Yes 1sime1,
It will be a better EPS than the the previous quarter of 2 cents/share due to the IO price higher & they paid back a debt to Sprott during that quarter, which I think was part of the reason for such a low EPS result.
However, CIA still currently at 63.2% of Bloom Lake as the 100% ownership transaction not completed as yet (likely during August I think?).
So the first full quarter with 100% ownership will not be until 2nd quarter (Oct - Dec 2019) with report end Jan 2020. Assuming IO price stays strong until end of this year then this quarter should have good result.
A media report today suggests IO will still be strong in coming months as both RIO & BHP will be doing significant maintenence on rail cars etc... so output might drop for a while. The other factors affecting the near-term IO price would be Chinese steel output (high at the moment) & what supply comes out of Brazil?
65% IO is a healthy US$129/t right now which indicates CIA likely fetching around US$132/t (small premium abue the 65% price)
However, an elephant in the room for CIA now is the high cost of shipping from Quebec to North Asia.
It's now US$27/t from Brazil to China which implies around $US35/t for CIA which is not far off their totall production & rail cost for a tonne of ore delivered to a ship in Sept-Iles (FOB approx US$40/t).
So all up I believe it's costing CIA around US$75/t total to get a tonne of ore to China right now.
China Import Dry Bulk Freight Index
2019-07-17Description Size MT
Cargo/Vessel Size
Unit
Rate
Change
Composite Index Point 1125.12 32.34 Iron ore Freight Index Point 1249.58 47.23 Dampier(West Australia)-Qingdao (China) 170000/10% Iron ore $/ton 10.568 0.185 Tubarao(Brazil)-Qingdao(China) 170000/10% Iron ore $/ton 27.04 1.516 Saldanha(South Africa)—Qingdao(China) 170000/10% Iron ore $/ton 19.7 1.373 Geraldton(Australia)—Qingdao(China) 60000/10% Iron ore $/ton 14.792 0.29
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