Bisichi Share Discussion Threads

[diogenesj] 22/5/2005 10:43

Best to keep it small anyway, P. The shares are very illiquid and difficult to buy or sell in any size.

Actually, on checking my records, I find that I did not sell my last holding very near to the recent peak - but I did make a little on them. Trading in and out is not really my thing, but I was getting nervous about the small cap mining bubble. As you say, if you separate out the property interests, Bisichi's mining operations appear to be very cheaply rated.

[diogenesj] 21/5/2005 23:25

Doubleorquits has just very kindly sent me the Shares rag tip. It provides some background information about Bisichi and quotes the Evolution forecast. It concludes that investors look likely to take an increasingly sober view of mining companies this year, and that should highlight the attractions of Bisichi... bright mining prospects, solid property...shares should rise sharply.

[diogenesj] 21/5/2005 23:02

Penpont: Bisichi has been on the full list for years, as has the related company London and Associated Properties (LAS), which has also been a strong stock market performer. I have no reason to think it is about to demote itself to AIM - but I have been caught out recently too!

Thank you for pointing out the Evolution forecasts. These are (I think) the first broker forecasts that have ever been available for this company. The Evolution note is extremely brief and gives no clue as to why they expect such a huge increase in profit in 2006. The company has recently acquired (through a joint venture) an additional 12m tonnes of coal reserves, but production at the new mine is not expected to start until 2007.

The only snippet I have that might be relevant is the statement in the last results that Bisichi had obtained an increased export allocation at the Richards Bay terminal for 2005-2006. Increased exports should mean an increase in profit (if the coal price and demand remain strong), but there was no hint that the increase was on a scale that might lead to profits doubling.

As a reader of Mark Twain, you will know that anything you hear about a mining company needs to be taken with a pinch of salt. But Bisichi is much more substantial than most small miners. Apart from its South African coal mines, it has a UK shopping centre portfolio valued in December 2004 at £15m (61% of the current market cap), and producing a rental income of £1m pa.

Miners (and of course Evolution) are rather out of favour at the moment. Still, having sold my shares near the recent peak, I also wonder whether the chart and this forecast are suggesting that it is time to consider buying in again. Evo's target price is 300p.

[penpont] 21/5/2005 20:02

I have just started to look into this company and am pretty much a beginner when it comes to mining plays.

The story here though looks a lot less risky than usual and the upside still potentially substantial but I have a couple of questions - firstly regarding the following forecasts from Evolution for 05/6:

Evolution Securities Ltd 25-04-05 BUY 2.70 15.90 2.90 5.30 34.50 6.30

Is there anything particular that accounts for the large rise in profits in 2006?

I'd also like anyone's view as to whether this could be another small Co which delists from the main market as I'm fed up putting such stocks into my ISA....?

I believe Bisi was tipped by Shares Mag last week - anyone have the details?

[skyracer] 25/4/2005 09:45

Confidence well placed. Strong growth prospects. And there could be more acquisitions to come.

[skyracer] 16/3/2005 10:59

ADVFN updated the results today. In the future BISI could almost double their eps by purchasing back the LAS shareholding. Re reserves; BISI have excellent connections and a black empowerment company as a partner, and so rightly have "every confidence" of being able to acquire substantial more reserves.

The progress being made by BISI is illustrated top of page 4; "Coal which was previously sold at a discount as raw duff is now washed and exported via RBCT."

In this business you have to know your nuts from your peas.

[sammu] 06/3/2005 13:41

stan - 5 Mar'05 - 19:12 - 295 of 296


high enough


Yes nice one DJ.

That comment sounds like something Investors Chronicle might say!


With regard to only having 15mln tonnes of reserves. That's more than 10yrs worth at the current ramped up production rate.

I would however expect them to pick up more reserves in the next 12-18 months. They mention that they are in the market in the results.

Sam

[diogenesj] 05/3/2005 21:56

Lol, stan. I can see you're coming round to this one. On 11 Sept, when the shares were 150.5p, you were quite negative about it:

stan - 11 Sep'04 - 15:17 - 91 of 295

massively overvalued!!!

[stan] 05/3/2005 19:12

high enough

[chester] 04/3/2005 12:49

Looking good for a break up here.

[topvest] 01/3/2005 21:08

Results look very good and optimistic outlook. Surprised by the lack of comment here. CBM and BISI boards are both much quieter than a few weeks ago.

[mw8156] 01/3/2005 17:30

But their reserves are only 15m tons some of which is low grade so at this rate their high grade will soon be mined out?

[skyracer] 01/3/2005 14:45

Blimey, anyone around?

[skyracer] 01/3/2005 08:28

Just a quick comment. Solid results. 7p eps in second half. So we might expect 16-18p FYE 2005 based on increased sales.

Highlights:

*Continuous miner acquired, installed & now fully operational resulting
in increased coal production to 105,000 tons per month !

*Export prices fixed for 3 years and domestic prices for supply to the ferrochrome industry fixed for 12 months

*Increased export allocation at Richards Bay Coal Terminal for 2005/6

* NAV increased by 30% to £14.5m

[diogenesj] 13/2/2005 15:37

There's a good chance it will, I think, S. It's certainly trying (closed at 275.5p on Tuesday, then dropped back a fraction on Wednesday).

[sammu] 13/2/2005 12:35

That's good Dio.

The spread certainly is tight at the moment.

It will be interesting to see if it can go higher through 275p next week.

Sam

[diogenesj] 04/2/2005 15:08

Yes, brought out a seller or two though. All time closing high was 275p on 24 January.

[bigbobjoylove] 04/2/2005 14:38

over £3 by the end,is this all time high ??

[bigbobjoylove] 04/2/2005 14:22

and spread was never as tight as it sometimes is now!!

[bigbobjoylove] 04/2/2005 13:58

looks strong as ever this one,drops seem to bring out buyers where as 6 months ago there was a stampede on tree shake.

[diogenesj] 03/2/2005 21:38

Yes, missed some of the rise though: bought back at 233p on 12 January.

[sammu] 03/2/2005 19:41

Did you buy back in then Dio?

Sam

[diogenesj] 03/2/2005 10:17

On the move now, up another 3.9%. Could see that new high today.

[bigbobjoylove] 02/2/2005 11:05

bought 2000 back.