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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

Post by savyinvestor333on Jan 11, 2021 7:24am
272 Views
Post# 32265323

Scotia Upgrade 30% to $6.50

Scotia Upgrade 30% to $6.50Champion Iron: Our revised F2021-F2023 EBITDA forecasts of C$702 million, C$502 million, and C$579 million increased by an average of 31% per annum driven by our stronger iron ore price deck net of a stronger CAD. Our estimates anticipate the Phase II expansion at Bloom Lake begins ramping up in F2023 and reaches nameplate capacity of 15Mt in F2024. However, we forecast positive free cash flow throughout the Phase II build given elevated Fe prices. We rate Champion’s shares Sector Outperform based on Bloom Lake’s high-grade and premium concentrate, attractive margins, capital efficient near-term growth, and attractive valuation. Our revised 12-month target of C$6.50 per share (from C$5.00) is based on a 50/50 mix of 6.0x our average FY2022-2023 EV/EBITDA (C$6.07) and 1.5x our updated 8% NAVPS estimate (C$4.82).
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