PERTH (miningweekly.com) - Iron-ore miner BC Iron has reported a 72% increase in its profits after tax for the six months to December, after its Nullagine joint venture (JV) with Fortescue Metals reached full production in November last year.

Profit after tax for the interim period was reported at A$15.3-million, up from the A$8.92-million reported in the previous corresponding period.

Revenue for the period was also up by 64% on the first half of 2012, to A$103.8-million after BC acquired an additional 25% interest in the JV, taking its equity stake in the project to 75%.

Net cash inflow for the period was down 268%, with BC reporting a loss of A$44.7-million, compared with a profit of A$26.5-million in the previous corresponding six moths.

MD Mike Young said on Wednesday that the results for the first half of the 2013 financial year were slightly soft, especially in the context of the recent optimism in the market, but urged shareholders to remember that the results reflected the lowest iron-ore price since 2009.

“The lower-than-expected iron-ore price during the period had a detrimental impact on the bottom line for the half, but we also crushed and, therefore, exported less tons than planned, following the crusher upgrade and commissioning in this period.”

Young noted that the crusher upgrade at Nullagine had posed some teething problems, but these issues have subsequently been resolved.

“We are now getting excellent throughput and building stocks aggressively. We are also about to complete a further increase in crushing capacity, through the installation of a second plant, on the back of the recent transaction with Fortescue, as the Nullagine JV throughput has moved to over six-million tons a year.”

The six-million-ton-a-year rate would likely be achieved by the fourth quarter of this financial year.

Meanwhile, Young noted that as a result of the strengthening iron-ore prices during the second half of 2013, and the positive outlook for and the improvement in the crushing numbers, BC expected a stronger second half, subject to the impact of the wet season.

The company was expected to produce some five-million tons of direct shipping ore, at some 57% iron.