PERTH (miningweekly.com) – The falling iron-ore price has resulted in junior miner BC Iron's revenues nearly halving for the financial year ended June, pushing the miner into a loss.

BC Iron on Wednesday reported a net loss after tax of A$158.5-million, compared with a net profit of A$71.8-million in 2014, while revenues declined from the A$471.4-million reported in 2014 to A$281.2-million.

The net loss included impairment charges of A$121.8-million.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) declined from A$149.9-million to only A$100 000 in the year under review.

Iron-ore shipments from the Nullagine joint venture (JV), in Western Australia, remained flat at 5.26-million tonnes, four-million tonnes of which was attributable to BC Iron, with JV partner Fortescue taking the balance.

The average iron-ore price achieved for the Nullagine product declined from the A$123/t reported in 2014 to A$72/t.

“The 2015 financial year was challenging from both an operational and financial perspective. However, we have emerged with a materially lower cost base at Nullagine, ongoing positive cash flow from Iron Valley and a net cash position of more than A$60-million,” said BC Iron MD Morgan Ball.

Improved operating results were achieved at the Nullagine JV during the January to June period, as BC Iron put initiatives in place to manage clays encountered at the mine site, as well as implemented a number of cost savings.

The miner also completed the acquisition of the Iron Valley project from fellow-listed Iron Ore Holdings, with the project generating A$18.8-million in revenue during the period under review.

“Completing the Iron Ore Holdings transaction was an important milestone, as it contributed immediate revenue diversification from Iron Valley and strategic options through the Bucklands mine to port development project, with both assets having potential 15-year-plus mine lives,” Ball pointed out.

The mine was expected to continue generating positive earnings in the year ahead, with Ebitda of between A$5-million and A$14-million expected in 2016.

Meanwhile, the Nullagine JV was expected to ship between 4.9-million and 5.3-million tonnes in 2016, at a C1 cash cost of between A$42/t and A$45/t. All-in cash costs for the full year were expected to reach between A$48/t and A$54/t.