nickel16 Nov 2016 19:18
ASA NICKEL
As was reported last week, Bindura Nickel Corporation continues its steady performance with AISC (C3) below $5,000/t for nickel-in-concentrate, ahead of earlier indications. The re-start of the smelter is progressing and is scheduled to come on stream in Q4 of our financial year ending 31st March 2017. The model for the re-start of the smelter is not dependent on third party toll feed and with nickel staying above $10,000/t, the financial dynamics are inline with BNC's overall mine expectations. Clearly an agreement with either a nickel or PGM producer will only enhance the economics of the smelter. Discussions with interested parties are ongoing and as the nickel price improves, it is expected that more nickel producers will return to the market; many are currently on care and maintenance because of the low nickel price. When the smelter is fully operational, our payability is expected to improve from the current 65% to circa 85% of the LME market spot price. Major works on the re-deepening project have been held back through cash constraints and manpower limitations. Our main priority is the smelter and once this is fully integrated, the re-deepening project will come back on to BNC's radar. The refinery is also being looked at and a feasibility study is underway and it remains our medium-term ambition to re-establish BNC as the only fully integrated nickel producer in Africa.