Junior iron ore producer BC Iron is hunting for acquisitions and has achieved positive quarterly cashflow for the first time after beating its production guidance.

Shares in BC Iron finished up two cents at $2.71 while joint venture partner Fortescue Metals Group closed 2.57 per cent higher at $5.19.

The companies are ramping up output after beginning production at their Nullagine joint venture (NJV) in Western Australia’s Pilbara region a year ago.

They mined and shipped record volumes in the three months to December 31.

First half exports of 1.1 million tonnes (Mt) were ahead of guidance.

“Furthermore, NJV production rates achieved the initial ramp-up target rate of 3Mtpa during November, resulting in a positive cashflow for the first time in a quarterly reporting period,” BC Iron said in a statement on Friday.

The Perth-based company said the full-year production forecast was about 3.5 Mt, but warned the target may be affected by the wet season in the Pilbara.

The average sales price received in the December quarter was about $US116 per dry metric tonne (dmt), down 20 per cent from $US145/dmt in the prior quarter.

BC Iron has started seriously assessing potential acquisition opportunities, retaining its focus on easy-to-produce hematite iron ore, but casting its net overseas as well as in Australia.