BC sees second-half profit lower

UPDATE 2.45pm: BC Iron has maintained full-year iron ore sales guidance of 5.8-6.2 million wet metric tonnes (WMT) despite heavy rain at its Nullagine operation hampering production in January.

Reporting on its third quarter activities, the iron ore miner said the area around Nullagine had experienced its heaviest January rainfall in 100 years, mainly attributable to Cyclone Christine.

However rainfall in February and March was below average allowing it to catch up periods of downtime experienced in January.

Managing director Morgan Ball said the Nullagine joint venture met the challenges of an extremely wet January well to record strong March quarter sales of 1.22 million WMT.

BC said the joint venture shipped 1.22 million WMT shipped for the quarter, with BC's 75 per cent share representing 0.76 million WMT.

The company reaffirmed the joint venture's C1 full-year cash cost guidance at the upper end of a range between $46 and $50 per WMT.

BC said its revenue and profit in the second half was expected to be lower that that achieved in the first half because of lower ore prices, the impact of the wet season and a realignment of the company's share of sales to 75 per cent of total joint venture sales.

Earlier this year, BC reported first-half profit of $70 million on revenue of $301 million. The company paid an interim dividend of 17 cents a share fully franked.

BC said it held cash of $148.6 million at the end of March with total outstanding debt of $64.9 million.

Shares in BC Iron closed down 15 cents, or 3.21 per cent, at $4.52.