BINDURA Nickel Corporation (BNC) says it expects its migration to the Victoria Falls Stock Exchange (VFEX) to begin benefiting the firm in the long term.
Under a strategy spelt out by chairperson, Muchadeyi Masunda in December, the firm delisted from the Zimbabwe Stock Exchange (ZSE) to trade its stock on the foreign currency-denominated VFEX, a new bourse that began operating in October 2020.
Listing on the VFEX has generally been low, with only four counters trading since its launch.
However, in a trading update for the nine months ended December 31, 2021, the firm said although there had been little trades, VFEX presented an opportunity for the firm to unlock shareholder value.
“The company’s shares were delisted from the ZSE on 15 December 2021 and BNC became the fourth company to be listed on VFEX … As at 31 December 2021, no trading had been recorded in the company’s shares. Since then, however, there have been minimal trades. The board believes that the migration will, in the long term, be of immense benefit to both the company and shareholders directly,” the firm said.
BNC said ore mined for the quarter decreased by 14% to 100 643 tonnes, compared to 116 525 tonnes during the previous year.
The firm attributed the decline to “below budget underground mobile mining equipment”.
However, BNC said ore grade improved during the quarter compared to the corresponding period in 2020.
In December, Masunda said he viewed the migration to VFEX as a crucial step towards bolstering Zimbabwe’s plan to transform the mining industry to a US$12 billion economy by next year.
Zimbabwe’s mines currently generate about US$3 billion annually.
He said apart from its ability to raise foreign currency, special fiscal and monetary incentives extended to companies listed on the VFEX would unlock shareholder value. – (Newsday)