BCI - BCI Minerals

ParleVouFrancois said:

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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I believe the "Bonnie Fines" product (as it is marketed) of the Nullagine Joint Venture is 57% Fe. From the resource update released in March (p3):

Ore Reserves were estimated by completing pit optimisations and subsequent detailed pit designs. Two cut-off
grades were applied, with waste characterised as being below 55% Fe or above 3% Al2O3. These parameters
were derived to achieve a product grade of 57% Fe and 2% Al2O3, which is the desired product specification
for the NJV based on marketing studies.

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Page 2 states:

The DSO Mineral Resource is reported using cut-off grades between
52% and 56% Fe, which were selected to achieve a 57% Fe specification grade.

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I don't know what that means exactly; whether it means that they have already mined higher grade ore that they have reserved for blending with what they will extract over the remainder of the mine life.

The report also states (p3):

Current undiluted Ore Reserves are comprised entirely of DSO material. A dry crushing and screening process
is being utilised at the NJV, which was selected based on bulk sampling and metallurgical test work
undertaken as part of the feasibility study. Processing recoveries are effectively 100%.

All material assumptions relating to costs are based on existing agreements with contractors. The terms of
these agreements are considered commercially sensitive and are not publicly disclosed. However, BC Iron has
provided C1 cash cost guidance of A$46-50 per wet metric tonne over the life of mine. C1 cash costs exclude
royalties, marketing and corporate costs.

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http://www.bciron.com.au/images/fil...eserves-and-Mineral-Resources-31-Dec-2013.pdf

Regarding the "quality" of Bonnie Fines, I've read stuff from BCI about "pisolite sinter blend", low Al, Si, S and blah, blah that make this product attractive to smelters but I know nothing about anything. An analyst told me that the BCI product is sold at 15% discount to 62%FE.

I'm just wondering if I have my all-in sustaining cost figure for the JV right at around $53-4. The most recent guidance* (a week or two back) was for total cash costs closer to $50. They prepaid a whole chunk of forward rail freight a while ago so I'm not sure how that affects the ongoing all in sustaining cost.

* http://clients2.weblink.com.au/clients/bciron/article.asp?asx=BCI&view=6678382

I've done a quick google around to see what info I can find on BCI's costs for the Nullagine JV with FMG.

The figure I had in my head appears to be the most recently reported cash cost of $54 not the total cost.
Guidance for cash costs for the life of the mine are $46-$50.
http://www.theaustralian.com.au/bus...-lower-h2-profit/story-e6frg90f-1226898080299

.....

An article from today on news.com.au states BC Iron's all-in cash costs as forecast to fall to $60-$70, "depending on currency fluctuations" - which makes me think this figure in $US.
http://www.news.com.au/finance/busi...as-miners-uneasy/story-e6frfkur-1226957705968

......

Argonaut Forecast
C3 costs $AU
2013A 61.4
2014E 67.7
2015E 65.0
2016E 65.0

C3 = direct costs plus overheads plus royalties plus depreciation & amortisation
from https://secure.argonaut.com/FileLink.asp?DT=R&DID=1801&DP=163621

......

An article by Barry Fitzgerald in the Oz a while ago states BC Iron's costs as US$70 per tonne. (lost the reference now).

Down almost 90% from its all time high. Must be a record for consecutive weeks with Friday close lower than Monday open. Buy low, sell lower. Greatest daily volume all year yesterday 19 Nov.

Today passed yesterdays highest daily volume for the year and by tomorrow afternoon the highest weekly volume ever will be established. Lower share price and increasing volume suggests the recent days-and-weeks buyers are cutting losses as larger share holdings are achieved with the same outlay. Upbeat AGM spiel as one would expect to alleviate any fear of prolonged surplus supply and lack of demand environment.

Wysiwyg said:

Today passed yesterdays highest daily volume for the year and by tomorrow afternoon the highest weekly volume ever will be established. Lower share price and increasing volume suggests the recent days-and-weeks buyers are cutting losses as larger share holdings are achieved with the same outlay. Upbeat AGM spiel as one would expect to alleviate any fear of prolonged surplus supply and lack of demand environment.

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Chart still looks horrible so if you are shorting, you are going to be making a motser!

On December 6th, 2017, BC Iron Limited changed its name to BCI Minerals Limited.

Rather than me telling you about BCI, I'll let these few images from BCI's latest corporate presentation tell their story.

However, there's a lot of development to go.

one view.

BCI is one of those rare companies where, after investing, we found the board and management were very much attuned to our way of thinking. As a result, our engagement with BCI has been supportive not adversarial. Our initial attraction to BCI lay in its royalty over the iron ore mine at Iron Valley.

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However, over time, we have come to realise that the value of this royalty pales in comparison to the company’s undeveloped Mardi salt and potash project. Mardi is one of those rare resource projects that has an infinite resource (seawater) that requires little ongoing capital spend once the project has been built.

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We have confidence that the extremely well credentialed Board and management team will procure the requisite funding and successfully build what we believe to be the most attractive natural resource project in Australia. At steady state production, Mardi is expected to generate approximately $260m of earnings, year in, year out, for over 100 years. Longer term, we believe the company should be worth multiples of its current market capitalisation of ~$250m.

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Sandon Capital (SNC) - Annual Report

Dona Ferentes said:

one view.




Sandon Capital (SNC) - Annual Report

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Great report excepting advising strength of its current management below the board who are entrusted to develop and deliver the project to reach design plate capacity on a short term.
My concern is there and until convinced otherwise, I have kept me on the side line.
Probably in next 6 months there will be a CR and ramp up prior to that.

maybe the recent spike in Iron prices will keep the begging bowl in mothballs longer

( i hold SVW , so i do hope this is a winner )

while Mardie has had its official opening today, with Premier McGowan in attendance, the earlier enthusiasm of a year ago seems to be wearing thin.

Market outlook
BCI expects that the current inflationary pressures on construction inputs such as fuel, labour, transport, and equipment will lead to increased capital cost for particularly the civil component of the Project. At the same time, BCI notes the strong increases in salt and sulphate of potash (SOP) prices since the completion of the Mardie feasibility studies in mid-2021. Since that time, the average contract price of Australian salt imported into Asia (based on government trade information) has increased by more than 20% to approximately US$50/t (CIF), with even higher spot prices being realised in China. In addition, the SOP price has increased in this period by more than 70% to around US$930/t (FOB Europe).

BCI’s Managing Director, Alwyn Vorster said: “Cost pressures are evident across the mining and construction sectors in Western Australia. We are closely monitoring and managing our contracts and are reviewing the inflationary impact on the total Mardie capital cost. We are also reviewing our long-term commodity price assumptions and will advise the market when this work is complete. It is our expectation that even with these increasing cost pressures, the Mardie Project financial returns over multiple decades will remain attractive.”

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someone asked a Q today at Trigg presentation about BCI and a perceived SO4 market being swamped (unlimited seawater) but this was swatted away. Something about the chemistry and Chlorine separation difficulties. I wish I could remember. The solar salt project could be a different story.


....................................
BCI receives quarterly royalty earnings from Iron Valley, an iron ore mine located in the Central Pilbara region of Western Australia which is operated by Mineral Resources Limited (ASX:MIN). BCI’s other assets include substantial shareholdings in Agrimin Limited (ASX:AMN) and Highfield Resources Ltd (ASX:HFR), potential royalties and/or deferred payments from iron ore projects at Koodaideri South, Bungaroo South, Kumina and Nullagine.

peter2 said:

Rather than me telling you about BCI, I'll let these few images from BCI's latest corporate presentation tell their story.
View attachment 107540
However, there's a lot of development to go.

View attachment 107541

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"First salt on Ship" now mid 2026 according to the latest update...

Recently bought a fair whack of these expecting to see the income start flowing late next year, and possibly dividends a year or so after that?

I got on too early it seems. Oh well you live and learn I guess.

What's up Doc? Price break-out with no news.

peter2 said:

What's up Doc? Price break-out with no news.

View attachment 168291

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has someone worked out fertilizer will be in short supply in the West and jumped early .. or is it a 'leaky ship'

i wonder if we will find out who is buying

divs4ever said:

has someone worked out fertilizer will be in short supply in the West and jumped early .. or is it a 'leaky ship'

i wonder if we will find out who is buying

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I think if you refer to news items published in mid Dec onwards and their FID decision, it was expected some action in Jan after holiday break.
DNH - and I could be mistaken

SALE OF IRON VALLEY

• BCI to sell Iron Valley assets to Mineral Resources and receive up to $72.6M.
• Transaction delivers cash flow certainty to fund non-Mardie expenditure.
• BCI will continue focus on safely delivering the Mardie Project.

BCI Minerals Limited (ASX: BCI) (BCI or the Company) is pleased to announce that its wholly-owned subsidiary Iron Valley Pty Ltd (IVPL) has entered into a binding agreement to sell its Iron Valley iron ore assets to Polaris Metals Pty Ltd (Polaris), a wholly owned subsidiary of Mineral Resources Limited(MinRes) (ASX:MIN) (Transaction).

The key terms of the Transaction are:
• IVPL will receive $26.0M at completion of the Transaction (expected to be in July 2024), and a further payment of $12.5M contingent on commencement of mining at the Iron Valley North Pitby Polaris (or a successor in title).
• The existing Iron Ore Sale and Purchase Agreement (IOSPA) with MinRes will terminate upon completion of the Transaction. BCI will receive a final deferred payment of $34.1M in July 2025 in settlement of all outstanding amounts under the IOSPA (including for the period from 1 January2024) and in consideration for terminating the IOSPA.
• Polaris will assume responsibility for payment of state and third-party royalties and rehabilitation obligations in relation to the Iron Valley mine with effect from 1 May 2024.
• Subject to the receipt of Ministerial consent for the transfer of the Iron Valley tenements to Polaris,the transaction is expected to complete in early July 2024.
• Either party may terminate the Agreement if the condition is not satisfied by early September2024.
Aligned with our strategic objective to develop an industrial minerals business with Salt and SOP as our initial focus, this divestment creates value for shareholders, simplifies our operations, and strengthens our focus on the Mardie project.
As part of the FY24 financial close process, the assets and liabilities of IVPL will be reclassified as Current Assets Held for Sale.
BCI is expected to make a gain on the sale of these assets.Delivers cash flow certainty –
BCI’s non-Mardie expenditure is funded through the proceeds from Iron Valley iron ore sales which are exposed to volume, price and exchange rate risk.
Under the terms of the Transaction, BCI will receive payments totalling $60.1M across July 2024 (subject to Ministerial consent)and July 2025 and a further $12.5M contingent upon the commencement of operations in the Iron Valley North Pit.Continued focus on safely delivering the Mardie Project -
The Iron Valley mine and the collaborationwith MinRes has contributed positively to BCI for over 10 years.
While Iron Valley has been a significant asset for BCI, this is an appropriate time for BCI to divest the Iron Valley assets and strengthen our focus on the delivery of the Mardie Project.
BCI’s Managing Director, David Boshoff, said: “BCI appreciates the successful partnership it has had with MinRes and welcomes the opportunity to sell the Iron Valley assets.
The proposed sale is a strategic decision that enables BCI to realise $60.1M certain value for these assets, plus a further contingent$12.5M, and continue to focus on safely delivering the Mardie Project on schedule and on budget,providing value to our shareholders and multi-generational benefits to the community.
We thank MinResfor its long and rewarding partnership with BCI and wish MinRes well for its future ownership of Iron Valley.”–

END –

This ASX announcement has been authorised for release by the Board of BCI Minerals Limited.

hmmm , removed from my watch-list

i hold MIN ( 'free-carried' ) and SVW ( a major shareholder of BCI