A financial performance analysis of bundura nickel ltd by mr lenon watambwa (2019) abstract

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A FINANCIAL PERFORMANCE ANALYSIS OF BUNDURA NICKEL LTD BY Mr
LENON WATAMBWA (2019)

ABSTRACT
This study seek to analyse Bindura Nickel Corporation Ltd for the financial years ended 31 March 2017 and 2018. A conceptual framework was constructed based on financial Analysis which covered liquidity ratios, profitability ratios, performance ratios, capital structure/gearing ratios as well as market prospect ratios. Value Chain Analysis, Business Valuation, Reputational Structure Analysis, Growth Analysis, PESTEL Analysis as well as SWOT Analysis were also used for comprehensive analysis of the company’s position. The research used desk research whereby the financial statements of Bindura Nickel Corporation Ltd were downloaded on Stock Exchange website with keywords financial results. Regression, Time Series Analysis as well as General Arch Model. The
Going Concern principle is being observed when preparing final accounts. The results from ratio analysis indicated that the company is keeping on improving. The results for 2018 indicated that the company’s profit is well enough to coverall the operational activities without looking for additional new financing avenues. The organization’s Statement of Cash flow indicated a net cash inflow for both years which proves operational efficiency. Investments in Non-Current Assets in both years helped the company to generate more revenue since the assets are technologically advanced. This shows that the tactical and operational managers of the company are doing a splendid job. The organization is one of the leading mining companies in Zimbabwe and in Southern Africa. The assets of the company are being employed efficiently. The company is currently undertaking projects including a shaft re-deepening project, sub-vertical service winder and main rock winder drives upgrade project, concentrator plant and sub-vertical medium voltage switch room equipment replacement project, and a smelter restart project as away of improving its Value Chain. The SWOT Analysis of the company shows that the company is strategically positioned to thrive in the current Socio-Political environment. Overall, the company is moving in the right direction.