•  Bindura Nickel Corporation has projected a significant loss in the second half of 2024
  • This follows a substantial loss of US$18.4 million in the previous fiscal year
  • BNC recorded zero production in the third quarter of the fiscal year, with no ore being mined or milled and no nickel concentrate produced during that period
  • The projected loss for the current half-year is estimated to be 8% higher than the corresponding loss recorded in the previous period

Harare- Bindura Nickel Corporation (BNC), a VFEX-listed miner, is expecting a substantial loss in the second half of 2024 following a significant loss of US$18.4 million in the previous fiscal year. This projected loss would mark the third consecutive half-year loss for BNC, with previous losses of five million and six million in the preceding two halves, in addition to the US$18.4 million loss.

The projected loss for the current half-year, ending on March 31, 2024, is estimated to be 8% higher than the corresponding loss recorded in the previous period. Notably, BNC experienced zero production in the third quarter of the fiscal year, with no ore being mined or milled, and no nickel concentrate being produced during that period. It is this third quarter perfomance which is going to add up for the second half-year period. 

The loss is attributed to the deterioration of the Sub-Vertical Rock Winder Bull gear at the Trojan Nickel Mine. BNC has procured a replacement gear of similar size and duty, necessitating a temporary shutdown of the mine since September 22, 2023.

Initially scheduled for completion by October 31, 2023, the replacement project faced unforeseen technical challenges, resulting in an extended completion date of April 2024 according to the company. 

The prolonged shutdown has contributed to a challenging operating environment for BNC, which has been grappling with leadership issues, production challenges, and machinery setbacks over a long period now.

To address the unstable situation, the company needs to emphasise the desire for sustainable capitalisation and improved management structures, with even the possibility of restarting the smelter.

Given these circumstances, BNC's Board of Directors has informed shareholders, potential investors, and the public about the anticipated decline in the company's profitability for the remainder of FY2024. The extended shutdown, coupled with low nickel prices in the global markets, is expected to have a substantial impact on the company's financial performance.

Shareholders and investors are advised to exercise caution and seek professional advice due to the potential effects on the company's securities.

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