Very confident, very bullish comments from company during conference call
* record production achieved during shutdown quarter * strong indigenous & community relations (especially, IMO, when compared with companies like Vale in Brazil and Rio Tinto) * high grade iron ore price is expect to remain elevated going forward with no new high grade material coming on to market * stable Fe recovery to continue * strong cashflow supported inaugural dividend. Dividend strategy stressed tested under a number of scenarios. To be reviewed every 6 months but balanced towards growth * CIA has a mix of backward pricing contracts (Japan) and forward pricing contracts which serves to smooths q-o-q realised price * Phase 2 production to begin in April and ramp up over 6 months to full commercial production by calendar year end. Accounting will recognise each incremental ton produced from April onwards * Port work ramp-up going well during challenging COVID times. No bottleneck foreseen for phase 2 production. * Kami project feasibility study mid-2022 with commercial production targeted of 2025 * 69% Fe DRI pellet feed product is key focus to CIA growth strategy. Huge demand going forward for higher and higher grade enabling 'greener' steel making industry * 69% DRI FS due mid 2022
CIA Price at posting:
$5.83 Sentiment: Buy Disclosure: Held
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(20min delay)