Significant Revenue Decline in 2023
Bindura Nickel Corporation (BNC), listed on the Victoria Falls Stock Exchange, reported a substantial 43 percent drop in revenue in the half-year ending 30 September 2023. The revenue fell from US$32.5 million in the previous year to US$18.5 million, primarily due to decreased nickel sales volume and global price reductions.
Short to Medium Term Nickel Price Trends
The London Metal Exchange (LME) average cash settlement nickel price during the period was US$20,614 per tonne, a 19 percent decrease from the previous year’s price of US$25,542 per tonne. This decline reflects a global decrease in nickel prices, influenced by oversupply, particularly from Indonesia, and China’s slow economic recovery.
Production Challenges at BNC
BNC, a member of Kuvimba Mining House, experienced a 23 percent decrease in ore mining, resulting from equipment issues and a decline in hoisting capacity. The lower head grade and breakdowns at the concentrator plant contributed to reduced recovery rates and production.
Impact on Nickel Concentrate Production
Nickel in concentrate production for the half-year to 30 September 2023 was 1,314 tonnes, which is 31 percent lower than the same period last year. This decrease was attributed to lower ore mined and milled, resulting in a 34 percent decrease in nickel sales volume.
SVR Bull Gear Replacement and Future Prospects
The company addressed its limited hoisting capacity issue by procuring a replacement SVR bull gear, with the project scheduled for commissioning in late December 2023. Despite lower anticipated average LME nickel prices in the upcoming quarter, positive impacts on nickel prices are expected in the medium to long-term due to factors like Chinese economic growth and demand in the energy storage sector.
Strategic Measures and Dividend Decision
Despite the challenging nickel price outlook, BNC has implemented strategic measures to ensure a return to profitability and cash generation in the foreseeable future. However, the directors have resolved not to declare any dividend due to the losses and the need to retain cash for operations.