Chronicle Editor
NICKEL miner, Bindura Nickel Corporation (BNC), posted a net profit of $3.42 million for the half year ended 30 September 2020, tumbling by nearly half from US$6.07 million in the comparable period last year after a fall in sales.
While production was marginally down from last year, the group saw its revenues fall 12 percent to US$25 million on the back of a 15 percent drop in concentrate sales.
“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 tons from 215 728 tons 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, Masunda chairman said.
But in the long term, the company was aiming to regroup and boost its production to about 10 000 tons per annum by 2025.
The firm is still undergoing transformation following changes in its ownership from Asa Resources to Kuvimba Mining House. – New Ziana
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