Shares in BC Iron are soaring as iron ore prices improve and the miner reports success in cutting costs.
Its March quarter results show the company still has a profit margin against the cost of digging up a tonne of iron ore.
The company said it received an average $US54 a tonne (about $A69) for ore over the three months. All in cash costs were $A57 per tonne for the quarter. This improved in March to $A52.
Managing director Morgan Ball says sales exceeded expectations and costs are continuing to improve.
“Market conditions remain challenging for iron ore producers,” Ball says. “BC Iron is underpinned by a strong balance sheet with A$107.5 million cash, an improving cost position at Nullagine and ongoing cash flow from the Iron Valley operation.”
BC Iron says it will follow Atlas Iron in mothballing operations if that becomes the best result for shareholders.
Its shares are trading 38% higher at $0.36.