London-listed coal miner Bisichi Mining produced 1.27-million tonnes of coal in the year ended December 31, 2019, which was in line with the 1.32-million tonnes of coal produced in the preceding year.
The company’s Black Wattle colliery is based in South Africa’s Mpumalanga province.
The company's board has, however, decided to not propose a final dividend for the year under review, owing to Covid-19 uncertainties and will review the dividend position when there is greater visibility of the impact of the virus on the company and the market.
The company reported earnings before interest, taxes, depreciation and amortisation (Ebitda) of £5.9-million for the year under review, compared with Ebitda of £8.6-million reported for the year ended December 31, 2018.
Adjusted Ebitda in the year under review amounted to £7.4-million, compared with adjusted Ebitda of £9.1-million in the prior year.
Bisichi chairperson Michael Heller says the company's results for the year can be attributed to a strong performance from the Black Wattle mining and processing operations and strong domestic demand for coal in South Africa.
Black Wattle has been allowed to operate throughout South Africa’s lockdown, owing to its designation as an essential service, and the company has implemented the necessary health and safety measures on site to safeguard employees from contracting Covid-19.
In terms of markets, Heller says there has been a significant downturn in economic activity related to Covid-19, which will have an impact on overall demand for coal in the international market.
However, he points out that demand for Bisichi’s coal in the domestic market has remained stable.
Looking forward, the duration and extent of the impact of Covid-19 on the coal markets remains uncertain.
In the UK, Bisichi reports that the Covid-19 pandemic has impacted on rental revenue collections from the company’s UK retail property portfolio and the final impact on the portfolio remains uncertain.
Heller expects the property portfolio to recover once tenants are allowed to fully resume operating.