Home Business Exchange Gains Push Up Bindura Nickel Profit.

Exchange Gains Push Up Bindura Nickel Profit.

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Bindura Nickel Corporation operating profit for the year ended 31 March 2019 increased by 141% to US$21.3 million, compared to the prior year’s achievement of US8.9 million.

The Board Chairman Muchadeyi Masunda attributed the increase to exchange gains recognized on the introduction of the Zimbabwean Dollar.

“This is mainly attributable to exchange gains recognised on the introduction of the Zimbabwean Dollar. The Company realised a profit and total comprehensive income of US$13.5 million, compared to US$5.8 million in the prior year.

“Nickel in concentrate sold amounted to 6 410 tonnes, compared to 6 470 tonnes sold in the comparative period last year.

“In line with the increase in global nickel prices, the Company realised an average price for its nickel in concentrate sold of US$8 376 per tonne, compared to US$7 249 per tonne achieved in the comparative period last year.

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“The above fundamentals translated to an annual turnover of US$54.0 million as compared to  US$53.6 million recorded in last year,” he said.

He added that the company’s cost of sales increased by 14 % while gross profit decreased by 23% from US$18.9 million.

“Cost of sales increased by 14% year on year from US$34.7 million last year to US$39.5 million in the year under review, mainly due to an increase in local input costs.

“In line with the subdued growth in turnover and the year on year increase in the cost of sales, gross profit decreased by 23% from US$18.9 million in the comparative period last year to US$14.5 million.

Meanwhile, under the current circumstances, the company did not declare a dividend for the period under review.

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