BNC in record nickel production at Trojan, smelter to come online in Q1 next year

BNC in record nickel production at Trojan, smelter to come online in Q1 next year

HARARE, July 21 (The Source) – Bindura Nickel Corporation (BNC) on Tuesday reported a record nickel production of 7,306 tonnes at its Trojan Mine in the full year to March 31 and expects to restart its smelter in the first quarter of next year.

BNC is 74,3 percent owned by resources group, Mwana Africa PLC with the National Social Security Authority holding a 7,03 percent stake among other shareholders.

The company successfully raised $20 million through a bond in March this year for the smelter restart, with the first sales expected in April next year.  It is currently negotiating with various parties for off take agreements and also for the processing of third party concentrate.

In the year under review, sales of nickel concentrate were higher at 7,352 tonnes, for $78,9 million compared to the $65 million realised from the sale of 7,129 tonnes previously. But cost of sales were higher at $42,75 million against $29,56 million in the previous year.

Net profit tumbled by 53 percent to $ 11,2 million from $23,7 million last year. Operating profit  for the year  was at $15,9 million compared to $17,3 million in the prior year.

BNC operates Trojan Mine in Bindura but its Shangani mine remains under care and maintenance.

It expects average nickel prices of $15,000 per tonne for 2015 and $17,750 per tonne in the following year.

At 0,9 cents per ordinary share, basic and diluted earnings were 53 percent lower than 1,9 cents achieved last year. The company however, did not declare a dividend.