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BINDURA Nickel Corporation (BNC) says its net profit for the half-year ended September, 2019 surged 136 percent to US$6.6 million on the back of exchange rate gains and a decline in cost of sales.

During the period, the Zimbabwe Stock Exchange listed miner saw its revenue jump eight percent to US$28.3 million, a development attributed to a slight improvement in the price of nickel on the international market. BNC sold 3 002 tonnes of nickel, up from 2 980 tonnes during the same period last year.

“The company realised a profit and total comprehensive income of US$6.6 million, compared to US$2.8 million in the prior year,” board chairman, Muchadeyi Masunda said.

“The improvement of 136 percent was anchored on exchange gains and a decrease in the cost of sales which, in turn, was attributable to the ongoing efforts to contain costs as demonstrated by the decrease in cash costs, year on year.”

Cost of sales was down 10 percent to US$16.3 million. The exchange rate gains are likely on the back of currency changes that Zimbabwe implemented during the period, although the miner did not say.

Despite the improvement in financial performance, the BNC board opted not to declare a dividend for the period.

Masunda said the miner spent US$3 million on capital projects, with US$1.2 million going towards shaft re-deepening and the remainder on new equipment.

The smelter project was 83 percent complete, he said, with indications that it will be completed next year. Meanwhile, Masunda said the new shareholder who snapped up 74.73 shareholding in the firm in August was still going through regulatory procedures before taking over. The new shareholder, only identified as a Zimbabwean mining firm, bought the shareholding from struggling, Asa Resources. Asa Resources was placed under judicial management in July 2017. — New Ziana