Kalaa Mpinga though eligible did not seek re-election
BINDURA Nickel Corporation restructured its board today at its annual general meeting to reflect the interests of its Chinese shareholder, China International Mining Group Corporation.
Board members Ngoni Kudenga, Kalaa Mpinga though eligible did not seek re-election while BNC technical director Thomas Mashungupa resigned from the board although acting chairman David Murangari there had been plans to second him (Mashungupa) to the Mwana Africa board.
“Technical director (Thomas) Mashungupa would have been withdrawn from the board of directors of BNC in order to take up another assignment within the Mwana Africa PLC Group, but he chose to resign in advance of the AGM.”
Through a secret ballot, the company’s shareholders unanimously approved the removal of finance director Herman Jacobs and non-executive director James Arthur from the board.
The exiting directors were replaced by Johannes Lampen, Vanessa Yam, Professor Boajin Zhao and Olivier Barbeau while Oliver Chidawu was re-elected.
Mpinga still controls 39 208 675 shares which is 2,8 percent of Mwana’s issued share capital directly and through Palanka and Katema Mukubayi Trusts, and also holding an additional 666 667 shares in BNC.
Giving a trading update, Murangari said production at Trojan is expected to be lower compared to the previous quarter as more plant shutdowns are expected during the period.
He said three key projects will be commissioned this quarter and these are Trojan Mine Shaft Re-Deepening Project; Sub vertical Service winder and Main Rock Winder Drives upgrade; and Concentrator Plant and Sub vertical Medium Voltage Switch Room equipment replacement.
Production for the quarter to June was at 130 480 tonnes, 27 percent below budget due to a deficit in active draw points, as well as equipment breakdown. But he said production should increase in the second quarter.
“Production is expected to improve going forward due to performance enhancement measures currently being implemented.”
Milled tonnage was 8% lower quarter-on-quarter at 129 523t (Q4 FY2015: 140,045t).
“Milled tonnage was mostly affected by availability of active draw points. This affects ore availability and machine utilisation adversely as tramming distances double.
“Production is expected to increase in the second quarter due to the ongoing 100-day “Rapid Results Projects” which is expected to increase the number of draw-points and reduce the LHDs’ hauling distances,”
The head grade was 26 percent lower at 1,2 percent compared to 1,67 percent in Q4 FY2015 due to lower production of massive ores areas compared to the previous quarter as recovery was three percent lower at 84 percent against 86,9 percent in Q4 FY2015.
The average net realized nickel in concentrate price dropped 11 percent to US$8,461/t compared to US$9,489/t in Q4 FY2015. Nickel sales were 39 percent lower at 1,267t compared to 2,072t in Q4 FY2015 due to lower production. Murangari said nickel prices are however set to remain low in the short term
Analysts predict an eventual improvement in the nickel price as demand is expected to increase, though the timing of this is uncertain.
Cash costs increased by 29 percent to US$8 901/t (Q4 FY2015: US$6,926/t) and all-in sustaining costs increased by 35 percent to US$9,736/t (Q4 FY2015: US$7,209/t) due to the lower production.
“The company has implemented various cost-reduction initiatives to combat the effect on profits of lower nickel prices. There is a particular focus on cost reduction throughout the organisation.” FinX