Announcement re board changeover
ASX RELEASE - 23 OCTOBER 2015
NJV AWARDS ROAD HAULAGE CONTRACT
HIGHLIGHTS
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NJV road haulage contract awarded to Qube Bulk Pty Ltd, effective 1 December 2015
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Expected to deliver a 30-35% decrease in total road haulage costs (inclusive of fuel and overheads)
BC Iron Limited (ASX:BCI) ('BC Iron' or 'the Company') is pleased to advise that the Nullagine Joint Venture ('NJV') (BC Iron 75% / Fortescue Metals Group 25%) has awarded a road haulage contract to Qube Bulk Pty Ltd, a subsidiary of Qube Holdings Limited ('Qube'). Qube is a market leader in the provision of bulk haulage services, handling more than 85 million tonnes per annum.
Qube will commence hauling product on the NJV's private haul road on 1 December 2015, following the expiry of the existing road haulage contract. The contract with Qube has a two-year term, with an option to extend for one year at the NJV's election.
The Qube contract delivers significant savings compared to existing road haulage activities, with the NJV's total road haulage cost (inclusive of fuel and haulage-related overheads) expected to decrease by approximately 30-35% upon commencement of the contract.
The NJV's C1 cash cost guidance for FY16 of A$42-45/wmt assumed a certain level of savings would be achieved from the award of this contract, which will be slightly exceeded. BC Iron is currently considering the new contract rates, which will apply from 1 December 2015 onwards, as part of its ongoing cost management focus and will advise the market if there is any change in guidance.
BC Iron looks forward to a productive working relationship with Qube.
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FOR FURTHER INFORMATION: MEDIA ENQUIRIES:
MORGAN BALL / CHRIS HUNT DAVID TASKER / JAMES HARRIS
MANAGING DIRECTOR / CHIEF FINANCIAL OFFICER PROFESSIONAL PUBLIC RELATIONS
BC IRON LIMITED TELEPHONE: +61 8 9388 0944
TELEPHONE: +61 8 6311 3400
ABOUT BC IRON LIMITED
BC Iron is an iron ore mining and development company with assets in the Pilbara region of Western Australia, including the Nullagine Joint Venture ('NJV'), Iron Valley and Buckland. BC Iron is listed on the ASX under the code 'BCI'.
The NJV is an unincorporated 75:25 joint venture with Fortescue Metals Group Limited ('Fortescue'), which commenced exports in February 2011. The NJV utilises Fortescue's infrastructure at Christmas Creek, 50km south of the Nullagine mine, to rail up to 6Mtpa of ore to Port Hedland from where it is shipped directly to customers overseas.
Iron Valley is a mine located in the Central Pilbara that is operated by Mineral Resources Limited ('MIN') under an iron ore sale agreement. MIN operates the mine at its cost and purchases Iron Valley product from BC Iron at a price linked to MIN's realised sale price. MIN is currently evaluating a range of initiatives that have the potential to improve the long term viability of Iron Valley and its value to both parties.
Buckland is a development project located in the West Pilbara region. It has Ore Reserves of 134.3 Mt at 57.6% Fe, a completed and announced feasibility study, its own proposed infrastructure solution comprising a haul road and transhipment port at Cape Preston East, and all primary tenure and licences secured. BC Iron is currently evaluating all options to determine the optimal development and financing path for Buckland.
BC Iron also has an interest in a number of other exploration stage projects in the Pilbara and potential royalties over the Koodaideri South and North Marillana tenements.
KEY STATISTICS
Shares on issue:
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196.2 million
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Cash and cash equivalents:
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A$71.8 million
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as at 30 September 2015
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Board:
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Tony Kiernan Morgan Ball Martin Bryant Andy Haslam Brian O'Donnell
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Chairman and Non-Executive Director Managing Director
Non-Executive Director Non-Executive Director Non-Executive Director
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Hayley McNamara
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Company Secretary
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Major shareholders:
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Wroxby Pty Ltd
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19.0%
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Website: www.bciron.com.au