BC Iron posts record half-year profit

BC Iron has reported record half-year net profit and revenue, driven by strong production from its Nullagine joint venture.

The Pilbara miner posted a net profit of $70.3 million in the six months to December 2013, compared with just $7. 7 million in the previous corresponding period.

Revenue was up 186 per cent at $301 million, driven by record sales from the Nullagine joint venture of 3.1 million wet metric tonnes of ore.

BC Iron holds a 75 per cent stake in the Nullagine project, with Fortescue Metals Group holding the remaining 25 per cent share.

The miner was helped by a fall in the average exchange rate against the US dollar, with the rate at an average of 92 cents compared with $1.03 in the previous period.

BC Iron's average realised iron ore price for the period was about 20 per cent higher at $US119.

Its cash operating costs at the Nullagine joint venture came in at $37/wmt, down from $52/wmt in the previous period.

"The key focus for the remainder of the financial year is to achieve our targets through continued strong operational performance," BC Iron managing director Morgan Ball said.

"We will also continue to assess growth via low-grade beneficiation and new business development opportunities in a measured manner, whilst maintaining our emphasis on dividends and total shareholder return."

BC Iron announced a fully-franked interim dividend of 17 cents per share, representing a dividend payout ratio of 30 per cent on net profit.

The company expects the Nullagine joint venture to achieve full-year sales of 5.8mt to 6.2mt at cash operating costs of $46/wmt to $50/wmt.

Its shares were trading 34 cents lower at $4.90 at 10:40am WST.