Published: 10 September 2013

BINDURA Nickel Corporation is projecting to attain a cash positive position by the end of next month after overcoming its immediate funding requirements.

The projection is contained in the firm's financial action plan based on assumptions of bearish nickel prices with the base case being $13 660 per tonne. BNC projects that the worst case scenario would be a price of $12 770 per tonne, becoming cash positive by December 2013 with a small adverse in January.

"At the $13 660 per tonne this option allows the business to be cash positive by October 2013 and to complete repayment of existing legacy creditor agreement by December 2013.

Creditor assistance and or bridging finance is required. "At $12 770 per tonne the business is cash positive by December 2013, the cash deficit starts in May 2014 with a small adverse in January 2014, which can be managed," said BNC.

The Zimbabwe Stock Exchange listed Mwana Africa nickel mining subsidiary is reportedly on the verge of sealing a $4,5 million short-term debt funding.

"BNC has secured the $4,5 million short-term bridging finance. The company has overcome its immediate short-term funding needs," a source said.

BNC revised its funding needs for phase two of the restart of its Trojan Mine in September last year since being put on care and maintenance in 2008.
- herald

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