BISICHI MINING PLC ANNUAL REPORT 2017

STRATEGIC REPORT FINANCIAL & PERFORMANCE REVIEW
The key performance indicators of the group
can be reconciled as follows:
Mining
£’000
Property
£’000
Revenue 36,300 1,125 34 37,459
Mining and washing costs (25,664) - - (25,664)
Other operating costs excluding depreciation (5,742) (228) (6) (5,976)
Operating profit before depreciation, fair value adjustments and exchange 4,894 897 28 5,819
movements (adjusted EBITDA)
Exchange movements (256) - - (256)
Fair value adjustments - (13) - (13)
Gain on disposal of other investments - - 3 3
Operating profit excluding depreciation 4,638 884 31 5,553
Share of (loss)/profit and write off’s in joint venture (1,827) 8 - (1,819)
EBITDA 2,811 892 31 3,734
Net interest movement (459)
Depreciation (1,790)
Profit/(loss) before tax 1,485
Other
£’000
2017
£’000
The key performance indicators of the group
can be reconciled as follows:
Mining
£’000
Property
£’000
Revenue 21,703 1,084 28 22,815
Mining and washing costs (16,184) - - (16,184)
Other operating costs excluding depreciation (4,764) (348) (3) (5,115)
Operating profit before depreciation, fair value adjustments and exchange 755 736 25 1,516
movements (adjusted EBITDA)
Exchange movements 449 - - 449
Fair value adjustments - 445 12 457
Operating profit excluding depreciation 1,204 1,181 37 2,422
Share of (loss)/profit in joint venture - (7) - (7)
EBITDA 1,204 1,174 37 2,415
Net interest movement (284)
Depreciation (1,785)
Profit/(loss) before tax 346
Adjusted EBITDA is used as a key indicator of the trading performance of the group and its operating segments representing operating profit before
the impact of depreciation, fair value adjustments, gains/(losses) on disposal of other investments and foreign exchange movements. The group’s
operating segments include its South African mining operations and UK property investments. The performance of these two operating segments are
discussed in more detail below.
The group achieved EBITDA for the year of £3.7 million (2016: £2.4million). The movement compared to the prior year can mainly be attributed to
increased operating profits before depreciation from our mining activities of £4.9million (2016: £1.2million) offset by the group’s share of losses in joint
venture mining assets of £1.8million (2016: £nil). The share of losses in joint ventures can be attributed to the write off of our joint venture mining
investment in Ezimbokodweni Mining (Pty) LTD of £1.8million which is discussed in further detail below.
Depreciation for the year, related to our mining operations, remained stable at £1.8million (2016: £1.8million) with the group reporting an overall profit
before tax of £1.5million (2016: £0.3million).
Other
£’000
2016
£’000
Bisichi Mining PLC
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