Building Shareholder Value from Iron Ore

Exploring Base Metal and Iron Properties in Western Labrador, Central Newfoundland and Northeastern Quebec: Featuring over 5.0 Bt of Iron Ore Resources in the Fermont Property Claim Blocks

Message: CIA Upgrade (to $5.50)

CIA Upgrade

With iron ore prices continuing to rise, Raymond James analyst Brian MacArthur raised his financial expectations and target prices for shares of both Champion Iron Ltd. and Labrador Iron Ore Royalty Corp.  on Monday.

“Iron ore prices continue to increase with P65 prices now over US$170 per ton,” he said. “In our view the recent prices reflect ongoing strong demand, lower-than-expected production forecasts from Vale in 2021 and recent cyclone warnings in Australia which highlight the potential for supply disruptions.”


Maintaining an “outperform” rating for Champion Iron, Mr. MacArthur raised his target to $5.50 from $5, which is the current consensus on the Street.

“We believe Champion offers investors good exposure to premium iron ore through its Bloom Lake asset, which is a long-life, lower-cost asset producing high-grade iron ore concentrate (66 per cent iron) located in Quebec, Canada, a lower-risk jurisdiction,” he said. “In addition, we believe Champion has potential for growth through its Bloom Lake Phase 2 expansion project at favourable capital costs, given the previous owners spent significant capital. Given Champion’s exposure to premium iron ore (which we believe should trade at a premium given structural changes in the iron ore industry), high-quality asset, growth potential, and low jurisdictional risk, we rate the shares Outperform.”

New Message
Please login to post a reply