BCI Minerals (ASX:BCI) share price advances following 108% increase on revenue

How did the company perform for the 2021 financial year?

| More on:
Miner puts thumbs up in front of gold mine quarry

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BCI Minerals Ltd (ASX: BCI) share price has advanced higher this Friday. This comes as the salt and potash developer released its full-year results for the 2021 financial year.

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.

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.

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.

More on Share Market News

A woman stares at the candle on her cake, her birthday has fizzled.
Share Market News

Here are the top 10 ASX 200 shares today

The markets ended the trading week on a sad note today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Core Lithium share price hits a multi-year low: Will the tide change soon?

Are analysts now seeing value emerge from the lithium miner's shares?

Read more »

Four young friends on a road trip smile and laugh as they sit on roof of their car.

Records tumble! Hot ASX ETFs smash all-time highs again on Friday

It's a little strange to see these ETFs hit new highs on a red day for the ASX...

Read more »

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

Down 40% in under 3 years, is the Lynas share price due a bounce?

Is there any hope for Lynas shares?

Read more »

Three exuberant runners dash towards the camera. One raises her arms in triumph; another jumps in the air with arms raised. The third runner gives a satisfied smile.
Share Gainers

3 ASX 200 shares going gangbusters in June

ASX 200 investors have sent these three stocks soaring in June. But why?

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Share Market News

Is there any chance of an interest rate cut in Australia next week?

Here's what the experts think will happen.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Core Lithium, Deterra Royalties, Northern Star, and Opthea shares are dropping

These shares are ending the week deep in the red. But why?

Read more »