PERTH (miningweekly.com) – Iron-ore junior BC Iron has reported a slight decline in its net profit after tax for the full year ended June, while underlying profit increased by some 41%.
The ASX-listed miner reported on Wednesday that net profit for the full year had reached A$48.8-million, compared with the A$50.6-million reported in the 2012 financial year, while underlying profit increased to A$71.4-million, compared with the A$50.6-million reported last year.
Revenue for the full year was also 59% up on the 2012 financial year, to reach A$325.3-million, while earnings before interest, depreciation and amortization was up 63% to A$115.3-million.
“By any measure, the 2013 financial year has been an outstanding one for BC Iron. Against the backdrop of a challenging commodity price environment for the industry, BC Iron has achieved record production and financial results, which has pleasingly been reflected in a very strong comparative total shareholder return,” said MD Morgan Ball.
The strong operating results reflected the increased production rate of six-million tonnes a year at the Nullagine iron-ore project, in Western Australia, with the company also increasing its ownership in the project from 50% to 75%, through a 25% interest purchased from joint venture partner Fortescue Metals.
“The execution of the Fortescue transaction demonstrated our ability to strategically grow the company on accretive terms while the implementation of the post-transaction operational targets on time and budget again emphasised our ability to focus and deliver on our promises,” said Ball.
The Nullagine project was expected to produce between 5.8-million and 6.2-million tonnes of direct shipping ore product during 2014, with capital expenditure expected to be around A$20-million, mostly spent on grade control programmes, exploration drilling, haul road improvements and general requirements.
“While we will continue to monitor the external factors that can impact the business, our primary focus will remain on the areas we can control, namely productivity and costs,” said Ball.
He added that given the strength of BC Iron’s balance sheet, the company was in a fortunate position to assess growth options in a financially disciplined manner and ensure that the company only considered opportunities that they felt offered material accretion for shareholders.