Authority in the United Kingdom.

BASIS OF PREPARATION

Reporting entities

This report includes payments to governments made by Bisichi Mining plc and
its subsidiary undertakings (Bisichi Mining). Payments made by associates and
entities over which Bisichi Mining has joint control are excluded from this
report.

Activities

Payments made by Bisichi Mining to governments arising from activities
involving the exploration, prospection, discovery, development and extraction
of minerals (extractive activities) are to be disclosed in this report.

Government

Government includes any national, regional or local authority of a country,
and includes a department, agency or entity that is a subsidiary of a
government.

Project

Payments that are reported at project level except that payments that are not
attributable to a specific project are reported at legal entity level. Project
is defined as being the operational activities which are governed by a single
contract, or licence agreement, and form the basis for payment liabilities
with a government.

If agreements of this kind are substantially interconnected (i.e. forming a
set of operationally and geographically integrated contracts, licenses, leases
or concessions) these are treated for the purposes of these Regulations as a
single project. Indicators of integration include geographic proximity and
common operational management.

Payments

The information is reported under the following payment types:

Taxes

These are any taxes paid by Bisichi Mining on its income and profits in
accordance with legislation enacted in the applicable jurisdiction. Payments
are reported net of refunds. Value added tax, personal income taxes, social
taxes, property taxes are excluded.

Royalties

Royalties is any mining royalty payable in the Republic of South Africa.

Fees

These are any fees and other sums paid as consideration for acquiring a
licence for gaining access to an area where extractive activities are
performed. Administrative government fees that are not specifically related to
the extractive sector are excluded.

Infrastructure improvements.

Payments in kind in the form of infrastructure expenditure other than in
circumstances where the infrastructure is expected to be primarily dedicated
to operational activities throughout its useful life. UK Regulations do not
require reporting social or community payments, such as payments to build a
hospital or a school.

Other types of payments

Other types of payments that are required to be disclosed in accordance with
the UK Regulations but are not relevant to Bisichi Mining operations are the
following:

-           Production entitlements

-           Dividends

Including dividends paid to a government in lieu of production entitlements or
royalties. Dividends paid to a government as an ordinary shareholder on the
same terms as to other ordinary shareholders and not paid in lieu of
production entitlements or royalties are excluded.

-           Signature, discovery and production bonuses

Payments are reported on a cash basis. No in-kind payments were made during
year ended 31 December 2018.

Materiality Level

In line with the UK Regulations, where a payment or a series of related
payments have not exceeded £86,000 they have not been disclosed.

Exchange Rate

Relevant payments are made by Bisichi Mining in South African Rand and for the
purpose of this report are translated to UK Sterling using the annual average
exchange rate for the period.

 PAYMENTS PER GOVERNMENT                                                                                                                                                                         
 Government                                                                         Taxes            Royalties               Fees     Infrastructure improvements                        Total   
                                                                                                                                                                                                 
 Republic of South Africa                                                      £1,776,254           £1,049,457                  -                               -                   £2,825,711   
 United Kingdom                                                                  £123,225                    -                  -                               -                     £123,225   
 Total                                                                         £1,899,479           £1,049,457                  -                               -                   £2,948,936   
                                                                                                                                                                                                 
 PAYMENTS PER PROJECT                                                                                                                                                                            
                                                                                                                                                                                                 
 Entity                           Project                               Country/ Government                    Taxes    Royalties            Fees     Infrastructure improvements        Total   
                                                                                                                                                                                                 
 Black Wattle Colliery (Pty) Ltd  Black Wattle                          South Africa                      £1,776,254   £1,049,457               -                               -   £2,825,711   
 Unallocated                      N/A                                   United Kingdom                      £123,225            -               -                               -     £123,225   
 Total                                                                                                    £1,899,479   £1,049,457               -                               -   £2,948,936   
                                                                                                                                                                                                 

A copy of the report referred to above has been sent to the National Storage
Mechanism and will shortly be available for viewing at
www.morningstar.co.uk/uk/NSM

For further information, please contact:

Garrett Casey

Company Secretary

Bisichi Mining plc

Tel: 020 7415 5000

17 June 2019



Copyright (c) 2019 PR Newswire Association,LLC. All Rights Reserved