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BCI Minerals


AU$65.8m market cap

AU$0.17 last close

BCI Minerals has two major assets in Western Australia, including a 100% interest in the Mardie salt and potash project and a royalty-type interest in the Iron Valley iron ore mine operated by Mineral Resources.

Investment summary

In its December quarterly report, BCI Minerals confirmed that the strong performance exhibited by its Iron Valley royalty asset in Q120 continued into Q220. Iron Valley shipped 1.5Mt of iron ore in Q220 (cf 2.0Mt in Q120), comprising 60% fines (cf 65%), resulting in a quarterly EBITDA of A$3.2m, including a negative prior quarterly adjustment of A$1.6m (cf a near record quarterly EBITDA of A$7.7m in Q120). Notwithstanding the adjustment, BCI’s Q220 EBITDA of A$3.2m was nevertheless higher than any other quarter since Q317 except Q419 and Q120.

Y/E Jun
Revenue (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 33.0 (14.4) (16.9) (4.3) N/A N/A
2019A 54.2 (2.6) (4.6) (0.8) N/A N/A
2020E 87.1 (10.4) (12.5) (3.1) N/A N/A
2021E 56.1 5.4 3.0 0.3 55.0 43.7
Industry outlook

Considering all of its assets, we value BCI at 36.56c/share. However, this valuation increases to 46.81c/share in the event that the iron ore price remains at US$76/t for standard 58% Fe product (CIF). In the meantime, BCI has signed non-binding off-take agreements covering more than 80% of its first three years of salt and SOP output. It also reports positive discussions with the Northern Australia Infrastructure Facility (NAIF) regarding potentially concessional debt funding.

Last updated on 18/02/2020
Share price graph
Balance sheet
Forecast net cash (A$m) 20.1
Forecast gearing ratio (%) N/A
Price performance
Actual (2.9) (2.9) 13.8
Relative* (3.3) (7.5) (2.6)
52-week high/low A$0.2/A$0.1
*% relative to local index
Key management
Simon Hodge CFO
Alwyn Vorster Managing Director