HomeNewsMining index breaches 100-point mark

Mining index breaches 100-point mark

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THE mining index this week breached the 100-point mark for the first time in two years due to the strong performance of the Bindura Nickel Corporation (BNC) share price.

VICTORIA MTOMBA
BUSINESS REPORTER

Statistics from the Zimbabwe Stock Exchange (ZSE) showed that for the first time since August 2012, the mining index closed at 101,78 points on Monday. It was flat yesterday.

The mining index took off at 112,12 points in July 2012, according to figures from ZSE.

“Bindura increased by a further 0,50 cents to close at 9 cents. Falgold, Hwange and RioZim maintained previous trading levels. Bindura was the only active mining stock with the rest closing with bids only which were similar to the previous call,” statistics from the ZSE have shown.

BNC has since December 2013 been trading between 1,29 cents and 2 cents. The share price for the company doubled in June this year compared to the beginning of this year.

During the third week of June, BNC gained 0,40 cents to trade at 4,61 cents. The company had a special bargain of 4,2 million shares at 4,2 cents each more than the trading price.

BNC has been performing well with stockbrokers ABC Stockbrokers projecting that its revenue would grow to $98,6 million for the full year ending March 2015 from $65 million in 2014 on the back of improved higher head grade and cost reductions.

In 2015, total nickel production is targeted at 8 920 tonnes as compared to 7 027 tonnes of nickel in concentrates which was recorded in 2014, ABC Stockbrokers said in a latest report. Profit before tax is expected to be at $34,9 million and profit after tax at $25,9 million.

The mining index took off the year at 35,04 points and it went down to 29,51 points in March, 29,64 in April and 35,44 points in May.

In June the mining index stood at 61,32 points.

The mining index increased to 95,00 points last month.

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