REG-Bisichi Mining PLC: Half-yearly Report <Origin Href="QuoteRef">BISI.L</Origin>
27/08/2015 18:00
27 August 2015
BISICHI MINING PLC
Interim Results for the period ended 30 June 2015
For the six months ending 30th June 2015:
* Group Revenues: £13.879 million (2014: £12.313 million)
* EBITDA: £1.232 million (2014: £1.077 million)
* EPS (basic): 2.56p (2014: Loss: 0.26p)
* EBITDA increased 14% over H1 2014 despite depressed international coal
price
* Total production for first 6 months up 21% to 838,000 metric tonnes
* Continuing focus on control of costs and production at Black Wattle
Colliery
* Physical demand for Black Wattle coal remains strong despite historically
low international coal prices
* UK property portfolio performing well with voids across the portfolio at
only 2.3% (2014: 2.9%.
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030
Bisichi Mining PLC
Half year review - 30 June 2015
For the six month period ending on 30 June 2015, Bisichi Mining achieved
earnings before interest, tax, depreciation and amortisation of £1.232million
(2014: £1.077 million).
In an environment where we have seen coal prices continue to weaken, to a
significant extent these earnings have been achieved due to the continued focus
by your management in London and at Black Wattle Colliery, our direct coal
mining asset in South Africa, on keeping cost of production low and ensuring
adequate levels of production are achieved.
In 2015 to date, although demand for our coal has remained strong,
international coal prices have continued to weaken. At the beginning of 2014,
the average weekly price of Free on Board (FOB) Coal from Richards Bay Coal
Terminal (API4) was US$85. By the end of last year the price had weakened to
under US$64. Further weakness in 2015 has seen the coal price go below US$55,
less than half the price of US$120 achieved in 2011. A depreciation in the
South African Rand against the US Dollar has helped to offset partially this
decline. We believe that we can best continue to counter the adverse impact of
lower international coal prices through a continuation of our existing
management strategy.
As part of Black Wattle's production plan for the year, the mine has combined
production from its existing reserves with coal received from the new reserve
at Blue Nightingale, with total production for the first six months of the year
of 838,000 metric tonnes (2014: 690,000 metric tonnes). As previously reported,
the coal from the new reserve is delivered under an agreement with Blue
Nightingale, a South African black owned and managed mining company.
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.
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 2.3% (2014: 2.9%).
Your directors intend to pay an interim dividend of 1p per share which will be
paid on the 5 February 2016, to shareholders on the register at the close of
business on 8 January 2016.
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 2015
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2015
Unaudited Unaudited Audited
6 months ended 6 month Year
ended ended
30 June 30 June 31 December
2015 2014 2014
Notes £000 £000 £000
Group revenue 1 13,879 12,313 26,500
Operating costs (13,450) (12,858) (25,049)
Operating profit/(loss) on trading 429 (545) 1,451
activities
Decrease in value of investment -
properties - (6)
(Decrease)/Increase in value of other (1) (1) 1
investments
Gains/(Loss) on held for trading 4
investments - (82)
Operating profit/(loss) 1 428 (542) 1,364
Share of profit in joint ventures 285
100 563
Profit/(Loss) before interest and 528 (257) 1,927
taxation
Interest receivable 157
124 234
Interest payable (245) (188)
(593)
Profit/(Loss) before taxation 1 407 (288) 1,568
Income tax 2 (87) 159
(365)
Profit/(Loss) for the period 320 (129) 1,203
Attributable to:
Equity holders of the company 273 (28) 1,103
Non-controlling interest 47 (101) 100
Profit/(Loss) for the period 320 (129) 1,203
Earnings/(Loss) per share - basic 3 2.56p (0.26p) 10.33p
Earnings/(Loss) per share - 3 2.56p (0.26p) 10.23p
diluted
Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2015
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2015 2014 2014
£000 £000 £000
Profit/(Loss) for the period 320 (129) 1,203
Other comprehensive income:
Exchange differences on translation of foreign
operations (217) (135) (121)
Transfer of gain on available for sale investments - - 56
Loss on available for sale investments (28) - -
Taxation 6 - (15)
Other comprehensive income for the period, net of (239) (135) (80)
tax
Total comprehensive income for the period 81 (264)
1,123
Attributable to:
Equity shareholders 58 (149)
1,036
Non-controlling interest 23 (115) 87
Total comprehensive income for the period 81 (264)
1,123
Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2015
Unaudited Unaudited Audited
30 June 30 June 31 December
2015 2014 2014
Assets £000 £000 £000
Non-current-assets
Value of investment properties 11,620 11,576 11,575
attributable to the group
Fair value of head leases 195 196 195
Investment property 11,815 11,772 11,770
Reserves, plant and equipment 6,159 6,212 6,064
Investments in joint ventures 2,909 3,520 2,898
Loan to joint venture 1,029 984 1,040
Other investments 151 153 152
Total non-current assets 22,063 22,641 21,924
Current assets
Inventories 1,394 1,130 1,760
Trade and other receivables 8,496 7,792 6,860
Corporation tax recoverable 31 33 35
Available for sale investments 768 826 796
Cash and cash equivalents 2,789 1,232 2,838
Total current assets 13,478 11,013 12,289
Total assets 35,541 33,654 34,213
Liabilities
Current liabilities
Borrowings (3,115) (8,173) (2,139)
Trade and other payables (5,738) (6,315) (4,986)
Current tax liabilities (23) (2) (23)
Total current liabilities (8,876) (14,490) (7,148)
Non-current liabilities
Borrowings (5,957) (49) (6,013)
Provision for rehabilitation (919) (878) (930)
Finance lease liabilities (195) (196) (195)
Deferred tax liabilities (2,210) (1,704) (2,208)
Total non-current liabilities (9,281) (2,827) (9,346)
Total liabilities (18,157) (17,317) (16,494)
Net assets 17,384 16,337 17,719
Equity
Share capital 1,068 1,064 1,068
Share premium 258 249 258
Translation reserve (1,870) (1,690) (1,677)
Available for sale reserves 19 - 41
Other reserves 663 626 652
Retained earnings 16,819 15,844 16,973
Total equity attributable to equity 16,957 16,093 17,315
shareholders
Non-controlling interest 427 244 404
Total equity 17,384 16,337 17,719
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2015
Unaudited Unaudited Audited
30 June 30 June 31 December
2015 2014 2014
£000 £000 £000
Cash flows from operating activities
Operating profit/(loss) 428 (542) 1,364
Depreciation 704 1,334 2,682
Unrealised (gain)/loss on investments held for - (4) 82
trading
Unrealised loss/(gain) on other investments 1 1 (1)
Unrealised loss on investment properties - - 6
Share based payment expense 11 39
65
Share of profit of joint venture 88 - -
Increase in working capital (865) (515)
(506)
Net interest paid (79) (31)
(272)
Income tax paid - - (14)
Cash flow from operating activities 288 282
3,406
Cash flows from investing activities (1,202) (764)
(1,903)
Cash flows from financing activities (218) (229) 488
Net decrease in cash and cash equivalents (1,132) (711) 1,991
Cash and cash equivalents at 1 January 719 (1,322)
(1,322)
Exchange adjustment 95 97
50
Cash and cash equivalents at end of period (318) (1,936) 719
Cash and cash equivalents
For the purposes of the cash flow statement, cash
and cash equivalents comprise the following balance
sheet amounts:
2,789 1,232 2,838
Cash and cash equivalents
Bank overdrafts (3,107) (3,168)
(2,119)
Cash and cash equivalents at end of period (318) (1,936) 719
Bisichi Mining PLC
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2015
Share Share Translation Available Other Retained Non- Total
for sale controlling
capital premium reserve reserves reserves earnings Total Interest Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 1,064 249 (1,569) - 587 16,297 16,628 359 16,987
January 2014
Loss for the - - - - - (28) (28) (101) (129)
period
Other - - (121) - - - (121) (14) (135)
comprehensive
income and
expense
Total - - (121) - - (28) (149) (115) (264)
comprehensive
income for the
period
Dividend - - - - - (425) (425) - (425)
Equity share - - - - 39 - 39 - 39
options
Balance at 30 1,064 249 (1,690) - 626 15,844 16,093 244 16,337
June 2014
Balance as at 1 1,064 249 (1,569) - 587 16,297 16,628 359 16,987
January 2014
Revaluation of - - - - - (6) (6) - (6)
investment
properties
Other income - - - - - 1,109 1,109 100 1,209
statement
movements
Profit for the - - - - - 1,103 1,103 100 1,203
year
Other - - (108) 41 - - (67) (13) (80)
comprehensive
income and
expense
Total - - (108) 41 - 1,103 1,036 87 (1,123)
comprehensive
income for the
year
Dividend - - - - - (427) (427) (42) (469)
Share issues 4 9 - - - - 13 - 13
Equity share - - - - 65 - 65 - 65
options
1,068 258 (1,677) 41 652 16,973 17,315 404 17,719
Balance at 31
December 2014
Profit for the - - - - - 273 273 47 320
year
Other - - (193) (22) - - (215) (24) (239)
comprehensive
income and
expense
Total - - (193) (22) - 273 58 23 81
comprehensive
income for the
period
Dividend - - - - - (427) (427) - (427)
Equity share - - - - 11 - 11 - 11
options
Balance at 30 1,068 258 (1,870) 19 663 16,819 16,957 427 17,384
June 2015
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2015 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 2014.
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
2015 2014 2014
£000 £000 £000
Revenue
Mining 13,377 11,763 25,536
Property 488 526 931
Other 13 24 33
13,878 12,313 26,500
Operating profit/(loss)
Mining 286 (877)
721
Property 131 310 693
Other 11 25 (50)
428 (542)
1,364
Share of profit in joint ventures 100 285 563
Interest receivable 124 157 234
Interest payable (245) (188) (593)
Profit/(Loss) before taxation 407 (288) 1,568
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 20.5% (2014: 23.5%) 2 -
16
Prior year adjustment - UK - -
20
2 - 36
Deferred taxation 85 (159) 305
Prior year adjustment - UK - - 24
87 (159) 365
3. Earnings per share
Both the basic and diluted earnings per share calculations are based on a
profit of £273,000 (2014: loss: £28,000). The basic earnings per share has been
calculated on a weighted average of 10,676,839 (2014: 10,636,839) 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
(2014: 10,636,839) plus the dilutive potential ordinary shares arising from
share options of nil (2014: nil) totalling 10,676,839 (2014: 10,636,839). In
2014, 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 period.
4. Investment properties
Investment properties are included at valuation as at 31 December 2014 plus
additions in the period ended 30 June 2015.
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 2014. The
group paid management fees of £68,750 (30 June 2014: £68,750 31 December 2014:
£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 2014 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 2015 as were used for the year ended
31 December 2014.
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.
7 Dividend
The interim dividend in respect of 2014, totalling £107,000 was paid on the 6th
of February 2015. The final dividend in respect of 2014, totalling £320,000 was
approved by the shareholders at the Annual General Meeting held on the 10th
June 2015 and was paid on the 31st July 2015. The final dividend in respect of
2014 is included as a liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2015 totalling £
107,000 was approved by the Board of Directors on 27th August 2015 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 2014 Annual Report and
Accounts. Risks and uncertainties identified by the Group are set out on page
10 of the 2014 Annual Report & Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2015 to the
principle risks and uncertainties as set out in the 2014 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 2015.
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 2015
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)
C A Joll MA
(Non-executive)
John A Sibbald MA
(Non-executive)
Secretary & Garrett Casey CA(SA)
Registered office 24 Bruton
Place
London W1J
6NE
Black Wattle Colliery - Directors 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 +44 203 728 5000
for overseas callers
Website:
www.capitaassetservices.com
E-mail:
ssd@capitaregistrars.com
Company registration number 112155 (Incorporated in England and
Wales)
Web site
www.bisichi.co.uk
E-mail admin@bisichi.co.uk
END
Copyright © 2015 PR Newswire Association, LLC. All Rights ReservedRecent news on Bisichi
See all newsREG-Bisichi Plc: Final Results
AnnouncementREG-Bisichi Plc: Death of Christopher Joll, Senior Independent Director
AnnouncementREG-Bisichi Plc: Related Party Transaction
AnnouncementREG-Bisichi Plc: Interim Results
AnnouncementREG-Bisichi Plc: Report on Payments to Governments
Announcement