Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Champion Iron Ord Shs T.CIA

Alternate Symbol(s):  CIAFF

Champion Iron Limited is an Australia-based iron ore exploration and development company. The Company's principal activities include the production of high-grade iron ore concentrate and the development and exploration of its iron ore properties in the provinces of Quebec and Newfoundland and Labrador in the Labrador Trough region, Canada. The Company, through its subsidiary, Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex, located on the south end of the Labrador Trough, approximately 13 kilometers (km) north of Fermont, Quebec. In addition to Bloom Lake, the Company owns a portfolio of exploration and development projects in the Labrador Trough, including the Kamistiatusset Project, located a few km south-east of Bloom Lake, and the Consolidated Fire Lake North iron ore project, located approximately 40 km south of Bloom Lake. It sells its iron ore concentrate globally to customers in China, Japan, the Middle East, Europe, South Korea, India and Canada.


TSX:CIA - Post by User

Bullboard Posts
Post by dmacdon Jan 24, 2019 2:37pm
239 Views
Post# 29277081

Valuation

ValuationBased on $0.40/sh net operating cashflow per share, roughly based on trailing 2 quarters, and square ramp up which proved the processing facilities, shipping methods, buyer acceptance and all that now well de-risked now. Hence, CIA should be trading at say 8 x factor or $3.20/sh fair value IMHO. Net Debt is in the range of $100M and seems to be payable within the next 2 quarters if that were the objective. However, growth plans seems to be more interesting. I suspect we will see an increase in the bank line soon. The value of the assets and production can now be more fully assessed by the banks. I expect management will continue to build the war chest and then take on more debt to finance the next phase of production. I look forward to the engineering update on that point. Perhaps the 8x valuation will make more sense once that is posted along with an updated presentation. CIA is one of my top 2 holdings. De-Risked / Deep Value / High Growth Play. Awesome combination. Still time to load up since shares are quite cheap below $1.50/sh. Why wait until $3.00/sh to jump on the train. Buy low ... Sell high. :-)
Bullboard Posts