Bindura Nickel Corporation (BNC) reported a US$12,9 million loss attributable to ordinary shareholders in the year to March 2013, up from a US$12,8 million loss in the prior year owing largely to low turnover and high care and maintenance costs.
Report by Staff Writer
BNC said retrenchment costs of US$7,1 million arising from company restructuring were included in the loss for the year.
Operating costs amounted to US$5 million in the last half of the financial year after the group revised its accounting policy on property, plant and equipment to allow for capitalisation of any costs directly attributable to bringing the asset to the location and condition necessary for the company to be of sound operation.
Gross turnover decreased significantly to US$1 million compared to US$1,5 million in the prior year following the sale of leach alloy from stock, the company said.
At the end of the reporting period, total assets exceeded total liabilities by US$ 3,3 million. In 2012, total liabilities exceeded assets by US$ 15, 2 million. Noncurrent assets increased year on year to US$44,2 million from US$35,1 million in 2012. The increase was attributable to the recapitalisation costs as well as the capitalisation costs associated with the refurbishment of the milling section at Trojan mine.
Current assets increased to US$14,5 million from US$8, 3 million following an increase in inventories by US$ 1,2million as operations started gearing up towards full production and an increase in cash reserves following the successful rights issue.
Debtors remained in line with the prior year with current liabilities decreasing to US$23,6 million from US$40,7 million last year due to reduction in creditors following the rights issue.
Long term loans increased to US$10,7 million from US$5,3 million in 2012.
The net cash position of the company improved significantly to US$5,4 million from US$0,4 million last year.
On operations, BNC’s Shangani mine, smelter and refinery remained under care and maintenance for the year under review.
In September 2012, the group successfully raised US$23 million through as renounceable rights offer for the restart of its Trojan mine.
“As the start up of operations would focus on Trojan mine only, it was necessary to restructure the non operating business units (and) as a result the company undertook a retrenchment exercise whereby approximately 1 000 positions were made redundant,” said BNC.
“Work started on the refurbishment of the milling section in October 2012 and was successfully concluded in February 2013. The first concentrate was shipped in April 2013 I terms of an off take agreement between Glencore International and the company.”