Bindura Nickel’s Half-Year Revenue Falls Amid Depressed Sales Volume

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  • Revenue dropped to US$25.0 million
  • Sales volumes declined 15%
  • Trojan Nickel Mine is the only operating mine within BNC at the moment

HARARE – Bindura Nickel Corporation (BNC) says nickel concentrate sales for the half year ended 30 September 2020 declined by 15% to 2 566 tonnes from 3 002 tonnes sold in the same period last year as the company had to contend with the temporary stoppage in dispatches to the market during the period April to June 2020, a transition which the Company had to go through while new marketing arrangements were being put in place following the termination of the Glencore Off-take Agreement.

The Nickel mining company reported a revenue of US$25.0 million, 12% lower than the US$28.3 million realised in the comparative period last year in line with the decline in sales volume. This also coincided with a 5% decline in the London Metal Exchange (LME) nickel price which averaged US$13 214 per tonne, compared to US$13 927 per tonne achieved in the prior year.

Profit and total comprehensive income was US$3.4 million which was 43% below the prior year’s reported figure of US$6.1 million.

The company said, “The decrease in profitability was mainly attributable to the decline in sales and net foreign exchange gains recognised in the prior period amounting to US$4.1 million, versus a net exchange loss of US$1.6 million realised in the period under review.”

Updating on operations, the Company said Trojan Nickel Mine is the only operating mine within BNC.

“On average, it mines +/-440 000 tonnes of ore and produces +/- 6 000 tonnes of nickel in concentrate per annum, translating to approximately 44% of capacity.

“The reduced capacity has largely been driven by a mining strategy anchored on a high-grade/ low-volume ratio of 1 part massives to 2 parts disseminated ore,” the Company said.

Meanwhile, the Smelter Restart Project is still at 83% complete. The Refinery and Shangani Mine remained under care and maintenance.

BNC has nickel resources across Zimbabwe under mining, processing and exploration assets. These are Trojan Mine, Shangani Mine, the BSR (formerly Bindura Smelter and Refinery) facility, Hunter’s Road Project, Damba-Silwane and the Trojan Hill and Kingstone Hill Prospects. Collectively, these resources amount to a total of 71.4 million tonnes of ore at an average grade of 0.59%, containing approximately 420.8 kilo-tonnes of Nickel.

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