Bindura Nickel Corporation (BNC) recorded a 7 percent increase in revenue to $45.1 million in the full year to March from $42.3 million in the prior year, on increased production and sales volumes despite a fall in nickel prices.
BNC, part of the Asa Resources group, said nickel production increased by 2 percent to 6 762 tonnes from 6 621 produced in the previous year.
Nickel in concentrate sold increased to 6 705 tonnes up from 6 613 tonnes last year but the average price of nickel decreased by 3 percent to $6 519 per tonne from $6 737 per tonne in the prior year.
Cost of sales declined by 6 percent to $31.2 million from $33.2 million attributable to the ongoing cost cutting measures being undertaken by the company.
As a result, gross profit increased by 54 percent to $13.9 million from $9.1 million achieved in the previous year.
Operating profit improved to $2.4 million compared to $1.8 million recorded in the previous year.
However, after tax profit declined to $609 961 from $649 070 recorded in the previous year owing to a $4.3 million impairment on the refinery.
Without the impairment profit after tax would have been $4.9 million.
The company said its smelter is expected to come online this year.
Completion of the project, which started off in 2015 with an initial commissioning target of 2016, has been delayed due to constrained cash flows owing to low nickel prices.
“The Smelter Restart project is now 83 percent complete. Total commitments to date amount to $21.5 million and this has resulted in a considerable number of project milestones being completed.”
The company did not declare a dividend.- The Source