How did the company perform for the 2021 financial year?
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At market close, BCI Minerals finished the day trading for 44 cents, up 2.33%.
BCI Minerals share price lifts on strong growth across the board
The BCI Minerals share price is bucking yesterday’s heavy 15.69% fall to push higher today. For the 12-month period ending 30 June 2021, the company delivered strong earnings. Here are some of the key numbers.
Total revenue increased 108% to $160.5 million (FY20 $77.2 million);
Earnings before interest, tax depreciation and amortisation (EBITDA) rocketed 248% to $28.9 million (FY20 $8.3 million);
Net profit after tax (NPAT) exploded 5,400% to $22 million (FY20 $0.4 million); and
No final dividend declared for the full-year.
What happened in FY21 for BCI Minerals?
During the financial year, BCI Minerals focused on completing the Optimised Feasibility Study (OFS) and progressing funding, approvals, tenure and offtake aspects for the Mardie Project.
In addition, the company conducted de-risking activities during the optimisation phase to increase confidence in Mardie estimates and value potential. This included geotechnical work, flowsheet and equipment design, process piloting and progress with funding.
The optimisation results confirmed Mardie can become a Tier 1 asset with a minimum life of 60 years.
In December, the Federal Government’s Northern Australia Infrastructure Facility (NAIF) approved a 15-year $450 million loan for the Mardie Project. The NAIF loan is expected to sit alongside other debt tranches. A number of commercial banks and other lenders are working through credit approval processes.
Engagement with potential buyers of Mardie’s salt and sulphate of potash (SOP) products continued over the course of the year. Two additional non-binding Memoranda of Understanding (MOUs) were signed with Chinese chemical companies for up to 0.5 million tonnes per annum of salt. This brings currently 16 MOUs in place, covering 100% of 3-year salt production and 80% of 3-year SOP production.
What’s the outlook for BCI Minerals?
Looking ahead, BCI Minerals advised it is in a strong capital position to advance the Mardie Project to Final Investment Decision (FID) later this year.
The company has a cash balance of $110 million, with nil debt and ongoing Iron Valley royalty earnings.
In the interim, the company plans to continue investing its cash reserves in developing the Mardie Project. Construction of embankment trial walls is currently underway.
BCI Minerals plans to secure any remaining approvals, tenure, as well as $1.2 billion in funding for the Mardie Project. If successful, this will allow the main construction of the site to commence in early 2022.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.