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BCI Minerals


AU$67.8m 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. It also has exploration tenements in iron ore and other minerals.

Investment summary

BCI’s strategy is to deploy positive cash flow from Iron Valley with A$32.3m in cash (end-September 2019) to develop its flagship Mardie salt and potash project. An optimised pre-feasibility study (PFS) on Mardie demonstrated a project IRR of 20% and a pre-tax NPV of A$560m (at a 10% discount rate) – equivalent to A$1.40/share – a 67.2% increase over last year’s PFS. Its DFS is now 75% complete and is expected in Q1 CY20.

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 85.8 (10.6) (12.7) (3.2) N/A N/A
2021E 55.2 5.2 2.8 0.3 56.7 45.1
Industry outlook

Considering all of its assets, we value BCI at 38.03c/share of which 16.81c may be attributed to Mardie, 18.79c to Iron Valley/cash/corporate and 2.43c to Buckland. However, this valuation increases by c 5.73c/share (or 15.1%) in the event that the iron ore price remains around US$78/t for standard 58% Fe product (CIF). In the meantime, BCI has signed six non-binding salt and SOP off-take agreements and reports ‘positive funding discussions’ in its efforts to secure potentially concessional debt funding via the Northern Australia Infrastructure Facility (NAIF).

Last updated on 19/11/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 16.9
Forecast gearing ratio (%) N/A
Price performance
Actual 0.0 (8.1) 25.9
Relative* (1.6) (13.3) 6.7
52-week high/low A$0.2/A$0.1
*% relative to local index
Key management
Simon Hodge CFO
Alwyn Vorster Managing Director