HARARE – Listed nickel producer Bindura Nickel Corporation (BNC) registered a profit after tax for the year to March 2018 of $5, 8 million, up 857 percent from the prior comparable period.
The bump in profitability was on the back of a $4, 3 million impairment which drastically eroded profitability in the prior year.
Gross profit increased by 35 percent to $18, 8 million compared to $13,9 million achieved in the prior year and this was in line with the growth in revenue.
Bindura chairman Muchadeyi Masunda said the bump in profitability was also achieved due to operating efficiencies and cost management strategies which resulted in a proportionately lower cost increase than the growth in revenue.
At $53,6 million, revenue was 19 percent above last year’s $45,1 million on increase in average nickel price realized in the year.
Other income went down 99 percent to $1,9 million.
The group embarked on cost containment during the year. Resultantly, total admin expense went down to $4,82 million from $7,59 million in the comparable year.
During the period under review, there was an improvement in the global price of nickel.
The average net realized price for nickel in concentrate increased 11 percent to $7 249 per tonne compared to $6 519 per tonne realized in the prior year.
There was a general resurgence of the Chinese stainless steel market coupled with the hype surrounding the electric motor vehicle and use of nickel in the manufacture of batteries.
Total nickel production decreased by 2 percent to 6 620 tonnes compared to last year. The decline was in line with the lower milled tonnage.
Output from ore milling activity for the year was 11 percent lower to 390 211 tonnes on a deliberate strategy to focus on production of massive ores in order to mitigate challenges concerning availability of equipment.
Head grade was 1,89 percent compared to 1,73 percent in the same period last year. There was a modest improvement in recovery at 89,6 percent from 88,8 percent due to the higher ore grade received.
Total assets grew by 10 percent to $106 million.