PERTH (miningweekly.com) – Iron-ore miner BC Iron has reported record full-year revenue of A$471.4-million, on the back of a 37% increase in sales, compared with the previous financial year.
During the 2014 financial year, ended June, BC Iron’s share of sales from its Nullagine joint venture (JV) in the Pilbara, reached 4.3-million tonnes, up from the 3.134-million tonnes achieved in 2013.
This was primarily owing to an increase in project ownership, with the company increasing its stake in Nullagine from 50% to 75%, as well as an increase in the project’s nameplate capacity from five-million tonnes a year to six-million tonnes a year.
“We are pleased to deliver this record full-year result in the face of a challenging second half for the iron-ore industry,” said BC Iron MD Morgan Ball.
The miner also reported a record statutory net profit after tax of A$73.6-million, which included a noncash expense of A$9.8-million related to the mineral resources rent tax deferred tax asset.
Underlying net profit for the year also achieved record highs at A$79.2-million, compared with the A$71.4-million recorded in 2013.
At the end of the financial year, BC Iron had a strong balance sheet, with about A$158.9-million in cash, and debt of A$52.2-million.
The iron-ore miner recently launched a combination share and cash takeover offer for fellow-listed Iron Ore Holdings (IOH). BC Iron is offering IOH shareholders 0.44 of its own shares, and 10c in cash for every IOH share, valuing the takeover target’s shares at A$1.59 each.
The offer represents a 79% premium to the junior’s 60-day volume-weighted average price of 89c a share.