Bindura profit up 160 percent

Bindura Nickel Corporation (BNC) yesterday reported a 117 percent surge in revenue to $46.4 million for the six months to September 30, compared to $21.4 million recorded in the same period last year on rising demand and firmer prices.

BNC’s operating profit for the period was $12.6 million 250 percent up from $3.6 million in the prior comparative period. Profit after tax was $8.5 million, up from $3.3 million previously.

Corporate costs amounted to $34 million with cost of sales increasing by 103 percent to $22.6 million compared to the prior period’s $11.1million.

BNC managing director Batirai Manhando said up to 310 000 tonnes of ore were milled at the company’s Trojan mine- the highest since the mine was restarted in 2012- resulting in the increase of operating costs. The firm milled 302 100 tons in the first half of its 2014 financial year.

Manhando said that the company expects the rising global demand for the metal to continue pushing the price up.

In January the world’s biggest producer of nickel –Indonesia placed a ban on the exports of unprocessed nickel ores effectively creating a gap in supply of about 500 000 tonnes.

The price of the metal has since shot up from $14 600 to sell at levels between $18 600 and $ 20 000 a tonne.

“We are quite bullish about the outlook. Indications are that demand is set to surpass supply because of Indonesia’s ban so we are forecasting the price to even go up in excess of $20 000.

“The Philippines are trying to come in to fill the gap but their quality is lower than ours so you see we are in quite a comfortable position,” he said.

Manhando said BNC would, going forward increase volumes to compensate for the falling head grade which he said was averaging 1.05 percent.- The Source

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