PERTH (miningweekly.com) – ASX-listed BC Iron has revised the full-year outlook for earnings before interest, taxes, depreciation and amortisation (Ebitda) from its Iron Valley operations, in Western Australia, following a strong quarter.
Ebitda guidance has increased from a range of A$6-million to A$16-million to between A$18-million and A$25-million.
The increase in the guidance follows a record Ebitda of A$8.2-million from the Iron Valley operations for the three months to December, based on shipments of 2.1-million tonnes.
The Iron Valley operation, which is operated by Mineral Resources under an ore purchase agreement with BC Iron, shipped record tonnes in the December quarter, and BC Iron noted that continued robust iron-ore pricing and strong operational performance during the quarter translated into the record Ebitda.
“Iron Valley continues to generate solid earnings for BC Iron in the form of low-risk royalties,” said BC Iron MD Alwyn Vorster.
“This has allowed the company to provide a significant upgrade to the 2017 Ebitda guidance to A$18-million to A$25-million. Iron Valley earnings, coupled with a healthy cash balance and unique asset portfolio, strongly position BC Iron to pursue its growth strategy and generate value for shareholders.”