On March 9, emerging Canadian iron ore miner Consolidated Thompson Iron Mines Ltd (CLM), which has recently given the green light to an acquisition by US-based miner Cliffs Natural Resources Inc (Cliffs), announced its financial and operational results for the fourth quarter and the year ended December 31, 2010. The company reported a profit for both periods thanks to the iron ore shipments from its Bloom Lake mine which started in May 2010.
For the year 2010, CLM's revenues reached C$325.5 million compared to nil in the previous year. For the year ended on December 31, 2010, net income was C$31 million compared to a net loss of C$60.5 million in 2009.
CLM said that the results for the year reflect the strong financial performance since the initial shipments of high-quality iron ore concentrate from the Bloom Lake mine in May 2010.
Increased performance in fourth quarter
CLM's sales reached C$134.3 million in the fourth quarter of 2010. The net profit of C$42.6 million in the fourth quarter was up from a net loss of C$21.9 million in the same period of the previous year.
As SteelOrbis previously reported, Ohio-based Cliffs, the largest iron ore pellet producer in the US, and CLM had entered into a definitive agreement on January 11, 2011, for the acquisition of the latter by the former. On February 25, the C$4.9 billion arrangement was approved by 97 percent of CLM shareholder votes.
The acquisition is expected to close in early Q2 2011, and is subject to various customary closing conditions.
C$1 = US$1.034