Bisichi Share Discussion Threads

[bisiboy] 23/4/2004 22:47

have held this one for many years it is great to see it moving foward
any guesses as to the value of black wattle.
i would suggest based on what is known circa $15m would be conservative given
company owning 62.5% that would add around 50p to nav.
worth going to agm on this to try and get more info.

[skyracer] 16/4/2004 17:06

The IC article omitted to take into account BISI's 50% share in JV Dragon Properties which gives property worth £14.4m or 138p/share.

[wirralowl] 16/4/2004 13:13

Thanks Sammu.

I guess there must be some debt attached, as I had seen the ADVFN fundamentals quoting NAV at 108p (equivalent to £11m ) yet the recent results stated the portfolio was worth £13m (book value?). As the property market has continued to boom since the year end (Dec 31), this figure will probably be another few percent higher by now.

As you say, Investor Awareness is definitely an issue here - if this were better known, I'm sure it would trade on a higher rating, particularly with such good forward prospects. The IC recco can only help this.

Edit : Missed your post Mini Gatsby - thanks !

So, Property is worth 124p - yet this is the 'book value' rather than what it is actually worth now ! Very positive article, and interesting to read that in addition to China, the coal is now targetting mainland Europe for sales. All good stuff.

[mini gatsby] 16/4/2004 12:59

IC 16apr04

104.5p - coal mining and property - A property portfolio in the UK and a coal mine in South Africa might seem like an odd business mix, but the combination is one that's paying off handsomely for Bisichi Mining.

Bisichi's main focus is its 62.5 per cent-owned Black Wattle coal mine, located 120km from Johannesburg. New mining kit helped boost production volumes there to over 1m tonnes last year, and Bisichi has recently added four new concessions - so its total reserves are now at least 15m tonnes. The coal price has doubled over the past year, to $45 a tonne, largely driven by strong demand. So, with solid asset-backing, improved production techniques and significant reserves, shares in Bisichi look undervalued.

Chinese demand has spurred the coal price, but Bisichi is mainly focused on selling to South Africa. But the recent construction of a modern railhead now means the company has an export capability, so it is now actively marketing in mainland Europe. Coal-fired power stations are big buyers and, with its low-sulphur coal product, Bisichi is also pleasing environmental groups.

Solid cash flow from the mine is backed up by retail property that increased in value by 14 per cent last year to £13m (124p a share). All the properties are fully let and provide annual rental income in excess of £1m. Bisichi reckons the sites are worth comfortably more than book value.

Bisichi also has a 50:50 stake in retail property trader Dragon Properties - this increased its assets by 27 per cent, to £2.8m, during 2003. It has a blue-chip-focused equity portfolio, too, which is valued at £518,000 - and easily realisable if necessary.

The shares have enjoyed a good run over the past couple of years as investors have warmed to the stability of Bisichi's property base and its valuable coal resource. Although limited broker attention could prove a drag, Bisichi is well-managed, current trading is good and there's every chance of another record performance this year. Buy.

[sammu] 16/4/2004 08:56

And tipped in investor's chronicle, a timely prediction Sky?!

Investor awareness was/is definitely an issue, as is the size of the company.

Wirral the property portfolio has got some debt attached.

I think the NAV of the company as a whole is approximately 108p, but I don't know how much they value the coal/coal assets at.

Considering the growth expected this is clearly still too cheap, and I'm not selling any yet.

Sam

[wirralowl] 16/4/2004 08:50

Apparently tipped in IC today. Anyone seen the article, able to summarise ?

[bookshop] 15/4/2004 19:03

A new book is published today on the mining sector-

Title: An Insider's Guide to the Mining Sector
Subtitle: How to make money from gold and mining shares"
Author: Michael Coulson, Chairman of the Association of Mining Analysts
Publisher: Harriman House
Release date: 15 April 2004

The book can be ordered from the ADVFN Bookshop-

[wirralowl] 14/4/2004 08:20

Is the market cap of £11m given by ADVFN correct ?

According to the recent results, the UK property investment portfolio of the group was worth £13m, so you effectively get the mining business (making a profit) and the dividend thrown in for nothing ?

If correct, then despite the rise of the last year, given the propsects of the mining operation, what with higher price of coal and the new export operations, these do still look extremely cheap.

[simonevans] 18/3/2004 19:24

Yes, this company has been transformed in the last three years - very encouraging.

[sammu] 26/2/2004 23:28

A new high today!

[sammu] 24/2/2004 23:59

Thanks for the info Sky. Now results should be out within a week or two. They should be somewhere between good and excellent but I don't know what impact exchange rates will be having on this brilliant little company.

Sam

[skyracer] 14/1/2004 09:50

(be patient, the article takes about a minute to load for some reason!)

It seems that the National Ports Authority (NPA) would only agree to the Richards Bay Coal Terminal (RBCT) expansion if black empowerment companies (like the Bisichi Mining JV) were allowed access. 2m tonnes this year is a substantial allocation. BISI will get a share of this which will increase their profit margins.

[skyracer] 08/1/2004 15:51

This is good news for the prospects of BISI. Black Wattle colliery is a joint venture between Bisichi Mining and a black economic empowerment company. Exporting through RBCT will boost profit margins. The rail link is already in place.

[diogenesj] 29/10/2003 21:45

Ah, thanks, S. That is a possible interpretation.

[skyracer] 29/10/2003 19:06

The T trade was probably a buy order @77p that only managed to get 2500 by the end of the day.

[diogenesj] 29/10/2003 18:10

Illiquid it certainly is. I bought 4,000 shares, had to pay 1p over the ask, and the price went up 4p. It moved so fast that my 4,000 look like a sell; but so do the other 3,950 shares traded, which should have balanced out. Certainly looks good value, and has done for a long time, but you do wonder how you would get out if anything went wrong.

[skyracer] 29/10/2003 16:59

A few small trades, 4p rise. Shows how little stock there is available.

[ntv] 15/10/2003 09:37

nice run upwards

[skyracer] 09/10/2003 11:25

NTV there is a bit about washing and the "upgrading" of raw product in the annual report (p4). I have also spoken to someone in the industry.