With substantial project NPVs, the TSX iron ore stocks on our list could be set to take off once production starts
SmallCapPower | December 20, 2016: Iron ore might be a metal to watch in 2017, having almost doubled since the beginning of the year when it was about US$41/tonne. And, this trend could continue with U.S. President-Elect Donald Trump’s plan to spend between $500 billion to $1 trillion on infrastructure. That being said, the TSX iron ore stocks on our list today either have royalty rights to large iron ore deposits, or have project(s) with feasibility studies complete in Canada’s prolific Labrador Trough.
Alderon Iron Ore Corp. (TSE:ADV) – $0.36
Iron & Steel
Alderon Iron Ore Corp. is a Canada-based development-stage company engaged in conducting iron ore evaluation activities related to its Canadian properties, which are located in western Labrador in the province of Newfoundland and Labrador (collectively referred to as the Kamistiatusset, or Kami, Property). The Company is focused on developing its asset, the Kami Property, which is located next to the mining towns of Wabush and Labrador City. The Kami Property is surrounded by approximately two producing mines and includes over 305 claims in Labrador for a total of approximately 7,625 hectares.
- Market Cap: $47.56(mm)
- YTD Price PCT Change: 300.0%
- Feasibility Study NPV after tax 8% discount (CAD, Millions): $1,858.00
New Millennium Iron Corp. (TSE:NML) – $0.19
Iron & Steel
New Millennium Iron Corp. is engaged in the exploration, evaluation and development of mineral properties. Its Taconite Project has centered on the development of either or both of the LabMag and KeMag deposits to produce pellets and concentrate. The LabMag Property is located in Western Labrador, centered approximately 30 kilometers to the northwest of the town of Schefferville, Quebec. It controls the Millennium Iron Range (MIR), which holds undeveloped magnetic iron ore deposits in Canada’s iron ore district, the Labrador Trough, located in the Province of Newfoundland and Labrador and in the Province of Quebec.
- Market Cap: $34.39(mm)
- YTD Price PCT Change: 171.4%
- Feasibility Study NPV after tax 8% discount (CAD, Millions): $5,090.10
Labrador Iron Ore Royalty Corp. (TSE:LIF) – $19.40
Iron & Steel
Labrador Iron Ore Royalty Corporation (LIORC) is a Canada-based company, which owns interests in Iron Ore Company of Canada (IOC) that operates an iron mine near Labrador City, Newfoundland and Labrador on lands leased from LIORC. The Company, through its subsidiary, Hollinger-Hanna Limited (Hollinger-Hanna), holds approximately 15.10% equity interest in IOC. The Company operates through the segment of its investment in IOC and its IOC royalty and commission interests. LIORC holds certain mining leases and mining licenses covering approximately 18,200 hectares of land near Labrador City. IOC has the capacity to extract approximately 50 million tons of crude ore annually.
- Market Cap: $1,241.60(mm)
- YTD Price PCT Change: 102.3%
Altius Minerals Corp. (TSE:ALS) – $12.58
Altius Minerals Corporation is a mining royalty and mineral project generation company. The Company is engaged in the generation and acquisition of mineral resource projects, royalties and investments. The royalty interests cover mining operations producing copper, zinc, nickel, cobalt, precious metals, potash, and thermal (electrical) and metallurgical coal. It holds royalty interests in approximately 10 producing assets in Canada that include over 4% net smelter return (NSR) royalty on 777 copper-zinc mine in Manitoba, approximately six potash mines and over five coal mines located in western Canada, and a royalty on the Bay nickel-copper-cobalt mine in Labrador, as well as interests in the Chapada Mine in Brazil. Its exploration assets also include Natashquan River-Nickel, Julienne Lake Iron Ore deposit, Taylor Brook-Nickel and others.
- Market Cap: $545.16(mm)
- YTD Price PCT Change: 24.2%