BNC increases capital expenditure to US$8,9m

BINDURA Nickel Mine has increased capital expenditure by 73 percent to US$8,9 million in the financial year ended March 31, 2021 from US$5,1 million in the prior year.

The nickel miner’s capital expenditure projects that were implemented during the year under review are the Sub-Vertical Rock (SVR) winder mechanical and electrical upgrades (US$1,7 million), shaft re-deepening (US$1,1 million) and Load-Haul-Dump (US$1,2 million).

Ore milled during the year was 411 754 tonnes compared to 434 077 tonnes milled in the previous year.

“The five percent decrease was due to a loss in production emanating from the pre-planned shutdown, running from the beginning of March to the end of April 2021, to facilitate commissioning of the re-deepening and tie-in project,” said the company.

“Head grade, at 1,52 percent, was marginally lower than the 1,53 percent achieved in the prior year. Recovery decreased from 86,3 percent to 85,9 percent, in sympathy with the lower grade.”

Operating profit increased by 17 percent from US$2,8 million for the prior year to US$3,3 million for the period under review.

This was attributable to revenue growth driven by improved nickel prices, coupled with the decrease in marketing and distribution expenses arising from a new off-take agreement entered into during the year.

“Profit and total comprehensive income for the year, at US$1,7 million, was 97 percent higher than the US$0,89 million recorded in the prior year,” said BNC.

“The achieved profit translates to basic and diluted earnings per ordinary share of 0,139 and 0,133 United States cents respectively.”—chronicle.cl.zw