M&A activity continues to gain momentum this morning with BC Iron making a recommended off-market bid for Iron Ore Holdings

James Marlay

Livewire Markets

M&A activity continues to gain momentum this morning with BC Iron making a recommended off-market bid for Iron Ore Holdings. BC Iron has been one of the star producers in the junior iron ore space, however, there remained questions around the growth opportunities available to the Company. BC Iron has been generating substantial cash flow from it's Nullagine operation in the Pilbara. For shareholders this has seen substantial capital growth along with very healthy dividends. However, with a relatively short mine life the Company had been searching for the next growth opportunity. New opportunities had been explored in Brazil as well as efforts to increase the mine life through beatification of lower grade material at the existing operation. In the end it looks like deflated asset prices and a known jurisdiction (i.e. the Pilbara) has offered the most attractive opportunity in the eyes of BCI Management. Coverage here: (VIEW LINK)


James Marlay
Co Founder
Livewire Markets

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