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.
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.
CIA Price at posting:
$5.42 Sentiment: Buy Disclosure: Held
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