Final shipments from Nullagine were completed in the March quarter. While the company has indicated a number of options including a mine re-start or sale are on the table, Macquarie considers both these are unlikely.
BC Iron’s Dec Q production report featured lower realised iron ore prices and higher costs than the previous quarter. Such challenged operational results are unfortunate after BC made the difficult decision to suspend operations in the quarter, the broker suggests.
Citi expects the bear market will continue in iron ore with large scale supply growth set to add pressure to weak demand. The broker expects iron ore prices to fall slightly over the first three quarters of 2015 then slowly rebound.