Australian (ASX) Stock Market Forum

BCI - BCI Minerals

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njc.corp said:
Anyone want to explain why its a had a sudden increase in price lately even if it was down 10% today.

Thanks
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I'll explain njc, but really all it takes is to check the news:confused:

BC wrapped up a deal with FMG to transport all their ore from FMG stockpiles. All BC have to do is get it out of the ground and to FMGs operations then FMG take it from there. Deal is worth 25% of revenue to FMG but check details for yourself :rolleyes:
 
tend to agree on the sentiment on this share, only 60 mill shares on issue and its really got a great deal happening..

o/t broady, i think adi is still going to run, but not until the farmout is done, then they can fly the flag and the money will come for it..

happy to be on some other shares like this one myself.
 
June 19, 2009
Article from: Australian Associated Press
BC IRON plans to raise $22 million from a sale of new shares, as it welcomes a new cornerstone investors to its share register.

The Perth company, which has an iron ore project in the Pilbara region of Western Australia, will offer 8.5 million shares to institutional investors at $1.10 each under a placement to raise $9.4 billion.

It will also undertake a non-renounceable one-for-six right issue at the same price to raise $12.6 million, BC Iron said.

Regent Pacific Group will take up six million of the total shares on offer, resulting in a holding of 7.5 per cent in BC Iron.

"The board of BC Iron is pleased to welcome Regent Pacific Group as a cornerstone investor to the placement and entitlements issue, providing strong support for the raising,'' it said.

Regent Pacific is a Hong Kong-listed mining company with interests in copper, zinc and gold that also has interests in thermal coal assets in Asia, principally China.

It has interests in several listed companies including, Bannerman Resources.



http://www.theaustralian.news.com.au/business/story/0,28124,25658947-36418,00.html
 
Anyone into this one?

A simple calculation:

BCI will start production next year in April, and having roughly 89m ore reserve at 57%, the current market cap is 77m.

Compared to FMG, which started production one year ago, have roughly total 4 billion ore reserve at 50-60%, its market cap 13941m.

After BCI production, it will probably reach the same propotional market cap as FMG, which are 300m, 13941/(4000/89) = 300, it suggest a more than $3 share price.

BCI has all the transportation facility as FMG, and not going to worry about the sale, as China can take all BCI's ore, due to the agreement signed by FMG, the only risk would be the decrease of sale price of ore. I wouldn't worry about it as the $43 operation cost would definitely less than the spot price of iron ore.

the equity issue price of $1.1, all the major shareholders have already taken part of them, the current share price should be really attractive in my eyes, cant figure out the reason, that still people want to sell it.

Cheers
 
Hi Evas 34,
I'm a BCI holder ,following their journey for the last two years.My future price target is more than the $3.00 you
calculated !
They have a premium ore which has Ultra low Phosphorus
and very good sintering qualities.
BCI also has a great management team that have achieved
a lot in a few years.


Sintering Qualities of BCI Ore
•  Independently tested in China – Shandong Uni
•  Blended with a typical fines sinter feed
•  Using 0, 10, 20, and 30% blend
•  Resulted in increased quantity and quality of sinter
– “First Class”
•  Test work results:
•  Increased sinter yield
•  Improved sintering time
•  Improved tumble Index (strength)
•  Improved productivity
•  Ultra-low Phosphorus (0.016%)
•  Sample tested 55.4% Fe & 2.4 % Al2O3


  BC Iron Ore Marketing Strategy
  Customised sinter blend – high Value in Use
  Ultra-low P – “like gold” – blend Indian/Chinese
ores
  Develop Long Term Contracts with niche mills to
deliver security from Mine to Mill

(from BCI presentation at 12th Annual Global iron Ore &
Steel Forecast conference March 2009)
 
I hold FMG.

If you compare BCI SP movement against FMG since the June peak, BCI is easing back considerably.
FMG on the other is currently trading above the June peak.
Either BCI has been oversold, or there is a problem that a layman like me doesn't know about.

I thought about adding some BCI to my portfolio but concluded that was a waste of time, considering the 50/50 JV with FMG. One iron ore miner is enough.

Anyway, with the Nullagine JV (the 57% Fe deposit you refer to), FMG holders should get exposure to any good fortunes that BCI can produce.
 
Hi Dveous,

Many investors in the present market climate (wobbly knees) would
rather invest in producers than companies still in development.

BCI will be re-rated when they start production in 8 months and onward
as the income flows in .
 
Kind of worried about the environmental final approval, haven't seen an announcement yet, is it due last week?
 
No talk about BCI since last year.

Feel as if BCI can take off soon, should start production of Iron Ore soon and with all reports being considered, the quality of the iron ore is there.
 
skip9 said:
No talk about BCI since last year.

Feel as if BCI can take off soon, should start production of Iron Ore soon and with all reports being considered, the quality of the iron ore is there.
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I am amazed that no one has posted a thing regarding BCI?

This company is going to be Aust's next IO producing company and with the IO price now doubling, the share price will be considerably higher in the next year.
 
Hi
Have shares in BCI and need direction with the proposed scheme implementation agreement by Regent Pacific. BC Iron board unanimously recommends the cash offer of $3.30 per share however implementation is not til May 2011.
My main concern is what happens with BCI shares between now and May ie
1. if the BCI market price exceeds the Regent Pacific offer during this period
2. ramifications of selling @ market now and investing elsewhere
3. crystal ball comment on the share price if the proposal is rejected by the shareholders
4 if the Regent bid is successful will BCI exist as an entity in which I can still invest

This was my first foray into the share market some 6 months ago and now suddenly I am way out of my depth.
Any unsolicited advice from the devoted would be greatly received.
 
Peterwasana said:
Hi
Have shares in BCI and need direction with the proposed scheme implementation agreement by Regent Pacific. BC Iron board unanimously recommends the cash offer of $3.30 per share however implementation is not til May 2011.
My main concern is what happens with BCI shares between now and May ie
1. if the BCI market price exceeds the Regent Pacific offer during this period
2. ramifications of selling @ market now and investing elsewhere
3. crystal ball comment on the share price if the proposal is rejected by the shareholders
4 if the Regent bid is successful will BCI exist as an entity in which I can still invest

This was my first foray into the share market some 6 months ago and now suddenly I am way out of my depth.
Any unsolicited advice from the devoted would be greatly received.
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Well, the current market price of BC Iron is $3.28 so you could sell on market for the takeover price. Of course, there may be a counter offer by a third party which could drive the price higher which is something you need to consider if you sell out now. You should do some research into who the substantial shareholders are and if they are likely to accept the deal which may help you decide whether to sell now and get your money in a few days or hold out and see what happens.

It looks as though the takeover bid was only at a 4% premium to the share price at the time which seems low. Given that, the share price shouldnt drop too much if the takeover bid is rejected but im not sure if the share price has risen in anticipation of a takeover.

By the looks of it, if the takeover is successful, BC Iron will cease to exist and you wont be able to invest in it, you may be able to invest in the company that is doing the takeover.
 
Anyone still looking at BC Iron? Shaping up very well fundamentally, P/E of around 5, over third of the market cap in cash backing, paying a ~7% dividend fully franked with just one payment (annual payment of ~14% very sustainable, even at today's prices).

Only downside I can see is if the price drops below 70 dollars for an extended period of time, then the P/E shoots up to around 10ish according to the model I've built. Every day that the price stays above the ~70 dollars mark, and BC Iron is making hay while the sun shines!

Bought a fair few of these, currently my favourite company.
 
I plan to read up on BCI tonight. Was just wondering if anyone can tell me quickly what the mine life is expected to be?
 
In today.

This is more of an investment type for me. But still, a pretty good risk/ reward if it does go through support.

Low P/E, good yield, I can't see much wrong apart from the relatively short mine life.

It definitely has the best chart out of the IO plays.
 
chops_a_must said:
In today.

This is more of an investment type for me. But still, a pretty good risk/ reward if it does go through support.

Low P/E, good yield, I can't see much wrong apart from the relatively short mine life.

It definitely has the best chart out of the IO plays.
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Congratulations chops_a_must.

Since your post (8 May) the stock has risen from $3.28 to close today $5.10 - nearly 60% rise. Not bad for 6 months work, if of course you still have them!!
 
BCI all-in sustaining costs are tracking around $53 per tonne. That's a number I have in my head from a calculation I did recently. I can't remember the specifics but I think that is a conservative cost base. If someone has figures that contradict this please let me know. Their lower grade product gets discounted even more during the bottom of the price cycle. Using current price of US$90 for Fe 62% let's say BCI's iron at current spot prices can fetch US$70. Let's assume that the $AU and $US are at parity (to factor in some currency risk) so let's say based on the current market price, the margin is $17 per tonne. Take the lower end of current guidance of 4.4MT - that works out to earnings per share of $0.60.

Reserve depletion is a problem and currently mine life at decent DSO grades is limited.

Seems a buy to me.
 
I thought BC Iron had premium product, the reason for their discount was a purchase agreement with some Chinese company which funded the initial capital costs, and they simply aggregated the sales price of both the stuff at 100% price, and the discounted stuff to the Chinese company.
 
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