Chronicle EditorNatasha Chamba, Business Reporter
BINDURA Nickel Corporation (BNC)’s revenue grew by nine percent to $26,2 million during the half year period ended September 30, 2018 spurred by improved nickel prices compared to $24,1 million recorded during the comparable period last year.
The positive growth was despite a 14 percent drop in sales of nickel concentrate to 2 980 tonnes compared to 3 485 tonnes in the previous comparable period.
BNC chairperson, Mr Muchadeyi Masunda, said in a statement accompanying the firm’s financial report for the period that the decline in sales was mainly due to a fall in production as well as logistical challenges that were experienced in moving outbound material.
“In spite of the reduction in sales tonnage, revenue increased by nine percent to $26,2 million as a result of the improved global nickel prices, which responded to the favourable market sentiment that was mainly driven by the persistent bullishness towards electric motor vehicle,” he said.
Mr Masunda said total comprehensive income increased 26 percent to $2,8 million during the half year period from $2,2 million reported during the previous comparable period in line with the improved revenue.
Total equity also increased by six percent while non-current liabilities of $25,9 million declined by seven percent.
“Current liabilities increased by eight percent from $32,8 million to $35,5 million mainly due to an increase in trade and other payables, which in turn increased mainly as a result of a surge in local input costs,” he said.
Mr Masunda said average nickel price was 40 percent higher to $9 001 per tonne compared to the $6 422 per tonne realised during prior year.
Sales of nickel concentrate declined 14 percent to 2 980 tonnes compared to 3 485 tonnes reported during prior year. Mr Masunda said the reduction was due to a decline in production.
Nickel production was 3 076 tonnes lower than the 3 460 tonnes output reported in prior period because of lower year on year head grade and recovery, he said.
Ore milled was up 22 percent to 206 451 tonnes during the review period compared to 171 578 tonnes milled in the same period last year due to an improvement in the availability of mining equipment following capital investment in the area.
Head grade was 1,87 percent during the review period compared to 2,19 percent reported during the same period last year.
“The industrial relations atmosphere was reasonably calm throughout the year.
We continue to explore ways of skills retention, including productivity related bonus schemes as well as non-monetary initiatives such as creating an environment for employee growth and employer recognition,” Mr Masunda said.
The miner did not declare a dividend.
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