REG-Bisichi Mining PLC: Half-year Report <Origin Href="QuoteRef">BISI.L</Origin>
26/08/2016 16:35
26 August 2016
BISICHI MINING PLC
Interim Results for the period ended 30 June 2016
For the six months ending 30(th) June 2016:
· EBITDA: £1.0million
(2015: £1.232 million)
· EPS (basic):
1.7p (2015: 2.56p)
· Total production: 795,000 tonnes (2015: 838,000 tonnes)
· Planned increase in production from Black Wattle reserves by year end
· Continuing focus on control of costs and production at Black Wattle
Colliery
· Physical demand for Black Wattle coal remains strong despite low
international coal prices
· UK property portfolio performing well with voids across the portfolio
at only 2.0% (2015: 2.3 %.)
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC
020 7415 5030
Bisichi Mining PLC
Half year review – 30 June 2016
For the six month period ending on 30 June 2016, Bisichi Mining PLC achieved
earnings before interest, tax, depreciation and amortisation of £1.0 million
(2015: £1.2 million).
As part of the production plan for the first half of the year Black Wattle
Colliery, our direct coal mining asset in South Africa, continued to
supplement production from its own reserves with coal mined at Blue
Nightingale under an agreement to purchase Run of Mine coal. This resulted in
total production of 795,000 metric tonnes (2015: 838,000 metric tonnes) during
the period reported. However, towards the end of this six month period the
quality of the coal bought from Blue Nightingale deteriorated as the reserve
came to an end; this has had a temporary impact on earnings. In anticipation
of the Blue Nightingale reserve coming to an end, management plans were
already in place to increase production from Black Wattle’s own reserves.
The development of these new opencast areas at Black Wattle will take time to
build up production but the mine is expected to reach full production by the
end of the year.
The demand for our coal has remained strong but international coal prices have
continued to remain low for most of the first half of 2016. Although we have
recently seen an improvement in the US Dollar international coal price, a
reversal in the depreciation of the South African Rand has partially offset
this increase. Overall, the decrease in group revenue compared to the same
period last year can mainly be attributed to the depreciation of the Rand
against our reporting currency in UK Sterling. Looking forward, we will
continue with our existing management strategy of keeping our cost of
production low in order to reduce the impact of any further weakness in the
international coal price.
Meanwhile, 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.
Looking forward to the rest of this year, management will continue to focus on
improving levels of production from our existing reserves at Black Wattle and
we remain confident in our ability to achieve significant value from our South
African mining operations for many years 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 2.0% (2015: 2.3%).
Your directors intend to pay an interim dividend of 1p per share which will be
paid on the 10 February 2017, to shareholders on the register at the close of
business on 6 January 2017.
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
26 August 2016
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2016
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2016 2015 2015
Notes £000 £000 £000
Group revenue 1 10,925 13,879 25,655
Operating costs (10,675) (13,450) (25,719)
Operating profit/(loss) on trading activities 250 429 (64)
Increase in value of investment properties - - 225
Increase/(Decrease) in value of other investments 11 (1) (11)
Gains on held for trading investments - 4 -
Operating profit 1 261 428 150
Loss on reclassification of asset held for sale - - (138)
Share of loss in joint ventures (1) 100 69
Profit before interest and taxation 260 528 81
Interest receivable 128 124 245
Interest payable (226) (245) (473)
Profit/(Loss) before taxation 1 162 407 (147)
Income tax 2 (4) (87) (108)
Profit/(Loss) for the period 158 320 (255)
Attributable to:
Equity holders of the company 182 273 (259)
Non-controlling interest (24) 47 4
Profit/(Loss) for the period 158 320 (255)
Earnings/(Loss) per share - basic 3 1.70p 2.56p (2.43p)
Earnings/(Loss) per share - diluted 3 1.70p 2.56p (2.43p)
Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2016
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 30 June 31 December
2016 2015 2015
£000 £000 £000
Profit/(Loss) for the period 158 320 (255)
Other comprehensive income:
Exchange differences on translation of foreign operations 490 (217) (1,167)
Gain/(Loss) on available for sale investments 60 (28) (202)
Taxation (13) 6 41
Other comprehensive income for the period, net of tax 537 (239) (1,328)
Total comprehensive income for the period 695 81 (1,583)
Attributable to:
Equity shareholders 669 58 (1,500)
Non-controlling interest 26 23 (83)
Total comprehensive income for the period 695 81 (1,583)
Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
Assets £000 £000 £000
Non-current-assets
Value of investment properties 12,800 11,620 12,800
Fair value of head leases 186 195 194
Investment property 12,986 11,815 12,994
Reserves, plant and equipment 6,319 6,159 5,374
Investments in joint ventures 1,197 2,909 1,198
Loan to joint venture 1,105 1,029 900
Other investments 25 151 14
Total non-current assets 21,632 22,063 20,480
Current assets
Inventories 2,117 1,394 1,049
Trade and other receivables 7,277 8,496 6,187
Corporation tax recoverable - 31 29
Available for sale investments 654 768 594
Cash and cash equivalents 2,757 2,789 1,608
Non-current assets held for sale - - 1,168
Total current assets 12,805 13,478 10,635
Total assets 34,437 35,541 31,115
Liabilities
Current liabilities
Borrowings (2,981) (3,115) (2,267)
Trade and other payables (6,179) (5,738) (4,234)
Current tax liabilities (136) (23) -
Total current liabilities (9,296) (8,876) (6,501)
Non-current liabilities
Borrowings (5,961) (5,957) (5,940)
Provision for rehabilitation (1,028) (919) (847)
Finance lease liabilities (186) (195) (194)
Deferred tax liabilities (2,053) (2,210) (2,002)
Total non-current liabilities (9,228) (9,281) (8,983)
Total liabilities (18,524) (18,157) (15,484)
Net assets 15,913 17,384 15,631
Equity
Share capital 1,068 1,068 1,068
Share premium 258 258 258
Translation reserve (2,317) (1,870) (2,757)
Available for sale reserves (73) 19 (120)
Other reserves 588 663 574
Retained earnings 16,042 16,819 16,287
Total equity attributable to equity shareholders 15,566 16,957 15,310
Non-controlling interest 347 427 321
Total equity 15,913 17,384 15,631
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
£000 £000 £000
Cash flows from operating activities
Operating profit 261 428 150
Depreciation 736 704 1,284
Unrealised (gain)/loss on other investments (11) 1 132
Unrealised gain on investment properties - - (225)
Share based payment expense 14 11 31
Share of profit of joint venture - 88 -
Movement in working capital (447) (865) 607
Net interest paid (60) (79) (248)
Income tax paid/(received) 27 - -
Cash flow from operating activities 520 288 1,731
Cash flows from investing activities 378 (1,202) (2,888)
Cash flows from financing activities (170) (218) (584)
Net increase/(decrease) in cash and cash equivalents 728 (1,132) (1,741)
Cash and cash equivalents at 1 January (626) 719 719
Exchange adjustment (318) 95 396
Cash and cash equivalents at end of period (216) (318) (626)
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 2,757 2,789 1,608
Bank overdrafts (2,973) (3,107) (2,234)
Cash and cash equivalents at end of period (216) (318) (626)
Bisichi Mining PLC
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2016
Share Share Translation Available for sale Other Retained Non- controlling Total
capital premium reserve reserves reserves earnings Total Interest Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance as at 1 January 2015 1,068 258 (1,677) 41 652 16,973 17,315 404 17,719
Profit for the period - - - - - 273 273 47 320
Other comprehensive income and expense - - (193) (22) - - (215) (24) (239)
Total comprehensive income for the period - - (193) (22) - 273 58 23 81
Dividend - - - - - (427) (427) - (427)
Equity share options - - - - 11 - 11 - 11
Balance at 30 June 2015 1,068 258 (1,870) 19 663 16,819 16,957 427 17,384
Balance as at 1 January 2015 1,068 258 (1,677) 41 652 16,973 17,315 404 17,719
Revaluation of investment properties and impairments - - - - - 17 17 - 17
Other income statement movements - - - - - (276) (276) 4 (272)
Loss for the year - - - - - (259) (259) 4 (255)
Other comprehensive income and expense - - (1,080) (161) - - (1,241) (87) (1,328)
Total comprehensive income for the year - - (1,080) (161) - (259) (1,500) (83) (1583)
Dividend - - - - - (427) (427) - (427)
Equity share options - - - - 31 - 31 - 31
Share options cancelled - - - - (109) - (109) - (109)
Balance at 31 December 2015 1,068 258 (2,757) (120) 574 16,287 15,310 321 15,631
Profit for the year - - - - - 182 182 (24) 158
Other comprehensive income and expense - - 440 47 - - 487 50 537
Total comprehensive income for the period - - 440 47 - 182 669 26 695
Dividend - - - - - (427) (427) - (427)
Equity share options - - - - 14 - 14 - 14
Balance at 30 June 2016 1,068 258 (2,317) (73) 588 16,042 15,566 347 15,913
ACCOUNTING POLICIES AND NOTES TO THE
ACCOUNTS:
The results for the six months ended 30 June 2016 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 2015 and which will form
the basis of the 2016 Annual report.
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
30 June 30 June 31 December
2016 2015 2015
£000 £000 £000
Revenue
Mining 10,739 13,378 24,608
Property 530 488 1,014
Other 16 13 33
10,925 13,879 25,655
Operating profit/(loss)
Mining (73) 286 (785)
Property 308 131 915
Other 26 11 20
261 428 150
Share of profit in joint ventures (1) 100 69
Interest receivable 128 124 245
Interest payable (226) (245) (473)
Profit/(Loss) before taxation 162 407 (147)
2. Taxation
Unaudited Unaudited Audited
30 June 30 June 31 December
2015 2014 2014
£000 £000 £000
Based on the results for the period:
Corporation tax at 20.50% (2015: 20.25%) 142 2 3
Prior year adjustment - UK - - (23)
142 2 (20)
Deferred taxation (138) 85 128
4 87 108
3. Earnings/ (loss) per share
Both the basic and diluted earnings per share
calculations are based on a profit of £182,000 (2015: £273,000). The basic
earnings per share has been calculated on a weighted average of 10,676,839
(2015: 10,676,839) ordinary shares being in issue during the year. The diluted
earnings per share has been calculated on the weighted average number of
shares in issue of 10,676,839 (2015: 10,676,839) plus the dilutive potential
ordinary shares arising from share options of nil (2015: nil) totalling
10,676,839 (2015: 10,676,839).
4. Investment properties
Investment properties are included at valuation as at
31 December 2015 plus additions in the period ended 30 June 2016.
5. Non-current asset held for sale
On the 11 March 2016, the company disposed of its investment in Langney
Shopping centre Unit Trust. The net proceeds from the sale were £1,168,000.
At 31 December 2015, the share of the net assets of the trust held by the
group were £1,168,000 which included a loss on the reclassification of the
asset to held for sale in the amount of £138,000.
6. 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 2015. The group paid management fees of £68,750 (30 June 2015:
£68,750 31 December 2015: £137,500) to London & Associated Properties PLC,
an associated company.
7. 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 2015 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 2016 as were
used for the year ended 31 December 2015.
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 following new or revised standards that are applicable to the
group were issued but not yet effective:
IFRS 9 – Financial Instruments
IFRS 15 – Revenue from Contracts with Customers.
The largest areas of estimation and uncertainty in the interim financial
statements are in respect of:
- The valuation of investment properties;
- Life of mine and reserves;
- Depreciation;
- Provision for rehabilitation (relating to environmental rehabilitation
of mining areas);
- Impairment and;
- Carrying values of mining joint ventures
Investment properties are not re-valued at the half year end unless there is
evidence of a material change in valuation. There have been no material
changes in fair value during the period. Please refer to page 58 of the 2015
Annual report and Accounts for details on the valuation of investment
properties as at 31 December 2015.
Other areas of estimation and uncertainly are referred to in the group's
annual financial statements. There have been no significant changes to the
basis of accounting of key estimates and judgements as disclosed in the annual
report as at 31 December 2015.
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.
8. Dividend
The interim dividend in respect of 2015, totalling
£107,000 was paid on the 5(th) of February 2016. The final dividend in
respect of 2015, totalling £320,000 was approved by the shareholders at the
Annual General Meeting held on the 10th June 2016 and was paid on the 29th
July 2016. The final dividend in respect of 2015 is included as a liability in
these interim financial statements.
A proposed interim dividend for the year ended 31 December 2016 totalling
£107,000 was approved by the Board of Directors on 26th August 2016 and has
not been included as a liability in these Interim Financial Statements.
9. Principal risks and uncertainties
The Group has an established risk management process
which works within the corporate governance framework as set out in the 2015
Annual Report and Accounts. Risks and uncertainties identified by the Group
are set out on page 10 of the 2015 Annual Report & Accounts and are reviewed
on an ongoing basis. There have been no significant changes in the first half
of 2016 to the principle risks and uncertainties as set out in the 2015 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
- Currency Risk
- Coal qualities
- Currency movements
- Regulatory requirements & permissions
- Transport
- Power supply
- Flooding
- Environment
- Labour
- Recoverability of investment in new reserves and mining joint ventures
Property:
- Property valuation
- Occupancy
9 Board approval
These interim results were approved by the Board of
Bisichi Mining on 26th August 2016.
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.
This report contains forward-looking statements. These statements are based on
current estimates and projections of management and currently available
information. Future statements are not guarantees of the future developments
and results outlined therein. Rather, future developments and results are
dependent on a number of factors; they involve various risks and uncertainties
and are based upon assumptions that may not prove to be accurate. Risks and
uncertainties identified by the Group are set out on page 10 of the 2015
Annual Report & Accounts. We do not assume any obligation to update the
forward-looking statements contained in this report.
Michael Heller
Andrew
Heller
Chairman
Managing Director
26 August 2016
DIRECTORS AND
ADVISERS
Directors
Sir 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)
Christopher A Joll MA
(Non-executive)
John A Sibbald MA
(Non-executive)
Secretary &
Garrett Casey
CA(SA)
Registered office
24 Bruton
Place
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