BISICHI MINING PLC ANNUAL REPORT 2017

STRATEGIC REPORT FINANCIAL & PERFORMANCE REVIEW
South African mining operations
Performance
The key performance indicators of the group’s South African mining
operations are presented in South African Rand and UK Sterling as follows:
South African Rand
2017
R’000
2016
R’000
2017
£’000
UK Sterling
Revenue 622,691 432,481 36,300 21,703
Mining and washing costs (440,241) (322,505) (25,664) (16,184)
Operating profit before other operating costs and depreciation 182,450 109,976 10,636 5,519
Other operating costs (excluding depreciation) (5,742) (4,764)
Operating profit before depreciation, fair value adjustments and exchange
4,894 755
movements (adjusted EBITDA)
Exchange movements (256) 449
Share of loss in joint ventures (1,827) -
EBITDA 2,811 1,204
Mining production in tonnes 1,296 1,260
Revenue per tonne of mining production 480 343
Mining and washing costs per tonne of mining production (340) (256)
Operating profit per tonne of mining production before other operating costs and depreciation 140 87
A breakdown of the quantity of coal sold and revenue of the group’s South African mining operations are presented in metric tonnes and South
African Rand as follows:
Domestic
‘000
Export
‘000
2017
‘000
Domestic
‘000
Export
‘000
2016
‘000
Quantity of coal sold in tonnes 1,267 155 1,422 1,219 147 1,366
Domestic
R’000
Export
R’000
2017
R’000
Domestic
R’000
Total Revenue 502,818 119,873 622,691 339,611 92,870 432,481
R R R R R R
Revenue per tonne of coal sold 397 773 438 279 632 317
The quantity of coal sold can be defined as the quantity of coal sold in metric tonnes from the mine in any given period. Revenue per tonne of coal
sold can be defined as the net revenue price achieved per metric tonne of coal sold.
Total revenue for the group’s mining operations increased for the year from R317 per tonne of coal sold in 2016 to R438 in 2017, attributable to the
average price increases achieved in both the domestic and export market. As a result of the overall higher mining production, the quantity of coal sold
for the year increased to 1.422million tonnes (2016: 1.366million tonnes). Overall, the revenue for the group’s South African mining operations
increased in the year to R622.7million (2016: R432.5 million).
The overall increase in cost per tonne from R256 per tonne to R340 per tonne can mainly be attributed to the movement of mining operations to new
opencast reserves at Black Wattle which have higher inherent mining costs. As a result of the higher mining cost per tonne and the increase in total
mining production, total mining and washing costs for the group increased from R322.5million in 2016 to R440.2million in 2017.
Other operating costs (excluding depreciation) of £5.7million (2016: £4.8million) include general administrative costs as well as administrative salaries
and wages related to our South African mining operations that are incurred both in South Africa and in the UK. These costs are not significantly
impacted by movements in mining production and the increase during the year can mainly be attributed to exchange movements on the translation of
South African Rand costs into Sterling. Overall costs were in line with management’s expectations and local inflation.
Bisichi Mining PLC 21
2017
‘000
2017
R
Export
R’000
2016
£’000
2016
‘000
2016
R
2016
R’000