Published On: Tue, Nov 29th, 2016

BNC Nickel output up 20% in Q2

HARARE- Bindura Trojan Nickel Mine Nickel production for the second quarter to September 30 increased 20% to  1,866 tonnes compared to 1,555 tonnes same period prior year on the back of  an increase in head grade and recoveries.

Nickel stabilised around  $10,000/t for much of Q2 (YE2017), supported by news that up to 20 %  nickel producers face suspension in the Philippine  contributing to a 16% improvement in average net realised on  nickel in concentrate.

BNC, a subsidiary of Asa resources, said sales volume were 32 percent up at 1,971 tonnes from 1,493 tonnes in the previous quarter.

BNC said,as was anticipated, the  mine  outperformed in all key-operating areas and  as the availability of equipment gradually improves, BNC has a reasonable expectation that production will improve from Q3 FY2017 onwards.

Average nickel in concentrate prices were 16 percent higher at $6,668 per tonne while cash costs went down by 17 percent to $4,782 per tonne from $5,736 per tonne previously.

Meanwhile Gold sales for Freda Rebecca Gold Mine increased by 10 %  to 15,904 ounces  during the period under review  from 14, 463oz in the previous quarter driven by  a 13% increase in tonnes mined since the replacement of new LHD .

 

“The new replacement LHD arrived on site in the latter part of the quarter and helped to increase tonnes mined by 13%, however a cracked journal on Mill 1, in late August, slowed throughput and contributed to a decrease in tonnes milled,”  the mine indicated.

The price for bullion averaged $1,341 per ounce in the quarter compared to $1,275/oz in the previous quater while cash costs dropped by 5% to $944/oz from $993/oz in Q1 as a result of a 10% increase in gold production.

Total tonnes mined increased by 13 percent to 363,082 tonnes.

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