PERTH (miningweekly.com) – Junior BCI Minerals on Friday reported a significant jump in net profits after tax for the 2021 financial year, driven by record earnings from the Iron Valley operation.

Group net profits for the full year reached A$22-million, compared with the A$0.4-million reported in the previous financial year, with the Iron Valley operation reporting record annual earnings before interest, taxes, depreciation and amortization (Ebitda) of A$69.5-million, compared with the A$23-million reported in the 2020 financial year.

Revenue for the full year increased from A$77.2-million to A$160.5-million, as group Ebitda increased from A$8.3-million to A$28.9-million.

BCI told shareholders on Friday that the company’s focus during the financial year was on completing the optimised feasibility study for its Mardie salt and potash project, and to progress funding, approvals, tenure and offtake for the operation.

During the 2021 financial year, some A$52.1-million was spent on the Mardi project.

The Western Australian Environmental Protection Authority (EPA) in July gave its backing for the development of the Mardie project, imposing 19 conditions for the construction and operation of the project.

The Northern Australia Infrastructure Facility has previously agreed to provide a A$450-million loan to BCI for the development of the Mardie project, with first sales from the project expected by the third quarter of 2024, while first sulphate of potash (SoP) sales are expected by the fourth quarter of 2025.

The A$913-million project is expected to produce some 5.35-million tonnes a year of salt and some 140 000 t/y of SoP, over a projected mine life of at least 60 years.

BCI said on Friday that with a cash balance of A$110-million at the end of July, zero debt and ongoing royalty earnings from Iron Valley, the company was in a strong position to advance Mardie to a final investment decision this year.