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Nqobile Bhebhe, [email protected]
Bindura Nickel Corporation (BNC) shares are no longer trading on the Victoria Falls Stock Exchange Limited as of today, a day after the company was placed under reconstruction yesterday.
The Government Gazette General Notice 523A of 2024, issued on May 2, 2024, announced the reconstruction.
In a statement today, VFEX CEO, Mr Justin Bgoni said VFEX has engaged and agreed with Bindura Nickel mine that the latter will make an application for voluntary suspension of trading of its securities on VFEX.
“The Victoria Falls Stock Exchange Limited (“VFEX”) hereby notifies the investing public that a trading halt has been instituted in the trading of Bindura Nickel Corporation Limited shares on the VFEX with effect from Friday, 03 May 2024,” said Mr Bgoni.
“This follows a notice of reconstruction which has been issued in the Government Gazette General Notice 523A of 2024 issued on 2nd of May 2024.
“The reconstruction order is in relation to Trojan Nickel Mine Limited which is the major asset owned by Bindura Nickel Corporation Limited.”
Following the implementation of the halt, investors will not be able to buy or sell Bindura Nickel Corporation Limited’s shares during the period the halt is in effect.
The mining house was listed on VFEX in 2021. It is the first VFEX-listed entity to have its shares halted on the bourse.
On Thursday, the nickel company cautioned that ongoing low nickel prices, high input costs—particularly electrical expenses—substantial mining depth, and low resource grade persist in negatively impacting its operations.
It noted that despite the completion of the Sub-Vertical Rock (SVR) Project, which caused a temporary shutdown of BNC’s Trojan Nickel Mine (TNM) from September 22, 2023, the company continues to encounter various challenges that are expected to cause delays in the resumption of mining activities at TNM.
In the trading update for the quarter ending December 31, 2023, the company emphasized that nickel prices remain subdued in the global markets, reaching economically unsustainable levels for the business.
Internationally, nickel prices on the London Metal Exchange witnessed a notable decline, attributed to market surplus conditions resulting from increased production in China and Indonesia coinciding with subdued global demand.
However, a reconstruction order was issued yesterday.
In issuing the reconstruction order under section 4 of the Reconstruction of State-Indebted Insolvent Companies Act [Chapter 24:27] (No. 27 of 2004), Minister of Justice, Legal and Parliamentary Affairs, Ziyambi Ziyambi, appointed Ms Mutsa Mollie Jean Remba as the administrator.
Mr Ian Mtetwa is the assistant.
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