AFR..... Self professed “rock nerd” Tim Elliott has pitched $3 billion Champion Iron, which operates in Canada, as his eagerly awaited pick. He described the stock as “the most underappreciated and exciting play on decarbonisation that’s completely under the radar”.Champion, he says, has a strong balance sheet, 4 per cent dividend yield, 15 per cent free cash flow yield at the current iron ore price and had “visionary top proven management”.Regal’s Tim Elliott, left, Nonie Elliott, and Peter King in Tasmania. Amy BrownIt’s a top quality mine that’s dirt cheap at 3.9 times EBITDA based on one-year forward consensus earnings, he says.“It’s rare to find a multibillion dollar miner and such tremendous value upside. It can double and that’s without assuming it rises 43 per cent to trading in line with Fortescue and Rio which it absolutely should… and without assuming any increase in the iron ore price.” Elliott is bullish on iron ore and steel: “We see ongoing demand for steel because steel [is] so much more to society than the cost of the raw ingredients, even when the iron ore price is high.”
