BC Iron (BCI) have reported record revenues in excess of $300 million for the half year including an interim dividend of $.17 per share

BC Iron (BCI) have reported record revenues in excess of $300 million for the half year including an interim dividend of $.17 per share. The result was underpinned by record production for the half and a robust iron ore price. The dividend reflects a pay out ratio of 30% of NPAT and the Company gave forward guidance that future dividends would be in the range of 30%-50% of NPAT. If you were to assume the FY dividend will at least match that of last year (which is highly likely) the payout will be $.45 for the full year. When you factor in franking investors are getting a double digit yield from BCI. The risks of course are around the volatility in the iron ore price and the fact that BCI have a finite resource to develop. Regardless, the result is yet another example of mining companies changing their spots.