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Bindura Nickel back to black with $3m profit

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BINDURA Nickel Corporation (BNC) has returned to the black, posting a profit of $3.3 million in the six months to 30 September from a loss of $7.9 million last year on the back of increased production at its Trojan Mine.
The company recorded a significant jump in revenue to $21 million from $992,000 last year following the start-up sale of 2,228 tonnes of nickel concentrate in April.
Operating costs stood at $3.4 million for the period under review.
Non-current assets increased year on year to $47.5 million from $35 million.
“The increase is a result of the capitalisation of operating expenditure as well as costs associated with the refurbishment of the milling section at Trojan Mine,” said the company in a statement accompanying the results on Tuesday.
Inventories and debtors were increased by $1.6 million and $5.8 million respectively as operations have ramped up.
Long-term liabilities stood at $19.5 million from $18.9 million due to capitalisation of interest in respect of the shareholder’s loan.
The Mwana Africa owned company raised $6 million in September following a successful renounceable rights offer which raised $24 million last year to fund the restart of the mine.
The company said it had resumed sales in April to Glencore International AG which holds an off- take contract for 100 percent of production.
Since the implementation of the new mining plan to address the challenge of softening nickel prices which currently stand at $13,580 per tonne, output has since increased to a record 993 tonnes in September.
On the outlook, BNC said it would remain cash generative at low nickel prices, and could continue to do so in the short-term.
“This has enabled the corporation to become self- sustaining and to fund its operational and capital expenditure from its own cash inflows,” it said.
In the short- to medium term, the corporation is looking at refurbishing the smelter to enable further processing of nickel in concentrate to a higher value leach alloy.
Its Shangani mine, smelter and refinery remain under care and maintenance.
Earnings per share stood at 0.27 cents although the company did not declare a dividend.Advertisement