Bisichi shares rally as H1 profits jump

30th Aug 2024 09:13

(Sharecast News) - Shares in South African coal miner Bisichi soared by more than a third on Friday after the company reported a significant jump in half-year profits, as production more than double while costs fell.

Pre-tax profit for the six months to 30 June totalled £5m, up from just £0.3m in the first half of last year.

The company, which is 46.1%-owned by UK-listed London & Associated Properties, said total production its Black Wattle mining operation surged to 708,000 metric tonnes during the period, exactly twice the amount mined the year before, and up from 453,000 in the second half of last year.

The bottom line was also helped by lower costs, with operating costs dropping to £18.4m from £24.7m previously.

However, revenues fell to £23.5m, from £25.9m previously, on the back of lower coal prices achieved by its coal processing operation, as well as continued constraints on the South African rail network which impacted the amount it could export.

Looking ahead, the company said it should continue to see benefits from a new mining area at Black Wattle in the second half.

"In addition, we have seen a stabilisation in coal prices in both the export and domestic market. We remain confident in the group's ability to achieve significant value from our South African operations," it said.

The stock was up 36% at 119p by 0908 BST.