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Bindura Nickel warns of weak Q4

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Bindura Nickel warns of weak Q4

Listed miner, Bindura Nickel Corporation (BNC), has struck a cautious tone saying production and profitability will likely decline in the current quarter (Q4) due to planned production stoppage at Trojan Mine to facilitate shaft “re-deepening” at the mine.

The resurgence of the deadly Covid-19 pandemic is also likely to significantly impact the miner’s production, the miner said, despite reporting a strong performance in the three months to December 2020.

“The company is not anticipating an improved operational and financial performance for the quarter ending 31 March 2021 due to a planned short production stoppage that is intended to facilitate the Trojan Shaft Re-deepening tie-in Project,” BNC company secretary, Conrad Mukanganga said.

“Other bearish factors include reductions in Chinese stimulus funding and government subsidies in 2021, the resurgence of Covid-19 cases which could usher in the return of the economically damaging lockdowns, leading to lower investor confidence.”

However, after the completion of the re-deepening project, the miner expects to ramp up more than 60 000 tonnes of ore per month, particularly in respect of the mining of disseminated ore.

Mukanganga said the company’s operational and financial performance is expected to improve after the completion of the re-deepening project.

Production at BNC increased 9% to 116 525 tonnes in Q3 from 107 036 tonnes during same period in 2019 as the mine recovered from the effects of the slowdown induced by the Covid-19 lockdown in April and May 2020.

Tonnes milled increased 9% when compared to the corresponding period last year.

There was 1% increase in the production of nickel in concentrate to 1,474 tonnes from the output achieved in the same period last year.

BNC sold 1, 864 tonnes of nickel in concentrate in the quarter under review, which was 20% higher than the sales tonnage achieved during a comparative period last year.

This has coincided with the increases of nickel prices on the international market which rose by 4% during the period.

Mukanganga said: “The confidence in the recently elected Joe Biden administration in the USA, the approval and subsequent roll-out of the Covid—19 vaccine, as well as the sizeable growth in the Chinese stainless steel and electric vehicle sales were contributory factors towards good performance.”

The company faced a formidable threat to health and safety due to the burgeoning number of Covid-19 cases nationally and internationally.

In response to this emergency, BNC has stepped up measures to combat the effects of the pandemic by screening of people by temperature measuring and sanitisation at key entry points to workplaces; preliminary Rapid Diagnostic Test Antigen testing on index cases and contact tracing to understand the virus burden on the mine and community.

Fumigating of the workplace  three to four times a week and holding of virtual meetings are now the company’s new normal to avoid contact.

 

Business Times

Gold deliveries decline 61 percent

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Gold deliveries decline 61 percent

Gold deliveries plunged by more than half to 0.99 tonnes in January from 2.54 tonnes recorded in the same month last year weighed down by heavy rains which slowed mining activity, Fidelity Printers and Refiners (FPR) has said.

The plunge in deliveries will be a headache for monetary authorities that look up to the yellow metal to generate foreign currency for the economy.

Fidelity Printers and Refiners general manager, Fradreck Kunaka, told Business Times there was a need to dewater mines to ramp up production.

“The artisanal and small-scale producers were significantly affected by the rains from mid December 2020 to date.

The impact of rains has been brought to the fore by the numerous mine collapse accidents hence production fell significantly,” Kunaka said.

Kunaka said large scale producers delivered 0.64 tonnes while small scale miners delivered 0.35 tonnes to FPR last month.

Delays in payments by FPR have exacerbated the situation resulting in miners, especially the small scale miners taking their yellow metal to alternative markets, where payment is done on the spot and in foreign currency.

While FPR pay prices well below the gold market, prices of the yellow metal in the alternative market is lucrative.

Experts, who spoke to Business Times this week, said the government should come up with favourable mining policies which will encourage miners to formally sell their precious mineral to Fidelity.

“……Friendly policies should be crafted and implemented to achieve high figures but surprisingly, the authorities give lower retention levels and pay way below the world market prices.

One wonders if the authorities are really serious about ramping up production and turning around the economy,” Gold Miners Association of Zimbabwe CEO, Irvine Chinyenze, told Business Times.

Analysts say the drop in performance of gold production was a worrying development given that Zimbabwe largely depends on earnings from the yellow metal since the country is no longer getting credit lines from international financiers due to its failure to service its debts.

They said there was a need for the government to plug leakages to ensure the country sells its bullion through the formal channels.

The decline in gold figures comes at a time when Zimbabwe’s other leading foreign currency earner, tobacco, is also subdued, leaving the country on the edge.

It is understood that Zimbabwe’s “all weather lending institution”, Afreximbank, is slowly tightening screws on the southern African country.

Analysts have now projected a tough year for Zimbabwe.

Business Times

Impala Platinum sees earnings soar over 300%

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Impala Platinum sees earnings soar over 300%

South Africa’s Impala Platinum Holdings on Tuesday said it expected half-year headline earnings to increase more than fourfold, buoyed by higher metals prices and a weaker rand during the pandemic.

The platinum miner also said refined six-element platinum-group production for the six months ended Dec. 31, 2020, was expected to increase by 29% to 1.694 million ounces, helped by the inclusion of production from its Canadian unit.

Headline earnings per share are expected between 1,812 US cents and 1,899 US cents, compared with 436 US cents per share reported a year earlier, the miner said.

Reuters

Petra Diamonds probes new claims of human rights abuses in Tanzania

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Petra Diamonds probes new claims of human rights abuses in Tanzania

Struggling Petra Diamonds said on Tuesday is investigating fresh allegations of human rights abuses at its Williamson mine in Tanzania, following a lawsuit against the company launched last year.

UK-based law firm Leigh Day filed claims against the South African miner in May 2020 in the High Court of England on behalf of 32 anonymous individuals.

The accusations against Petra and the mine operator Williamson Diamond Limited (WDL) included reports of personal injuries and deaths at the diamond mine, allegedly caused by security guards.

Last year, Petra launched an investigation into those allegations, as well as similar accusations brought forwards by RAID, a UK-based NGO, based on research conducted between September 2019 and November 2020.

The diamond miner said it had since received new reports of incidents involving security operations at its Williamson mine spanning to January 2021.

In those three months, Petra said, there have been 79 recorded incursions onto the mine property, involving approximately 1,091 illegal miners. The company found that in most cases (60 of the 79 incidents), security guards did not react violently despite the illegal diggers becoming aggressive in eight of those 60 incidents.

BETWEEN NOV. 2020 AND JAN. 2021 THERE HAVE BEEN 79 RECORDED INCURSIONS ONTO THE WILLIAMSON MINE PROPERTY, INVOLVING APPROXIMATELY 1,091 ILLEGAL MINERS, PETRA SAID

In 19 of these incidents, Petra said, “reasonable force” was required to remove or disperse illegal miners from Williamson premises or for the security patrol teams to defend themselves.

“Live ammunition was only discharged on one occasion during November 2020, when the Tanzanian Police fired one live warning round in the air to disperse a group of illegal diggers,” the miner said in the statement.

“The largest group of illegal diggers recorded in a single incident was approximately 150 and in all of the incidents where force was required, the diggers were aggressive and armed with slingshots and rocks.”

The company added that nine members of the security patrol team were injured in the events that required the use of force, adding that there were no reports of illegal miners hurt.

“It is of course possible that some of these diggers may have been injured in these engagements [but] It has been confirmed that no patients were received at the Mwadui hospital with injuries consistent with those which might be sustained by illegal diggers during this period,” it said.

Internal committee

The diamond miner said that it has created a Board sub-committee to oversee the investigation being carried out by a specialist external advisor in conjunction with the company’s lawyers.

The committee will consider the outcome of the investigation and the recommendations to address any findings. This may include any required remedy or corrective action to be taken as a result of the probe’s conclusions, it said.

Petra will provide further feedback on this investigation by the end of March 2021.

The Williamson mine, active since 1940, is in Shinyanga, one of Tanzania’s poorest regions. It produced a 54.5-carat pink diamond presented to Queen Elizabeth for her wedding in 1947.

The mine has been shut since April, when Petra put it on care and maintenance after the coronavirus pandemic caused rough diamond prices to plunge.

Petra was already struggling before the pandemic hit and had to put itself up for sale. It reversed the decision in October, opting instead for a debt-for-equity restructuring. The deal would leave existing shareholders with just 9% of the company.

Petra also operates mines in South Africa.

Mining.com

Copper price hits eight-year high on US stimulus hopes

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Copper price hits eight-year high on US stimulus hopes

Copper prices rose again on Tuesday with investors weighing prospects for a fast-tracked stimulus package in the US.

On the Comex market, copper for delivery in March advanced 1.5% to $3.723 a pound ($8,190 a tonne). If it closes at these levels it would be the highest since February 2013.

The metal has rallied on hopes that economic stimulus in the US will further boost demand, and underpinned by decade-low China stocks.

House Democrats on Monday released the first draft text for key pieces of legislation that will comprise President Joe Biden’s covid-19 relief bill. Democrats are forging ahead with plans to bump the federal minimum wage to $15 an hour by 2025 and make another round of stimulus payments. Billions of dollars are planned for airline staff, airports and trains.

CHINESE INVENTORIES HAVE DROPPED TO NEAR DECADE LOWS ON ROBUST DEMAND FROM FACTORIES

Stocks of copper across the LME, Comex and ShFE markets are at multi-year lows.

“Inventories are still quite low on exchanges. That gives good indication that manufacturing demand for copper is present and that its not just a speculative story,” Nitesh Shah, an analyst at investment manager WisdomTree, told Reuters.

In China, the world’s top consumer, copper inventories normally accumulate in the run up to the Lunar New Year as businesses close for the week-long festivities.

But this year, Chinese inventories have dropped to near decade lows on robust demand from factories, which are maintaining high operating rates due to shortened shutdown periods and tighter travel restrictions for workers.

Meanwhile, effects of the coronavirus pandemic on copper supply continues to be felt. In what was supposed to be a year of supply growth, global mined output during the first 10 months of 2020 was 0.5% lower compared to 2019 levels, according to the International Copper Study Group (ICSG).

In Peru, the world’s second-biggest producer, copper output plunged 12.5% to 2.15 million tonnes in 2020, the country’s Energy and Mines Ministry said on Monday.

(With files from Reuters and Bloomberg)

Mining.com

ZMF targets 20+ tonnes gold, to capacitate miners

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ZMF targets 20+ tonnes gold, to capacitate miners

Zimbabwe Miners Federation (ZMF) is targeting a gold output of over 20 tonnes from small-scale and artisanal miners under its capacitation and formalization of the sector in tandem with the President’s (HE Emmerson Dambudzo Mnangagwa) vision to catapult the mining industry into a $12 billion sector by 2023.

Rudairo Dickson Mapuranga

Speaking to the media after the reinstatement of the Federation’s President Ms. Henrietta Rushwaya at Rainbow Towers Hotel on Tuesday, ZMF Secretary-General Mr. Morgan Mugawu said the Federation was working flat out to make sure that it delivers at least 20 tonnes of gold to the country’s sole buyer and exporter Fidelity Printers and Refiners (FPR) from March to December this year.

Mugawu said ZMF was looking forward to capacitating 10 000 small scale miners in the country through sourcing equipment to boost production. The equipment will be available to miners by April of this year.

The Federation is looking forward to at least 100 grams of gold from every miner which will amount to 10 tonnes of gold by December from the registered miners.

“The reason is we need to up our production, we are going to capacitate the registered miners we are sourcing equipment some is on its way. It will be dished out in April.” Mugawu said.

The ZMF Secretary-General also said that the Federation is working to make sure that artisanal miners are recognized as the most important players in the mining industry in Zimbabwe through formalization and regularisation of their activities.

Mugawu said they were going to decrease the nomadic nature of artisanal miners through sourcing tributary claims for them in different mining districts targeting 2 grams per month from every artisanal miner.

“We are targeting to formalise about 500 thousand artisanal miners. Our target is at least each Artisanal miner delivers 2 grams of gold a month meaning about 12 tonnes will be delivered by artisanal miners. We are also going to seek tributary agreements with large scale miners. We want to remove the nomadic nature of artisanal miners thereby getting legal gold from them.” he said.

Gold is Zimbabwe’s chief export product, accounting for nearly $1.2 billion in annual forex receipts. Small scale and artisanal miners account for over 60 percent of the country’s total production. Gold deliveries to the sole buyer and exporter of bullion fell 31 percent to 19 tonnes last year after lower deliveries from small-scale miners and effects of the novel coronavirus.

BREAKING: Henrietta Rushwaya reinstated as ZMF President

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BREAKING: Henrietta Rushwaya reinstated as ZMF President

The Zimbabwe Miners Federation (ZMF)  has with immediate effect reinstated Ms Henrietta Rushwaya as the Federation’s President after suspending her last year.

By Shantel Tyne Chisango

In a meeting held at the Rainbow Towers today, ZMF National Executive members unanimously agreed to reinstate Henrietta Rushwaya with immediate effect saying her suspension was unconstitutional.

The Federation stated that the suspension was not lawful and that it is the duty of the National Executive not of the General Council (Management Committee) to suspend her.

Motion to lift the suspension was moved by Mr. Daniel Chitenje and seconded unanimously.

Rushwaya has been reinstated forthwith.

More to follow…

Fidelity official gold buying prices Tuesday 9 february 2021

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Fidelity official gold buying prices Tuesday 9 february 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Thursday 9 february 2021

  • SG 90% AND ABOVE $52.80/g
  • SG ABOVE 85% BUT BELOW 90% $51.92/g
  • SG ABOVE 80% BUT BELOW 85% $50.74/g
  • SG ABOVE 75% BUT BELOW 80% $50.15/g
  • SAMPLE BELOW 10g BUT ABOVE 5g $51.33/g
  • FIRE ASSAY CASH $53.10/g

 

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Contact FPR

No. 1 George Drive, Msasa, Harare, Email: [email protected], Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

Four tests positive for Covid-19 at Zimplats

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Four tests positive for Covid-19 at Zimplats

Zimbabwe’s Largest Platinum producer, Zimplats has reported that Four employees tested positive for COVID-19 during the quarter ended 31 December 2020 as the miner recorded zero lost-time injuries.

By Rudairo Mapuranga

According to the end of quarter report released recently by the miner, the company’s number one stance in prioritizing the safety of its workers was greatly achieved when it recorded no lost time injuries and attained 3.3 million fatality-free shifts.

“There were no lost-time injuries recorded. Safety performance remained good with no lost time injury reported, same as the previous quarter. The Group achieved 3.3 million fatality-free shifts,” the company said in part.

The platinum miner said, four employees, tested positive for COVID-19, three of them had since recovered while one was still under management at the company’s medical facility as of the end of the quarter.

 “The Group recorded four positive COVID-19 cases during the quarter taking the cumulative number of confirmed cases since the inception of the pandemic to seven. Six employees had fully recovered by the end of the quarter and one employee was recovering well at the Group’s medical facility.”

“The four cases recorded were managed in line with the Group’s COVID-19 code of practice which incorporates Zimbabwe Ministry of Health and Child Care and World Health Organisation guidelines resulting in no disruption to operations.”

“An increase in the country infection rate was witnessed towards the end of the quarter and management has responded by intensifying prevention measures in the Group. The workforce is adapting well to the current COVID-19 environment as the new normal.”

Zimplats spent US$ half a million on exploration

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Zimplats spent US$ half a million on exploration

Zimbabwe largest platinum producer, Zimplats spent half a MILLION on exploration projects during the quarter ended 31 December 2020 while nearly a million was committed.

By Rudairo Mapuranga

The platinum giant, spent US$1,2 million in exploration activities during the quarter ended September 30, 2020, more than 100 percent more than the money used in the quarter ended 31 December 2020.

“A total of US$0.5 million was spent on exploration projects and US$0.9 million was committed,” the company said.

Zimplats reported that ore mined decreased by 3 percent from the previous quarter mainly due to a production fleet transferred from Rukodzi Mine, a higher productivity mine, to the lower productivity Mupani Mine which is under development.

6E metal (Platinum, Palladium, Gold, Rhodium, Iridium and Ruthenium) production in the final product increased by 3 percent from the previous quarter due to a 1 percent increase in milled throughput and 1 percent increase in concentrators recovery rate.

6E metal production in final product increased by 26 percent from the quarter ended 31 December 2019. 6E metal production in the final product for the quarter ended 31 December 2019 was affected by an increase in concentrate stocks and the build-up of inventory in the furnace on start-up after the 122-day major rebuild shutdown.

Total operating cash costs increased by 1 percent from the previous quarter mainly due to local government rates and computer software licence fees which are paid bi-annually.

A total of US$1.8 million was transferred from operating costs to closing stocks during the quarter compared to US$5.6 million in the previous quarter. This was due to the 3 percent decrease in tonnes of ore mined and 1 percent increase in the volume of ore milled. There was no build-up of concentrate stocks in the quarter.

Consequently, operating cash costs per 6E ounce increased by 2 percent from the previous quarter.

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