CHAMPION IRON REPORTS ITS FY2026 FIRST QUARTER RESULTS, AND ADVANCES THE DRPF PROJECT AS SCHEDULED
Quarterly production of 3.5M wmt, record level of sales of 3.8M dmt, revenue of $390M, EBITDA of $58M1 and EPS of $0.05
Reduced inventories of iron ore concentrate stockpiled at Bloom Lake by 0.4M wmt to 2.1M wmt
DRPF project progressing as scheduled toward an expected start for commissioning in December 2025
Refinanced Senior Credit Facilities with a US$500M Senior Unsecured Notes offering, strengthening the Company's financial flexibility
MONTRÉAL, July 29, 2025 /CNW/ - SYDNEY, July 30, 2025 - Champion Iron Limited (TSX:CIA) (ASX: CIA) (OTCQX:CIAFF) ("Champion" or the "Company") reports its operational and financial results for its financial first quarter ended June 30, 2025.
Champion's CEO, Mr. David Cataford, said, "Our agile workforce remains focused on optimizing operations as we strategically position our Company to capitalize on the anticipated growth in demand for high-purity iron ore. Improving transportation logistics enabled us to achieve record quarterly iron ore concentrate sales volumes while further reducing stockpiled iron ore inventories at Bloom Lake. The DRPF project remains on track, and we recently achieved a significant milestone for the Kami Project by entering into a framework agreement with Nippon Steel Corporation and Sojitz Corporation. The framework agreement and the partnership contemplated, will allow us to advance the Kami Project without compromising our financial liquidity in the foreseeable future. Additionally, our successful US$500M Senior Unsecured Notes offering in July replaced our previous credit facilities, reinforcing our balance sheet with greater flexibility and long-term stability. As we continue to de-risk our project portfolio, our commitment remains to maximizing shareholder value while maintaining a disciplined capital management approach."
Conference Call DetailsChampion will host a conference call and webcast on July 30, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of the financial first quarter ended June 30, 2025. The conference call details are set out at the end of this press release.
1. Quarterly Highlights
Operations and Sustainability
No serious injuries or major environmental incidents were reported in the three-month period ended June 30, 2025;
Quarterly production of 3.5 million wmt (3.4 million dmt) of high-grade 66.3% Fe concentrate for the three-month period ended June 30, 2025, down 9% over the same period last year, impacted by higher hardness of processed ore and lower availability of both concentration plants;
Record quarterly sales of 3.8 million dmt for the three-month period ended June 30, 2025, up 10% from the previous quarter and 11% from the same prior-year period, despite scheduled semi-annual maintenance on third-party rail infrastructure in June 2025. As a result, iron ore concentrate stockpiled at Bloom Lake decreased by 440,000 wmt quarter-over-quarter to 2.1 million wmt as at June 30, 2025; and
Material mined and hauled at Bloom Lake reached a record 21.0 million tonnes for the three-month period ended June 30, 2025, an increase of 20% compared to the same period last year, supported by the recent addition of mining equipment.
Financial Results
Gross average realized selling price of US$105.5/dmt1, compared to the P65 index average of US$108.4/dmt in the period;
Net average realized selling price of US$73.4/dmt1, a decrease of 14% quarter-over-quarter and 26% year-over-year;
C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $81.9/dmt1 (US$59.2/dmt)2, representing an increase of 2% quarter-over-quarter and 7% year-over-year;
Net income of $23.8 million, representing EPS of $0.05, compared to $39.1 million with EPS of $0.08 in the previous quarter, and compared to a net income of $81.4 million with EPS of $0.16 in the same prior-year period;
EBITDA of $57.8 million1, a decrease of 55% quarter-over-quarter and 68% year-over-year;
On June 3, 2025, Caisse de dépôt et placement du Québec exercised warrants to acquire 15 million ordinary shares of Champion, resulting in total proceeds to the Company of $36.7 million. The warrants had been granted pursuant to a financing in August 2019;
Cash balance totalled $176.1 million as at June 30, 2025, an increase of $58.6 million since March 31, 2025, benefiting from the improvements in operating working capital and proceeds from the warrants exercise along with a drawdown on the Company's senior revolving facility (the "Revolving Facility"), while the Company continued to advance the Direct Reduction Pellet Feed project (the "DRPF Project"), and invest in sustainable capital expenditures; and
On July 2, 2025, Champion issued US$500 million of 7-year Senior Unsecured Notes with an interest rate of 7.875%. Proceeds from the offering were used to repay the Company's existing US$230 million senior term loan and the outstanding balance of US$105 million under the Revolving Facility. The transaction had minimal impact on the Company's net debt and further strengthened its available liquidity, which totalled $536.6 million1 as at June 30, 2025, and is expected to be used to support general corporate purposes.
Growth and Development
The DRPF project, designed to upgrade half of Bloom Lake's capacity to DR quality pellet feed iron ore grading up to 69% Fe, continues to progress as scheduled, with commissioning planned for December 2025 and commercial shipments of DR quality iron expected in the first half of the 2026 calendar year, gradually increasing thereafter. Quarterly and cumulative investments totalled $47.5 million and $387.0 million, respectively, as at June 30, 2025, out of an estimated total capital expenditure of $470.7 million detailed in the project study highlights released in January 2023;
During the three-month period ended June 30, 2025, progress continued on the definitive feasibility study (the "DFS") for the Kami Project, which is expected to be completed by the end of the 2026 calendar year; and
On July 21, 2025, Champion entered into a definitive framework agreement (the "Framework Agreement") with Nippon Steel Corporation ("Nippon Steel") and Sojitz Corporation ("Sojitz", and collectively with Nippon Steel, the "Partners"), pursuant to which the Partners have agreed, subject to the Framework Agreement's terms and conditions, to initially contribute $245 million for an aggregate 49% interest in Kami Iron Mine Partnership (the "Partnership"), a new entity formed for the ownership and potential development of the Kami Project. Additional details can be found in the Company's press release dated July 21, 2025 (Montréal), available under its profile on SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com.
2. Bloom Lake Mine Operating Activities
The Company performs both its plants' scheduled maintenance in the second and fourth financial quarters, creating significant quarter-over-quarter variances in production output and mining and processing costs.
Q1 FY26
Q4 FY25
Q/Q Change
Q1 FY25
Y/Y Change
Operating Data
Waste mined and hauled (wmt)
10,963,600
10,886,200
1 %
6,733,700
63 %
Ore mined and hauled (wmt)
10,070,700
9,470,100
6 %
10,779,300
(7) %
Material mined and hauled (wmt)
21,034,300
20,356,300
3 %
17,513,000
20 %
Stripping ratio
1.09
1.15
(5) %
0.62
76 %
Ore milled (wmt)
10,500,700
9,160,300
15 %
11,084,300
(5) %
Head grade Fe (%)
28.2
29.2
(3) %
29.1
(3) %
Fe recovery (%)
78.2
78.3
— %
79.3
(1) %
Product Fe (%)
66.3
66.5
— %
66.3
— %
Iron ore concentrate produced (wmt)
3,520,600
3,167,000
11 %
3,876,500
(9) %
Iron ore concentrate sold (dmt)
3,831,800
3,495,300
10 %
3,442,800
11 %
Bloom Lake produced 3.5 million wmt (3.4 million dmt) of high-grade iron ore concentrate during the three-month period ended June 30, 2025, a decrease of 9% compared to 3.9 million wmt (3.8 million dmt) produced during the same period in 2024. Bloom Lake's overall performance continued to be impacted by the hardness of ore processed, together with lower head grade. As a result, Champion's average Fe recovery rate was 78.2% for the three-month period ended June 30, 2025, compared to 79.3% for the same period in 2024. Champion is adjusting its operating and maintenance strategies to manage varying ore feed characteristics. While mining performance remained robust during the three-month period ended June 30, 2025, processing harder ore impacted grinding efficiency and Fe recovery. The Company will continue to optimize its operations and remains focused on improving and stabilizing recovery rates over time. During the quarter, the Company capitalized on a scheduled annual power interruption by the service provider, which briefly impacted operations, to perform planned maintenance on certain processing equipment.
Sales volumes reached a record level during the three-month period ended June 30, 2025, exceeding production, thereby reducing the level of iron ore concentrate stockpiled at Bloom Lake by 440,000 wmt to reach 2.1 million wmt as at June 30, 2025. During the quarter, sales were negatively impacted by a scheduled semi-annual shutdown of rail operations for third-party infrastructure maintenance. The Company expects that stockpiled volumes of iron ore concentrate will continue to decrease in future periods. However, the pace of future destocking is expected to vary due to scheduled semi-annual maintenance work at the mine and on the rail network, as well as seasonal transportation constraints. Champion continues to work closely with the rail operator to receive consistent contracted haulage services, ensuring that both ongoing production and existing stockpiles at Bloom Lake are hauled over future periods.
During the three-month period ended June 30, 2025, the Company set a new record by mining and hauling 21.0 million tonnes of waste and ore, surpassing the 17.5 million tonnes of waste and ore recorded in the same prior-year period. This improvement in mining performance was driven by Champion's investments in additional haul trucks and loading equipment during the second half of the previous financial year, as well as enhanced utilization and availability of mining equipment. The strong mining performance enabled the Company to mine and haul a higher volume of waste material, resulting in a stripping ratio of 1.09 for the three-month period ended June 30, 2025, significantly higher than the 0.62 ratio recorded in the same prior-year period. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with its LoM plan.
3. Financial Performance
Q1 FY26
Q4 FY25
Q/Q Change
Q1 FY25
Y/Y Change
Financial Data (in thousands of dollars)
Revenues
390,027
425,345
(8) %
467,084
(16) %
Cost of sales
313,928
279,644
12 %
264,911
19 %
Other expenses
18,712
19,619
(5) %
21,159
(12) %
Net finance costs
(13,256)
11,286
(217) %
8,259
(261) %
Net income
23,784
39,140
(39) %
81,357
(71) %
EBITDA1
57,753
127,378
(55) %
181,160
(68) %
Statistics (in dollars per dmt sold)
