Vusumuzi Dube
Judith Phiri, Business Reporter
Bindura Nickel Corporation (BNC) has said it is projecting to record a loss after taxation, during the six months ending 31 March 2024, which is 8 percent higher than the loss recorded in the comparative period last year.
Last year, the company was forced to shutdown following the deterioration of the Sub-Vertical Rock (SVR) Winder bull gear, after the previously reported initial damage that occurred in September 2022.
The SVR is one of the company’s major pieces of fixed mining equipment and is used to hoist ore from underground.
This resulted in BNC recording a significant decline in financial performance and incurring a loss due to lack of production following the shutdown, for the nine months and third quarter ended 31 December 2023.
In a cautionary announcement and profit warning statement on Monday, BNC managing director, Mr Thomas Lusiyano said the investing public were advised to exercise caution and to consult their professional advisers when dealing in the company’s securities.
“In recognition of the foregoing, the Board of Directors of BNC would like to inform the shareholders of the company, potential investors, and the public, of the projected material decline in the company’s profitability for the rest of the financial year 2024 (FY2024) due to the protracted shutdown, coupled with the low nickel prices prevailing on the global markets,” he said.
“The decline in profitability may also have a material effect on the value of the company’s securities. Based on a preliminary assessment of the consolidated financial results, the company is projected to record a loss after taxation, during the six months ending 31 March 2024, which is 8 percent higher than the loss recorded in the comparative period last year.”
“Accordingly, shareholders and the investing public are advised to exercise caution and to consult their professional advisers when dealing in the company’s securities, until another announcement is made by the end of April 2024.”
He said the initiated SVR Bull Gear Replacement Project which necessitated a transient shutdown of Trojan Nickel Mine from 22 September 2023 was initially scheduled to be completed by 31 October 2023.
Mr Lusiyano, however, said the project faced unforeseen technical challenges that extended its completion date to the end of April 2024, while the Trojan Nickel Mine has been on shutdown for six months.
Bongani Ndlovu