2020, a tough year for Bindura Nickel Company
By Bridget Mabanda
Bindura Nickel Company (BNC)’s revenue has decreased by 12 percent from 3002 tonnes to 2 566 tonnes.
The income statement of the company indicates that the reduction in sales volume was mainly due to a temporary stoppage in dispatches to the market from April-June 2020, a transition which the company had to go through while new marketing arrangements were being put in place following the termination of the Glencore Off-take Agreement.
In a statement, the company secretary, Conrad Fungai Mukanganga, said, the turnover decreased as compared to the previous period.
“The London Metal Exchange (LME) nickel price averaged US$13 214 per tonne, compared to US$13 927 per tonne achieved in the prior year. The 5% decline translated into turnover for the half-year of US$25.0 million (2019-US$28.3 million),” said Mukanganga.
The revenue decrease due to the fall in the cost of sales by 2%, gross profit decreased by 31% and the profit and comprehensive income decreased by 43%.
He said the decrease in profitability was mainly attributable to the decline in sales and net foreign exchange gains recognised in the prior period amounting to US$4.1 million, versus a net exchange loss of US$1.6 million realised in the period under review.
However, current liabilities have increased by 34% due to an increase in trade and other payables. Current assets have also increased by 46% as a result of an increase in trade, receivables and inventory.
The company secretary added that ZWL$2,5 million commitment was fulfilled due to Bondholders at the March 2020 interval.
Meanwhile, the company continued to maintain overdraft facilities in order to finance its working capital requirements.
Global Crypto Regulation Should be Comprehensive, Consistent, and Coordinated
The IMF’s mandate is to safeguard the stability of the international monetary and financia…