BCI in strong position

BCI Minerals has reported a full-year profit of A$12.9 million, up from a loss of $16.9 million a year earlier.
BCI in strong position BCI in strong position BCI in strong position BCI in strong position BCI in strong position

Trial ponds at BCI's Mardie project in the Pilbara

Staff reporter

The result was driven by a $19 million profit on the sale of exploration tenements, including $17.8 million on the sale of the Kumina iron ore project to Mineral Resources.

EBITDA was $16.2 million, with the Iron Valley asset, operated by MinRes, contributing revenue of $54.3 million and EBITDA of $12.3 million.

Due to the strength in iron ore prices, more than half of the year's EBITDA was generated in the June quarter alone.

The company had $33.7 million cash and no debt at June 30.

BCI said the FY19 result left it well-placed to advance its flagship Mardie salt and potash project in Western Australia to a final investment decision by the end of the March quarter of 2020.

The company spent $8.2 million on the project during FY19 as it started a definitive feasibility study.

DFS engineering designs are 30% complete and site activities such as geotechnical drilling and construction of small-scale trial ponds were progressed.

The DFS is looking at an operation to produce 4 million tonnes per annum of salt and 100,000 tonnes per annum of sulphate of potash.

A prefeasibility optimisation study completed earlier this year returned a pre-tax net present value of A$560 million, pre-tax internal rate of return of 20% and annual EBITDA of $155 million.

Shares in BCI dropped 2.6% to 18.5c. The stock hit a 52-week high of 23c on July 31.