Australia's BCI Minerals dips on cost escalation at its salt project

BCI Minerals

07/07/2022 04:32

** Shares of BCI Minerals  BCI.AX  drop as much as 7.6% to
A$0.245, hitting their lowest levels since Dec 2020
    ** The salt- and potash-focused mineral explorer says it is
facing significant cost surge at Mardie Salt & Potash project in
Australia's Pilbara region  urn:newsml:reuters.com:*:nGLF2LJ5lJ
    ** Says cost escalation due to current market conditions,
and project design changes done to comply with third-party
approvals and tackle extreme weather events
    ** Sees these factors to likely result in the first salt on
ship date being extended, indicatively to second half of fiscal
2025
    ** Stock on track for worst day since June 20, if losses
hold
    ** BCI is reviewing design and assessing opportunities to
reduce risk and partially offset costs increases
    ** Co will discuss funding solutions, including asset sales,
with shareholders and lenders to cover costs
    ** About 2.3 mln shares change hands, compared with the
30-day average volume of 957,000 shares
    ** BCI down over 38% this year, as of last close

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))