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BC Iron Shares Skyrocket After Iron Ore Prices Jump Overnight

BC Iron Shares Skyrocket After Iron Ore Prices Jump Overnight
Apr 23, 2015 By Wise-owl

Shares of BC Iron (ASX:BCI) have skyrocketed over 50 per cent on Thursday following positive data from both commodity prices and the company’s March quarterly activities report. According to the Metal Bulletin, iron ore for delivery to the port of Qingdao, China traded up 5.9 per cent to US$54.04 per tonne. After falling over 70 per cent since 2011, the underlying price for the steel-making ingredient has risen 15 per cent in the month of April. BC Iron also released its March quarterly activities report, which revealed it had lowered its all in cash costs to A$57 per wet metric tonne for the quarter and A$52 per wet metric tonne for March. The average realised price came in at US$54 (A$69.70) per dry metric tonne.

 Like many other miners, BC Iron has been working to cut costs in the presence of falling commodity prices. The quarterly report said it would expect to cut costs by an additional A$2 to A$3 per wet metric tonne in the future. When adjusting for moisture, the exchange rate and shipping costs, the company could potentially make US$3 to US$5 per tonne. Managing director Morgan Ball said that although it was too soon to call it a recovery, there were still some positive indicators in the short-term. He also noted joint venture projects in Western Pilbara as potential growth opportunities in the future. “This is a really good start and demonstrates the companies are working well together but we have to wait and see what it shows," he said. "If the size of the prize is big enough, we will continue talking with them around the best way forward."

 Shares of BCI are up 13.5c, or 51.92 per cent, at 39.5c per share near the end of trading hours on Wednesday. BCI has fallen 91.38 per cent in the last 12 months and 24.53 per cent so far this year.

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