CIA is an iron ore mining company that is trading at cheap valuation levels right now of 9.8x forward earnings. Revenues declined in 2023 as iron ore had some demand and supply pressures. However, thus far in fiscal 2024, CIA has seen very strong growth (though shares are still down). CIA was faced with internal labour isses recently as the company as it's workers were threatening to strike due to not reaching a terms on a CBA which could create production pressures. The balance sheet is solid with net debt of $223.5M, less than 1X cash flow. Cash flows are also quite strong and it pays a nice yield at 3.5%. We think CIA is a solid company for iron ore exposure but due to the industry's nature, there is cyclicality to worry about.
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