some more from MacquarieMacquarie rates BCI as OutperformFriday,...

some more from Macquarie

Macquarie rates BCI as Outperform

Friday, January 17, 2014 - 11:26

January 17, 2014

The broker has remodelled its valuation for BC Iron. The mid-grade benefaction project has been included and the mine life has been extended to 8.5 from 7 years. BCI could also pick up excess load-out capacity from Fortescue ((FMG)) at Christmas Creek, the broker believes, thus exceeding production guidance. This would allow BCI to post a dividend yield of 11% in FY14.

Target rises to $6.00 from $5.30. Outperform retained.

Target price is $6.00 Current Price is $4.97 Difference:$1.03 - (brackets indicate current price is over target). If BCI meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Macquarie forecasts a full year FY14 dividend of 53.00 cents and EPS of 111.80 cents . At the last closing share price the estimated dividend yield is 10.66%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.45.