BC Iron Limited Reports Production Results for the Fiscal Year 2013; Provides Capital Expenditure Guidance for the Fiscal Year 2014
The company's fiscal year 2014 capital expenditure is forecast at approximately AUD 20 million based primarily on significant grade control drilling programmes at Bonnie East and Warrigal 1 & 2, exploration activity at the NJV, a processing trial in relation to beneficiation of low grade ore and normal haul road improvements. This amount also includes potential exploration costs in relation to the Company's greenfield opportunities in Brazil. The NJV is currently running at a throughput rate of 6Mtpa (BC Iron share 4.5Mtpa) with available "sprint capacity" and is therefore forecast to produce 5.8 to 6.2Mt of direct ship ore during fiscal year 2014. The NJV's mine planning generally allows for the operation to run at up to 6.5Mtpa for 9 months of the year, and at 4.5Mtpa for 3 months of the year during the January to March wet season in the Pilbara. In addition, guidance is now presented as a range rather than an absolute number given the unpredictability of rainfall in the Pilbara as seen with recent unseasonal rains.