https://www.google.com/amp/s/news.sky.com/story/amp/rio-tinto-app...

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sam0408

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11/06/23

18:04

Post #: 68239403
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Originally posted by sam0408: ↑

Nice speculation but counter argument is this:

RIO own approx 58% of IOC which includes all the IO infrastructure in Sept Iles port and the QNS&L railway which CIA pays them to use.

RIO tried for a second time to offload their IOC asset in 2018 for circa $6 Billion but failed.

Also considering they now focussed on Copper in Mongolia and Simandou IO finally gaining traction in Africa, then not so sure they would want to expand IO operations in Canada.

FMG now have their high grade magnetite come online in Pilbara and are at early stage development of high grade ore at Belinga in **on.

I prefer MOK and David Cataford to continue their expansion and DR pellet feed plans coming to fruition in coming years.

Then when CIA becomes a $5 Billion company and in the ASX 100, perhaps a major might find its super high grade, low carbon EAF production could be a nice addition to their ESG credentials!

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https://www.google.com/amp/s/news.sky.com/story/amp/rio-tinto-approaches-bidders-for-6bn-canadian-iron-ore-stake-11473410

IOC current production pellets and concentrate combined is approx 17mtpa.

CIA will be at 15mtpa later this year and will overtake IOC in coming years once Kami in operation.

They will be paying a lot of money to IOC to to transport all this on their railway.

It might seem far-fetched to say this now but some years down the track when the time is right, I think it's more likely that CIA takeover RIO'S majority stake in IOC than the other way around.

Why invest a future $3 billion + on a third Labrador trough railway from Bloom Lake to Pointe Noire if an opportunity arises to acquire IOC's QNS&L railway!

CIA Price at posting: $6.31 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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