Champion Iron (ASX:CIA) sales in the fiscal fourth quarter ending March are expected to exceed production and ultimately deplete piled-up stocks over the next three years, according to a Jan. 31, note by Jarden Research.
The company said a piece of machinery at its train load-out facility in Quebec, Canada broke down on Dec. 3, temporarily interrupting the facility's shipments, which gradually resumed on Dec. 17, following repairs.
Champion Iron added that it had stockpiled ore for future shipments.
Despite a 14-day pause, the company reported Thursday that it sold 3.3 million wet metric tonnes of iron ore concentrates during the fiscal third quarter, comparable with the previous quarter, Jarden said.
The company's all-in sustaining costs fell to AU$93.9 from AU$101.4 per dry metric tonne, Jarden Research added.
It believes that increased rail car availability and improved operator efficiency are expected to reduce stockpiles and costs over the fiscal year.
Jarden Research maintained Champion Iron's overweight rating but raised its price target to AU$7.34 from AU$7.26.
Shares of the company fell 4% in recent Monday trade.
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