Champion Iron Ltd. trades under the symbol V.CIA and, like the CIA working undercover during one of the most vicious downturns the mining industry has ever seen (although not so blatantly undercover) they struck gold, or iron in this case. CEO Michael O’Keefe has pulled off a masterstroke by purchasing the Bloom Lake Mine and related assets for less than $9 million dollars at the lowest ebb of the cycle. This is a project which apparently was sold for almost $5 Billion 5 years back!!!!
As iron ore prices dropped 80% from levels as high as $190 per ton all the way down to $30.00 per ton, it looked like they were going to end up in negative territory, much like interest rates nowadays. But as those in the know know, this is when the best deals are to be had. Especially if you can raise the money…
Formerly employed with commodities giant Glencore Australia, Michael O’Keefe knows the business well and went about buying up iron ore assets in Quebec, which has a good reputation as a mining friendly district.
Champion share price has tripled since the purchase in January, and it would seem there is a lot more upside to be had, if you do the math. CIA bought an asset for approximately $10 million into which approximately $5 Billion was invested- That means they got it at .2% of the money put into the project!
WOW! Hat’s off to Micheal O’Keefe. With skills like that he should be working for that nefarious government agency noted earlier!
Stay tuned for more on this amazing acquisition by Champion Iron!