CIA – Macquarie rates the stock as Outperform

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.

Sector: Materials.

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).

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