BNC projects higher profits

BNC projects higher profits
Published: 16 June 2014
BINDURA Nickel Corporation Limited taxed profit is expected to be higher for the second half of the financial year ended March 31 2014 due to the improvement of output at Trojan Mine.

In statement, the group said that based on preliminary unaudited figures the second half of the year's figures were expected to be higher than $3,3 million.

"Factors contributing to the improvement include the resumption of nickel production from the company's Trojan Mine and ramp up to full capacity. The company's full year end results will be announced around 30 June 2014," the statement read.

Mwana Africa, BNC parent company, announced last week that it completed an independent study of an accelerated restart plan for the nickel smelter of BNC.
Mwana Africa has 76,3% shareholding in BNC.

The study represented a technical and economic assessment of the potential refurbishment and restart plans of the smelter complex in Bindura.

BNC confirmed that the study would bring significant financial strategic benefits to the company.

Mwana chief executive officer Kalaa Mpinga said: "We can grow our revenue stream by moving rapidly up the value chain from current production and sale of concentrate, with the associated transportation saving cost of this, to production and sale of higher value nickel leach alloy."

The company was expected to restart operations at a cost of $26,5 million that would be financed through debt finance and existing cash flow and company cash balances.

Mwana Africa posted a profit after tax of $7,5 million up 88% from $4 million while cash balance stood at $9,2 million as at September 30,2013. During the six months period Freda Rebecca produced 32 252 ounces of gold to September 2013. BNC sold 2 191 tonnes of nickel in concentrate in the six months to September 2013.

BNC resumed exports after it signed an agreement with Glencore International in April 2013 from a five-year care and maintenance programme.
- newsday
Tags: BNC, Bindura, Nickel,


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