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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