New Zimbabwe.com

Bindura Nickel looks to improve cash-flow

MWANA Africa has said its subsidiary, Bindura Nickel Corporation (BNC), is examining what it called “alternative mine plans” that it hopes will improve short-term cash flow and reduce its funding requirements.
The company told investors Tuesday: “These plans utilise the mining flexibility afforded by the presence of higher grade massive sulphide ore within the Trojan ore body.”
It was also confirmed that BNC was seeking short term bridging finance.
“BNC is in the process of seeking short term bridging finance to cover its funding shortfall, and continues to focus on the preservation and integrity of the business and its assets,” the company said.
Earlier this month Mwana revealed it was mulling its financing options and has previously announced it is tightening its belt to conserve cash.
An analyst with SP Angel said the group still needs to get corporate costs down.
“The company are looking at ways of keeping Bindura going despite the funding shortfall announced earlier. The current concentrate operations are not at a scale to be economic against the current nickel price and they must be looking at ways of high grading to improve the economics,” the broker said.
“Cash flow from Freda Rebecca will be constrained with a C3 cash cost of $1,098/oz against a gold price of $1,280/oz. Corporate costs will need to come down from its current high base to be channelled into the operations.”Advertisement