|
Here is the path of Consolidate Thompson. It plummeted to CHM levels. Then they built it up. there are many events that are instructive. For example, CLiffs got Wisco to agree to takeover before the public. This would be comparable to FNC agreeing before takeover of CHM. Things like that. It's incredible that these are the same guys signed onto the FNC/CHM joint venture in the Fermont.
I just combined NR's with SP surrounding NR, with a smattering of Agoracom posts. If in the future our story is written, the posters will be on record.
The story Begins:
Post from agoracom
KeithH
Bright Future - as I see it
posted on Mar 11, 0808:48AM
Word of caution. Investing is risky business. Any comments I offer are for the purpose of encouraging discussion NOT to get you to buy or sell any particular stock.
Having said that I like the potential of CLM. I had held some shares a year or so ago but sold after one of its rise spurts. As of late I have purchased again and I see positive things in this company's future.
Indications are that it has a fabulous deposit in the ground and is getting well positioned to move forward. To that end it announced just this past week that it has entered a bought-deal financing agreement to sell 20 million common shares at C$7.80 a share for gross proceeds of C$156 million (US$158 million) with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. It said it will grant the underwriters an over-allotment option to purchase up to an additional 3 million common shares for an additional gross proceeds of C$23.4 million, exercisable at the issue price at any time until the 30th day following the closing date of the offering.
The closing for this financing deal is expected to occur by March 27.
They intend to use the net proceeds to finance development activities on the Bloom Lake property in Quebec, and may also be used to finance future acquisitions of complementary mining assets and for working capital purposes.
So great resource and financing being put in place to make production a reality.
The question then is:Am I missing something here?
Average daily volume (past 20 day average) is only 165K
No First Call Analysts are yet reporting on this company (per TD Waterhouse info)
With a reported world class resource and the money nearly in hand to develop it why is there not more interest in this stock? As I write this share price is currently $7.59 (up 4 cents on the day), below the privately brokered deal referred to above.
I look forward to some discussion on these and other points in the weeks ahead.
Successful Investing,
Keith
Consolidated Thompson and the Uashaunnuat People Enter Into Impact and Benefits Agreement With Respect to the Bloom Lake Iron Mine Project
MONTREAL, QUEBEC--(Marketwire - May 26, 2008) - Consolidated Thompson Iron Mines Limited (TSX:CLM)("CLM" or the "Company") and the Uashaunnuat people, the Innu of the Uashat and Mani-Utenam communities located in or near Sept-Iles, Quebec (the "Uashaunnuat") have entered into an Impact and Benefits Agreement (the "IBA") with respect to the carrying out of the Bloom Lake Iron Mine Project (the "Project"). The IBA has been ratified through a membership consultation vote by a large majority of the Uashaunnuat and unanimously approved by the Innu Takuaikan Uashat mak Mani-Utenam Band Council ("ITUM"), representing the membership. An official signing ceremony is scheduled to take place in Uashat by May 31, 2008.
|
6/3/08
|
9.93
|
9.93
|
9.65
|
9.78
|
80,151
|
0.08
|
0.82%
|
9.78
|
|
6/2/08
|
9.97
|
10.14
|
9.70
|
9.70
|
430,323
|
-0.51
|
-5.00%
|
9.70
|
|
5/30/08
|
9.16
|
10.21
|
9.16
|
10.21
|
407,056
|
0.91
|
9.78%
|
10.21
|
|
5/29/08
|
8.90
|
9.31
|
8.90
|
9.30
|
38,695
|
-0.09
|
-0.96%
|
9.30
|
From May to December, CLM plummets to .85c.
Summary of Study's Key Findings:
- Bloom Lake projected to produce 8.0 million tonnes of 66.5% concentrate per year beginning in September 2009.
- 8.0 MTPY represents a 14% increase over the previous 7.0 MTPY plan.
- Capital Cost (including working capital): Cdn$486.4 million.
- Pre-tax IRR: 58.9% using US$1.069 per iron unit equivalent to revenue price of US$71.09/tonne of concentrate.
- Total life of mine operating cost: US$24.76/tonne concentrate.
- NPV (at 10% Discount rate) of US$2.348 billion (pre-tax).
- Total life of mine undiscounted pre-tax Cash Flow of US$6.813 billion.
- Forecasted yearly pre-tax Cash Flow exceeding US$360 million.
- Payback of 2.6 years.
Agoracom Post from Cupcake
Re: Bright Future - as I see it
in response toBright Future - as I see itbyKeithH
posted on Dec 08, 0802:06PM
Lots have changed since your post; however I believe that CLM still has a bright future. They are getting ready to construct facilities for their workforce, which is supposed to be a fly-in operation. The mine site is progressing well...so now we wait for the markets to rebound along with the price of Iron ore. One of the three producers in the area (Wabush Mines) have been in seemingly perpetual trouble for years with high cost per ton being a noose around their neck. From what I can gather the Bloom Lake deposit will be a lower cost per ton operation than Wabush, so perhaps the merger that almost happened a year ago between CLM and Wabush Mines may yet happen. That would be very good news for the area.
Pete
|
12/31/08
|
0.91
|
0.95
|
0.91
|
0.94
|
1,007,025
|
0.00
|
0.00%
|
0.94
|
|
12/30/08
|
0.87
|
0.94
|
0.83
|
0.94
|
650,392
|
0.07
|
8.05%
|
0.94
|
|
12/29/08
|
0.85
|
0.89
|
0.82
|
0.87
|
1,011,476
|
0.02
|
2.35%
|
0.87
|
|
12/24/08
|
0.87
|
0.87
|
0.84
|
0.85
|
157,250
|
-0.03
|
-3.41%
|
0.85
|
|
12/23/08
|
0.85
|
0.88
|
0.81
|
0.88
|
212,532
|
-0.02
|
-2.22%
|
0.88
|
|
12/22/08
|
0.93
|
0.96
|
0.86
|
0.90
|
239,847
|
0.00
|
0.00%
|
0.90
|
Consolidated Thompson Comments on Recent Stock Activity
TORONTO, ONTARIO--(Marketwire - March 4, 2009) - Consolidated Thompson Iron Mines Limited (TSX:CLM) announced today, in response to a request from the Investment Industry Regulatory Organization of Canada relating to the recent increase in trading activity and share price, that it is in advanced discussions in respect of a possible strategic financing and offtake arrangement. There can be no assurance that the transaction will be consummated.
Consolidated Thompson Iron Mines Limited is an exploration and development company. The Company believes that the updated positive Feasibility Study, based on the current understanding of the quality and size of the Bloom Lake deposit, reflects the potential to expand and advance the project and exploit other opportunities in the iron ore industry. The Company has approximately 119.4 million shares outstanding and trades on the TSX under the symbol CLM. Further information can be accessed at the Company's website at www.consolidatedthompson.com.
Consolidated Thompson Increases Total Estimated Measured and Indicated Mineral Resources by 189 Million Tonnes to Total of 827 Million Tonnes and Total Inferred Resources of 83 Million Tonnes
TORONTO, ONTARIO--(Marketwire - March 17, 2009) - Consolidated Thompson Iron Mines Limited (TSX:CLM) ("Consolidated Thompson" or "CLM") is pleased to announce that it has increased the estimated mineral resources at its Bloom Lake project by identifying three additional zones of mineralization. As outlined below, Consolidated Thompson has estimated additional indicated mineral resources of 189.2 million tonnes at a grade of 27.94% Fe (Total Fe) and additional inferred mineral resources of 47.2 million tonnes at a grade of 29.32%.
|
3/25/09
|
2.32
|
2.38
|
2.23
|
2.32
|
258,860
|
0.00
|
0.00%
|
2.32
|
|
3/24/09
|
2.40
|
2.40
|
2.23
|
2.32
|
335,631
|
-0.08
|
-3.33%
|
2.32
|
|
3/23/09
|
2.30
|
2.41
|
2.24
|
2.40
|
757,231
|
0.06
|
2.56%
|
2.40
|
|
3/20/09
|
2.41
|
2.49
|
2.34
|
2.34
|
118,511
|
0.04
|
1.74%
|
2.34
|
|
3/19/09
|
2.47
|
2.55
|
2.30
|
2.30
|
503,991
|
-0.13
|
-5.35%
|
2.30
|
|
3/18/09
|
2.48
|
2.50
|
2.34
|
2.43
|
108,865
|
0.02
|
0.83%
|
2.43
|
|
3/17/09
|
2.40
|
2.44
|
2.28
|
2.41
|
148,466
|
-0.03
|
-1.23%
|
2.41
|
|
3/16/09
|
2.35
|
2.48
|
2.35
|
2.44
|
265,625
|
0.06
|
2.52%
|
2.44
|
|
3/13/09
|
2.33
|
2.46
|
2.29
|
2.38
|
217,561
|
0.05
|
2.15%
|
2.38
|
|
3/12/09
|
2.34
|
2.52
|
2.28
|
2.33
|
1,394,525
|
0.00
|
0.00%
|
2.33
|
|
3/11/09
|
2.30
|
2.46
|
2.24
|
2.33
|
415,800
|
-0.01
|
-0.43%
|
2.33
|
|
3/10/09
|
2.19
|
2.49
|
2.17
|
2.34
|
1,425,860
|
0.14
|
6.36%
|
2.34
|
|
3/9/09
|
2.16
|
2.30
|
2.00
|
2.20
|
1,794,254
|
0.13
|
6.28%
|
2.20
|
|
3/6/09
|
2.19
|
2.19
|
2.05
|
2.07
|
181,508
|
-0.02
|
-0.96%
|
2.07
|
|
3/5/09
|
2.25
|
2.30
|
2.04
|
2.09
|
2,017,240
|
-0.26
|
-11.06%
|
2.09
|
|
3/4/09
|
1.77
|
2.48
|
1.77
|
2.35
|
7,558,087
|
0.61
|
35.06%
|
2.35
|
|
3/3/09
|
1.53
|
1.75
|
1.53
|
1.74
|
2,590,900
|
0.21
|
13.73%
|
1.74
|
|
3/2/09
|
1.75
|
1.75
|
1.41
|
1.53
|
825,450
|
-0.22
|
-12.57%
|
1.5
|
Consolidated Thompson Announces US$240 Million Strategic Investment from Wuhan Iron and Steel Group
TORONTO, ONTARIO--(Marketwire - March 30, 2009) - Consolidated Thompson Iron Mines Limited (TSX:CLM) ("CLM") is pleased to announce the signing of a letter agreement with Wuhan Iron and Steel (Group) Corporation ("WISCO"), one of China's largest steel producers, for a strategic investment by WISCO into Consolidated Thompson.
|
4/14/09
|
3.14
|
3.14
|
2.92
|
3.01
|
838,801
|
-0.13
|
-4.14%
|
3.01
|
|
4/13/09
|
2.84
|
3.19
|
2.84
|
3.14
|
1,306,458
|
0.31
|
10.95%
|
3.14
|
|
4/9/09
|
2.60
|
2.87
|
2.60
|
2.83
|
1,365,023
|
0.22
|
8.43%
|
2.83
|
|
4/8/09
|
2.56
|
2.69
|
2.56
|
2.61
|
1,272,367
|
-0.02
|
-0.76%
|
2.61
|
|
4/7/09
|
2.79
|
2.80
|
2.57
|
2.63
|
1,851,904
|
-0.17
|
-6.07%
|
2.63
|
|
4/6/09
|
2.83
|
2.83
|
2.65
|
2.80
|
1,469,791
|
-0.01
|
-0.36%
|
2.80
|
|
4/3/09
|
2.67
|
2.90
|
2.65
|
2.81
|
5,356,870
|
0.03
|
1.08%
|
2.81
|
|
4/2/09
|
2.95
|
3.03
|
2.76
|
2.78
|
1,849,186
|
-0.07
|
-2.46%
|
2.78
|
|
4/1/09
|
2.64
|
2.92
|
2.54
|
2.85
|
1,485,896
|
0.26
|
10.04%
|
2.85
|
|
3/31/09
|
2.74
|
2.74
|
2.55
|
2.59
|
7,345,728
|
-0.01
|
-0.38%
|
2.59
|
|
3/30/09
|
2.75
|
3.00
|
2.58
|
2.60
|
11,202,828
|
0.31
|
13.54%
|
2.60
|
|
3/27/09
|
2.25
|
2.32
|
2.15
|
2.29
|
166,061
|
0.00
|
0.00%
|
2.29
|
|
3/26/09
|
2.37
|
2.37
|
2.25
|
2.29
|
174,220
|
-0.03
|
-1.29%
|
2.29
|
|
May 12, 2009
|
|
Consolidated Thompson Establishes a Stand-By Facility for Up to US$50 Million
Mine production on track to reach full production of 8 MTPY scenario by the end of the year
|
|
TORONTO, ONTARIO--(Marketwire - May 12, 2009) - Consolidated Thompson Iron Mines Limited (TSX:CLM) ("Consolidated Thompson" or the "Company") is pleased to announce that it has entered into a term sheet with Marret Asset Management Inc. providing for a US$50 million secured note facility. The proposed facility would allow the Company to draw down up to US$50 million at any time prior to December 31, 2009. Consolidated Thompson would issue secured notes that represent any amount drawn down under the facility, which notes would mature on the date that is three years from the date of issue, provide for annual interest payments, and be subject to redemption by the Company at any time. At the time of draw down under the facility, the Company would be entitled to elect the applicable interest rate of either (i) 15% per year, or (ii) 10% per year and the issue of share purchase warrants having a present value that would create a yield of 15% per year.
|
|
6/11/09
|
3.74
|
3.90
|
3.72
|
3.78
|
2,098,418
|
0.09
|
2.44%
|
3.78
|
|
6/10/09
|
3.66
|
3.93
|
3.62
|
3.69
|
3,672,775
|
0.19
|
5.43%
|
3.69
|
|
6/9/09
|
3.65
|
3.67
|
3.40
|
3.50
|
3,298,365
|
0.00
|
0.00%
|
3.50
|
|
6/8/09
|
3.57
|
3.57
|
3.30
|
3.50
|
734,782
|
0.02
|
0.57%
|
3.50
|
Consolidated Thompson Receives China Government Approvals for WISCO Strategic Investment
TORONTO, ONTARIO--(Marketwire - July 17, 2009) - Consolidated Thompson Iron Mines Limited (TSX:CLM) ("CLM" or the "Company") is pleased to announce that Wuhan Iron and Steel (Group) Corporation ("WISCO") has received the necessary approvals from the China government in respect of the previously announced strategic investment of US$240 million by WISCO into CLM. Closing of the strategic investment has been scheduled for Monday, July 20, 2009.
|
9/2/09
|
4.50
|
4.54
|
4.42
|
4.50
|
805,883
|
-0.09
|
-1.96%
|
4.50
|
|
9/1/09
|
4.55
|
4.72
|
4.45
|
4.59
|
3,407,650
|
-0.07
|
-1.50%
|
4.59
|
|
8/31/09
|
4.75
|
4.75
|
4.56
|
4.66
|
333,513
|
-0.12
|
-2.51%
|
4.66
|
|
8/28/09
|
4.75
|
4.90
|
4.70
|
4.78
|
687,903
|
0.10
|
2.14%
|
4.78
|
|
8/27/09
|
4.86
|
4.86
|
4.51
|
4.68
|
2,027,450
|
-0.15
|
-3.11%
|
4.68
|
|
8/26/09
|
4.91
|
4.91
|
4.72
|
4.83
|
667,805
|
-0.05
|
-1.02%
|
4.83
|
Slow steady climb through end of 2009 and through 2010
|
1/14/10
|
7.97
|
8.08
|
7.85
|
8.03
|
2,946,217
|
0.13
|
1.65%
|
8.03
|
|
1/13/10
|
7.69
|
7.91
|
7.54
|
7.90
|
2,113,425
|
0.11
|
1.41%
|
7.90
|
|
1/12/10
|
7.93
|
7.93
|
7.44
|
7.79
|
2,949,427
|
-0.21
|
-2.62%
|
7.79
|
|
1/11/10
|
8.04
|
8.22
|
7.96
|
8.00
|
2,655,457
|
0.10
|
1.27%
|
8.00
|
|
1/8/10
|
7.93
|
7.93
|
7.77
|
7.90
|
4,198,288
|
-0.04
|
-0.50%
|
7.90
|
|
1/7/10
|
7.47
|
8.08
|
7.37
|
7.94
|
3,218,845
|
0.52
|
7.01%
|
7.94
|
|
1/6/10
|
7.50
|
7.59
|
7.34
|
7.42
|
2,061,721
|
0.22
|
3.06%
|
7.42
|
|
1/5/10
|
6.90
|
7.24
|
6.84
|
7.20
|
1,695,682
|
0.30
|
4.35%
|
7.20
|
|
1/4/10
|
6.85
|
6.98
|
6.84
|
6.90
|
1,708,339
|
0.14
|
2.07%
|
6.90
|
|
12/31/09
|
6.82
|
6.94
|
6.73
|
6.76
|
347,874
|
-0.08
|
-1.17%
|
6.76
|
|
12/30/09
|
6.95
|
6.95
|
6.72
|
6.84
|
361,740
|
-0.07
|
-1.01%
|
6.84
|
|
12/29/09
|
6.90
|
6.96
|
6.86
|
6.91
|
918,804
|
0.01
|
0.14%
|
6.91
|
|
12/24/09
|
6.90
|
7.03
|
6.89
|
6.90
|
556,216
|
0.04
|
0.58%
|
6.90
|
|
12/23/09
|
6.76
|
6.86
|
6.76
|
6.86
|
690,331
|
0.11
|
1.63%
|
6.86
|
|
8/5/10
|
8.57
|
8.57
|
8.25
|
8.32
|
2,460,460
|
-0.27
|
-3.14%
|
8.32
|
|
8/4/10
|
8.75
|
8.78
|
8.59
|
8.59
|
1,975,811
|
-0.11
|
-1.26%
|
8.59
|
|
8/3/10
|
8.33
|
8.82
|
8.33
|
8.70
|
2,274,522
|
0.46
|
5.58%
|
8.70
|
|
7/30/10
|
8.00
|
8.30
|
8.00
|
8.24
|
1,251,147
|
0.16
|
1.98%
|
8.24
|
|
7/29/10
|
8.00
|
8.20
|
8.00
|
8.08
|
1,200,635
|
0.15
|
1.89%
|
8.08
|
Consolidated Thompson Iron Mines Limited Operational Updates
MONTREAL, QUEBEC, Sep. 9, 2010 (Marketwire) -- Consolidated Thompson Iron Mines Ltd. (TSX:CLM) ("CLM" or the "Corporation", or "Consolidated Thompson") is pleased to announce that it has received written authorization from the Minister of Natural Resources of the Government of Newfoundland and Labrador to increase the transport of iron ore concentrate over the Bloom Lake railway by an additional 8.0 million tonnes per year, bringing the total tonnage of iron ore concentrate transported by CLM over such railway to 16.0 million tonnes per year. The Corporation continues to implement its plan to double its capacity for mining operations at Bloom Lake by the end of 2012 and expects to initiate construction work for its new process facilities before the end of this year.
CLM also continues to increase production at the Bloom Lake mine at a steady rate and expects to reach a rate of production equivalent to 90 percent of 8 million tonnes per annum by the end of 2010. The Corporation anticipates that it will reach a rate of production of 8 million tonnes per annum in the first quarter of 2011.
|
9/13/10
|
8.75
|
8.82
|
8.57
|
8.67
|
1,587,680
|
0.03
|
0.35%
|
8.67
|
|
9/10/10
|
8.67
|
8.73
|
8.54
|
8.64
|
622,160
|
0.02
|
0.23%
|
8.64
|
|
9/9/10
|
8.74
|
8.84
|
8.52
|
8.62
|
1,393,873
|
-0.06
|
-0.69%
|
8.62
|
|
9/8/10
|
8.85
|
8.96
|
8.59
|
8.68
|
1,171,793
|
-0.19
|
-2.14%
|
8.68
|
|
9/7/10
|
8.99
|
8.99
|
8.79
|
8.87
|
491,670
|
-0.13
|
-1.44%
|
8.87
|
Consolidated Thompson Iron Mines Reports First Profit and Positive Operating Cash Flow in Third Quarter 2010
MONTREAL, QUEBEC, Nov. 5, 2010 (Marketwire) --
Attention: Business / Financial Editors
Consolidated Thompson Iron Mines Ltd. (TSX:CLM) ("CLM" or the "Corporation", or "Consolidated Thompson") today reported financial and operational results for the third quarter ended September 30, 2010.
Highlights:
- The Corporation successfully achieved the first full quarter of production
and shipments of high-quality iron ore concentrate from its Bloom Lake
property.
- The Corporation recorded its first quarterly profit with a net income of
$46.4 million or $0.19 per diluted share.
- Cash flow from operating activities was positive for the first time in the
third quarter at $51.0 million or $0.21 per share.
- Production ramp-up at the Bloom Lake mine continues and the Corporation
expects to reach 90% of the design capacity of 8 million tonnes per year
("MTPY") at the end of this year and expects to reach a rate of 8 MTPY at
the end of the first quarter 2011.
- The Corporation ended the quarter with cash resources of $48.2 million and
expects positive operating cash flow going forward, subject to global
market conditions.
- Expansion of the Bloom Lake mine and mill to 16 MTPY of high quality iron
ore concentrate is underway as engineering and civil work are proceeding.
The Corporation will also start the foundation of the new mill before
year-end. In addition, authorization has been received from the government
of Newfoundland and Labrador to double annual rail transport volume to 16
MTPY.
|
11/9/10
|
12.07
|
12.54
|
11.45
|
11.66
|
3,636,419
|
-0.25
|
-2.10%
|
11.66
|
|
11/8/10
|
11.74
|
11.97
|
11.30
|
11.91
|
5,304,542
|
0.10
|
0.85%
|
11.91
|
|
11/5/10
|
10.95
|
11.88
|
10.88
|
11.81
|
5,072,603
|
0.97
|
8.95%
|
11.81
|
|
11/4/10
|
10.85
|
11.05
|
10.67
|
10.84
|
2,470,642
|
0.31
|
2.94%
|
10.84
|
|
11/3/10
|
10.12
|
10.56
|
9.95
|
10.53
|
2,205,634
|
0.58
|
5.83%
|
10.53
|
|
11/2/10
|
9.95
|
10.06
|
9.88
|
9.95
|
791,377
|
0.12
|
1.22%
|
9.95
|
|
11/1/10
|
9.98
|
10.06
|
9.73
|
9.83
|
1,154,833
|
-0.05
|
-0.51%
|
9.83
|
Consolidated Thompson Iron Mines Limited to be Acquired by Cliffs Natural Resources Inc. for C$17.25 per Share in Cash Representing a Transaction Value of Approximately C$4.9 Billion
Highlights:
- Unanimous recommendation of CLM's Board of Directors
- Wuhan Iron and Steel (Group) Corporation, CLM's largest shareholder at approximately 19%, has agreed to vote in favour of the Arrangement
- Directors, senior officers and other insi
MONTREAL, QUEBEC, Jan. 11, 2011 (Marketwire) --
Consolidated Thompson Iron Mines Limited (TSX:CLM) ("CLM" or the "Corporation") today announced that it has entered into a definitive agreement (the "Arrangement Agreement") pursuant to which Cliffs Natural Resources Inc. ("Cliffs") will acquire all the outstanding common shares of CLM by way of a plan of arrangement (the "Arrangement") for C$17.25 per share in cash, valuing the Corporation at approximately C$4.9 billion. The cash consideration of C$17.25 per share to be received by shareholders represents an implied premium of 30% to both CLM's closing share price of C$13.22 and 20-day volume weighted average trading price of C$13.23 on the Toronto Stock Exchange as at January 10, 2011. Cliffs has committed financing of US$4.0 billion and available liquidity sufficient to fund the proposed transaction.
|
1/18/11
|
17.33
|
17.35
|
17.28
|
17.29
|
5,846,086
|
-0.02
|
-0.12%
|
17.29
|
|
1/17/11
|
17.35
|
17.39
|
17.29
|
17.31
|
3,232,416
|
-0.09
|
-0.52%
|
17.31
|
|
1/14/11
|
17.28
|
17.44
|
17.28
|
17.40
|
9,622,394
|
0.07
|
0.40%
|
17.40
|
|
1/13/11
|
17.30
|
17.44
|
17.27
|
17.33
|
15,850,338
|
-0.02
|
-0.12%
|
17.33
|
|
1/12/11
|
17.90
|
17.95
|
17.26
|
17.35
|
48,386,121
|
3.97
|
29.67%
|
17.35
|
|
1/11/11
|
13.40
|
13.64
|
13.27
|
13.38
|
2,968,682
|
0.16
|
1.21%
|
13.38
|
|
1/10/11
|
13.30
|
13.40
|
13.10
|
13.22
|
1,225,466
|
0.00
|
0.00%
|
13.22
|
|
1/7/11
|
13.40
|
13.61
|
13.19
|
13.22
|
1,905,501
|
-0.19
|
-1.42%
|
13.22
|
|
1/6/11
|
13.77
|
13.77
|
13.37
|
13.41
|
1,481,401
|
-0.28
|
-2.05%
|
13.41
|
|
1/5/11
|
13.85
|
13.85
|
13.29
|
13.69
|
3,787,778
|
-0.16
|
-1.16%
|
13.69
|
http://seekingalpha.com/article/246369-consolidated-thompson-acquisition-to-help-cliffs-expand-into-asia
International miner Cliffs Natural Resources (NYSE:CLF) announced after markets closed on Tuesday that it has agreed to acquire iron ore producer Consolidated Thompson Limited in an all-cash deal valued at approximately C$4.9 billion. The C$17.25 per share price represents a premium of 30% to the company's closing price on Monday.
Consolidated Thompson, which currently operates in northeastern Quebec, western Newfoundland and Labrador, manages and operates Bloom Lake, an open-pit iron ore mine, and two adjacent development properties, Lamelee and Peppler Lake. The producing operations are currently ramping to an annualized production rate of 8 million metric tons of iron ore concentrate, with an expansion in progress that is expected to double the company's annualized production to 16 million metric tons.
The company controls approximately 580 million metric tons of proven and probable iron ore reserves at an average grade of 30%. In addition, it has over a billion metric tons of measured and indicated resources, with potential additional resources to be proven via a near-mine drilling program.
"The acquisition of Consolidated Thompson will combine a low-operating risk profile with access to high-growth global markets and broaden our exposure to seaborne iron ore prices," said Cliffs chairman, president and CEO, Jospeh A. Carrabba.
Indeed, Consolidated Thomposon is considered to have a low-risk profile as its assets are located close to a hydroelectric power grid, along with roads and a rail line that link the processing facility to deep sea ports in Quebec. This infrastructure, coupled with Consolidated Thompson's newly commissioned concentrator facility and absence of royalty payments, positions it as a low-cost iron ore producer.
In addition, Consolidated Thompson's operations are located close to Cliff's property at Wabush Mines in Eastern Canada, a 5.6 million metric-ton rated capacity iron ore pellet operation with rail and port infrastructure that adds additional support to Consolidated's assets.
Cliffs has already entered into lock-up agreements with Consolidated Thompson's largest shareholder, Wuhan Iron and Steel, which owns nearly 19% of its shares.
After the acquisition closes, Cliffs' global mine portfolio will include ten iron ore facilities, six coal mines and a pre-feasibility chrome-development project across North America, South America and Australia.
|
