Champion Iron (CIA) 2021 general discussion, page-12

thanks Bucks. Much appreciated. It definitely will have an impact for CIA shareholders so appreciate any insight.

My view on CIA is that the market is underestimating the de risking going on with CIA right now due to the IO price and hence is underestimating the value of CIA shares. The big thing for CIA is the risk associated with executing stage 2 but the amount of cash going in to the bank right now reduces that risk because it gives CIA money to sort out any issues. As a high cost producer CIA needs a balance sheet with zero debt and cash in the bank to offset the risk of a price fall. The cash CIA is generating right now should allow it to stay in that balance sheet position. Hence the short term IO price is substantially de risking the CIA share price and I believe this is the reason the market is not properly valuing CIA.