Last checked at 30 Aug 2012 07:00
30 August 2012 BISICHI MINING PLC Interim Results for the period ended 30 June 2012 HIGHLIGHTS A strong start to 2012
For the six months ending 30 June 2012
* Group Revenues: £16.5 million (H1 2011: £13.2 million) * PBT: £1.1 million (H1 2011: Loss £1.8 million) * EPS (basic): 10.9p (H1 2011: Loss per share 11.5p) * Assets per share: £1.65 (H1 2011: £1.57)
Michael Heller, chairman, commented:
"The opening of a third opencast pit at our South African coal mining subsidiary, combined with the development of additional domestic and international markets for a wider range of our coal products has ensured a strong start to 2012."
END
For further information, please call:
Andrew Heller/Garrett Casey Bisichi Mining PLC 020 7415 5030
Bisichi Mining PLC
Half year review - 30 June 2012
We are pleased to report that for the six month period ended on 30 June 2012,Bisichi Mining made a profit before taxation of £1.1million (H1 2011: loss of £1.8million). These results reflect the strong performance of our South Africancoal mining subsidiary, Black Wattle Colliery.As previously reported, the turnaround at Black Wattle Colliery can largely beattributed to the opening of a third opencast pit early in the second half oflast year and the selling of our coal into new, lower quality, markets.
As a result of the opening of the third opencast pit, the mines' monthly production for the first six months of this year increased to an average of 150,000 metric tonnes. This compares favourably with the average monthly production of 110,000 metric tonnes achieved in the same period last year and 135,000 metric tonnes achieved in the second half of 2011.
The establishment of new, lower quality markets for some of our coal hasallowed us to mine coal that would otherwise be unsuitable for supply to ourtraditional, higher quality market. The demand for this lower quality productis strong from both local power utilities and the export market. The latter hasbenefited from a substantial improvement in the performance of Transnet, theState rail provider which delivered 67.5 million metric tonnes of export coalto Richards Bay Coal Terminal ("RBCT") during the year ended March 2012compared to 62.1 million metric tonnes in 2011. These improvements are expectedto be ongoing with the rail provider estimated to deliver over 73 millionmetric tonnes of export coal to RBCT during its 2012/13 financial year.In the circular posted to shareholders on 16 March 2012 we informedshareholders that the estimated date for completion of the disposal of thecompany's 49% shareholding in Ezimbokodweni Mining (Pty) Ltd was 15 May 2012.The transaction has not, as yet, completed but we can confirm that negotiationsfor the disposal remain ongoing. A further announcement will be made in duecourse.The company's UK retail property portfolio, which is managed by London &Associated Properties PLC, continues to perform well. Despite reports of a slowdown in the UK's real estate market, rental voids across our retail propertyportfolio remained at a low level of 2.7%.
We are pleased to announce that Bisichi Mining intends to pay an interim dividend of 1p per share which will be paid on the 1 February 2013, to shareholders on the register at the close of business on 4 January 2013.
In 2012 to date we have continued to benefit from the higher production at Black Wattle and the strong demand for our coal which we see continuing for the rest of the year. We therefore look forward to the future with confidence.
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.
Michael Heller Andrew HellerChairman Managing Director29 August 2012Bisichi Mining PLCConsolidated income statement
for the six months ended 30 June 2012
Unaudited 6 Unaudited 6 Audited Year months ended months ended ended 30 June 30 June 31 December 2012 2011 2011 Notes £000 £000 £000 Group revenue 1 16,477 13,228 29,909 Operating costs (15,268) (14,877) (31,028) Operating profit/(loss) on 1,209 (1,649) (1,119)trading activities
Decrease in value of investment - -
(42)properties (Loss)/gains on held for trading (54) 3 (167)investments Operating profit/(loss) 1 1,155 (1,646) (1,328) Share of profit /(loss) in 47 (1) (10)joint ventures Profit/(loss)before interest 1,202 (1,647) (1,338)and taxation Interest receivable 122 13 268 Interest payable (205) (197) (380) Profit/(loss)before taxation 1 1,119 (1,831) (1,450) Income tax 2 95 631 904 Profit/(loss)for the period 1,214 (1,200) (546) Attributable to: Equity holders of the 1,147 (933) (444)company Non-controlling interest 67 (267) (102) Profit/(loss) for the period 1,214 (1,200) (546) Earnings/loss per share - basic 3 10.86p (11.48)p (4.23)p Earnings/loss per share - 3 10.57p (11.48)p (4.23)pdiluted Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2012
Unaudited 6 Unaudited 6 Audited Year months ended months ended ended 30 June 30 June 31 December 2012 2011 2011 £000 £000 £000 Profit/(Loss)for the period 1,214 (1,200) (546) Other comprehensive income: Exchange differences on translation of (143) (175) (575)foreign operations Other comprehensive income for the 1,071 (1,375) (575)period, net of tax Total comprehensive income for the 1,071 (1,375) (1,121)period Attributable to: Equity shareholders 1,011 (1,092) (958) Non-controlling interest 60 (283) (163) Total comprehensive incomefor the 1,071 (1,375) (1,121)period Bisichi Mining PLC Consolidated Balance Sheet as at 30 June 2012 Unaudited Unaudited Audited 30 June 30 June 31 December 2012 2011 2011 Assets £000 £000 £000 Non-current-assets Value of investment 12,068 12,110 12,068 properties attributable to the group Fair value of head 204 227 222 leases Property 12,272 12,337 12,290 Reserves, plant and 7,887 9,285 7,926 equipment Investments in joint 2,592 4,425 2,579 ventures Other investments 148 150 148 Total non-current 22,899 26,197 22,943 assets Current assets Inventories 2,085 811 1,206 Trade and other 7,010 4,620 6,067 receivables Corporation tax 47 55 133 recoverable Held for trading 678 899 730 investments Cash and cash 1,346 4,848 4,041 equivalents 11,166 11,233 12,177 Non-current assets held 1,820 - 1,785 for sale Total current assets 12,986 11,233 13,962 Total assets 35,885 37,430 36,905 Liabilities Current liabilities Borrowings (6,898) (3,087) (8,157) Trade and other (8,395) (9,352) (8,590) payables Current tax liabilities (102) (409) - Total current (15,395) (12,848) (16,747) liabilities Non-current liabilities Borrowings - (5,209) (86) Provision for (1,002) (1,038) (965) rehabilitation Finance lease (204) (227) (222) liabilities Deferred tax (1,624) (1,546) (1,881) liabilities Total non-current (2,830) (8,020) (3,154) liabilities Total liabilities (18,225) (20,868) (19,901) Net assets 17,660 16,562 17,004 Equity Share capital 1,056 1,045 1,056 Share premium 169 - 169 Translation reserve (582) (91) (446) Other reserves 507 492 500 Retained earnings 16,219 15,005 15,494 Total equity attributable 17,369 16,451 16,773to equity shareholders Non-controlling 291 111 231 interest Total equity 17,660 16,562 17,004Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2012
Unaudited Unaudited Audited 30 June 30 June 31 December 2012 2011 2011 £000 £000 £000
Cash flows from operating activities
Operating profit/(loss) 1,155 (1,646) (1,328) Depreciation 1,007 1,294 2,488
Unrealised gain/(loss) on investments held 54 (3)
167for trading
Unrealised gain on investment properties - -
42
Share based payment expense 7 7
15
Realised share of profit in joint venture 33 -
21
(Increase)/ Decrease in working capital (188) 1,291 (713) Net interest paid (83) (184) (112) Income tax paid (60) (116) 245
Cash flow from operating activities 1,925 643
825
Cash flows from investing activities (1,153) (2,394)
(3,409)
Cash flows from financing activities (2,264) (257)
(585)
Net decreasein cash and cash equivalents (1,492) (2,008) (3,169)
Cash and cash equivalents at 1 January 1,114 3,977 3,977 Exchange adjustment 42 65 306 Cash and cash equivalents at end of period (336) 2,034 1,114 Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise the following balance sheet amounts:
Cash and cash equivalents 1,346 4,848 4,041 Bank overdrafts (1,682) (2,814) (2,927) Cash and cash equivalents at end of period (336) 2,034 1,114 Bisichi Mining PLC
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2012
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 1,045 - 68 485 16,356 17,954
394 18,348January 2011 Loss for the period - - - - (933) (933) (267) (1,200) Other comprehensive - - (159) - - (159) (16) (175)income and expense Total recognised - - (159) - (933) (1,092) (283) (1,375)income and expense for the period Dividend - - - - (418) (418) - (418) Equity share options - - - 7 - 7 - 7
Balance at 30 June 1,045 - (91) 492 15,005 16,451 111 16,5622011 Balance as at 1 1,045 - 68 485 16,356 17,954
394 18,348January 2011 Revaluation of - - - - (42) (42) - (42)investment properties Other income - - - - (402) (402) (102) (504)statement movements Loss for the year - - - - (444) (444) (102) (546) Exchange adjustment - - (514) - - (514) (61) (575) Total comprehensive - - (514) - (444) (958) (163) (1,121)income for the year Dividend 11 169 - - (418) (238) - (238) Equity share options - - - 15 - 15 - 15
Balance at 31 1,056 169 (446) 500 15,494 16,773
231 17,004December 2011 Profit for the year - - - - 1,147 1,147 67 1,214 Exchange adjustment - - (136) - - (136) (7) (143) Total comprehensive - - (136) - 1,147 1,011 60 1,071income for the period Dividend - - - - (422) (422) - (422) Equity share options - - - 7 - 7 - 7
Balance at 30 June 1,056 169 (582) 507 16,219 17,369 291 17,6602012
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30 June 2012 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 2011.
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 2012 2011 2011 Revenue Mining 15,950 12,700 28,892 Property 489 491 989 Other 38 37 28 16,477 13,228 29,909 Operatingprofit/(loss) Mining 834 (1,970) (1,762) Property 339 288 588 Other (18) 36 (154) 1,155 (1,646) (1,328) Share of profit/(loss) in 47 (1) (10)joint ventures Interest receivable 122 13 268 Interest payable (205) (197) (380) Profit/(Loss)before 1,119 (1,831) (1,450)taxation 2. Taxation
Based on the results for the period:
Corporation tax at 26.5% (2011: 27%) 102 115 -
Prior year adjustment - SA - - (332)
102 115 (332) Deferred taxation (197) (746) (572) (95) (631) (904) 3. Earnings per shareBoth the basic and diluted earnings per share calculations are based on aprofit of £1,147,000 (2011: loss: £1,200,000). The basic earnings per share hasbeen calculated on 10,556,839 (2011: 10,451,506) ordinary shares being in issueduring the year. The diluted earnings per share has been calculated on thenumber of shares in issue of 10,556,839 (2011: 10,451,506) plus the dilutivepotential ordinary shares arising from share options of 296,255 (2011: nil )totalling 10,853,094 (2011: 10,451,506).
4. Properties
Properties are included at valuation as at 31 December 2011 plus additions in the period ended 30 June 2012.
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 2011. Thegroup paid management fees of £103,125 (30 June 2011: £137,500, 31 December2011: £275,000) 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 2011 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 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 inaccordance with IFRS as adopted by European Union. The same accounting policiesare used for the six months ended 30 June 2012 as were used for the year ended31 December 2011.
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 area of estimation and uncertainty in the interim financialstatements is in respect of the valuation of investment properties (which arenot re-valued at the half year end). Other areas of estimation and uncertainlyare 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 basisas the Directors are satisfied the group has adequate resources to continue inoperational existence for the foreseeable future.
7 Dividend
The interim dividend in respect of 2011, totalling £105,000 was paid on the 3rdof February 2012. The final dividend in respect of 2011, totalling £317,000 wasapproved by the shareholders at the Annual General Meeting held on the 31st May2012 and was paid on the 6th August 2012. The final dividend in respect of 2011is included as a liability in these interim financial statements.A proposed interim dividend for the year ended 31 December 2012 totalling £106,000 was approved by the Board of Directors on 29th August 2012 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 2011 Annual Report andAccounts. Risks and uncertainties identified by the Group are set out on page12 of the 2011 Annual Report & Accounts and are reviewed on an ongoing basis.There have been no significant changes in the first half of 2012 to theprinciple risks and uncertainties as set out in the 2011 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- LabourProperty:- Property valuation- Occupancy9 Board approval
These interim results were approved by the Board of Bisichi Mining on 29th August 2012.
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 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 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 HellerChairman Managing Director29 August 2012DIRECTORS AND ADVISERSDirectors 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 DubeGeneral mine manager Luis Pinel
Registrars and transfer office Capita Registrars
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: ssd@capitaregistrars.comCompany registration number 112155 (Incorporated in England and Wales)Web site www.bisichi.co.ukE-mail admin@bisichi.co.uk