Join our daily newsletter At The Bell to receive exclusive market insights
- BCI Minerals (BCI) expects its Mardie salt and potash project in WA to face a “significant” cost increase due to current market conditions, such as weather events and COVID-19
- BCI is yet to confirm how much the increase will be but will do so once it completes a review
- The company is also looking to change the project’s design to comply with third party approvals and improve long-term resilience of the project in case of extreme weather events
- Due to the change in cost and delays in secondary approvals, the company is expecting the first shipping of salt from Mardie to be in the second half of 2025
- BCI shares are down 7.55 per cent to trade at 24.5 cents at 12:32 pm AEST
BCI Minerals’ (BCI) Mardie salt and potash project in WA is expecting to cost more than what it originally forecast.
The company said the “significant” cost increases to the project are due to the current market conditions and is expecting the project design to change so it can comply with third party approvals, as well as improving it to fit extreme weather events.
BCI is continuing to assess further engineering opportunities, conducting reviews and design to reduce risk and partially offset the cost increases which are yet to be confirmed.
Due to the change in cost and delays in secondary approvals, the company expects the first salt shipment from Mardie will be in the second half of 2025.
BCI has a current cash reserve of $209 million plus other financial assets including a $100 million convertible note.
On the market, BCI shares were down 7.55 per cent to trade at 24.5 cents each at 12:32 pm AEST.
