Champion Iron’s December quarter revenue and earnings both beat expectations, with higher realised prices offsetting lower shipments.
The company has sufficient funding capacity, the broker notes, for the Bloom Lake phase 2 expanison which will see production double over three years. Meanwhile, bouyant iron ore prices support a solid earnings upgrade cycle. Outperform and $6.00 target retained.
Sector: Materials.
Target price is $6.00.Current Price is $5.21. Difference: $0.79 – (brackets indicate current price is over target). If CIA meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
