BC Iron posts $158m loss

Iron ore miner BC Iron has fallen into the red with a net loss of $158.5 million for the financial year, on the back of impairments and falling commodity prices, and has declared no dividend payout.

BC Iron’s revenue fell 40 per cent to $281.2 million, with the company posting an underlying net loss of $43.1 million after adjusting for $170.9 million in impairments.

In a statement, the company said the loss was the result of clay-related operational challenges in the first half of the year, coupled with the iron ore price decline and substantial asset impairments.

Managing director Morgan Ball said the year was challenging from both an operational and financial perspective.

“However, we have emerged with a materially lower cost base at Nullagine, ongoing positive cash flow from Iron Valley and a net cash position of more than $60 million,” he said.

“Completing the Iron Ore Holdings transaction was an important milestone, as it contributed immediate revenue diversification from Iron Valley and strategic options through the Buckland mine to port development project, with both assets having potential 15-plus year mine lives.”

Mr Ball said the company was committed to further lowering costs at the Nullagine joint venture project and building a future around its newly-acquired assets.

“We also recognise the need to be pragmatic and make decisions that reflect the iron ore environment we operate in,” he said.

BC Iron shares were 6.5 per cent higher to 24.5 cents each at 1pm.