Champion Iron Mines Limited CPMNF

RE: RE: RE: RE: RE: RE: RE: RE: Rail, ADV vs CHM

[greenandgold]

ADV's PEA for Kami was remarkably good. Net present value of $3 billion for ADV's Kami compared to Fire Lake North's net present value of $940 million. That's a stark difference. Of course both properties will add in resources in their respective feasibility studies (Kami's NPV didn't include Mills Lake or North Rose; Fire Lake North will include some more satellite deposits). But the numbers don't lie: Kami is a much better bet to become an economic mine. Less rail to build, better iron ore grades.
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Why can't they both become mines? Maybe they can, but rail capacity on the QNSL will run out at some point. I think ADV grabs a big chunk, just because it has less to do than Champion. And Century Iron is looking very aggressive with its recent deal with Altius. They optioned 4 iron ore properties, all very close to the rail line between Shefferville and Labrador City.
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The location of most of Champion's properties is much more remote than management implies. They are very far from the main common carrier rail, the QNSL. And I'm not sure the proposed linkage to the Bloom Lake spur will solve the problem, given Cliff's expansion plans for Bloom Lake production.