Why MC, page-2

The short answer is $$$.

The long answer is that BCI acquired IV as part of the IOH acquisition. IOH stood for "Iron Ore Holdings", with the emphasis on 'holdings' (as in, not mining). Their business model was to explore, develop to JORC and then monetise their assets to provide shareholder returns.

This they did very successfully with numerous deals via asset sales to Rio, AAMC, etc, for which they (now BCI) would/will receive royalties once these assets are developed.

In the case of IV, due to its sheer size, it was always going to be a 'special' case. IOH continued with this project, utilising funds from previously mentioned deals, to feasibility study stage and eventually mine approval. They then sort a tender to award a mine operation contract, for which MIN were the successful bidder. In this instance, IOH (now BCI) remain the mine owner, however they receive a royalty for every tonne of ore mined/sold.

With the sale of the NJV, this is pretty much the model BCI are moving to with Bucklands - develop the project and then engage a mining services company to mine and sell the ore (and in so doing incurring the cost...), and have them pay you an ongoing royalty. In the case of Bucklands, there is also the dual issues of Bucklands being contiguous with API's adjoining tenements (ie, part of the WPIOP) and also the fact that BCI now owns the rights to develop the transport corridor & transshipment port at Cape Preston East, for which they potentially will also earn a royalty.

Simples.