UPDATE 2.50pm: Shares in BC Iron jumped after the company posted a 41 per cent surge in underlying net profit to $71.4 million and rewarded shareholders with a juicy 30-cents-a-share final dividend, fully franked.
Statutory net profit - which included write-offs, impairments, unrealised foreign exchange losses and transaction costs - was $48.8 million was down slightly on the previous year.
The result reflected an increase in the production rate and share of its Nullagine iron ore joint venture with Fortescue Metals Group in the Pilbara.
BC lifted annual production at the project from 3.6 million tonnes to 5 million tonnes and boosted its stake in the joint venture from 50 per cent to 75 per cent.
The 30 cent final dividend lifts its annual dividend paid for the year to 35 cents, representing a 60 per cent payout ratio.
The company held $138.5 million in cash at the end of the year, up 49 per cent on the previous year.
BC Iron managing director Morgan Ball said the company had achieved record production and financial results against a backdrop of a challenging commodity price environment for the industry.
This financial year, BC Iron said it expected to produce 5.8-6.2 million wet metric tonnes of direct shipping ore at 57 per cent iron at cash operating costs of $46-$50 a tonne.
Mr Ball said the company would continue to focus on productivity and costs in the 2014 financial year.
"Given the strength of our balance sheet, we are in the fortunate position to assess growth options in a financially disciplined manner and ensure that we only consider opportunities that we feel offer material accretion for our shareholders," he said.
BC Iron shares closed up 23 cents, or 5.68 per cent, at $4.28 after touching an all-time high of $4.38 in earlier trade.