BISICHI MINING PLC ANNUAL REPORT 2017

Financial statements Notes to the financial statements
21. FINANCIAL INSTRUMENTS CONTINUED
The following table sets out the maturity profile of contractual undiscounted cashlfows of financial liabilities as at 31 December:
Within one year 9,110 10,658
From one to two years 198 239
From two to five years 6,054 6,277
Beyond five years 105 125
15,467 17,299
The following table sets out the maturity profile of contractual undiscounted cashlfows of financial liabilities as at 31 December maturing within one year:
Within one month 3,824 2,119
From one to three months 2,278 2,926
From four to twelve months 3,008 5,613
9,110 10,658
In South Africa, an increased structured trade finance facility for R100million was signed by Black Wattle Colliery (Pty) Limited in July 2017 with Absa
Bank Limited. The facility is renewable annually at 30 June and is secured against inventory, debtors and cash that are held by Black Wattle Colliery
(Pty) Limited. The trade facility, which is repayable on demand, is included in cash and cash equivalents within the cashflow statement.
This trade facility comprises of a R80million revolving facility to cover the working capital requirements of the group’s South African operations, and a
R20million loan facility to cover guarantee requirements related to the group’s South African mining operations. The interest cost of the loan is at the
South African prime lending rate.
In December 2014, the group signed a £6 million term loan facility with Santander. The loan is secured against the group’s UK retail property portfolio.
The debt package has a five year term and is repayable at the end of the term. The interest cost of the loan is 2.35% above LIBOR.
As a result of the above agreed banking facilities, the Directors believe that the group is well placed to manage its liquidity risk.
Credit risk
The group is mainly exposed to credit risk on its cash and cash equivalents, trade and other receivables and amounts owed by joint ventures as per
the balance sheet. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet which at
year end amounted to £11,650,000 (2016: £9,274,000). The group’s credit risk is primarily attributable to its trade receivables. The group had
amounts due from its significant revenue customers at the year end that represented 93% (2016: 85%) of the trade receivables balance. These
amounts have been subsequently settled.
Trade debtor’s credit ratings are reviewed regularly. The group only deposits surplus cash with well-established financial institutions of high quality
credit standing. As at year end the amount of trade receivables held past due date was £24,000 (2016: £157,000). To date, the amount of trade
receivables held past due date that has not subsequently been settled is £18,000 (2016: £134,000). Management have no reason to believe that this
amount will not be settled.
Financial assets maturity
On 31 December 2017, cash at bank and in hand amounted to £5,327,000 (2016: £2,444,000) which is invested in short term bank deposits
maturing within one year bearing interest at the bank’s variable rates. Cash and cash equivalents all have a maturity of less than 3 months.
2017
£’000
2017
£’000
2016
£’000
2016
£’000
80 Bisichi Mining PLC