New Zimbabwe.com

BNC Exchange Losses Down 96% Due To Stable Rates

Spread This News

By Alois Vinga


LIISTED resources group, Bindura Nickel Corporation (BNC) has seen net exchange losses going down by 96% attributed to the positive impact of stable rates.

Presenting the interim condensed financial results for the period ended September 31, 2021, BNC chairperson, Muchadeyi Masunda applauded the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction for the obtaining stability.

“Net exchange loss for the period amounted to US$67,467 and was 96% lower than the US$1,5 million for the same period last year due to a more stable auction exchange rate during the half-year period under review,” he said.

Foreign exchange gains or losses occur when a company buys and or sells goods and services in a foreign currency, and that currency fluctuates relative to their home currency.

During the period under review, profit from operating activities of US$6,2 million was achieved, compared to US$4,7 million in the first half of last year, registering an increase of 31%.

Profit and total comprehensive income for the period was US$5,8 million, compared to US$3,4 million for the same period last year, reflecting the positive impact of improved nickel prices.

Profit after tax of US$5,8 million, 70% higher than for the same period last year with equipment replacement and upgrade program continued with US$4,7 million capital expenditure amid a resolution to migrate the Company’s listing to the Victoria Falls Stock Exchange

However, the Nickel Miner saw administrative costs for the period at US$3,3 million being 120% higher than the US$1,6 million for the prior period mainly due to the following an increase in wages and salaries as referred to above, increase in Intermediated Money Transfer Tax and bank charges alongside  Shangani Mine care and maintenance costs.