BC Iron flags profit lift
Pilbara iron ore miner BC Iron has flagged a lift in its full year earnings, despite being hit by the recent slide in iron ore prices.
In a release this morning the company's unaudited figures indicate earnings of $152 million for the 2013-14 year, up from $115 million a year ago.
BC Iron lifted its production 10 per cent during the June quarter but a delayed shipment hurt its sales.
The company's Nullagine joint venture produced 1.73 million tonnes during the quarter to take its full year production to 5.65 million tonnes.
But a shipping delay saw the joint venture's sales fall 11 per cent during the quarter, compared to a year ago, though it achieved its full year guidance with sales of 5.79 million tonnes over the 12 months.
Shares in BC Iron were down one cent to $3.24 in early trade this morning.
Managing director Morgan Ball said the company was weathering difficult conditions in the industry, with iron ore prices now below $US100 a tonne.
"It was pleasing to continue generating positive operating cashflows against a backdrop of soft iron ore prices, increasing product discounts and a resilient Australian dollar," Mr Ball said.
"The NJV and BC Iron are managed to withstand the cyclical nature of our industry. BC Iron's balance sheet is also strong, which enhances our ability to face any further challenges in the coming year."
