aurora
Tapiwanashe Mangwiro
Bindura Nickel Corporation (BNC), says it anticipates nickel prices to continue to firm up in the current year, helping the company move to a better trajectory under the current production plan.
Nickel prices rose to a seven-year high of US$20,060 per tonne on the 17th of September 2021, supported by unanticipated demand as Chinese stainless-steel producers ramped up production ahead of the government-sanctioned production cuts, due to power rationing.
“Prices are most likely to remain above the US$18,000 per tonne price”, the company said in a statement.
However, poor equipment availability combined with lower than expected massive grades in September and October 2021 resulted in nickel production for both months being lower than planned.
According to the company’s financials, a total of 2,553 tonnes of nickel in concentrate were produced, which is 13 percent lower than for the same period prior year comparative.
The miner said the decline was due to lower grades and late resumption of production, as a result of the delayed completion of the Re-Deep Tie-in project.
Management said the focus during the remainder of the year will be on recovering the nickel in concentrate production deficit and managing costs.
“Nickel in concentrate production for the full year is thus still expected to be about 6,000 tonnes,” BNC said about its outlook.
A total of 2,549 tonnes of nickel in concentrate were sold, marginally lower than for the same period last year.
Due to the lower production and increase in operating costs, C1 unit cash cost of US$9,045 per tonne, compared to US$6,067 for the same period last year was incurred.
For the half-year to September 2021, profit after tax was US$5,8 million, 70 percent higher than for the same period last year.
Online Reporter