Bisichi Regulatory News (BISI)

28 August 2014 BISICHI MINING PLC Interim Results for the period ended 30 June 2014 For the six months ending 30th June 2014 * Group Revenues: £12.313 million (2013: £19.097 million) * EBITDA: £1.077 million (2013: £3.184 million) * EPS (basic): 0.26p (2013: 10.07p) * Assets per share: £1.51 (2013: £1.67) * Mining in South Africa impacted in first half by heavy rainfall * Profitability expected to improve in the second half of the year * UK property portfolio performing well Michael Heller, chairman, states: "Although we continue to operate in an environment of extremely low coalprices, we expect the changes implemented at Black Wattle to result in astronger performance from our South African operations for some time to come." END For further information, please call: Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030 Bisichi Mining PLC Half year review - 30 June 2014 For the six month period ending on 30 June 2014, Bisichi Mining achievedearnings before interest, tax, depreciation and amortisation of £1.1million(2013: £3.2 million). As previously reported, at the end of last year the open cast mining operationsat Black Wattle, our South African coal mining subsidiary, were severelyimpacted when one of our main production pits ran into unrecorded oldunderground workings. A turnaround plan was put in place to ensure the minereturned to acceptable levels of profitability by the second half of 2014. As part of that turnaround plan, Black Wattle swiftly relocated machinery totwo of our profitable production pits in order to increase production fromthese areas. In addition, the development of the new reserve at BlueNightingale was initiated. The turnaround plan suffered a short-term set-back caused by the unusuallyheavy rainfall in the first quarter of 2014. This inevitably has had an adverseimpact on profitability in the first half of the year but, as a direct resultof prompt action by our mine management, the mine had returned to profitabilityby the end of the second quarter. The Blue Nightingale reserve, referred to above consists of approximately 2.3million tonnes of coal and we are pleased to report that the reserve isexpected to begin to deliver Run of Mine of coal by the end of the thirdquarter. This coal can be sold either directly to local power utilities ortransported to Black Wattle where it will be washed and sold into our existingdomestic and export markets. Black Wattle continues to perform well under the Quattro Programme, whichallows junior black-economic empowerment coal producers direct access to thecoal export market via Richards Bay Coal Terminal. We would like to thankVunani Limited, our black economic empowered shareholders at Black Wattle, formanaging and developing this opportunity. In addition, we are pleased to reportthat Black Wattle is now a level 4 contributor to Broad Based Black EconomicEmpowerment ("BBBEE"). We would like to thank our staff for their hard work inachieving this status as well as for their continued efforts in improving ourBBBEE rating and credentials. Although we continue to operate in an environment of historically low coalprices, we expect the changes implemented at Black Wattle to result in astronger performance from our South African operations for some time 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 theportfolio at the low level of 2.9%. Your directors intend to pay an interim dividend of 1p per share which will bepaid on the 6 February 2015, to shareholders on the register at the close ofbusiness on 9 January 2015. On behalf of the Board we would like to thank all our staff for their hard workduring the first six months of the year. Sir Michael Heller Andrew HellerChairman Managing Director27 August 2014 Bisichi Mining PLC Consolidated income statement for the six months ended 30 June 2014 Unaudited 6 Unaudited 6 Audited Year months ended months ended ended 31 30 June 30 June December 2014 2013 2013 Notes £000 £000 £000 Group revenue 1 12,313 19,097 35,105 Operating costs (12,858) (17,492) (34,968) Operating (loss)/profit on (545) 1,605 137trading activities Decrease in value of investment - - (53)properties Decrease in value of other (1) - (1)investments Gains/(Loss) on held for trading 4 (48) 40investments Operating (loss)/profit 1 (542) 1,557 123 Share of profit in joint 285 34 99ventures (Loss)/Profit before interest (257) 1,591 222and taxation Interest receivable 157 154 326 Interest payable (188) (170) (446) (Loss)/Profit before taxation 1 (288) 1,575 102 Income tax 2 159 (404) 262 (Loss)/Profit for the period (129) 1,171 364 Attributable to: Equity holders of the (28) 1,063 355company Non-controlling interest (101) 108 9 (Loss)/ Profit for the (129) 1,171 364period (Loss)/Earnings per share - 3 (0.26p) 10.07p 3.35pbasic (Loss)/Earnings per share - 3 (0.26p) 9.92p 3.30pdiluted Bisichi Mining PLC Consolidated statement of comprehensive income for the six months ended 30 June 2014 Unaudited 6 Unaudited 6 Audited Year months ended months ended ended 31 30 June 30 June December 2014 2013 2013 £000 £000 £000 (Loss)/Profit for the period (129) 1,171 364 Other comprehensive income: Exchange differences on translation of (135) (367) (858)foreign operations Other comprehensive income for the (135) (367) (858)period, net of tax Total comprehensive income for the (264) 804 (494)period Attributable to: Equity shareholders (149) 738 (409) Non-controlling interest (115) 66 (85) Total comprehensive incomefor the (264) 804 (494)period Bisichi Mining PLC Consolidated Balance Sheet as at 30 June 2014 Unaudited 30 June Unaudited 30 Audited 31 June December 2014 2013 2013 Assets £000 £000 £000 Non-current-assets Value of investment 11,576 11,612 11,559 properties attributable to the group Fair value of head 196 198 196 leases Investment property 11,772 11,810 11,755 Reserves, plant and 6,212 8,764 7,096 equipment Investments in joint 3,520 3,125 3,235 ventures Loan to joint venture 984 1,080 984 Other investments 153 158 151 Total non-current assets 22,641 24,937 23,221 Current assets Inventories 1,130 1,185 1,756 Trade and other 7,792 7,926 8,659 receivables Corporation tax 33 45 36 recoverable Held for trading 826 737 822 investments Cash and cash 1,232 2,540 1,707 equivalents Total current assets 11,013 12,433 12,980 Total assets 33,654 37,370 36,201 Liabilities Current liabilities Borrowings (8,173) (7,840) (8,042) Trade and other payables (6,315) (7,477) (8,080) Current tax liabilities (2) (118) (2) Total current (14,490 ) (15,435) (16,124) liabilities Non-current liabilities Borrowings (49) - (118) Provision for (878) (960) (874) rehabilitation Finance lease (196) (198) (196) liabilities Deferred tax liabilities (1,704) (2,606) (1,902) Total non-current (2,827) (3,764) (3,090) liabilities Total liabilities (17,317) (19,199) (19,214) Net assets 16,337 18,171 16,987 Equity Share capital 1,064 1,056 1,064 Share premium 249 169 249 Translation reserve (1,690) (1,130) (1,569) Other reserves 626 558 587 Retained earnings 15,844 17,008 16,297 Total equity 16,093 17,661 16,628 attributable to equity shareholders Non-controlling interest 244 510 359 Total equity 16,337 18,171 16,987 Bisichi Mining PLC Consolidated Cash Flow Statement For the six months ended 30 June 2014 Unaudited Unaudited Audited 31 30 June 30 June December 2014 2013 2013 £000 £000 £000 Cash flows from operating activities Operating (loss)/profit (542) 1,557 123 Depreciation 1,334 1,593 2,817 Unrealised (gain)/loss on investments held (4) 48 (40)for trading Unrealised loss on other investments 1 - 1 Unrealised loss on investment properties - - 53 Share based payment expense 39 30 120 Realised share of profit in joint venture - 34 - Increase in working capital (515) (1,489) (1,752) Net interest paid (31) (16) (31) Income tax (paid) /received - - 11 Cash flow from operating activities 282 1,757 1,302 Cash flows from investing activities (764) (2,484) (3,162) Cash flows from financing activities (229) (371) (455) Net decreasein cash and cash equivalents (711) (1,098) (2,315) Cash and cash equivalents at 1 January (1,322) 718 718 Exchange adjustment 97 93 275 Cash and cash equivalents at end of period (1,936) (287) (1,322) Cash and cash equivalents For the purposes of the cash flow statement,cash and cash equivalents comprise thefollowing balance sheet amounts: Cash and cash equivalents 1,232 2,540 1,707 Bank overdrafts (3,168) (2,827) (3,029) Cash and cash equivalents at end of period (1,936) (287) (1,322) Bisichi Mining PLC Consolidated statement of changes in shareholders' equity for the six months ended 30 June 2014 Non- Share Share Translation Other Retained controlling Total capital premium reserve reserves earnings Total Interest Equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 1 1,056 169 (805) 528 16,367 17,315 444 17,759January 2013 Profit for the period - - - - 1,063 1,063 108 1,171 Other comprehensive - - (325) - - (325) (42) (367)income and expense Total recognised - - (325) - 1,063 738 66 804income and expensefor the period Dividend - - - - (422) (422) - (422) Equity share options - - - 30 - 30 - 30 Balance at 30 June 1,056 169 (1,130) 558 17,008 17,661 510 18,1712013 Balance as at 1 1,056 169 (805) 528 16,367 17,315 444 17,759January 2013 Revaluation of - - - - (53) (53) - (53)investment properties Other income - - - - 408 408 9 417statement movements Profit for the year - - - - 355 355 9 364 Exchange adjustment - - (764) - - (764) (94) (858) Total comprehensive - - (764) - 355 (409) (85) (494)income for the year Dividend - - - - (425) (425) - (425) Share issues 8 80 - - - 88 - 88 Equity share options - - - 59 - 59 - 59 Balance at 31 1,064 249 (1,569) 587 16,297 16,628 359 16,987December 2013 Loss for the year - - - - (28) (28) (101) (129) Exchange adjustment - - (121) - - (121) (14) (135) Total comprehensive - - (121) - (28) (149) (115) (264)income for the period Dividend - - - - (425) (425) - (425) Equity share options - - - 39 - 39 - 39 Balance at 30 June 1,064 249 (1,690) 626 15,844 16,093 244 16,3372014 ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS: The results for the six months ended 30 June 2014 have been prepared inaccordance with International Financial Reporting Standards (IFRS). Theprincipal accounting policies applied are the same as those set out in theFinancial Statements for the year ended 31 December 2013. 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 Groupreports its segment information. This is consistent with the way the Group ismanaged and with the format of the Group's internal financial reporting. Unaudited Unaudited Audited 31 30 June 30 June December 2014 2013 2013 Revenue Mining 11,763 18,597 34,117 Property 526 484 953 Other 24 16 35 12,313 19,097 35,105 Operating (loss) /profit Mining (877) 1,319 (545) Property 310 270 596 Other 25 (32) 72 (542) 1,557 123 Share of profit in joint 285 34 99ventures Interest receivable 157 154 326 Interest payable (188) (170) (446) (Loss)/ Profitbefore (288) 1,575 102taxation 2. Taxation Based on the results for the period: Corporation tax at 23.5% (2013: - 114 -23.5%) Prior year adjustment - UK - (1) - - 113 - Deferred taxation (159) 291 (213) Prior year adjustment - UK - - (49) (159) 404 (262) 3. Earnings per share Both the basic and diluted earnings per share calculations are based on a lossof £28,000 (2013: Profit: £1,063,000). The basic earnings per share has beencalculated on 10,636,839 (2013: 10,556,839) ordinary shares being in issueduring the year. The diluted earnings per share has been calculated on thenumber of shares in issue of 10,636,839 (2013: 10,556,839) plus the dilutivepotential ordinary shares arising from share options of nil (2013: 155,712)totalling 10,636,839 (2013: 10,712,551). Dilutive potential ordinary shares of159,648 were excluded from the calculation of diluted ordinary shares as therewas no dilutive effect due to the loss for the year. 4. Investment properties Investment properties are included at valuation as at 31 December 2013 plusadditions in the period ended 30 June 2014. 5. Related Parties The related parties and the nature of costs recharged are as disclosed in thegroup's annual financial statements for the year ended 31 December 2013. Thegroup paid management fees of £68,750 (30 June 2013: £68,750, 31 December 2013:£137,500) to London & Associated Properties PLC, an associated company. 6. Financial information The above financial information does not constitute statutory accounts withinthe meaning of section 434 of the Companies Act 2006. The figures for the yearended 31st December 2013 are based upon the latest statutory accounts, whichhave been delivered to the Registrar of Companies; the report of the auditorson those accounts was unqualified and did not contain a statement under Section498(2) or (3) of the Companies Act 2006. As required by the Disclosure and Transparency Rules of the UK's FinancialServices Authority, the interim financial statements have been prepared inaccordance with the International Financial Reporting Standards (IFRS) and inaccordance with both IAS 34 'Interim Financial Reporting' as adopted by theEuropean Union and the disclosure requirements of the Listing Rules. The half year results have not been audited or subject to review by thecompany's auditors. The annual financial statements of Bisichi Mining PLC are prepared inaccordance with IFRS as adopted by European Union. The same accounting policiesare used for the six months ended 30 June 2014 as were used for the year ended31 December 2013. The assessment of new standards, amendments and interpretations issued but noteffective, are not anticipated to have a material impact on the financialstatements. The largest areas of estimation and uncertainty in the interim financialstatements 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 annualfinancial 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 tobe applicable to total annual earnings. The interim financial statements have been prepared on the going concern basisas the Directors are satisfied the group has adequate resources to continue inoperational existence for the foreseeable future. In terms of the group's financial position, in the UK discussions arecontinuing with regard to the extension of the current UK banking facilities,being a £5million term facility and a £1million overdraft facility. Theprevious extension to the facility expired on the 30th June 2013. The directorsconsider that a new loan will be agreed in the near future and that the grouphas sufficient available resources in the interim. 7 Dividend The interim dividend in respect of 2013, totalling £106,000 was paid on the31st January 2014. The final dividend in respect of 2013, totalling £319,000was approved by the shareholders at the Annual General Meeting held on the 11thJune 2014 and was paid on the 1st August 2014. The final dividend in respect of2013 is included as a liability in these interim financial statements. A proposed interim dividend for the year ended 31 December 2014 totalling £106,000 was approved by the Board of Directors on 27th August 2014 and has notbeen 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 thecorporate governance framework as set out in the 2013 Annual Report andAccounts. Risks and uncertainties identified by the Group are set out on page11 of the 2013 Annual Report & Accounts and are reviewed on an ongoing basis.There have been no significant changes in the first half of 2014 to theprinciple risks and uncertainties as set out in the 2013 Annual Report &Accounts. The principal risks as stated in the accounts reflect the challengingenvironment in which the business operates and are considered under thefollowing 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 27thAugust 2014. DIRECTORS RESPONSIBILITY STATEMENT AND REPORT ON PRINCIPAL RISKSAND UNCERTAINITIES Responsibility Statement We confirm to the best of our knowledge: (a) the condensed set of financial statements have been prepared in accordancewith IAS 34 Interim Financial Reporting as adopted by the EU; (b) the interim management report includes a fair review of the informationrequired by: (1) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication ofimportant events that have occurred during the first six months of thefinancial year and their impact on the condensed set of financial statements;and a description of the principal risks and uncertainties for the remainingsix months of the year; and (2) DTR 4.2.8R of the Disclosure and Transparency Rules, being related partytransactions that have taken place in the first six months of the currentfinancial year and that have materially affected the financial position orperformance of the entity during the period; and any changes in the relatedparty transactions described in the last annual report that could do so. Michael Heller Andrew HellerChairman Managing Director27 August 2014 DIRECTORS AND ADVISERS Directors 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 & Heather A Curtis ACISRegistered office 24 Bruton Place London W1J 6NE Black Wattle Colliery - Directors Robert Corry (Chairman) 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 +44 208 639 3399 for overseas callers Website: www.capitaregistrars.com E-mail: shareholderenquiries@capita.co.uk Company registration number 112155 (Incorporated in England and Wales) Web site www.bisichi.co.ukE-mail admin@bisichi.co.uk