PERTH (miningweekly.com) – Higher iron-ore prices and lower exchange rates have seen ASX-listed junior BCI Minerals update its earning expectations for its Iron Valley mine, in the Pilbara.
BCI Minerals had previously estimated that earnings before interest, taxes, depreciation and amortization (Ebitda) from the mine would reach between A$6-million and A$12-million for the 2019 financial year.
However, with the stronger iron-ore prices and the lower Australian/US dollar exchange rate experienced lately, this range has now been increased to between A$11-million and A$12-million.
Iron Valley in 2018 delivered A$5.6-million in Ebitda for BCI Minerals, and A$18.3-million in 2017, when operations started.
The mine is operated by fellow-listed Mineral Resources, with BCI receiving a quarterly royalty from which it pays its own set of state government and native title royalties, as well as a private royalty.