26 August 2016
BISICHI
MINING PLC
Interim Results
for the period ended 30 June 2016
For the six months ending
30th June 2016:
·
EBITDA:
£1.0million
(2015: £1.232 million)
· EPS (basic):
1.7p
(2015: 2.56p)
· Total production: 795,000
tonnes (2015: 838,000 tonnes)
· Planned increase in production from Black
Wattle reserves by year end
· Continuing focus on control of costs and
production at Black Wattle Colliery
· Physical demand for Black Wattle coal
remains strong despite low international coal prices
· UK property portfolio performing well with
voids across the portfolio at only 2.0% (2015: 2.3 %.)
END
For further information, please call:
Andrew Heller/Garrett
Casey Bisichi Mining
PLC
020 7415 5030
Bisichi Mining PLC
Half year review – 30 June 2016
For the six month period ending on 30
June 2016, Bisichi Mining PLC achieved earnings before
interest, tax, depreciation and amortisation of £1.0 million (2015:
£1.2 million).
As part of the production plan for the first half of the year
Black Wattle Colliery, our direct coal mining asset in South Africa, continued to supplement
production from its own reserves with coal mined at Blue
Nightingale under an agreement to purchase Run of Mine coal. This
resulted in total production of 795,000 metric tonnes (2015:
838,000 metric tonnes) during the period reported. However, towards
the end of this six month period the quality of the coal bought
from Blue Nightingale deteriorated as the reserve came to an end;
this has had a temporary impact on earnings. In anticipation of the
Blue Nightingale reserve coming to an end, management plans were
already in place to increase production from Black Wattle’s own
reserves. The development of these new opencast areas at Black
Wattle will take time to build up production but the mine is
expected to reach full production by the end of the year.
The demand for our coal has remained strong but international
coal prices have continued to remain low for most of the first half
of 2016. Although we have recently seen an improvement in the US
Dollar international coal price, a reversal in the depreciation of
the South African Rand has partially offset this increase. Overall,
the decrease in group revenue compared to the same period last year
can mainly be attributed to the depreciation of the Rand against
our reporting currency in UK Sterling. Looking forward, we will
continue with our existing management strategy of keeping our cost
of production low in order to reduce the impact of any further
weakness in the international coal price.
Meanwhile, 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 from our
existing reserves at Black Wattle and we remain confident in our
ability to achieve significant value from our South African mining
operations for many years 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 the
portfolio at the low level of 2.0% (2015: 2.3%).
Your directors intend to pay an interim dividend of 1p per share
which will be paid on the 10 February
2017, to shareholders on the register at the close of
business on 6 January 2017.
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
26 August 2016
Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2016
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
6
months ended |
6 months
ended |
Year
ended |
|
|
|
30
June |
30
June |
31
December |
|
|
|
2016 |
2015 |
2015 |
|
|
Notes |
£000 |
£000 |
£000 |
|
|
|
|
|
|
Group
revenue |
1 |
10,925 |
13,879 |
25,655 |
Operating
costs |
|
(10,675) |
(13,450) |
(25,719) |
Operating profit/(loss) on trading activities |
|
250 |
429 |
(64) |
Increase
in value of investment properties |
- |
- |
225 |
Increase/(Decrease) in value of other investments |
11 |
(1) |
(11) |
Gains on
held for trading investments |
- |
4 |
- |
Operating profit |
1 |
261 |
428 |
150 |
Loss on
reclassification of asset held for sale |
|
- |
- |
(138) |
Share of
loss in joint ventures |
|
(1) |
100 |
69 |
Profit
before interest and taxation |
|
260 |
528 |
81 |
Interest
receivable |
|
|
128 |
124 |
245 |
Interest
payable |
|
(226) |
(245) |
(473) |
Profit/(Loss) before taxation |
1 |
162 |
407 |
(147) |
Income
tax |
2 |
(4) |
(87) |
(108) |
Profit/(Loss) for the period |
|
158 |
320 |
(255) |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Equity holders of the
company |
|
|
182 |
273 |
(259) |
Non-controlling
interest |
|
|
(24) |
47 |
4 |
Profit/(Loss) for
the period |
|
|
158 |
320 |
(255) |
|
|
|
|
|
Earnings/(Loss) per share - basic |
3 |
1.70p |
2.56p |
(2.43p) |
Earnings/(Loss) per share - diluted |
3 |
1.70p |
2.56p |
(2.43p) |
Bisichi Mining PLC
Consolidated statement of
comprehensive income
for the six months ended 30 June 2016
|
|
Unaudited |
Unaudited |
Audited |
|
|
6 months
ended |
6 months
ended |
Year
ended |
|
|
30 June |
30 June |
31 December |
|
|
2016 |
2015 |
2015 |
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
Profit/(Loss) for the
period |
158 |
320 |
(255) |
Other comprehensive
income: |
|
|
|
Exchange differences on
translation of foreign operations |
490 |
(217) |
(1,167) |
Gain/(Loss) on available
for sale investments |
60 |
(28) |
(202) |
Taxation |
(13) |
6 |
41 |
Other comprehensive
income for the period, net of tax |
537 |
(239) |
(1,328) |
Total comprehensive income for
the period |
|
695 |
81 |
(1,583) |
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity shareholders |
|
669 |
58 |
(1,500) |
Non-controlling interest |
|
26 |
23 |
(83) |
Total comprehensive income for
the period |
|
695 |
81 |
(1,583) |
Bisichi
Mining PLC |
Consolidated Balance Sheet |
as at 30 June 2016 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
30 June |
30
June |
31
December |
|
|
2016 |
2015 |
2015 |
Assets |
£000 |
£000 |
£000 |
Non-current-assets |
|
|
|
|
Value of investment
properties |
12,800 |
11,620 |
12,800 |
|
Fair value of head
leases |
186 |
195 |
194 |
|
Investment
property |
12,986 |
11,815 |
12,994 |
|
Reserves, plant and
equipment |
6,319 |
6,159 |
5,374 |
|
Investments in joint
ventures |
1,197 |
2,909 |
1,198 |
|
Loan to joint
venture |
1,105 |
1,029 |
900 |
|
Other investments |
25 |
151 |
14 |
|
Total non-current
assets |
21,632 |
22,063 |
20,480 |
Current
assets |
|
|
|
|
Inventories |
2,117 |
1,394 |
1,049 |
|
Trade and other
receivables |
7,277 |
8,496 |
6,187 |
|
Corporation tax
recoverable |
- |
31 |
29 |
|
Available for sale
investments |
654 |
768 |
594 |
|
Cash and cash
equivalents |
2,757 |
2,789 |
1,608 |
|
Non-current assets
held for sale |
- |
- |
1,168 |
|
Total current
assets |
12,805 |
13,478 |
10,635 |
Total
assets |
34,437 |
35,541 |
31,115 |
Liabilities |
|
|
|
Current
liabilities |
|
|
|
|
Borrowings |
(2,981) |
(3,115) |
(2,267) |
|
Trade and other
payables |
(6,179) |
(5,738) |
(4,234) |
|
Current tax
liabilities |
(136) |
(23) |
- |
|
Total current
liabilities |
(9,296) |
(8,876) |
(6,501) |
Non-current liabilities |
|
|
|
|
Borrowings |
(5,961) |
(5,957) |
(5,940) |
|
Provision for
rehabilitation |
(1,028) |
(919) |
(847) |
|
Finance lease
liabilities |
(186) |
(195) |
(194) |
|
Deferred tax
liabilities |
(2,053) |
(2,210) |
(2,002) |
|
Total non-current
liabilities |
(9,228) |
(9,281) |
(8,983) |
Total
liabilities |
(18,524) |
(18,157) |
(15,484) |
Net
assets |
15,913 |
17,384 |
15,631 |
Equity |
|
|
|
|
Share capital |
1,068 |
1,068 |
1,068 |
|
Share premium |
258 |
258 |
258 |
|
Translation
reserve |
(2,317) |
(1,870) |
(2,757) |
|
Available for sale
reserves |
(73) |
19 |
(120) |
|
Other reserves |
588 |
663 |
574 |
|
Retained earnings |
16,042 |
16,819 |
16,287 |
|
Total
equity attributable to equity shareholders |
15,566 |
16,957 |
15,310 |
|
Non-controlling
interest |
347 |
427 |
321 |
Total equity |
15,913 |
17,384 |
15,631 |
|
|
|
|
|
|
Bisichi Mining PLC
Consolidated Cash Flow Statement
For the six months ended 30 June 2016
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
June |
30
June |
31
December |
|
|
2016 |
2015 |
2015 |
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
Cash
flows from operating activities |
|
|
Operating
profit |
|
261 |
428 |
150 |
Depreciation |
|
736 |
704 |
1,284 |
Unrealised (gain)/loss
on other investments |
|
(11) |
1 |
132 |
Unrealised gain on
investment properties |
|
- |
- |
(225) |
Share based payment
expense |
|
14 |
11 |
31 |
Share of profit of
joint venture |
|
- |
88 |
- |
Movement in working
capital |
|
(447) |
(865) |
607 |
Net interest paid |
|
(60) |
(79) |
(248) |
Income tax
paid/(received) |
|
27 |
- |
- |
Cash flow from
operating activities |
|
520 |
288 |
1,731 |
Cash flows from
investing activities |
|
378 |
(1,202) |
(2,888) |
Cash flows from
financing activities |
|
(170) |
(218) |
(584) |
Net
increase/(decrease) in cash and cash equivalents |
|
728 |
(1,132) |
(1,741) |
|
|
|
|
|
Cash and cash
equivalents at 1 January |
|
(626) |
719 |
719 |
Exchange
adjustment |
|
(318) |
95 |
396 |
Cash and cash
equivalents at end of period |
|
(216) |
(318) |
(626) |
|
|
|
|
|
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 |
|
2,757 |
2,789 |
1,608 |
Bank overdrafts |
|
(2,973) |
(3,107) |
(2,234) |
Cash and cash
equivalents at end of period |
|
(216) |
(318) |
(626) |
|
|
|
|
|
Bisichi Mining PLC
Consolidated statement of changes in
shareholders' equity
for the six months ended 30 June 2016
|
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 2015 |
1,068 |
258 |
(1,677) |
41 |
652 |
16,973 |
17,315 |
404 |
17,719 |
Profit for the
period |
- |
- |
- |
- |
- |
273 |
273 |
47 |
320 |
Other comprehensive
income and expense |
- |
- |
(193) |
(22) |
- |
- |
(215) |
(24) |
(239) |
Total
comprehensive income for the period |
- |
- |
(193) |
(22) |
- |
273 |
58 |
23 |
81 |
Dividend |
- |
- |
- |
- |
- |
(427) |
(427) |
- |
(427) |
Equity share
options |
- |
- |
- |
- |
11 |
- |
11 |
- |
11 |
Balance at 30 June
2015 |
1,068 |
258 |
(1,870) |
19 |
663 |
16,819 |
16,957 |
427 |
17,384 |
Balance as at 1
January 2015 |
1,068 |
258 |
(1,677) |
41 |
652 |
16,973 |
17,315 |
404 |
17,719 |
Revaluation of
investment properties and impairments |
- |
- |
- |
- |
- |
17 |
17 |
- |
17 |
Other income statement
movements |
- |
- |
- |
- |
- |
(276) |
(276) |
4 |
(272) |
Loss for the year |
- |
- |
- |
- |
- |
(259) |
(259) |
4 |
(255) |
Other comprehensive
income and expense |
- |
- |
(1,080) |
(161) |
- |
- |
(1,241) |
(87) |
(1,328) |
Total
comprehensive income for the year |
- |
- |
(1,080) |
(161) |
- |
(259) |
(1,500) |
(83) |
(1583) |
Dividend |
- |
- |
- |
- |
- |
(427) |
(427) |
- |
(427) |
Equity share
options |
- |
- |
- |
- |
31 |
- |
31 |
- |
31 |
Share options
cancelled |
- |
- |
- |
- |
(109) |
- |
(109) |
- |
(109) |
Balance at 31 December 2015 |
1,068 |
258 |
(2,757) |
(120) |
574 |
16,287 |
15,310 |
321 |
15,631 |
Profit for the
year |
- |
- |
- |
- |
- |
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 |
ACCOUNTING POLICIES AND NOTES TO THE
ACCOUNTS:
The results for the six months ended 30
June 2016 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 2015 and which will form the basis of
the 2016 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 |
|
|
2016 |
2015 |
2015 |
|
|
£000 |
£000 |
£000 |
Revenue |
|
|
|
|
Mining |
|
10,739 |
13,378 |
24,608 |
Property |
|
530 |
488 |
1,014 |
Other |
|
16 |
13 |
33 |
|
|
10,925 |
13,879 |
25,655 |
Operating
profit/(loss) |
|
|
|
|
Mining |
|
(73) |
286 |
(785) |
Property |
|
308 |
131 |
915 |
Other |
|
26 |
11 |
20 |
|
|
261 |
428 |
150 |
|
|
|
|
|
Share of profit in joint ventures |
|
(1) |
100 |
69 |
Interest
receivable |
|
128 |
124 |
245 |
Interest payable |
|
(226) |
(245) |
(473) |
Profit/(Loss)
before taxation |
|
162 |
407 |
(147) |
2.
Taxation
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
June |
30
June |
31
December |
|
|
2015 |
2014 |
2014 |
|
|
£000 |
£000 |
£000 |
Based on the results
for the period: |
|
|
|
|
Corporation tax at
20.50% (2015: 20.25%) |
|
142 |
2 |
3 |
Prior year adjustment
- UK |
|
- |
- |
(23) |
|
|
142 |
2 |
(20) |
Deferred taxation |
|
(138) |
85 |
128 |
|
|
4 |
87 |
108 |
3. Earnings/ (loss) per
share
Both the basic and diluted earnings per share calculations are
based on a profit of £182,000 (2015: £273,000). The basic earnings
per share has been calculated on a weighted average of 10,676,839
(2015: 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 (2015: 10,676,839)
plus the dilutive potential ordinary shares arising from share
options of nil (2015: nil) totalling 10,676,839 (2015:
10,676,839).
4. Investment
properties
Investment properties are included at valuation as at 31 December 2015 plus additions in the period
ended 30 June 2016.
5. Non-current asset held for sale
On the 11 March 2016, the company
disposed of its investment in Langney Shopping centre Unit Trust.
The net proceeds from the sale were £1,168,000. At 31 December 2015, the share of the net assets of
the trust held by the group were £1,168,000 which included a loss
on the reclassification of the asset to held for sale in the amount
of £138,000.
6. 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 2015. The group
paid management fees of £68,750 (30 June
2015: £68,750 31 December
2015: £137,500) to London
& Associated Properties PLC, an associated company.
7. 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 2015 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 2016 as were used for the year ended
31 December 2015.
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.
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 2015 Annual report and Accounts for
details on the valuation of investment properties as at
31 December 2015.
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 2015.
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.
8. Dividend
The interim dividend in respect of 2015, totalling £107,000 was
paid on the 5th of February
2016. The final dividend in respect of 2015, totalling
£320,000 was approved by the shareholders at the Annual
General Meeting held on the 10th June
2016 and was paid on the 29th July
2016. The final dividend in respect of 2015 is included as a
liability in these interim financial statements.
A proposed interim dividend for the year ended 31 December 2016 totalling £107,000 was approved
by the Board of Directors on 26th August
2016 and has not been included as a liability in these
Interim Financial Statements.
9. Principal risks and
uncertainties
The Group has an established risk management process which works
within the corporate governance framework as set out in the 2015
Annual Report and Accounts. Risks and uncertainties identified by
the Group are set out on page 10 of the 2015 Annual Report &
Accounts and are reviewed on an ongoing basis. There have been no
significant changes in the first half of 2016 to the principle
risks and uncertainties as set out in the 2015 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
- Currency Risk
- Coal qualities
- Currency movements
- Regulatory requirements &
permissions
- Transport
- Power supply
- Flooding
- Environment
- Labour
- Recoverability of investment in new reserves
and mining joint ventures
Property:
- Property valuation
- Occupancy
9
Board approval
These interim results were approved by the Board of Bisichi Mining
on 26th August 2016.
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 2015 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
26 August 2016
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