Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of iron-ore miner BC Iron jumped by 8% on Thursday after the company announced that it would complete the repayment of a $130-million bank facility with the ANZ and Commonwealth Bank 18 months ahead of schedule.
The miner announced to shareholders that it would repay the remaining $30.8-million outstanding on the secured term loan by the end of June this year.
The original $130-million facility was entered into in 2012 to partially fund the acquisition of an additional 25% interest in the Nullagine joint venture from partner Fortescue Metals.
Since then, the company has moved to repay the facility ahead of schedule, taking advantage of the higher iron-ore price environment.
MD Morgan Ball said that the repayment of the debt facility would de-risk and simplify BC Iron’s balance sheet, providing a solid platform for the company to consider any future opportunities that could arise.
“Prudent cash management and ongoing cost reduction success has allowed this repayment to be made comfortably from existing cash reserves. We continue to focus on productivity and cash management at each of our projects to ensure BC Iron is in the strongest possible position,” Ball said.
Following the repayment of the facility, BC Iron’s only remaining debt would be a $5-million interest-free and security free facility with offtake partner Henghou Industries, which was due at the end of December this year.
BC Iron shares were trading at a high of 39c a share, up from the previous closing price of 36c a share.