Last checked at 19 May 2009 07:00
BISICHI MINING PLC
Interim Management Statement
Published 19 May 2009 07:00:00
Interim Management Statement
Bisichi Mining PLC ('Bisichi'), the UK Mining company with direct coal mining operations in South Africa, is pleased to provide the following update about its operations:
- Since the commencement of the Open Cast operation in June 2008, monthly production at Black Wattle has consistently averaged more than 120,000 metric tonnes per month.
- Black Wattle will complete the expansion of its washing plant from capacity of 130,000 metric tonnes per month to 170,000 metric tonnes per month by the end of Second Quarter.
- Black Wattle has locked in prices for the majority of its export product until the end of 2009.
- The weakening of international coal prices (which are priced in US dollars) has put downward pressure on the prices paid for domestic coal within South Africa.
- Trading profits and cash flow generation from mining activities for the First Quarter are in line with management expectations.
- Income from Bisichi's UK properties remains steady, with no significant change from 2008.
- With our strong cash generation in the First Quarter, Bisichi Mining PLC has currently no net borrowings.
Mr Andrew Heller, Managing Director of Bisichi said: 'The First Quarter of 2009 was in line with management expectations. Production has been averaging above 120,000 metric tons per month and we fixed our export prices for the majority of our export coal earlier when the pricing environment was more favourable. With the increased capacity of the washing plant and our cash positive position, we are well-positioned to take advantage of opportunities which will arise during this volatile time.'
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For further information, please call:
Andrew Heller/Tom Kearney, Bisichi Mining PLC 020 7415 5030
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