BNC’s profits tumble in HY20
Harare, (New Ziana) – Net profit at Bindura Nickel Corporation, the country’s sole producer of the mineral, tumbled by half to US$3.4 million in the interim period to September 30 compared to the same period last year, pulled down by a fall in sales.
Overall, revenues fell, 12 percent to US$25 million in the period compared to last year’s comparative period, in part accountered for by 15 percent drop in sales on concentrate.
Production also fell from last year interim period, albeit marginally.
“The 15 percent reduction in sales volume was mainly due to stoppages 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,” said board chairman Muchadeyi Masunda.
The group did not declare a dividend for the period, while basic earnings per share were down to 0.3 cents from 0.5 cents in line with the decline in profitability.
Ore milled in the six month period was down to 209 153 tonnes from 215 728 tonnes during same period last year.
Masunda said the miner’s refinery project was under care and maintenance and remained at 83 percent complete by the close of the period.
About USS$1.6 million was spent in capital expenditure projects which included shaft re-deepening and ramp development.
BNC is currently operating only one –Trojan – out of its three mines, the chairman said.
But in the long term, the company was aiming to regroup and boost its production to about 10 000 tonnes per annum by 2025.
The firm is still undergoing transformation following changes in its ownership from Asa Resources to Kuvimba Mining House.