• Nickel prices expected to remain above US$18,000 per tonne
  • The company is also looking at boosting production
  • Nickel sales 67% higher during the five months ended 31 August 2021

HARARE – Zimbabwe Stock Exchange (ZSE)-listed miner, Bindura Nickel Corporation (BNC) expects its annual net profit (FY’2022) to be higher than the prior year, thanks to anticipated higher sales volumes and revenue as well as firm nickel prices.

Its assumption as outlined in an operational outlook for the remainder of the year ending 31 March 2022 is supported by the expectation that the average LME nickel price will remain above US$18,000 per tonne.

Since suffering a COVID-19 collapse last in March 2020 when the price fell to US$10,800 a tonne, nickel has been on a firm upward path rising to over US$18,000, which is about a 70% increase.

Traditionally, nickel price has been driven by a combination of supply shortages and strong demand for stainless steel. Joining that queue now is the increasing demand from the electric vehicles (EVs) industry.

EVs are the new darling for governments around the globe as they seek to reduce pollution from internal combustion engines in major cities.

BNC is not only anchoring its forecast on pricing. The company is looking at boosting production.

It said that focus for the remainder of the year under review will be on recovering the nickel in concentrate production deficit arising from the below budget production in Q1 and Q2 respectively.

“The recovery plan will be based on a number of measures, including, but not limited to the availing of massive sources for ore blending in line with the high volume – low grade strategy”, the company said in a statement.

“Consequently, nickel in concentrate production, tonnes mined, and tonnes milled for the year ending 31 March 2022 are forecast at higher levels than in the year ended 31 March 2021”.

During the five months ended 31 August 2021, ore mined was 18% higher than tonnage milled in the same period last year.

Nickel sales were 67% higher than in the comparative period last year and the average LME nickel price was US$18,001 per tonne compared to US$12,884 per tonne in the previous year, representing an increase of 40%.

Equity Axis News