eResearch Issues New Speculative Buy Recommendation for Century Iron Mines (TSX:FER) - Video Summary of Report Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, May 16, 2013 - Toronto based eResearch has updated
coverage on Century Iron Mines (TSX:FER). Analyst Bob Weir gives the company a
speculative buy recommendation with an initial short-term target of $0.77, a
premium of 93% over the $0.40 price the day the report was issued. Going further
out within the year, eResearch sets a second target of $1.25.
InvestmentPitch.com has produced a "video news alert" based on this report. If
this link is not enabled, please visit www.investmentpitch.com and enter
"Century" in the search box.
Century Iron Mines is one of the largest iron ore companies in Canada, in terms
of number of claims by area, with 6,657 claims and titles, covering some
202,000 hectares in the provinces of Québec and Newfoundland & Labrador.
Having added considerably to its resource estimate in 2012 and further in 2013,
it is now one of the largest iron ore companies in Canada.
The Duncan Lake project, the only project not in the Labrador Trough, is located
in the James Bay region of Quebec. A recent Preliminary Economic Assessment for
Duncan Lake gives a Net Present Value of $4.1 billion, using an 8% discount
factor. It gives an estimated mine life of 20 years, and a payback period of
4.2 years. This is based on only two of six deposits at Duncan Lake, which
contain some 800 million tonnes of mineral resources.
Three others projects are located in the Labrador Trough region of Québec and
Newfoundland & Labrador.
One of these projects includes the Joyce Lake project, with a recent NI 43-101
compliant estimate showing 10 million tonnes of Measured and Indicated mineral
resources, with an average grade of 59.45% total iron, plus an additional 5.6
million tonnes of inferred mineral resources at a cut-off grade of 50% iron.
The company has two strategic Chinese investors (1) Wuhan Iron and Steel (WISCO)
with a 25% equity interest and (2) China Minmetals with a 5% equity interest. It
has signed definitive joint venture agreements with WISCO for two properties, as
well as off-take agreements for almost 70% of its future production.
eResearch cautions that the price of iron ore is strongly influenced by economic
conditions, and Chinese steel companies in particular. Also, the off-take
agreements are preliminary in nature, and future agreements will depend on the
success of the projects' exploration, and the iron ore market.
Analyst Bob Weir stated, "We rate the shares as a speculative buy, based on its
attractive project portfolio, strong liquidity, two key Chinese investors, and
possible initial production by 2015"
The shares trade at $0.43, and with approximately 95 million shares outstanding,
the company is capitalized at $41 million.
For more information on the company and their various projects, please visit
their website at www.centuryiron.com, or contact Bob Leshchyshen, VP Corporate
Development & Investor Relations at 416-977-3188 ext 109 or email
bob.leshchyshen(at)centuryiron.com.
The company's investor relations is handled by Robin Cook of CHF Investor
Relations, who can be reached at 416-868-1079 Ext 228 or email robin(at)chfir.com.
For a copy of the report, contact eResearch at www.eresearch.ca. While on their
site, sign up for their free reports.
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing short three minute videos based on research reports and significant
news releases. For more information contact Barry Morgan at 604-684-5524 or
bmorgan(at)investmentpitch.com.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan(at)investmentpitch.com
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Source: InvestmentPitch via Thomson Reuters ONE
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Datum: 16.05.2013 - 17:10 Uhr
Sprache: Deutsch
News-ID 261032
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