Bindura Nickel Company (BNC)

VICTORIA Falls-listed resource company Bindura Nickel Company (BNC) is expected to post a full-year loss in fiscal 2023, market analysts Morgan & Co said.

BNC, part of Kuvimba Mining House, reported a 7.8% decline in revenue, according to revised financial results for the six months ended September 30, 2022.

This was due to a 16% decline in sales volumes, slightly offset by a 40% increase in the average nickel sales price.

Direct costs increased due to inflationary pressures and led to gross profit of 90%.

The poor performance was further compounded by a decline in other price-related income and an increase in general expenses and foreign exchange losses.

Subsequently, BNC reported a net loss of $5.4 million.

The growth in the value of non-current assets was offset by a decline in current assets and resulted in a marginal increase in total assets.

In their analysis of the company’s financial results for the six months ended September 30, 2022, Morgan & Co researchers said the delay in capital expenditure and power problems in the country would perpetuate low production volumes. of the company.

“The global price of nickel continues to rise due to the growing focus on cleaner energy following Russia’s energy disruptions.

“Over the past five years, the average selling price realized by BNC has increased by 312%, from 6,198 USD per ton to 25,542 USD per ton. However, production challenges continue to weigh on BNC’s ability to take advantage of the higher global nickel price.

“Nickel production over the past five years has declined 31% due to lower ore grade and we expect delayed capital and power issues to perpetuate low production volumes. “In addition, the widening spread between official rates and market rates is expected to add pressure on margins in the second half. We expect BNC to post a loss for fiscal 2023.”

BNC owns nickel resources across Zimbabwe in mining, processing and exploration assets.

These are the Trojan Mine, the Shangani Mine, the BSR Facility, the Hunters Road Project, Damba-Silwane as well as the Trojan Hill and Kingstone Hill Projects.

Together, these resources amount to a total of 72.5 million tonnes of ore, at an average grade of 0.60%, containing approximately 434.8 kilotonnes of nickel.

The mining company revealed that it had spent $3.5 million to replace obsolete underground mining equipment

Related Topics

Source link

Leave A Reply