With the recent rise in the iron ore price, the iron ore juniors we’ve discovered could continue their upward stock-price movement
SmallCapPower | February 15, 2019: On January 25, 2019, a tailing’s dam at one of Brazilian miner Vale’s (NYSE:VALE) iron ore mines in south-eastern Brazil collapsed. Vale now faces numerous lawsuits and announced it would decommission a further 10 dams that use the same up-stream method. This has pressured global iron supplies leading to an expected reduction in global iron ore output by 40 million tonnes a year. As a result, iron ore prices have spiked 22% from ~US$74 per tonne on January 20 to ~US$90 per tonne on February 11. Today we have identified four TSX-listed iron ore juniors that are poised to continue to benefit from rising iron ore prices.
*Share prices as at close February 13, 2019, data obtained from S&P Capital IQ
New Millennium Iron Corp. (TSX:NML) -$0.10
Iron & Steel
New Millennium Iron explores, evaluates, and develops iron ore deposits in Canada. Millennium Iron Range is the Company’s flagship asset, which includes interests in the LabMag and KéMag taconite properties in the Labrador Trough, which covers Newfoundland and Labrador, as well as Schefferville, Quebec. As of February 11, the Company’s shares reached a new 52-week high of $0.11, previously closing at $0.08.
- Market Cap: $18.1 million
- 5-Day Return: +33.3%
- 1-Month Return: +66.7%
- 14-Day Average Volume: 960,000
- 30-Day Average Volume: 530,000
Alderon Iron Ore Corp. (TSX:IRON) – $0.44
Iron & Steel
Alderon Iron Ore is a Canada-based, development-stage company that engages in evaluation of iron ore activities. The Company has properties located in western Labrador, Newfoundland and Labrador, which is referred to as the Kamistiatusset (Kami) Property. Alderon focuses on developing its Kami Property, which is located near Wabush and Labrador City. The Kami Property is surrounded by two producing mines and includes over 205 claims in Labrador for a total of 7,625 hectares. On September 26, 2018, the Company announced results of its Feasibility Study on the Rose Deposit within the Kami Project. The study demonstrated that the Kami Project will produce a premium-quality iron ore concentrate with higher iron (Fe) content and low impurities relative to the 62%-Fe benchmark.
- Market Cap: $59.5 million
- 5-Day Return: +10.3%
- 1-Month Return: +73.1%
- 14-Day Average Volume: 405,000
- 30-Day Average Volume: 218,000
Champion Iron Ltd. (TSX:CIA) – $1.49
Iron & Steel
Champion Iron is an iron development and exploration company that focuses on developing its resources in the south end of the Labrador Trough located in Quebec. CIA recently acquired the Bloom Lake Mine close to the Quebec and Labrador border. The property is estimated produce 7.4 million tonnes per year, over a 21-year anticipated mine life span. On February 14, the Company released its Q3/18 operational and financial results. Champion Iron reported $185M cash on hand, a $160M increase since Q2/18.
- Market Cap: $621.6 million
- 5-Day Return: +0.0%
- 1-Month Return: +35.5%
- 14-Day Average Volume: 956,000
- 30-Day Average Volume: 1,007,000
Black Iron Inc (TSX:BKI) – $0.085
Iron & Steel
Black Iron is an iron ore exploration and development company. It holds a 100% interest in the 2.56 sq. km Shymanivske project located in Ukraine. On September 4, 2018, the Company received a proposal from the Ukrainian government to lease to the Company land located next to its Shymanivske asset. This marked a significant milestone in the Project’s development, obtaining government support.
- Market Cap: $13.6 million
- 5-Day Return: +0.0%
- 1-Month Return: +80.0%
- 14-Day Average Volume: 780,000
- 30-Day Average Volume: 488,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
