BC Iron (ASX:BCI) released its JunQ report yesterday with ore shipped coming in below estimates

Canaccord Genuity

Stockbroker

BC Iron (ASX:BCI) released its JunQ report yesterday with ore shipped coming in below estimates. Full year iron ore sales were 5.8Mt, the bottom end of company guidance of 5.8Mt - 6.2Mt. The price received for ore shipped during the quarter of US$87 tonne was the key negative and reflects the discounting below the iron ore spot price that has taken place over the past few months. Despite the discounting BCI is expected to maintain robust cash margins vs its peers and is the best placed of the junior iron ore producers. Cash in the bank of $159m at 30 June 2014 places the company in a strong financial position and we forecast a final dividend of 7c which puts healthy yield of 7%. For FY15 we forecast free cashflow of $44m based on an average US$86 per tonne price received and for the dividend yield to be maintained.


1 topic

Canaccord Genuity
Canaccord Genuity
Stockbroker
Stockbroker

Canaccord Genuity Group is a leading independent, full-service financial services firm. Canaccord Genuity has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual,...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment