Half-yearly Report

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 African
coal mining subsidiary, Black Wattle Colliery.

As previously reported, the turnaround at Black Wattle Colliery can largely be
attributed to the opening of a third opencast pit early in the second half of
last 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 has
allowed us to mine coal that would otherwise be unsuitable for supply to our
traditional, higher quality market. The demand for this lower quality product
is strong from both local power utilities and the export market. The latter has
benefited from a substantial improvement in the performance of Transnet, the
State rail provider which delivered 67.5 million metric tonnes of export coal
to Richards Bay Coal Terminal ("RBCT") during the year ended March 2012
compared to 62.1 million metric tonnes in 2011. These improvements are expected
to be ongoing with the rail provider estimated to deliver over 73 million
metric tonnes of export coal to RBCT during its 2012/13 financial year.

In the circular posted to shareholders on 16 March 2012 we informed
shareholders that the estimated date for completion of the disposal of the
company's 49% shareholding in Ezimbokodweni Mining (Pty) Ltd was 15 May 2012.
The transaction has not, as yet, completed but we can confirm that negotiations
for the disposal remain ongoing. A further announcement will be made in due
course.

The company's UK retail property portfolio, which is managed by London &
Associated Properties PLC, continues to perform well. Despite reports of a slow
down in the UK's real estate market, rental voids across our retail property
portfolio 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 Heller
Chairman         Managing Director

29 August 2012


Bisichi Mining PLC
Consolidated income statement
for the six months ended 30 June 2012
   

Unaudited 6 months ended 30 June

Unaudited  6 months ended  30 June Audited  Year ended 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 trading activities          1,209        (1,649)            (1,119)
Decrease in value of investment properties                  –              –                (42)
(Loss)/gains on held for trading investments                    (54)            3                  (167)
Operating profit/(loss) 1          1,155        (1,646)            (1,328)
Share of profit /(loss) in joint ventures                  47            (1)                  (10)
Profit/(loss) before interest and taxation          1,202        (1,647)            (1,338)
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 company                1,147        (933)            (444)
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 – diluted 3 10.57p (11.48)p (4.23)p

Bisichi Mining PLC
Consolidated statement of comprehensive income
for the six months ended 30 June 2012

 

    Unaudited 6 months ended 30 June Unaudited 6 months ended 30 June Audited Year ended 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 foreign operations        (143) (175)          (575)
Other comprehensive income for the period, net of tax    1,071 (1,375)        (575)
Total comprehensive income for the period    1,071 (1,375)        (1,121)
 
Attributable to:    
Equity shareholders      1,011 (1,092)        (958)
Non-controlling interest          60 (283)          (163)
Total comprehensive income for the period    1,071 (1,375)        (1,121)

 

Bisichi Mining PLC
Consolidated Balance Sheet
as at 30 June 2012
    Unaudited 30 June Unaudited 30 June Audited 31 December
2012 2011 2011
Assets £000 £000 £000
Non-current-assets  
Value of investment properties attributable to the group 12,068 12,110 12,068
Fair value of head leases      204      227      222
Property 12,272 12,337 12,290
Reserves, plant and equipment 7,887 9,285 7,926
Investments in joint ventures 2,592 4,425 2,579
Other investments      148      150      148
  Total non-current assets 22,899 26,197 22,943
Current assets      
Inventories 2,085 811 1,206
Trade and other receivables 7,010 4,620 6,067
Corporation tax recoverable 47 55 133
Held for trading investments 678 899 730
Cash and cash equivalents    1,346    4,848    4,041
    11,166 11,233 12,177
  Non-current assets held for sale    1,820          –    1,785
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 payables (8,395) (9,352) (8,590)
  Current tax liabilities        (102)        (409)            –
  Total current liabilities (15,395) (12,848) (16,747)
Non-current liabilities      
  Borrowings (5,209) (86)
  Provision for rehabilitation (1,002) (1,038) (965)
  Finance lease liabilities (204) (227) (222)
  Deferred tax liabilities (1,624) (1,546)    (1,881)
  Total non-current liabilities (2,830) (8,020) (3,154)
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 to equity shareholders 17,369 16,451 16,773
Non-controlling interest    291          111          231
Total equity 17,660 16,562 17,004

Bisichi Mining PLC

Consolidated Cash Flow Statement

For the six months ended 30 June 2012

    Unaudited 30 June Unaudited 30 June Audited           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 for trading 54 (3)                167
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 decrease in 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

  Share Share Translation Other Retained   Non-

controlling

Total
  capital premium reserve reserves earnings Total Interest Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance as at 1 January 2011 1,045 68 485 16,356 17,954 394 18,348
Loss for the period (933) (933) (267) (1,200)
Other comprehensive income and expense (159) (159) (16) (175)
Total recognised income and expense for the period (159) (933) (1,092) (283) (1,375)
Dividend (418) (418) (418)
Equity share options 7 7 7
Balance at 30 June 2011 1,045 (91) 492 15,005 16,451 111 16,562
Balance as at 1 January 2011 1,045 68 485 16,356 17,954 394 18,348
Revaluation of investment properties (42) (42) (42)
Other income statement movements (402) (402) (102) (504)
Loss for the year (444) (444) (102) (546)
Exchange adjustment (514) (514) (61) (575)
Total comprehensive income for the year (514) (444) (958) (163) (1,121)
Dividend 11 169 (418) (238) (238)
Equity share options 15 15 15
 

Balance at 31 December 2011

1,056 169 (446) 500 15,494 16,773 231 17,004
Profit for the year 1,147 1,147 67 1,214
Exchange adjustment (136) (136) (7) (143)
Total comprehensive income for the period (136) 1,147 1,011 60 1,071
Dividend (422) (422) (422)
Equity share options 7 7 7
Balance at 30 June 2012 1,056 169 (582) 507 16,219 17,369 291 17,660

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 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     30 June Unaudited 30 June Audited 31 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
   
 
Operating profit/(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 joint ventures                    47   (1)         (10)
Interest receivable 122 13             268
Interest payable              (205)   (197)     (380)
Profit/(Loss) before taxation          1,119    (1,831)  (1,450)

 

  1. 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)

 

  1. Earnings per share

Both the basic and diluted earnings per share calculations are based on a profit of £1,147,000 (2011: loss: £1,200,000). The basic earnings per share has been calculated on 10,556,839 (2011: 10,451,506) ordinary shares being in issue during the year. The diluted earnings per share has been calculated on the number of shares in issue of 10,556,839 (2011: 10,451,506) plus the dilutive potential ordinary shares arising from share options of 296,255 (2011: nil ) totalling 10,853,094 (2011: 10,451,506).

  1. Properties

Properties are included at valuation as at 31 December 2011 plus additions in the period ended 30 June 2012.

  1. 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 2011. The group paid management fees of £103,125 (30 June 2011: £137,500, 31 December 2011: £275,000) to London & Associated Properties PLC, an associated company

  1. 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 2011 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 2012 as were used for the year ended 31 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 financial statements is in respect of the valuation of investment properties (which are not re-valued at the half year end). 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 2011, totalling £105,000 was paid on the 3rd of February 2012. The final dividend in respect of 2011, totalling £317,000 was approved by the shareholders at the Annual General Meeting held on the 31st May 2012 and was paid on the 6th August 2012. The final dividend in respect of 2011 is 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 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 2011 Annual Report and Accounts. Risks and uncertainties identified by the Group are set out on page 12 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 the principle 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

– Labour

Property:

– Property valuation

– Occupancy

9          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 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
29 August 2012

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 & Registered office
Heather A Curtis ACIS
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

General 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.com
Company registration number      112155 (Incorporated in England and Wales)

Web site : www.bisichi.co.uk

E-mail : admin@bisichi.co.uk