BC Iron Limited (ASX:BCI) HEFFX Highlights

BC Iron Limited (ASX:BCI) HEFFX Highlights

BC Iron Limited (ASX:BCI) HEFFX Highlights

  • ASX-listed BC Iron on Wednesday told shareholders that the scoping study estimated a capital cost of between A$225-million and A$255-million, with operating costs estimated at between A$19/t and A$21/t free-on-board, while Mardie was expected to generate average revenues of around A$45/t.
  • The project would have a net present value of between A$290-million and A$380-million, depending on annual production, while the internal rate of return varied from 25% to 27%.
  • “The Mardie scoping study is another positive step towards realising BC Iron’s broader strategy of developing a diversified minerals portfolio. Importantly, the development plan for Mardie envisages using BC Iron’s proposed Cape Preston East port, strengthening its potential to become a multi-user, multi-commodity export facility,” said BC Iron MD Alwyn Vorster.

BC Iron Limited is an iron ore mining and development company. The Company’s principal activities include operation, development and exploration of mineral projects, focusing primarily on iron ore deposits in the Pilbara region of Western Australia. It operates through four segments: Iron Valley, Buckland, Nullagine Joint Venture and Other. Its projects include the Nullagine Joint Venture (NJV), Iron Valley and Buckland. The NJV is located approximately 150 kilometers north of Newman in the Pilbara region of Western Australia. The Iron Valley is a mine located in the Central Pilbara and has a mineral resources of approximately 246.8 megaton (Mt) at over 58.4% Iron (Fe) and an ore reserve of approximately 129.9 Mt at over 58.9% Fe. The Buckland is a development project, which is located in the West Pilbara region. The Company also has interest in various other exploration-stage projects in the Pilbara and royalties over the Koodaideri South and North Marillana tenements.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 0.19.

The projected lower bound is: 0.15.

The projected closing price is: 0.17.

BCIRON FPO closed unchanged at 0.170. Volume was 24% above average (neutral) and Bollinger Bands were 15% wider than normal.

Open      High        Low        Close      Volume
0.175      0.180      0.170      0.170      1,750,662

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period      50-period      200-period
Close:                       0.15                0.13                 0.18
Volatility:                83                   79                    109
Volume:                  1,145,577       1,096,958       2,123,776

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BCIRON FPO is currently 3.8% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume into BCI.AX (bullish). Our trend forecasting oscillators are currently bullish on BCI.AX and have had this outlook for the last 13 periods. Our momentum oscillator is currently indicating that BCI.AX is currently in an overbought condition.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.2105. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 76.63. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 17 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 246.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 16 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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