MINER, Bindura Nickel Corporation Limited (BNC), has appointed Simon Masvipe as acting finance director (FD) for continuity of the business, after the resignation of a substantive head.
Last month’s resignation of Masvipe’s predecessor, Believemore Hatinzwani Dirorimwe, came at a time when the firm’s operations are under threat.
The miner warned in February of high domestic input costs, commodity price volatility, and “need for capital” to refurbish its mining machinery as challenges to the business’s continuity.
In a statement last Friday, BNC said it expected to appoint a substantive FD in due course.
“The board of directors of Bindura Nickel Corporation Limited is pleased to announce the appointment of Simon Masvipe to the post of acting finance director until further notice,” BNC said.
“This appointment follows the resignation of the finance director and is made to ensure continuity in the running of BNC’s financial affairs.”
BNC said Masvipe possessed extensive knowledge of the financial sector, owing to his considerable years of service and strong background in the sector.
“Masvipe joined the company in 2006 and rose through the ranks, occupying various managerial positions, until he assumed the post of finance manager. He has also previously served as BNC’s acting finance director,” BNC said.
It described Masvipe as a seasoned and qualified finance professional with 19 years of experience in accounting, financial reporting, taxation, audit, corporate governance and regulatory compliance acquired in Zimbabwe’s financial services and mining sectors.
Masvipe’s appointment comes at a time when BNC is looking to implement cost cutting measures to induce capital creation, as the miner’s old machinery led to lower production volumes leading to a loss of US$18,48 million.
The loss during BNC’s financial year ended March 31, 2023, widened from US$8,06 million in 2022.
In its half year report ended September 30, 2023, BNC recorded a loss of US$6,69 million which had widened from the comparative period’s US$5,37 million.
In the February trading update, BNC noted that it realised the need to acquire investment capital, which was something it is pursuing.
“The company recognises the need to acquire the required investment capital and for a sustainable electrical power tariff, considering the overall low resource grade and the prevailing depressed nickel prices on global markets,” BNC said.
“Efforts are ongoing with respect to these critical issues that have a huge bearing on the viability of the business. The company is cautiously optimistic that the success of these ongoing efforts will lead it onto a path of sustained gradual restart of the mine from the ongoing shutdown that started on 22 September 2023.”