31 August 2017
BISICHI
MINING PLC
Interim Results for the period
ended 30 June 2017
For the six months ending
30th June 2017:
- Profit before tax
£243,000
(2016: £162,000)
- EBITDA [1]:
£1.4million
(2016:
£1.0million)
- Adjusted EBITDA [2]:
£1.4million
(2016: £0.7million)
- EPS
(basic):
2.37p
(2016: 1.7p)
- Total production:
582,000 tonnes (2016: 795,000
tonnes)
- Production at Black Wattle impacted by higher than expected
seasonal rains and stone contamination issues
- Majority of new infrastructure improvements to the coal washing
plant completed
- Physical demand for Black Wattle coal remains strong and
international and domestic coal prices have remained stable
- UK property portfolio performing well with voids across the
portfolio at only 1.6% (2016: 2.0%)
END
For further information, please call:
Andrew Heller/Garrett
Casey Bisichi Mining
PLC
020 7415 5030
[1] Earnings before Interest, taxation, depreciation and
amortisation.
[2] Operating profit before depreciation, fair value adjustments
and exchange movements.
Bisichi Mining PLC
Half year review – 30 June 2017
For the six month period ending on 30
June 2017, Bisichi Mining PLC achieved earnings before
interest, tax, depreciation and amortisation of £1.4million (2016:
£1.0 million).
During the first six months of this year production at Black
Wattle, our direct coal mining asset in South Africa, was impacted by higher than
expected seasonal rains as well as ongoing stone contamination
issues at our opencast areas. Overall, the mine achieved total
production of 582,000 metric tonnes (2016: 795,000 metric tonnes)
during the period reported evenly spread between both quarters.
Although this was an improvement on the 466,000 metric tonnes
achieved in the second half of last year, management has planned
for further progress to be made in developing our opencast areas
and increasing production in the second half of the year.
We are pleased to report that the majority of the new
infrastructure improvements to the coal washing plant, as reported
to shareholders in our annual report earlier this year, have now
been completed. The new infrastructure will assist in reducing
stone contamination through the washing plant and will allow Black
Wattle to mine at a higher rate of production at our opencast areas
and increase yield.
In terms of markets, the demand for our coal has remained strong
and international and domestic coal prices have continued to remain
stable for most of the first half of 2017. Overall, the increase in
group revenue compared to the same period last year can mainly be
attributed to the appreciation of the Rand against our reporting
currency (UK Sterling) as well as improved coal prices. In turn,
the increase in group operating costs compared to the same period
last year can also mainly be attributed to the appreciation of the
Rand against our reporting currency as well as increased mining
costs at our new opencast mining areas.
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.
Looking forward to the rest of this year, management will
continue to focus on improving levels of production at Black Wattle
in order to benefit from the various infrastructure improvements we
now have in place.
At present, the Board has no new material information to report
in regard to the acquisition of the Pegasus coal project, the
details of which was reported to shareholders in our Annual
report.
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 1.6% (2016: 2.0%). Revenue from our
directly owned property portfolio increased to £0.56million (2016:
£0.53million) during the period reported.
Your directors intend to pay an interim dividend of 1p per share
which will be paid on the 9 February
2018, to shareholders on the register at the close of
business on 5 January 2018.
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
31 August 2017
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2017
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
6
months ended |
6 months ended |
Year
ended |
|
|
|
30
June |
30
June |
31
December |
|
|
|
2017 |
2016 |
2016 |
|
|
Notes |
£000 |
£000 |
£000 |
|
|
|
|
|
|
Group
revenue |
1 |
16,732 |
10,925 |
22,815 |
Operating
costs |
|
(16,283) |
(10,675) |
(22,635) |
Operating profit/(loss) on trading activities |
|
449 |
250 |
180 |
Increase
in value of investment properties |
- |
- |
445 |
Increase/(Decrease) in value of other investments |
- |
11 |
12 |
Operating profit |
1 |
449 |
261 |
637 |
Share of
profit/(loss) in joint ventures |
|
4 |
(1) |
(7) |
Profit
before interest and taxation |
|
453 |
260 |
630 |
Interest
receivable |
|
|
127 |
124 |
270 |
Interest
payable |
|
(337) |
(226) |
(554) |
Profit/(Loss) before taxation |
1 |
243 |
162 |
346 |
Income
tax |
2 |
(18) |
(4) |
61 |
Profit/(Loss) for the period |
|
225 |
158 |
407 |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Equity holders of the
company |
|
|
253 |
182 |
479 |
Non-controlling
interest |
|
|
(28) |
(24) |
(72) |
Profit/(Loss) for
the period |
|
|
225 |
158 |
407 |
|
|
|
|
|
Earnings/(Loss) per share - basic |
3 |
2.37p |
1.70p |
4.48p |
Earnings/(Loss) per share - diluted |
3 |
2.37p |
1.70p |
4.48p |
Bisichi Mining PLC
Consolidated statement of
comprehensive income
for the six months ended 30 June 2017
|
|
Unaudited |
Unaudited |
Audited |
|
|
6 months
ended |
6 months
ended |
Year
ended |
|
|
30 June |
30 June |
31 December |
|
|
2017 |
2016 |
2016 |
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
Profit/(Loss) for the
period |
225 |
158 |
407 |
Other comprehensive
income: |
|
|
|
Exchange differences on
translation of foreign operations |
7 |
490 |
1,106 |
Gain/(Loss) on available
for sale investments |
28 |
60 |
193 |
Taxation |
(3) |
(13) |
(13) |
Other comprehensive
income for the period, net of tax |
32 |
537 |
1,286 |
Total comprehensive income for
the period |
|
257 |
695 |
1,693 |
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity shareholders |
|
285 |
669 |
1,665 |
Non-controlling interest |
|
(28) |
26 |
28 |
Total comprehensive income for
the period |
|
257 |
695 |
1,693 |
Bisichi
Mining PLC |
Consolidated Balance Sheet |
as at 30 June 2017 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30
June |
31
December |
|
|
2017 |
2016 |
2016 |
Assets |
£000 |
£000 |
£000 |
Non-current-assets |
|
|
|
|
Value of investment
properties |
13,265 |
12,800 |
13,245 |
|
Fair value of head
leases |
181 |
186 |
181 |
|
Investment
property |
13,446 |
12,986 |
13,426 |
|
Reserves, plant and
equipment |
8,819 |
6,319 |
8,520 |
|
Investments in joint
ventures |
1,326 |
1,197 |
1,321 |
|
Loan to joint
venture |
1,398 |
1,105 |
1,350 |
|
Other investments |
46 |
25 |
32 |
|
Total non-current
assets |
25,035 |
21,632 |
24,649 |
Current
assets |
|
|
|
|
Inventories |
842 |
2,117 |
1,721 |
|
Trade and other
receivables |
6,163 |
7,277 |
7,246 |
|
Corporation tax
recoverable |
- |
- |
32 |
|
Available for sale
investments |
779 |
654 |
781 |
|
Cash and cash
equivalents |
2,414 |
2,757 |
2,444 |
|
Total current
assets |
10,198 |
12,805 |
12,224 |
Total
assets |
35,233 |
34,437 |
36,873 |
Liabilities |
|
|
|
Current
liabilities |
|
|
|
|
Borrowings |
(806) |
(2,981) |
(3,358) |
|
Trade and other
payables |
(7,963) |
(6,179) |
(6,950) |
|
Current tax
liabilities |
(113) |
(136) |
(18) |
|
Total current
liabilities |
(8,882) |
(9,296) |
(10,326) |
Non-current liabilities |
|
|
|
|
Borrowings |
(5,887) |
(5,961) |
(5,876) |
|
Provision for
rehabilitation |
(1,283) |
(1,028) |
(1,236) |
|
Finance lease
liabilities |
(181) |
(186) |
(181) |
|
Deferred tax
liabilities |
(2,164) |
(2,053) |
(2,248) |
|
Total non-current
liabilities |
(9,515) |
(9,228) |
(9,541) |
Total
liabilities |
(18,397) |
(18,157) |
(19,867) |
Net
assets |
16,836 |
15,913 |
17,006 |
Equity |
|
|
|
|
Share capital |
1,068 |
1,068 |
1,068 |
|
Share premium |
258 |
258 |
258 |
|
Translation
reserve |
(1,744) |
(2,317) |
(1,751) |
|
Available for sale
reserves |
85 |
(73) |
60 |
|
Other reserves |
683 |
588 |
683 |
|
Retained earnings |
16,165 |
16,042 |
16,339 |
|
Total
equity attributable to equity shareholders |
16,515 |
15,566 |
16,657 |
|
Non-controlling
interest |
321 |
347 |
349 |
Total equity |
16,836 |
15,913 |
17,006 |
|
|
|
|
|
|
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2017
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
June |
30
June |
31
December |
|
|
2017 |
2016 |
2016 |
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
Cash
flows from operating activities |
|
|
Operating
profit |
|
449 |
261 |
637 |
Depreciation |
|
956 |
736 |
1,785 |
Unrealised (gain)/loss
on other investments |
|
- |
(11) |
(12) |
Unrealised gain on
investment properties |
|
- |
- |
(445) |
Share based payment
expense |
|
- |
14 |
109 |
Exchange
adjustments |
|
28 |
(264) |
(449) |
Movement in working
capital |
|
2,630 |
(183) |
1,362 |
Net interest paid |
|
(162) |
(60) |
(327) |
Income tax
paid/(received) |
|
23 |
27 |
(46) |
Cash flow from
operating activities |
|
3,924 |
520 |
2,614 |
Cash flows from
investing activities |
|
(1,258) |
378 |
(1,691) |
Cash flows from
financing activities |
|
(154) |
(170) |
(521) |
Net
increase/(decrease) in cash and cash equivalents |
|
2,512 |
728 |
402 |
|
|
|
|
|
Cash and cash
equivalents at 1 January |
|
(890) |
(626) |
(626) |
Exchange
adjustment |
|
(2) |
(318) |
(666) |
Cash and cash
equivalents at end of period |
|
1,620 |
(216) |
(890) |
|
|
|
|
|
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 |
|
2,414 |
2,757 |
2,444 |
Bank overdrafts |
|
(794) |
(2,973) |
(3,334) |
Cash and cash
equivalents at end of period |
|
1,620 |
(216) |
(890) |
|
|
|
|
|
Bisichi Mining PLC
Consolidated statement of changes in
shareholders' equity
for the six months ended 30 June 2017
|
Share |
Share |
Translation |
Available for sale |
Other |
Retained |
|
Non-
controlling |
Total |
|
capital |
premium |
reserve |
reserves |
reserves |
earnings |
Total |
Interest |
Equity |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
Balance as at 1
January 2016 |
1,068 |
258 |
(2,757) |
(120) |
574 |
16,287 |
15,310 |
321 |
15,631 |
Profit for the
period |
- |
- |
- |
- |
- |
182 |
182 |
(24) |
158 |
Other comprehensive
income and expense |
- |
- |
440 |
47 |
- |
- |
487 |
50 |
537 |
Total
comprehensive income for the period |
- |
- |
440 |
47 |
- |
182 |
669 |
26 |
695 |
Dividend |
- |
- |
- |
- |
- |
(427) |
(427) |
- |
(427) |
Equity share
options |
- |
- |
- |
- |
14 |
- |
14 |
- |
14 |
Balance at 30 June
2016 |
1,068 |
258 |
(2,317) |
(73) |
588 |
16,042 |
15,566 |
347 |
15,913 |
Balance as at 1
January 2016 |
1,068 |
258 |
(2,757) |
(120) |
574 |
16,287 |
15,310 |
321 |
15,631 |
Revaluation of
investment properties and impairments |
- |
- |
- |
- |
- |
331 |
331 |
- |
331 |
Other income statement
movements |
- |
- |
- |
- |
- |
148 |
148 |
(72) |
76 |
Profit for the
year |
- |
- |
- |
- |
- |
479 |
479 |
(72) |
407 |
Other comprehensive
income and expense |
- |
- |
1,006 |
180 |
- |
- |
1,186 |
100 |
1,286 |
Total
comprehensive income for the year |
- |
- |
1,006 |
180 |
- |
479 |
1,665 |
28 |
1,693 |
Dividend |
- |
- |
- |
- |
- |
(427) |
(427) |
- |
(427) |
Equity share
options |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Share options
cancelled |
- |
- |
- |
- |
109 |
- |
109 |
- |
109 |
Balance at 31 December 2016 |
1,068 |
258 |
(1,751) |
60 |
683 |
16,339 |
16,657 |
349 |
17,006 |
Profit for the
year |
- |
- |
- |
- |
- |
253 |
253 |
(28) |
225 |
Other comprehensive
income and expense |
- |
- |
7 |
25 |
- |
- |
32 |
- |
32 |
Total
comprehensive income for the period |
- |
- |
7 |
25 |
- |
253 |
285 |
(28) |
257 |
Dividend |
- |
- |
- |
- |
- |
(427) |
(427) |
- |
(427) |
Equity share
options |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Balance at 30 June
2017 |
1,068 |
258 |
(1,744) |
85 |
683 |
16,165 |
16,515 |
321 |
16,836 |
ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:
The results for the six months ended 30
June 2017 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 2016 and which will form the basis of
the 2017 Annual report.
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.
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
June |
30
June |
31
December |
|
|
2017 |
2016 |
2016 |
|
|
£000 |
£000 |
£000 |
Revenue |
|
|
|
|
Mining |
|
16,160 |
10,739 |
21,703 |
Property |
|
558 |
530 |
1,084 |
Other |
|
14 |
16 |
28 |
|
|
16,732 |
10,925 |
22,815 |
Operating
profit/(loss) |
|
|
|
|
Mining |
|
68 |
(73) |
(581) |
Property |
|
368 |
308 |
1,181 |
Other |
|
13 |
26 |
37 |
|
|
449 |
261 |
637 |
|
|
|
|
|
Share of profit in
joint ventures |
|
4 |
(1) |
(7) |
Interest
receivable |
|
127 |
128 |
270 |
Interest payable |
|
(337) |
(226) |
(554) |
Profit/(Loss)
before taxation |
|
243 |
162 |
346 |
2. Taxation
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
June |
30
June |
31
December |
|
|
2017 |
2016 |
2016 |
|
|
£000 |
£000 |
£000 |
Based on the results
for the period: |
|
|
|
|
Corporation tax at
19.50% (2016: 20.25%) |
|
107 |
142 |
70 |
Prior year adjustment
- UK |
|
- |
- |
- |
|
|
107 |
142 |
70 |
Deferred taxation |
|
(89) |
(138) |
(131) |
|
|
18 |
4 |
(61) |
3. Earnings/
(loss) per share
Both the basic and diluted earnings per share calculations are
based on a profit of £253,000 (2016: £182,000). The basic earnings
per share has been calculated on a weighted average of 10,676,839
(2016: 10,676,839) 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 (2016: 10,676,839)
plus the dilutive potential ordinary shares arising from share
options of nil (2016: nil) totalling 10,676,839 (2016:
10,676,839).
4. Investment
properties
Investment properties are included at valuation as at
31 December 2016 plus additions in
the period ended 30 June 2017.
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 2016. The group
paid management fees of £68,750 (30 June
2016: £68,750 31 December
2016: £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 2016 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 2017 as were used for the
year ended 31 December 2016.
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 following new or revised
standards that are applicable to the group were issued but not yet
effective:
IFRS 9 – Financial Instruments
IFRS 15 – Revenue from Contracts with Customers.
IFRS 16 – Leases
The largest areas of estimation and uncertainty in the interim
financial statements are in respect of:
- The valuation of investment properties;
- Life of mine and reserves;
- Depreciation;
- Provision for rehabilitation (relating to environmental
rehabilitation of mining areas);
- Impairment and;
- Carrying values of mining joint ventures
Investment properties are not re-valued at the half year end
unless there is evidence of a material change in valuation. There
have been no material changes in fair value during the period.
Please refer to page 58 of the 2016 Annual report and Accounts for
details on the valuation of investment properties as at
31 December 2016.
Other areas of estimation and uncertainly are referred to in the
group's annual financial statements. There have been no significant
changes to the basis of accounting of key estimates and judgements
as disclosed in the annual report as at 31
December 2016.
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 2016, totalling £107,000 was
paid on the 10th of February
2017. The final dividend in respect of 2016, totalling
£320,000 was approved by the shareholders at the Annual
General Meeting held on the 7th June
2017 and was paid on the 28th July
2017. The final dividend in respect of 2016 is included as a
liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2017 totalling £107,000 was approved
by the Board of Directors on 31 August
2017 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 2016
Annual Report and Accounts. Risks and uncertainties identified by
the Group are set out on page 10 of the 2016 Annual Report &
Accounts and are reviewed on an ongoing basis. There have been no
significant changes in the first half of 2017 to the principle
risks and uncertainties as set out in the 2016 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 risk
- Mining risk
- Currency risk
- New reserves and mining permissions
- Power supply risk
- Flooding risk
- Environmental risk
- Health & safety risk
- Labour risk
- Cashflow
- Coal qualities
Property:
9. Board
approval
These interim results were approved by the Board of Bisichi
Mining on 31 August 2017.
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.
This report contains forward-looking statements. These
statements are based on current estimates and projections of
management and currently available information. Future statements
are not guarantees of the future developments and results outlined
therein. Rather, future developments and results are dependent on a
number of factors; they involve various risks and uncertainties and
are based upon assumptions that may not prove to be accurate. Risks
and uncertainties identified by the Group are set out on page 10 of
the 2016 Annual Report & Accounts. We do not assume any
obligation to update the forward-looking statements contained in
this report.
Michael Heller
Andrew Heller
Chairman
Managing Director
31 August 2017
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)
Christopher
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
The
Registry
34 Beckenham
Road
Beckenham
Kent
BR3 4TU
Telephone
0871 664
0300
(Calls cost
12p per minute + network extras)
or +44 208
639 3399 for overseas callers
Website:
www.capitaassetservices.com
E-mail:
ssd@capitaregistrars.com
Company registration number
112155
(Incorporated in England and
Wales)
Web
site
www.bisichi.co.uk
E-mail
admin@bisichi.co.uk