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

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.


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