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Any ideas on Divs? I am sure divs will be payable I read before.
Good morning.
Basically, yes.
H1 profit (heavily impaired) was £22m.
Full year at, say, £45m, divided by 11m shares gives you your answer.
And a happy new year to you as well!
Hi Edward,
Happy New Year.
From your previous post are you implying that you believe that BISI will have an eps of approx 442p??
Or, have I calculated that wrong (at £10 per share)?
That would give it a PE of 2 rather than the current 0.7.
Hardly the stuff of fantasy.
Oh go on then, let's say ten quid
Would anyone care to predict what the Bisichi share price will hit this year???
Given the very substantial production impairment in H1, I'm expecting 2022 profit of £45m to £50m.
A market cap of £30m is hilarious.
Other than liquidity, I struggle to justify buying any other share.
Patience Beza - BISI is too small for fund managers to show any serious interest
But if they provide a FY update in early January stating that 2022 results will show net profit above market capital then we should see a slew of punters rushing in. My own guessimate based on production levels is that BISI is trading well below comparable value with TGA ... a sevenfold increase would not be impossible imho !
It’s a little disappointing to see Thungela tick up every day or so whilst Bisichi remains dormant. It’s along time until April / May results rns.
… a suitable increase in the dividend would work wonders here.
Yes, TGA has enjoyed a far, far bigger rise than Bisichi, making BISI (if the directors make this look attractive for shareholders) look way undervalued.
Thungela is my largest holding, so rather than add more eggs to that basket I decided to op myself down for 2000 of these just now, at £3.065. Hope they do me as well as the TGA shares have over the last 18 months.
Absolutely, Beza, but that is to our advantage in that it enables us to keep buying at ridiculous prices.
Personally, I love that it is a company that is over 100 years old and largely owned by a family that is incredibly invested in the success of the business. I don't really like companies that are run by short term glory seekers.
However, there is only so much they can do to restrain the good news without breaking the rules. Sooner or later, the reality of profit and cash generation has to be revealed.
I think that the managements hold on the company and the low number of shares in issue hampers this company in terms of rating.
Dechra plc, a constituent of the FTSE100 and with a market cap of £3bn, with make about the same profit as Bisichi plc this year, with a market cap of £30m.
That's just 1/100th of the value.
Transposing the information from Thungela's trading update this morning, and given that Bisichi's mining volumes were severely curtailed due to the relocation (completed in H1), I see no reason why H2 profit should not be substantially superior to the £22m achieved in H1.
During the first half of the year they moved operations to a new, more productive coal seam. It appears this took some time to complete and resulted in substantial one-off capex, which I assume included removal of overburden to access the new coal seam. Hence the drain on cash. Cashflow in H2 won’t have any of these issues, and moreover the higher quality coal will have yielded higher prices. Edward is right that a lot of their profits come from processing both their own, and bought-in, coal; with buoyant demand I’m hoping for exceptional coal sales volumes in H2.
A fair question, and there is no single answer. Pretty much every line in the accounts has moved positively (I assume you have looked at the H1 figures?). It will be interesting to see what happens to cash at year end as there was hardly any debt to pay down in the first place.
Bisichi doesn't just mine and sell coal. They have a coal processing plant, and a history of investing the proceeds from mining in property and other non-cash assets, sometimes co-owned with London and Associated Properties plc (which iteslf owns 41.5% of Bisichi).
In many ways I think the two companies are best thought of as one, and it can be argued that LAS is even cheaper as it's market cap of £16m is pretty much pro rata the value of its shares in Bisichi, on top of which you get a £40m (net) property portfolio thrown in as a bonus.
I hold both.
Like the look of this company. Could any of the resident experts explain the cash position which appears hardly to have moved despite the bumper profit.Cheers
I certainly am, Beza, yes.
Are you still holding LAS as well Edward? At some point these have got to move north (if BISI’s) results are stellar.
Ultimately, it is how it works.
From a selfish angle I was hoping the price would stay down for a few more weeks to enable me to add more.
"my share of that profit is £100k"
If only that's how it worked!
I find this fascinating:
I own about 1/500th of Bisichi, or around £60k of shares at today's price.
If the company makes a profit of £50m this year (my best guess), my share of that profit is £100k.
All things considered, that's total madness. I only wish those buys this morning could have been me...