CIA 0.46% $6.44 champion iron limited

Vale’s weaker production, China demand supports IO outlook

  1. 2,181 Posts.
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    This article is a good read & includes this:

    Credit Suisse forecast boost
    Credit Suisse on Feb. 2 lifted its 2021-22 iron ore price forecasts by 40%-50%, expecting prices to hold above $100/dmt through 2022, with a forecast of $150/dmt for 2021, and $120/dmt for 2022.

    https://www.hellenicshippingnews.com/vales-weaker-production-china-demand-supports-iron-ore-outlook/

    If iron ore was still at US$120/t for 2022 (65% Fe US$145/t) as CIA ramps up to 15 million tonnes per annum then with an US$80/t profit margin we would be looking at an annualised EBITDA rate of US$1.2 Billion (more than half CIA's current market cap)

    I hope Credit Suisse has it right!

    The majors have their dividends, but no other iron ore company can match CIA's future production growth.

 
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