Ann: 2014 Half Year Results and 4D , page-9

BC Iron’s simple business model has continued to deliver strong results, as the iron ore exporter revealed a near tenfold improvement in half-year profits.

Improved iron ore prices and higher exports have helped BC improve underlying profits from $7.73 million in the first half of fiscal 2013 to $70.3 million today.

The market has already responded warmly, lifting BC shares 6 cents higher to $5.30.

The half year profit was better than the $65 million profit that UBS had expected and rose to $70.6 million on a statutory profit basis.

The company has been a consistent payer of dividends in recent years, and that has continued on Wednesday with a 17¢ fully franked interim payout to shareholders.

The company has a longer-term goal of setting a regular dividend payout ratio of between 30 per cent and 50 per cent.

The company exports its iron ore under a joint venture partnership with Fortescue Metals.

BC digs up the ore then simply hands it over to Fortescue for transport and sale to customers.


Read more: http://www.smh.com.au/business/markets-live/markets-live-miners-drag-20140226-33ghr.html#ixzz2uNluHox8