BNC adopts new strategy after failing to raise funds

BNC adopts new strategy after failing to raise funds
Published: 19 September 2013
Bindura Nickel Corporation chairman Kalaa Mpinga told a BNC AGM this morning that management adopted a strategy for earlier extraction of massives totaling 6 290 tonnes nickel over a period of 18 months from July, 2013.

Management came up with the strategy to survive during the short to medium term after failing to raise funding for the second phase of the Trojan restart.
Mpinga said that the overall effect of this strategy on the Trojan life of mine "is a timing issue only," and the total depleted nickel remains the same.

"We had to change the strategy to survive in the short term by extracting high grade with 6200t of resources. It allows for higher grade ore and more cashflow, but does not affect the overall life of the mine."
Mpinga said this strategy resulted in the significant reduction in the funding gap from $16 million to only $4.5 million.
He also noted that, from the commencement of production in March 2013, the plant has processed 253 329 tonnes of ore and produced 1 810 tonnes nickel in concentrate. A total of 1 642t has been sold to Glencore.
Mpinga told the meeting that revenue generation has improved although the main threat to the plan remains the nickel price which is depressed and likely to remain so for some time.
Whilst improving efficiencies, Mpinga noted that the focus on reduction of expenditure will improve the operating profit margin.

- zfn
Tags: Bindura, BNC,


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