BC Iron has vowed to make deeper cost cuts as it scrambles to stay abreast of falling iron ore prices.
The Pilbara miner expects to achieve the lower end of its cash cost guidance of $A47 to $A51 a tonne this fiscal year as the iron ore price hovers around 10-year lows.
"BC Iron remains focused on further sustainable cost reductions," the company said in an update to the market on Thursday.
The Pilbara miner's costs were $A43 in March and $A49 for the first three months of 2015.
However that does not represent all of its production costs and BC Iron's lower quality iron ore sells for less than the current sub-$US50 benchmark price, so it urgently needs a recovery.
Australia's BHP Billiton and Rio Tinto are driving down prices - which currently sit below $US48 a tonne - by flooding the market with extra supply despite falling demand.
Deutsche Bank predicts the commodity will slide to $US40.
At the start of April, BC Iron declared its all-in cash cost per tonne was between $A53 and $A57.
On Thursday, the company said further information would be provided in the company's March quarter report due to be released on April 23.
BC Iron added that it produced 1.46 million tonnes for the March quarter, up from 1.22 million a year ago.
The company is also making an early exit from a five-year mining contract with Watpac as it cuts costs.
Meanwhile, fellow junior Pilbara iron ore miner Atlas Iron is fighting for survival as it undertakes an urgent review of its finances over the next fortnight, in response to a plummeting iron ore price.
BC Iron's shares closed two cents higher at 29.5 cents.
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