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BNC further defers publication of annual financial report

Local nickel producer, Bindura Nickel Corporation (BNC), has announced a further extension regarding publication of financial results for the year ended March 31, 2020 by two weeks.

Bindura Nickel Corporation Mine (Trojan Nickel Mine) in Bindura
Bindura Nickel Corporation Mine (Trojan Nickel Mine) in Bindura

The company was expected to have published the financial statement on July 31 having failed to do so on June 30. BNC is now expected to do so by the 14th of August.

In a notice to shareholders, the nickel miner said failure to publish the results within the set timeframe had been caused by the Covid-19 lockdown and revaluation of the company’s smelter.

“The year-end audit work had been delayed by the lockdowns, which were enacted into law by the Government in March 2020 as a national response to the Covid-19 pandemic.

“As part of the year-end procedures, BNC had to appoint an independent third party to carry out a valuation of the company’s smelter complex,” said the firm.

It said this process could not be completed within the set year-end timelines.

“The company was granted a 30-day extension by the ZSE for the publication of its audited financial results for the year ended 31 March 2020, with the deadline being extended from 30th June to 31st July 2020.

“Subsequent to the foregoing, BNC realised that it would not be able to meet the extended deadline of 31st July 2020. The company then approached the ZSE once more with an application for the extension of time by a further 14 days, to enable it to publish the results by not later than 14th August 2020. The extension was granted,” it said.

Last year, BNC announced the intention to complete its smelter in the 2020 financial year as it shifts focus from shaft deepening project it has commenced.

The nickel miner had halted smelter construction to focus on shaft deepening project to boost production in anticipation of increased global nickel prices.

BNC developed a wait-and-see attitude on the smelter project, mainly hinged on the price of the commodity, a move that made the firm’s management to decelerate the project waiting for higher nickel price levels.

The company’s management has indicated that depressed nickel prices had led to a revision of project priorities as it would not make economic sense to continue injecting huge capital into a smelter whose operations require more capital at hand. The Chronicle