Bisichi Regulatory News (BISI)

BISICHI MINING - Half-yearly Report

PR Newswire

London, August 27

27 August 2015

BISICHI MINING PLC

Interim Results for the period ended 30 June 2015

For the six months ending 30th June 2015:

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

Bisichi Mining PLC

Consolidated statement of comprehensive income

for the six months ended 30 June 2015

Bisichi Mining PLC

Consolidated Cash Flow Statement

For the six months ended 30 June 2015

Bisichi Mining PLC

Consolidated statement of changes in shareholders' equity

for the six months ended 30 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.

2. Taxation

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:

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:

Property:

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

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Telephone 0871 664 0300

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Website: www.capitaassetservices.com

E-mail: ssd@capitaregistrars.com

Company registration number 112155 (Incorporated in England and Wales)

Web site www.bisichi.co.uk

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