Zimbabwe: Bindura Nickel Records $13,5m Profit

1 August 2019

Africa's only integrated nickel mining and smelting company Bindura Nickel Corporation realised a profit after tax of US$13,5 million for the year ended March 31, 2019, compared to the US$5,8 million recorded in the prior year.

The firm's revenue had modestly grown by 1 percent to US$54 million from US$53,6 million in the comparable period last year.

During the period under review operating profit jumped to $21,3 million which is 139,3 percent in the positive from $8,9 million realised in 2018, mainly attributable to exchange gains recognised on the introduction of the Zimbabwean dollar.

BNC's profits and revenue growth was spurred by increase in global nickel concentrate prices to US$8 376 from US$7 249 per tonne in the relative period last year which translate to a 15,6 percent improvement.

In a statement accompanying the financial results board chairman Muchadeyi Masunda said favourable prices on the global market improved the firm's income.

He, however, indicated that nickel production was 5,3 percent lower from the previous year's output.

"In line with the increase in global nickel prices the company realised an average price of its nickel in concentrate sold of US$8 376 per tonne compared to US$7 249 per tonne in the relative period last year.

"Nickel production was 6289 tonnes which was lower than last year's output of 6 620 tonnes. The decline was in line with the lower ore grade achieved year on year," said Mr Masunda.

BNC nickel concentrate sold was 60 tonnes lower to 6410 tonnes from 6470 tonnes sold in the comparative period last year.

The cost of producing nickel in concentrate increased from US$6289 per tonne to US$6610 per tonne year on year, a surge which was mainly attributed to drastic increases in local inputs pricing.

BNC said, gross profit decreased by 23 percent from US$18,9 million in the comparative period last year to US$14,5 million.

The net asset position improved to a positive US$1,5 million from negative US$4,7 million in the prior year.

The company also realised a decline in its non-current liabilities which decreased by 31 percent from US$19,2 million due to a decline in interest bearing loans and borrowings.

Current assets saw a 21 percent decrease from the US$28,1 million in the prior year to US$22,1 million mainly dragged by a decrease in cash and short term deposits.

Bindura Nickel Corporation (BNC) is a mining company operating mines and a smelter complex in Bindura, Zimbabwe; engaged in the mining and extraction of nickel, and production of nickel by-products (copper and cobalt).

The company's current projects include a shaft re-deepening project, sub-vertical service winder and main rock winder drives upgrade project, concentrator plant and sub-vertical medium voltage switch room equipment replacement project, and a smelter restart project.

Founded in 1966, BNC is a subsidiary of Zimnick Limited and operated and majority-owned by Mwana Africa plc, an African multi-national mining company based in Johannesburg, South Africa.

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