BCI Minerals (BCI) H1 2025 earnings summary

Executive summary

• Principal activity shifted to developing the Mardie Salt and Potash Project after divesting Iron Valley assets in July 2024, enabling a focused strategy on industrial minerals.

• Achieved major milestones in H1 FY25, including commencement of operations, ramp-up of activities, and financial close for the Mardie Salt and Potash Project.

• Construction of the Mardie Project's salt-first phase reached 56% completion, with costs remaining in line with the $1,443 million base case.

• Received Commonwealth environmental approval for the Optimised Mardie Project and commenced filling initial evaporation ponds.

• No dividends declared or paid for the half-year.

Financial highlights

• Net loss after tax from continuing operations was $22.7 million, compared to $21.9 million loss in the prior period.

• Net profit from discontinued operations (Iron Valley) was $13.1 million, down from $21.2 million in the prior period.

• Revenue from continuing operations was $3.9 million, mainly from interest income; no operating revenue from Mardie until FY26.

• Cash and cash equivalents decreased to $65.3 million at 31 December 2024, reflecting significant project investment.

• Capital expenditure on Mardie construction was $168.8 million for the half-year, totaling $757.5 million to date.

Outlook and guidance

• Next period activities include completion of evaporation ponds, crystallisers, marine structures, and ramp-up of operations.

• Mardie Project remains on track for first production in FY26, with SOP plant funding decision expected in FY26.

• Targeting first salt shipment in Q2 FY27, aiming to become a major supplier to global markets.

• Approval of the updated Groundwater Monitoring and Management Plan is anticipated, enabling further pond filling.

• Management expects sufficient funding for project completion, with further debt drawdowns subject to lender approval.