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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, through its wholly owned 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. Bloom Lake is an open-pit operation with two concentrators that primarily source energy from renewable hydroelectric power. The Company ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-lles, Quebec, and has sold its iron ore concentrate to customers globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion 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 Cluster II portfolio of properties, located within 60 km south of Bloom Lake.


TSX:CIA - Post by User

Bullboard Posts
Comment by sam0408on Jul 27, 2018 9:07am
182 Views
Post# 28376053

RE:RE:RE:RE:ASX CIA quarterly out today

RE:RE:RE:RE:ASX CIA quarterly out todayGood moring Jacques & Someday,

The ASX has come off a bit after the quarterly, perhaps as a result of the lack of information around the figures or misinterpretation of them. 

The quarterly report states:

'In the 3 months ended 30 June 2018, the Company sold 1,798,000 wet metric tonnes of high grade 66% iron ore concentrate valued at US$114,864,000'

This equals US$64/t.

This is the FOB Sept-Iles realized price (not including shipping which is covered by the buyer - Sojitz)

The quarterly then states:

'In regard to the net realized price, a premium of 35% above the benchmark 62% FE Index was realized during the quarter'

The 62% FE CFR China price for the quarter averaged approx US$66/t so 35% premium above this is US$89/t. This means the buyer (Sojitz) has paid an average US$25/t for a shipment to China/Japan during the quarter.

So, referring back to the US$64/t that CIA/QIO received for the Bloom Lake concentrate FOB Sept-Iles. Look at page 18 of the Feasibility study - the last column shows the FOB Sept-Iles price for Bloom Lake concentrate as US$57/t.

So for this quarter Apr-Jun, they received US$7/t more than in the FS.

The premium for 66% FE above the benchmark 62% FE has now grown to 47% with 62% fetching US$66/t & 66% fetching US$97/t CFR China.

Shipping has also gone up recently with Sojitz now paying aound US$28/t for a shipment to China. Deduct that from the current 66% FE CFR China price of US$97/t & you find that the FOB Sept-Iles realized price of US$64/t for the last quarter is now US$69/t so far for this quarter (we will see if it holds for Aug & Sep).

In summary, CIA is very profitable, doing very well, but their reporting could do with a bit more detail/clarification.

.



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