BINDURA Nickel Corporation (BNC) profit rose to $8,5 million for the year ended September 30 2014 from $3,3 million recorded the previous year as nickel prices remained bullish in the short term.
Speaking at the company’s analyst briefing, BNC managing director Batirai Manhando said the company was looking forward to restart its smelter by the second half of next year.
“We are looking at bringing the refinery back into production. Looking at the hunters road as it is the future of the company. We are bullish on nickel prices and the fundamentals are such that there will be a deficit of nickel supply,” he said.
The company expects the prices to go up to $20 000 per tonne going forward.
The company requires $26,5 million to restart the smelter. The funds will be provided through private placement of a redeemable fixed rate secure bond of $20 million and balance will be funded from internal resources.
The company recorded a turnover of $46,4 million during the six months period due to a rise in the nickel output which stood at 3 891 tonnes compared to the same period last year where it stood at 2 803 tonnes $21,4 million.
During the period under review, average prices for nickel stood at $18 515.
The cost of sales increased by 103% to $22,6 million compared to the same period last year at $11, 1 million and this has been attributed to the increased tonnage.
Manhando said investment in mobile equipment during the period under review and further in the third quarter will help the mining operation to reach a steady state in the final quarter of the year.
The company is a major counter on the mining index.