THE BOURSE WHISPERER: Australian iron ore producer BC Iron, along with its 50:50 Nullagine Iron Ore Joint Venture (NJV) partner Fortescue Metals Group has hit achieved a significant milestone this month by exporting over one million tonnes of ore during the first half of the current financial year.
The NJV has dispatched a further two full cape size vessel shipments during December 2011 from Fortescue’s Herb Elliott Port in Port Hedland to reach a total export of around 1.1Mt for H1 FY2012.
Cape Size vessel MV Nord Steel loading Bonnie Fines at Herb Elliot Port during December. Source: Comapny announcement
The achievement is made more noteworthy by being slightly ahead of the company’s one million tonne production guidance for H1 FY2012.
As a result, BC Iron will realise positive cash flow in the December 2011 quarter.
“I am delighted to announce this significant milestone for the Joint Venture, which has met and slightly exceeded our guidance to the market for the first six months of this financial year,” BC Iron managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.
“Following the achievement of reaching the three million tonnes per annum production rate in November, this is the second of four guidance targets for FY2012 that we have ticked off and confirms that we remain on track to achieve our two other targets of raising our production rate to five million tonnes per annum and exporting 3.5 million tonnes by the end of FY2012.
“It is also pleasing to note that we continue to receive strong customer support for the quality of our product and operational support from our JV partner, Fortescue.”