bc iron focuses on targets after profit

BC Iron says it's focused on achieving its growth targets after increasing net profit nine fold.

The Pilbara iron ore producer has recorded a statutory net profit of $70.3 million for the six months to December 31, up from $7.7 million in the previous corresponding period.

Revenue almost tripled to a record $301 million, from $105 million.

The iron ore pure play, which entered the ASX200 in December last year, said robust prices during the half and the decline in the Australian dollar enabled the company to generate record half-year revenue.

"Continued strength in the iron ore price and an ongoing focus on cost control translated into record revenues, operating cash flow and profits," managing director Morgan Ball said.

While heavy rains interrupted production in January and early February, the company still expects the Nullagine Joint Venture to achieve sales of 5.8 to 6.2 million wet metric tonnes during fiscal 2014.

BC Iron predicts cash operating costs to be in the range of $40-44 per wet metric tonne.

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

He said the company would continue to look at new business development opportunities.

BC Iron has allocated around $20 million for the company's share of Nullagine joint venture and exploration costs in Brazil.

It has $196.7 million in cash.

The company declared an interim dividend of 17 cents per share, fully franked.

BC Iron shares fell 37 cents, or 7.1 per cent, to $4.87 at 1340 AEDT after the iron ore price fell below $US120 per tonne.

http://www.theaustralian.com.au/news/latest-news/bc-iron-focuses-on-targets-after-profit/story-fn3dxity-1226838284049