Champion Iron Mines Limited CPMNF

Down grade to hold..

[SUCYN]

 

Globe says Przybylowski cuts Champion to "hold"

2013-07-04 09:01 ET - In the News

 

The Globe and Mail reports in its Thursday, July 4, edition that Champion Iron Mines (19.5 cents) has backed out of a commitment to contribute $20-million to a new multiuser port at Sept-Iles, Que. The Globe's Darcy Keith writes in the Eye On Equities column that Desjardins Securities analyst Jackie Przybylowski says the cancellation of the contribution commitment is further evidence of the financial squeeze faced by junior miners. Ms. Przybylowski insightfully says, "We expect that the decision to terminate the port agreement is due to a lack of funds." She downgraded the stock to "hold" from "buy," due to increased uncertainty over the company's ability to finance the development of its Fire Lake North project in the province, which Champion has suggested would begin production in 2017. Ms. Przybylowski cut her price target to 45 cents from 55 cents. The average target, according to Bloomberg News, is 88 cents. RBC Dominion Securities analyst Robin Kozar downgraded Champion to "sector perform" from "outperform" in the Eye column on Dec. 4, 2012. In the item Mr. Kozar cut his 12-month price target on Champion shares to $1.10 from $1.50. The shares could then be had for 48 cents.