Bisichi shares rise as coal shortages lift profits
Coal miner Bisichi shares rose 12 per cent this morning after it announced a steep upturn in profits in the first half of 2018 thanks to a shortage of coal in domestic markets.
The figures
Bisichi dug up 670,000 tonnes in the period, up from 582,000 in 2017 – bringing in £4m profit, a huge increase from last year when it made £0.2m.
Group revenue stood at £23.4m, a strong increase from the £16.7m it made last year.
Earnings also rose from £1.4m in 2017 to £5.3m for the first half of 2018.
Why it's important
The huge increase is partly thanks to a shortage of coal in domestic market, as well as growing demand for the fuel in international markets.
Its South African mine, Black Wattle, also benefited from large infrastructure improvements last year, which have allowed it to churn out more coal.
The group also recently announced its intention to break into the London property market, in a joint venture to acquire the freehold of five shops and to develop flats in West Ealing.
What Bisichi said
Sir Michael Heller, chairman and Andrew Heller, managing director of Bisichi, said:
Looking forward to the rest of this year, management will continue to focus on increasing our life of mine at Black Wattle, through the acquisition of additional coal reserves, as well as maintaining levels of production in order to benefit from the higher prices achievable for our coal.
On behalf of the Board we would like to thank all our staff for their hard work during the first six months of the year.