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.

ā€œThis 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.

ā€œNickel in concentrate sold amounted to 6 410 tonnes, compared to 6 470 tonnes sold in the comparative period last year.

ā€œIn 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.

ā€œThe above fundamentals translated to an annual turnover of US$54.0 million as compared toĀ  US$53.6 million recorded in last year,ā€ 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.

ā€œCost 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.

ā€œIn 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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