BNC posts $1,2m profit af­ter tax

Chronicle (Zimbabwe) - - Business Chronicle -

BIN­DURA Nickel Cor­po­ra­tion (BNC) on Mon­day re­ported a profit af­ter tax of $1,2 mil­lion in the six months to Septem­ber from a loss po­si­tion of $3,4 mil­lion last year, driven by an in­crease in pro­duc­tion.

Pre­sent­ing the re­sults, BNC managing di­rec­tor Bati­rai Man­hando said the mine had raised nickel pro­duc­tion by 23 per­cent from 1,555 tonnes last year to 1,866 tonnes and man­aged to con­tain costs.

It also sold 3,464 tonnes of Nickel con­cen­trate com­pared to 2,762 tonnes achieved last year, push­ing rev­enue up nine per­cent from $20,6 mil­lion to $22,4 mil­lion.

All in Sus­tain­ing Costs dropped by a third to $5,759 per tonne com­pared to $8,601 per tonne last year.

“That has been the main driver of the per­for­mance and our tar­get is to re­duce our AISC even fur­ther to $5 000 per tonne with­out im­pact­ing our ef­fi­ciency,” said Mr Man­hando.

“The ef­fec­tive­ness of the com­pany’s labour struc­ture has im­proved since the pre­vi­ously re­ported re­struc­ture. Fur­ther cost man­age­ment mea­sures are ex­pected to re­sult in an even leaner labour struc­ture go­ing for­ward.”

Last year, Mr Man­hando in­di­cated that the mine would re­trench over 300 work­ers and cut salaries.

Fi­nance costs are up from $152,7 mil­lion last year to $551,5 mil­lion this year.

Mr Man­hando said construction of Bin­dura’s smelter was 71 per­cent com­plete with $19,5 mil­lion hav­ing been spent. Com­mis­sion­ing is set for next year.

“To restart the smelter you would need a price which is con­stantly be­tween $12 000 and $13 000 per tonne and that is most likely to hap­pen next year from mar­ket in­di­ca­tors.”

Nickel prices dur­ing the half year pe­riod av­er­aged $9 541 per tonne com­pared to $11 787 last year.

The board did not de­clare div­i­dend. BNC is a sub­sidiary of Asa Re­sources. — The Source

Bin­dura Nickel Cor­po­ra­tion

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