Bisichi Share Discussion Threads

[bisiboy] 15/9/2018 19:49

a higher rating would come if more of the profit was returned to shareholders
i.e regular dividend increases. I cant understand why the interim wasn't raised from 1p. the management simply have no need to care about the shareprice so it is probably priced at us getting 4p a share forever with the odd special.

[callumross] 10/9/2018 13:53

The £1.8m has been written off in last years accounts, NTV, as a prudent accounting measure. It is quite possible that some of this will come back as exceptional profit in the future but I agree that regardless, this share is a steal. You have correctly identified the reasons why it is so cheap i.e majority control and excessive directors costs. Another reason is that the mine earnings can be lumpy, in contrast to the steady income stream from the property business. What exactly the catalyst for a rerating of the share to reflect the earnings and assets, I don't know, but the current rating is ridiculous.

[ntv] 09/9/2018 17:26

so what is the catch?
Poor PR, Management take large amount of fees every year and award themselves cheap options
LAS owns 40%+
( same family management team so they get paid twice to manage the properties etc)
The cashflow comes from coal and £1.8m is still missing in South Africa from an aborted acquisition.


Discount to nett assets is currently very large
P/e ratio is very low and possibly the lowest on the market
yield is approx 4% assuming no increase or special dividends in current year
Surely in this day and age the market can't allow the management to run it like it is a private company

[ntv] 09/9/2018 11:52

!FOLLOWFEED


Principle investments are coal mining and property investments


24 August 2018

BISICHI MINING PLC

Interim Results for the period ended 30 June 2018

For the six months ending 30th June 2018:

* EBITDA [1]: GBP5.2 million (2017: GBP1.4million)


* Adjusted EBITDA [2]: GBP5.3million (2017: GBP1.4million)

* Profit before tax GBP4.0million (2017: GBP0.2million)

* EPS (basic): 22.25p (2017: 2.37p)

* Total production: 670,000 tonnes (2017: 582,000 tonnes)

* Results reflect the stable production and the infrastructure improvements
to the coal washing plant at Black Wattle.

* Physical demand for Black Wattle coal remains strong, impacting positively
on prices achievable for its coal in the international and domestic market.

* UK property portfolio performing well with no further news to report on
West Ealing development.

[ntv] 31/8/2018 11:38

presume they are taking it back down to the low 90's again lol

[sammu] 28/8/2018 09:43

Apparently "there has never been a formal price index for sized coal sold to domestic users in South Africa, miners have "generally taken their lead from each other and set their prices accordingly, with Glencore predominantly setting most prices.""
www.spglobal.com/platts/en/market-insights/latest-news/coal/022017-south-african-coal-miners-look-to-domestic-market-for-higher-prices

[ntv] 26/8/2018 17:53

That is the export price callumross. i was after the domestic price

[callumross] 26/8/2018 15:53

Still at 98.5 NTV which is higher than the average price for the first half of BISI's financial year.

[my retirement fund] 26/8/2018 13:57

Price of coal? Lol. Who gives a toss about coal prices.The coal business is just a side show to distract the reality of the situation in so much as the main purpose of this company which of course is that its simply a private piggy bank to maintain the private lifestyle and seperate business interests of its masters.

[ntv] 26/8/2018 12:36

EPS of 22p at the half year would have sent the share price soaring if this had been any other share
second half could be weaker as price of coal from Richards Bay has dropped away recently but i don't think it affects sales much as most appears to go to the domestic market
I don't seem to be able to find out much about pricing for that. anyone got any links for that
TIA

[topvest] 24/8/2018 20:19

Think the Heller family will have some spare cash once the EDP bid closes. Something could happen then I guess, but probably more likely that the status quo will continue.

[my retirement fund] 24/8/2018 20:09

I seem to remember a habit of the lending great lumps if cash to connected party companies under laughable repayment and security terms for next to nothing.I guess more of the same then.

[bozzy_s] 24/8/2018 20:02

Yes I wonder how much they've paid themselves in H1. It's already in the P&L figure, so the 22.25p EPS is after those costs.

Looks like interim divi is always 1p, and final divi is significantly more, so not bothered about that.

[topvest] 24/8/2018 18:07

Well the results are very good, but a 1p dividend on EPS of 22p is ridiculous. No comment on the fact that shareholders are voting against the board because of their greedy remuneration policy. No doubt another big bonus for the CEO on the way.

[bozzy_s] 24/8/2018 17:10

50% higher would be roughly net tangible asset value (i.e properties and cash in BISI's case). Still absurdly cheap. You're right callumross, it has to be because of the board ownership and remuneration. Still, someone commented on here a while back BISI has done nicely for them over the years, despite those factors.

Last year's FY dividend was 5p against EPS of 7p

This year's FY dividend ?? against EPS 44p


It's cheap on every metric. Been on my monitor for donkeys years. I've posted on this board in the distant past. First thing I read today before market opened was BISI's RNS. Saw that H1 EPS was up ~ 10 fold. Half year P/E a ridiculous 5! Expected the shares to open in the high 100s. Never imagined I'd be able to buy at 119p.

The spread automatically makes these a medium term hold. Happy to do that with a bit of newsflow due re UK properties. Someone clearly got bored after 37 minutes this morning. Bought at 125p, sold at 115p. One born every minute!

Now these results are out the way, and the share price has barely appreciated them, I wonder if we'll see director buying? At today's price it's like going into a corner shop and paying 66p in exchange for a £1 coin and a lottery ticket!

[callumross] 24/8/2018 16:03

1p interim presumably to conserve cash to fund the recent property joint venture. To be fair they did pay a final of 4p just a few weeks ago. On any metric these shares are ridiculously undervalued caused by the board having majority control and the essentially lumpy nature of mining profits. But also underpinned by strong assets. For all the grumpiness about director pay (fully justified to shine a light on this, by the way) these should in honesty be trading at least 50% higher which would still only put the shares on a prospective P/E for this year of about 5.

[bozzy_s] 24/8/2018 15:48

Ok, results finally more in line with previous board costs (not sure how much of a raise they've given themselves for these results).

Absolutely stunning, with positive current trading they could feasibly double up for the full year. Net cash and properties above current market cap. P/E of under 3. Got to have a few of these even with expensive management.

Interim divi of 1p does seem a bit stingy!

[callumross] 24/8/2018 08:30

Wow - these are very strong results indeed, exceeding even my expectations - a price earnings ration of under 3 for this year even with the share price increase!

[my retirement fund] 23/8/2018 08:03

What ever happens you can assure they will be giving themselves increased wages. Corporate corruption on full tilt here.

[ntv] 23/8/2018 07:32

Their results should be due soon and things should have improved despite the Heller's taking a lot of the profit in remuneration
I think they are becoming more famous for that than for the businesses they run or the charitable work they have done
Depends on the legacy they want to leave i guess

[topvest] 10/6/2018 18:07

Not yet. Suspect the Heller’s are giving it some thought though. With Perloff snapping at their heels at LAS, I think we are closer to something happening.

[my retirement fund] 10/6/2018 17:59

Thats not going to change anything is it ?

[topvest] 10/6/2018 12:49

29% voted against the remuneration report and 2 special resolutions not passed. A groundswell of disquiet. Something needs to happen.