Champion Iron’s phase 2 feasibility study portrays attractive metrics for expansion, the broker notes, with an internal rate of return in excess of 30%. The final hurdle is to secure financing by mid-2020.
Were the broker to input current spot iron ore prices into its valuation, earnings would jump 170%. Outperform and $4.00 target retained.
Target price is $4.00.Current Price is $3.11. Difference: $0.89 – (brackets indicate current price is over target). If CIA meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).