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Cision Canada
28-05-2025
- Business
- Cision Canada
CHAMPION IRON REPORTS ITS FY2025 FOURTH QUARTER RESULTS AND DECLARES DIVIDEND Français
Quarterly production of 3.2M wmt, record sales of 3.5M dmt, revenue of $425M and EBITDA of $127M 1 DRPF project advancing as planned for commissioning in December 2025, including an additional $52M deployed in the quarter with cumulative investments to date of $340M Declares eighth consecutive semi-annual dividend of $0.10 per ordinary share MONTRÉAL, May 28, 2025 /CNW/ - (Sydney, May 29, 2025) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") reports its operational and financial results for its financial fourth quarter ended March 31, 2025. Champion's CEO, Mr. David Cataford, said, "Our team's agility was once again demonstrated this quarter, as we successfully completed the scheduled semi-annual shutdown while advancing our major DRPF project as planned. Despite seasonal challenges that typically impact transportation logistics, we achieved record quarterly sales of high-purity iron ore concentrate. We expect to continue destocking the significant iron ore concentrate inventories at Bloom Lake in the coming periods, which should further enhance our financial liquidity. Looking ahead, we are intensifying our efforts to reduce operating costs, which were impacted this quarter by a near-term geological sequence. While we remain committed to investing in our long-term growth and improving operational capabilities, our robust financial performance and liquidity allowed us to declare an eighth consecutive dividend." Conference Call Details Champion will host a conference call and webcast on May 29, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of the financial fourth quarter ended March 31, 2025. Call details are set out at the end of this press release. 1. Quarterly Highlights Operations and Sustainability During the three-month period ended March 31, 2025, no major environmental incidents were reported, but following a snowfall incident with minor consequences, safety procedures were reviewed as part of the Company's continuous improvement process; Met or exceeded most annual sustainability targets set in the Company's previous sustainability report, which incorporated industry best practice disclosure frameworks, including the Global Reporting Initiative, the Sustainability Accounting Standard Board and the Task Force on Climate-Related Financial Disclosures. The 2025 Sustainability Report is available on the Company's website at Quarterly production of 3.2 million wmt (3.1 million dmt) of high-grade 66.5% Fe concentrate for the three-month period ended March 31, 2025, down 13% from the previous quarter, mainly attributable to the scheduled semi-annual shutdowns of both concentration plants, and down 3% over the same period last year; Record quarterly sales of 3.5 million dmt for the three-month period ended March 31, 2025, up 6% from the previous quarter and 18% from the prior-year period due to the commissioning of additional rail equipment in previous quarters and despite seasonal weather conditions that usually impact rail shipments during this time of the year; Iron ore concentrate stockpiled at Bloom Lake decreased by 341,000 wmt quarter-over-quarter to 2.6 million wmt as at March 31, 2025, as sales volumes exceeded production volumes during the quarter, benefiting from improved rail shipment capabilities. The Company expects that the iron ore concentrate currently stockpiled at Bloom Lake will continue to decrease in future periods; and Record material mined and hauled at Bloom Lake, totalling 20.4 million tonnes for the three-month period ended March 31, 2025, up 2% from the previous quarter and 27% from the same period last year. Financial Results Gross average realized selling price of US$111.8/dmt 1, compared to the P65 index average of US$116.9/dmt in the period; Net average realized selling price of US$84.9/dmt 1, an increase of 8% quarter-over-quarter, and 2% year-over-year; C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $80.0/dmt 1 (US$55.7/dmt) 2, comparable quarter-over-quarter, and representing an increase of 4% year-over-year; EBITDA of $127.4 million 1, an increase of 44% quarter-over-quarter, and 50% year-over-year; Net income of $39.1 million representing EPS of $0.08, compared to $1.7 million in the previous quarter, due to a slight appreciation of the Canadian dollar against the United States dollar, and compared to a net income of $25.8 million with EPS of $0.05 in the prior-year quarter; Cash balance totalled $117.5 million as at March 31, 2025, an increase of $24.4 million since December 31, 2024, mainly resulting from strong cash flows from operating activities, while the Company continued to advance the DRPF project; Available liquidity to support growth initiatives, including amounts available from the Company's credit facilities, totalled $605.9 million 1 as at March 31, 2025, compared to $595.0 million 1 as at December 31, 2024; and Semi-annual dividend of $0.10 per ordinary share declared on May 28, 2025 (Montréal) / May 29, 2025 (Sydney), in connection with the annual results for the period ended March 31, 2025. See the Company's website at for additional information regarding the declared dividend. 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, is progressing as planned, with the commissioning phase expected to start in December 2025. Quarterly and cumulative investments of $51.8 million and $339.5 million, respectively, as at March 31, 2025, compared to the estimated total capital expenditures of $470.7 million as detailed in the project study highlights released in January 2023; and Entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation (collectively, the "Partners") to form a partnership (the "Partnership") for the joint ownership and development of the Kami Project (the "Transaction"). During the three-month period ended March 31, 2025, the Company and the Partners continued negotiations towards finalizing the definitive documentation with respect to the Transaction and advanced the definitive feasibility study for the Kami Project (the "DFS") to be completed by the end of calendar year 2026. 2. Bloom Lake Mine Operating Activities During the three-month period ended March 31, 2025, production was impacted for several days by the scheduled semi-annual shutdowns of both concentration plants and adjustments to operating and maintenance strategies, implemented to adapt to different ore feed zones, as the Company advanced its long-term mine plan during the period. Additionally, Bloom Lake's overall performance was impacted by premature wear of the grinding circuits due to the hardness of the ore processed in a geological sequence recently encountered, which is expected to persist in the coming months, and seasonal weather conditions, which primarily disrupted transportation logistics and limited equipment availability. Sales volumes reached record levels during the three-month period ended March 31, 2025, exceeding production, and enabling a quarter-over-quarter reduction of iron ore concentrate stockpiled at Bloom Lake of 341,000 wmt, to reach 2.6 million wmt as at March 31, 2025. This achievement was driven by the recent commissioning of additional railcars and expanded rolling stock fleet by the Company and the rail operator, respectively. 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. The Company remains committed to implement work programs tailored to optimize operations and reliably produce at Bloom Lake's nameplate capacity. Additionally, Champion continues to analyze opportunities to structurally increase Bloom Lake's nameplate capacity beyond 15M wmt per year over time. Since the fourth quarter of the 2024 financial year, the Company has arranged for both plants' scheduled maintenance to occur in the second and fourth financial quarters. This creates significant quarter-over-quarter variances in production output and mining and processing costs. Bloom Lake produced 3.2 million wmt (3.1 million dmt) of high-grade iron ore concentrate during the three-month period ended March 31, 2025, a decrease of 3% compared to 3.3 million wmt (3.2 million dmt) during the same period in 2024. During the three-month period ended March 31, 2025, the Company set a new record by mining and hauling 20.4 million tonnes of waste and ore, surpassing the 16.0 million tonnes recorded in the same prior-year period, while also exceeding the previous quarter's output. This quarter-over-quarter improvement in mining performance was driven by the Company's strategic investments in additional haul trucks and loading equipment, 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 1.15 for the three-month period ended March 31, 2025, significantly higher than the 0.69 ratio recorded in the same prior-year period and 0.94 in the previous quarter. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with its LoM plan. During the three-month period ended March 31, 2025, the two concentration plants at Bloom Lake processed 9.2 million tonnes of ore, comparable to the same prior-year period. The iron ore head grade for the three-month period ended March 31, 2025, was 29.2%, comparable to the same period in 2024. The variation in head grade was within the anticipated range of normal fluctuations outlined in the mine plan. Champion's average Fe recovery rate was 78.3% for the three-month period ended March 31, 2025, compared to 80.2% for the same period in 2024. This decrease was primarily attributable to the geological sequence recently encountered, which also impacted grinding performances. The normal evolution of the mine plan required adjustments to ore blending strategies, hardness management and recovery circuits. The Company continues to optimize its operations and remains focused on improving and stabilizing recovery rates over time, despite the expectation that ore hardness challenges will persist in the coming months. 3. Financial Performance A. Revenues Revenues totalled $425.3 million for the three-month period ended March 31, 2025, up $92.7 million compared to $332.7 million for the same period in 2024. Lower gross average realized selling price, driven by the lower P65 index, was more than offset by the positive provisional pricing adjustments on sales recorded during the previous quarter, lower freight and other costs, and a weaker Canadian dollar. The increase in revenues was also attributable to an 18% increase in sales volumes year-over-year. During the three-month period ended March 31, 2025, sales volumes reached a record of 3.5 million dmt, despite the challenging seasonal weather conditions affecting transportation logistics during this time of the year. This was achieved by reducing the inventory of iron ore concentrate currently stockpiled at Bloom Lake by 341,000 wmt during the period, as rail operations benefited from the Company's additional railcars and the rail operator's additional rolling stock, all commissioned in the previous quarters. Positive provisional pricing adjustments on prior quarter sales of $5.4 million (US$3.7 million) were recorded during the three-month period ended March 31, 2025, representing a positive impact of US$1.1/dmt over the 3.5 million dmt sold during the quarter. A final average price of US$112.2/dmt was established for the 1.7 million dmt of iron ore that remained subject to pricing adjustments as at December 31, 2024, which were provisionally priced at US$110.1/dmt. The gross average realized selling price of US$111.8/dmt 1 for the three-month period ended March 31, 2025, was lower than the P65 index average price of US$116.9/dmt, as the 2.7 million dmt of iron ore that remained subject to pricing adjustments as at March 31, 2025, were evaluated at an average price of US$111.1/dmt. The gross average realized selling price was also negatively impacted by the Company's planned transition to higher grade DRPF product. As part of this shift, Champion intentionally reduced volumes of iron ore concentrate sold under long-term sales contracts to retain a greater proportion of its iron ore concentrate for short-term and spot markets, which have recently been more susceptible to pricing discounts. Sales using backward-looking iron ore index pricing for the period were in line with the P65 index average price for the period. The P65 index premium over the P62 index averaged 12.8% during the quarter, up from 10.0% in the comparative period of 2024. Freight and other costs of US$28.0/dmt during the three-month period ended March 31, 2025, decreased by 14%, compared to US$32.5/dmt in the same prior-year period, mainly driven by a decrease in the average C3 index. Freight and other costs for the period continued to be negatively impacted by additional freight costs due to the vessels being rerouted via the Cape of Good Hope because of the conflict in the Red Sea. After taking into account sea freight and other costs of US$28.0/dmt and the positive provisional pricing adjustments of US$1.1/dmt, the Company obtained a net average realized selling price of US$84.9/dmt (C$121.7/dmt 1) for its high-grade iron ore concentrate shipped during the quarter. B. Cost of Sales and C1 Cash Cost For the three-month period ended March 31, 2025, the cost of sales totalled $279.6 million with a C1 cash cost of $80.0/dmt 1, compared to $227.5 million with a C1 cash cost of $76.6/dmt 1 for the same period in 2024. Mining and processing costs for the 3.1 million dmt produced in the three-month period ended March 31, 2025, totalled $62.0/dmt produced 1, representing an increase of 8% compared to $57.6/dmt produced 1 in the same period last year. This increase was mainly driven by slightly higher costs related to the scheduled semi-annual shutdowns performed at both concentration plants, higher stripping activities, aligned with the long-term mine plan, and additional maintenance on crushers and grinding circuits that experienced premature wear due to the hardness of the ore processed in a geological sequence recently encountered, which is expected to persist in the coming months. C. Net Income & EBITDA For the three-month period ended March 31, 2025, the Company generated EBITDA of $127.4 million 1, representing an EBITDA margin of 30% 1, compared to $85.1 million 1, representing an EBITDA margin of 26% 1, for the same period in 2024. Higher EBITDA and EBITDA margin were mainly driven by higher sales volumes and a higher net average realized selling price, partially offset by a higher cost of sales. For the three-month period ended March 31, 2025, the Company generated net income of $39.1 million (EPS of $0.08), compared to $25.8 million (EPS of $0.05) for the same prior-year period. This increase in net income is attributable to higher gross profit, partially offset by higher income and mining taxes. D. All-in Sustaining Cost & Cash Operating Margin During the three-month period ended March 31, 2025, the Company realized an AISC of $93.1/dmt 1, compared to $88.0/dmt 1 for the same period in 2024, an increase mainly attributable to a higher C1 cash cost. The increase was also attributable to higher sustaining capital expenditures per tonne, mitigated by higher volumes of iron ore concentrate sold during the period. The Company generated a cash operating margin of $28.6/dmt 1 for each tonne of high-grade iron ore concentrate sold during the three-month period ended March 31, 2025, compared to $24.1/dmt 1 for the same prior-year period. The variation was due to a higher net average realized selling price, partially offset by a higher AISC for the period. 4. Conference Call and Webcast Information A webcast and conference call to discuss the foregoing results will be held on May 29, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time). Listeners may access a live webcast of the conference call from the Investors section of the Company's website at or by dialing toll free +1-888-699-1199 within North America or +61-2-8017-1385 from Australia. An online archive of the webcast will be available by accessing the Company's website at A telephone replay will be available for one week after the call by dialing +1-888-660-6345 within North America or +1-289-819-1450 overseas, and entering passcode 25785#. About Champion Iron Limited Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce lower contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate. Benefiting from one of the highest purity resources globally, Champion is investing to upgrade half of the Bloom Lake's mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake's high-grade and lower contaminant iron ore products have attracted a premium to the P62 index. Champion ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, and has delivered its iron ore concentrate globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion owns the Kamistiatusset mining properties, a project with an expected annual production of 9M wmt per year of direct reduction quality iron grading above 67.5% Fe, located near available infrastructure and only 21 kilometres southeast of Bloom Lake. In December 2024, Champion entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership to evaluate the potential development of the Kami Project, including the completion of a definitive feasibility study. Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 kilometres south of Bloom Lake. Cautionary Note Regarding Forward-Looking Statements This press release contains certain information and statements that may constitute "forward-looking information" under applicable securities legislation ("Forward-Looking Statements"). Forward-Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of words such as "will", "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "aims", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Inherent in Forward-Looking Statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. Specific Forward-Looking Statements All statements, other than statements of historical facts, included in this press release that address future events, developments or performance that Champion expects to occur are Forward-Looking Statements. Forward-Looking Statements include, among other things, Management's expectations regarding: (i) Bloom Lake's LoM, recovery rates, production, nameplate capacity and related opportunities and benefits, as well as potential increase thereof and related work programs and investments, delivery and commissioning and financing of additional railcars and their impact on sales and shipment flexibility and capabilities; (ii) the project to upgrade the Bloom Lake iron ore concentrate to a higher grade and to convert approximately half of Bloom Lake's increased nameplate capacity of 15M wmt per year to commercially produce a DR quality pellet feed iron ore (the DRPF project), expected project timeline, capital expenditures, production metrics, technical parameters, pricing premiums, efficiencies, economic and other benefits; (iii) the formation of the Partnership with Nippon Steel Corporation and Sojitz Corporation with respect to the Kami Project, the completion of the definitive feasibility study for the Kami Project and the timing thereof, the negotiations of and entering into definitive transaction documents with the Partners and terms thereof; (iv) the shift in steel industry production methods, expected rising demand for higher-grade iron ore products globally and related market deficit and higher premiums, and the Company's participation therein, contribution thereto and positioning in connection therewith, including related research and development and the transition of the Company's product offering (including producing high-quality DRPF products), related investments and expected benefits thereof; (v) the Company's ESG related initiatives; (vi) maintaining higher stripping activities; (vii) stockpiled ore levels, the pace of destocking, shipping and sales of accumulated iron ore concentrate inventories and their impact on liquidity; (viii) increased shipments of iron ore, impact of the delivery and commissioning of additional railcars, and rolling stock, related rail capacity, and continued partnership with the rail operator; (ix) the impact of iron ore price fluctuations on the Company and its financial results and the occurrence of certain events and their impact on iron ore prices and demand for high-grade iron ore products; * production and recovery rates and levels, ore characteristics and the Company's performance and related work programs to optimize operations; (xi) pricing of the Company's products (including provisional pricing); (xii) the Company's expected iron ore concentrate production and sales, mining and hauling activities and related costs; (xiii) the Company's iron ore concentrate pricing trends compared to the P65 index; (xiv) available liquidity to support the Company's growth projects; and (xv) the Company's growth and opportunities generally. Risks Although Champion believes the expectations expressed in such Forward-Looking Statements are based on reasonable assumptions, such Forward-Looking Statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such Forward-Looking Statements. Factors that could cause actual results to differ materially from those expressed in Forward-Looking Statements include, without limitation: (i) future prices of iron ore; (ii) future transportation costs; (iii) general economic, competitive, political and social uncertainties; (iv) continued availability of capital and financing and general economic, market or business conditions; (v) timing and uncertainty of industry shift to electric arc furnaces, impacting demand for high-grade feed; (vi) failure of plant, equipment or processes to operate as anticipated; (vii) delays in obtaining or maintaining governmental approvals, necessary permitting or in the completion of development or construction activities; (viii) the results of feasibility studies; (ix) changes in the assumptions used to prepare feasibility studies; * project delays; (xi) geopolitical events; and (xii) the effects of catastrophes and public health crises on the global economy, the iron ore market and Champion's operations, as well as those factors discussed in the section entitled "Risk Factors" of the Company's management's discussion and analysis for the financial year ended March 31, 2025 ("MD&A"), available under the Company's profile on SEDAR+ at the ASX at and the Company's website at There can be no assurance that any such Forward-Looking Statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such Forward-Looking Statements. Accordingly, readers should not place undue reliance on Forward-Looking Statements. Additional Updates All of the Forward-Looking Statements contained in this press release are given as of the date hereof or such other date or dates specified in the Forward-Looking Statements and are based upon the opinions and estimates of Champion's Management and information available to Management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of the Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update one or more Forward-Looking Statements, no inference should be drawn that it will make additional updates with respect to those or other Forward-Looking Statements. Champion cautions that the foregoing list of risks and uncertainties is not exhaustive. Readers should carefully consider the above factors as well as the uncertainties they represent and the risks they entail. Abbreviations Unless otherwise specified, all dollar figures stated herein are expressed in millions of Canadian dollars, except for: (i) tabular amounts which are expressed in thousands of Canadian dollars; and (ii) per share or per tonne (including dmt and wmt) amounts, which are expressed in Canadian dollars or United States dollars, as indicated. The following abbreviations and definitions are used throughout this press release: US$ (United States dollar), C$ (Canadian dollar), Fe (iron ore), wmt (wet metric tonnes), dmt (dry metric tonnes), M (million), km (kilometers), LoM (life of mine), Bloom Lake or Bloom Lake mine (Bloom Lake Mining Complex), DR (direct reduction), DRPF (direct reduction pellet feed), Kami Project (Kamistiatusset project), P62 index (Platts IODEX 62% Fe CFR China index), P65 index (Platts IODEX 65% Fe CFR China index), C3 index (C3 Baltic Capesize index), EBITDA (earnings before income and mining taxes, net finance costs and depreciation), AISC (all-in sustaining cost), EPS (earnings per share) and Management (Champion's management team). The utilization of "Champion" or the "Company" refers to Champion Iron Limited and/or one, or more, or all of its subsidiaries, as applicable. "IFRS" refers to International Financial Reporting Standards. For additional information on Champion Iron Limited, please visit our website at: This document has been authorized for release to the market by the Board of Directors. The Company's audited Consolidated Financial Statements for the year ended March 31, 2025 (the "Financial Statements") and associated MD&A are available under the Company's profile on SEDAR+ ( the ASX ( and the Company's website ( Non-IFRS and Other Financial Measures The Company has included certain non-IFRS financial measures, ratios and supplementary financial measures in this press release to provide investors with additional information in order to help them evaluate the underlying performance of the Company. These measures are mainly derived from the Financial Statements but do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Management believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors with an improved ability to understand the results of the Company's operations. Non-IFRS and other financial measures should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS. The exclusion of certain items from non-IFRS financial measures does not imply that these items are necessarily non-recurring. The Company presents certain of its non-IFRS measures and other financial measures in United States dollars in addition to Canadian dollars to facilitate comparability with measures presented by other companies. EBITDA and EBITDA Margin Available Liquidity As at March 31, As at December 31, (in thousands of dollars) 2025 2024 Cash and cash equivalents 117,451 93,096 Undrawn amounts under credit facilities 488,410 501,919 Available liquidity 605,861 595,015 C1 Cash Cost Q4 FY25 Q3 FY25 Q4 FY24 Iron ore concentrate sold (dmt) 3,495,300 3,287,400 2,968,900 (in thousands of dollars, except per dmt data) Cost of sales 279,644 258,728 227,496 C1 cash cost (per dmt sold) 80.0 78.7 76.6 All-in Sustaining Cost Q4 FY25 Q3 FY25 Q4 FY24 Iron ore concentrate sold (dmt) 3,495,300 3,287,400 2,968,900 (in thousands of dollars, except per dmt data) Cost of sales 279,644 258,728 227,496 Sustaining capital expenditures 33,230 38,193 19,759 General and administrative expenses 12,457 11,813 13,973 325,331 308,734 261,228 AISC (per dmt sold) 93.1 93.9 88.0 Cash Operating Margin and Cash Profit Margin Q4 FY25 Q3 FY25 Q4 FY24 Iron ore concentrate sold (dmt) 3,495,300 3,287,400 2,968,900 (in thousands of dollars, except per dmt data) Revenues 425,345 363,170 332,673 Net average realized selling price (per dmt sold) 121.7 110.5 112.1 AISC (per dmt sold) 93.1 93.9 88.0 Cash operating margin (per dmt sold) 28.6 16.6 24.1 Cash profit margin 24 % 15 % 21 % Gross Average Realized Selling Price per dmt Sold Q4 FY25 Q3 FY25 Q4 FY24 Iron ore concentrate sold (dmt) 3,495,300 3,287,400 2,968,900 (in thousands of dollars, except per dmt data) Revenues 425,345 363,170 332,673 Provisional pricing adjustments (5,389) 17,407 31,005 Freight and other costs 140,627 141,568 130,074 Gross revenues 560,583 522,145 493,752 Gross average realized selling price (per dmt sold) 160.4 158.8 166.3 SOURCE Champion Iron Limited For further information, please contact: Michael Marcotte, CFA, Senior Vice-President, Corporate Development and Capital Markets, 514-316-4858, Ext. 1128, [email protected]
Yahoo
28-05-2025
- Business
- Yahoo
CHAMPION IRON REPORTS ITS FY2025 FOURTH QUARTER RESULTS AND DECLARES DIVIDEND
Quarterly production of 3.2M wmt, record sales of 3.5M dmt, revenue of $425M and EBITDA of $127M1 DRPF project advancing as planned for commissioning in December 2025, including an additional $52M deployed in the quarter with cumulative investments to date of $340M Declares eighth consecutive semi-annual dividend of $0.10 per ordinary share MONTRÉAL, May 28, 2025 /CNW/ - (Sydney, May 29, 2025) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") reports its operational and financial results for its financial fourth quarter ended March 31, 2025. Champion's CEO, Mr. David Cataford, said, "Our team's agility was once again demonstrated this quarter, as we successfully completed the scheduled semi-annual shutdown while advancing our major DRPF project as planned. Despite seasonal challenges that typically impact transportation logistics, we achieved record quarterly sales of high-purity iron ore concentrate. We expect to continue destocking the significant iron ore concentrate inventories at Bloom Lake in the coming periods, which should further enhance our financial liquidity. Looking ahead, we are intensifying our efforts to reduce operating costs, which were impacted this quarter by a near-term geological sequence. While we remain committed to investing in our long-term growth and improving operational capabilities, our robust financial performance and liquidity allowed us to declare an eighth consecutive dividend." Conference Call Details Champion will host a conference call and webcast on May 29, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of the financial fourth quarter ended March 31, 2025. Call details are set out at the end of this press release. 1. Quarterly Highlights Operations and Sustainability During the three-month period ended March 31, 2025, no major environmental incidents were reported, but following a snowfall incident with minor consequences, safety procedures were reviewed as part of the Company's continuous improvement process; Met or exceeded most annual sustainability targets set in the Company's previous sustainability report, which incorporated industry best practice disclosure frameworks, including the Global Reporting Initiative, the Sustainability Accounting Standard Board and the Task Force on Climate-Related Financial Disclosures. The 2025 Sustainability Report is available on the Company's website at Quarterly production of 3.2 million wmt (3.1 million dmt) of high-grade 66.5% Fe concentrate for the three-month period ended March 31, 2025, down 13% from the previous quarter, mainly attributable to the scheduled semi-annual shutdowns of both concentration plants, and down 3% over the same period last year; Record quarterly sales of 3.5 million dmt for the three-month period ended March 31, 2025, up 6% from the previous quarter and 18% from the prior-year period due to the commissioning of additional rail equipment in previous quarters and despite seasonal weather conditions that usually impact rail shipments during this time of the year; Iron ore concentrate stockpiled at Bloom Lake decreased by 341,000 wmt quarter-over-quarter to 2.6 million wmt as at March 31, 2025, as sales volumes exceeded production volumes during the quarter, benefiting from improved rail shipment capabilities. The Company expects that the iron ore concentrate currently stockpiled at Bloom Lake will continue to decrease in future periods; and Record material mined and hauled at Bloom Lake, totalling 20.4 million tonnes for the three-month period ended March 31, 2025, up 2% from the previous quarter and 27% from the same period last year. Financial Results Gross average realized selling price of US$111.8/dmt1, compared to the P65 index average of US$116.9/dmt in the period; Net average realized selling price of US$84.9/dmt1, an increase of 8% quarter-over-quarter, and 2% year-over-year; C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $80.0/dmt1 (US$55.7/dmt)2, comparable quarter-over-quarter, and representing an increase of 4% year-over-year; EBITDA of $127.4 million1, an increase of 44% quarter-over-quarter, and 50% year-over-year; Net income of $39.1 million representing EPS of $0.08, compared to $1.7 million in the previous quarter, due to a slight appreciation of the Canadian dollar against the United States dollar, and compared to a net income of $25.8 million with EPS of $0.05 in the prior-year quarter; Cash balance totalled $117.5 million as at March 31, 2025, an increase of $24.4 million since December 31, 2024, mainly resulting from strong cash flows from operating activities, while the Company continued to advance the DRPF project; Available liquidity to support growth initiatives, including amounts available from the Company's credit facilities, totalled $605.9 million1 as at March 31, 2025, compared to $595.0 million1 as at December 31, 2024; and Semi-annual dividend of $0.10 per ordinary share declared on May 28, 2025 (Montréal) / May 29, 2025 (Sydney), in connection with the annual results for the period ended March 31, 2025. See the Company's website at for additional information regarding the declared dividend. 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, is progressing as planned, with the commissioning phase expected to start in December 2025. Quarterly and cumulative investments of $51.8 million and $339.5 million, respectively, as at March 31, 2025, compared to the estimated total capital expenditures of $470.7 million as detailed in the project study highlights released in January 2023; and Entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation (collectively, the "Partners") to form a partnership (the "Partnership") for the joint ownership and development of the Kami Project (the "Transaction"). During the three-month period ended March 31, 2025, the Company and the Partners continued negotiations towards finalizing the definitive documentation with respect to the Transaction and advanced the definitive feasibility study for the Kami Project (the "DFS") to be completed by the end of calendar year 2026. 2. Bloom Lake Mine Operating Activities During the three-month period ended March 31, 2025, production was impacted for several days by the scheduled semi-annual shutdowns of both concentration plants and adjustments to operating and maintenance strategies, implemented to adapt to different ore feed zones, as the Company advanced its long-term mine plan during the period. Additionally, Bloom Lake's overall performance was impacted by premature wear of the grinding circuits due to the hardness of the ore processed in a geological sequence recently encountered, which is expected to persist in the coming months, and seasonal weather conditions, which primarily disrupted transportation logistics and limited equipment availability. Sales volumes reached record levels during the three-month period ended March 31, 2025, exceeding production, and enabling a quarter-over-quarter reduction of iron ore concentrate stockpiled at Bloom Lake of 341,000 wmt, to reach 2.6 million wmt as at March 31, 2025. This achievement was driven by the recent commissioning of additional railcars and expanded rolling stock fleet by the Company and the rail operator, respectively. 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. The Company remains committed to implement work programs tailored to optimize operations and reliably produce at Bloom Lake's nameplate capacity. Additionally, Champion continues to analyze opportunities to structurally increase Bloom Lake's nameplate capacity beyond 15M wmt per year over time. Since the fourth quarter of the 2024 financial year, the Company has arranged for both plants' scheduled maintenance to occur in the second and fourth financial quarters. This creates significant quarter-over-quarter variances in production output and mining and processing costs. Q4 FY25 Q3 FY25 Q/Q ChangeQ4 FY24 Y/Y Change Operating DataWaste mined and hauled (wmt)10,886,200 9,694,200 12 %6,498,700 68 % Ore mined and hauled (wmt)9,470,100 10,347,500 (8) %9,471,200 — % Material mined and hauled (wmt)20,356,300 20,041,700 2 %15,969,900 27 % Stripping ratio1.15 0.94 22 %0.69 67 % Ore milled (wmt)9,160,300 10,305,300 (11) %9,349,100 (2) % Head grade Fe (%)29.2 29.3 — %28.7 2 % Fe recovery (%)78.3 79.1 (1) %80.2 (2) % Product Fe (%)66.5 66.3 — %66.1 1 % Iron ore concentrate produced (wmt)3,167,000 3,620,600 (13) %3,275,400 (3) % Iron ore concentrate sold (dmt)3,495,300 3,287,400 6 %2,968,900 18 % Bloom Lake produced 3.2 million wmt (3.1 million dmt) of high-grade iron ore concentrate during the three-month period ended March 31, 2025, a decrease of 3% compared to 3.3 million wmt (3.2 million dmt) during the same period in 2024. During the three-month period ended March 31, 2025, the Company set a new record by mining and hauling 20.4 million tonnes of waste and ore, surpassing the 16.0 million tonnes recorded in the same prior-year period, while also exceeding the previous quarter's output. This quarter-over-quarter improvement in mining performance was driven by the Company's strategic investments in additional haul trucks and loading equipment, 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 1.15 for the three-month period ended March 31, 2025, significantly higher than the 0.69 ratio recorded in the same prior-year period and 0.94 in the previous quarter. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with its LoM plan. During the three-month period ended March 31, 2025, the two concentration plants at Bloom Lake processed 9.2 million tonnes of ore, comparable to the same prior-year period. The iron ore head grade for the three-month period ended March 31, 2025, was 29.2%, comparable to the same period in 2024. The variation in head grade was within the anticipated range of normal fluctuations outlined in the mine plan. Champion's average Fe recovery rate was 78.3% for the three-month period ended March 31, 2025, compared to 80.2% for the same period in 2024. This decrease was primarily attributable to the geological sequence recently encountered, which also impacted grinding performances. The normal evolution of the mine plan required adjustments to ore blending strategies, hardness management and recovery circuits. The Company continues to optimize its operations and remains focused on improving and stabilizing recovery rates over time, despite the expectation that ore hardness challenges will persist in the coming months. 3. Financial Performance Q4 FY25 Q3 FY25 Q/Q ChangeQ4 FY24 Y/Y Change Financial Data (in thousands of dollars)Revenues425,345 363,170 17 %332,673 28 % Cost of sales279,644 258,728 8 %227,496 23 % Other expenses19,619 17,290 13 %20,425 (4) % Net finance costs11,286 30,508 (63) %8,831 28 % Net income39,140 1,741 2148 %25,791 52 % EBITDA1127,378 88,216 44 %85,099 50 % Statistics (in dollars per dmt sold)Gross average realized selling price1160.4 158.8 1 %166.3 (4) % Net average realized selling price1121.7 110.5 10 %112.1 9 % C1 cash cost180.0 78.7 2 %76.6 4 % AISC1 93.1 93.9 (1) %88.0 6 % Cash operating margin128.6 16.6 72 %24.1 19 % A. Revenues Revenues totalled $425.3 million for the three-month period ended March 31, 2025, up $92.7 million compared to $332.7 million for the same period in 2024. Lower gross average realized selling price, driven by the lower P65 index, was more than offset by the positive provisional pricing adjustments on sales recorded during the previous quarter, lower freight and other costs, and a weaker Canadian dollar. The increase in revenues was also attributable to an 18% increase in sales volumes year-over-year. During the three-month period ended March 31, 2025, sales volumes reached a record of 3.5 million dmt, despite the challenging seasonal weather conditions affecting transportation logistics during this time of the year. This was achieved by reducing the inventory of iron ore concentrate currently stockpiled at Bloom Lake by 341,000 wmt during the period, as rail operations benefited from the Company's additional railcars and the rail operator's additional rolling stock, all commissioned in the previous quarters. Positive provisional pricing adjustments on prior quarter sales of $5.4 million (US$3.7 million) were recorded during the three-month period ended March 31, 2025, representing a positive impact of US$1.1/dmt over the 3.5 million dmt sold during the quarter. A final average price of US$112.2/dmt was established for the 1.7 million dmt of iron ore that remained subject to pricing adjustments as at December 31, 2024, which were provisionally priced at US$110.1/dmt. The gross average realized selling price of US$111.8/dmt1 for the three-month period ended March 31, 2025, was lower than the P65 index average price of US$116.9/dmt, as the 2.7 million dmt of iron ore that remained subject to pricing adjustments as at March 31, 2025, were evaluated at an average price of US$111.1/dmt. The gross average realized selling price was also negatively impacted by the Company's planned transition to higher grade DRPF product. As part of this shift, Champion intentionally reduced volumes of iron ore concentrate sold under long-term sales contracts to retain a greater proportion of its iron ore concentrate for short-term and spot markets, which have recently been more susceptible to pricing discounts. Sales using backward-looking iron ore index pricing for the period were in line with the P65 index average price for the period. The P65 index premium over the P62 index averaged 12.8% during the quarter, up from 10.0% in the comparative period of 2024. Freight and other costs of US$28.0/dmt during the three-month period ended March 31, 2025, decreased by 14%, compared to US$32.5/dmt in the same prior-year period, mainly driven by a decrease in the average C3 index. Freight and other costs for the period continued to be negatively impacted by additional freight costs due to the vessels being rerouted via the Cape of Good Hope because of the conflict in the Red Sea. After taking into account sea freight and other costs of US$28.0/dmt and the positive provisional pricing adjustments of US$1.1/dmt, the Company obtained a net average realized selling price of US$84.9/dmt (C$121.7/dmt1) for its high-grade iron ore concentrate shipped during the quarter. B. Cost of Sales and C1 Cash Cost For the three-month period ended March 31, 2025, the cost of sales totalled $279.6 million with a C1 cash cost of $80.0/dmt1, compared to $227.5 million with a C1 cash cost of $76.6/dmt1 for the same period in 2024. Mining and processing costs for the 3.1 million dmt produced in the three-month period ended March 31, 2025, totalled $62.0/dmt produced1, representing an increase of 8% compared to $57.6/dmt produced1 in the same period last year. This increase was mainly driven by slightly higher costs related to the scheduled semi-annual shutdowns performed at both concentration plants, higher stripping activities, aligned with the long-term mine plan, and additional maintenance on crushers and grinding circuits that experienced premature wear due to the hardness of the ore processed in a geological sequence recently encountered, which is expected to persist in the coming months. C. Net Income & EBITDA For the three-month period ended March 31, 2025, the Company generated EBITDA of $127.4 million1, representing an EBITDA margin of 30%1, compared to $85.1 million1, representing an EBITDA margin of 26%1, for the same period in 2024. Higher EBITDA and EBITDA margin were mainly driven by higher sales volumes and a higher net average realized selling price, partially offset by a higher cost of sales. For the three-month period ended March 31, 2025, the Company generated net income of $39.1 million (EPS of $0.08), compared to $25.8 million (EPS of $0.05) for the same prior-year period. This increase in net income is attributable to higher gross profit, partially offset by higher income and mining taxes. D. All-in Sustaining Cost & Cash Operating Margin During the three-month period ended March 31, 2025, the Company realized an AISC of $93.1/dmt1, compared to $88.0/dmt1 for the same period in 2024, an increase mainly attributable to a higher C1 cash cost. The increase was also attributable to higher sustaining capital expenditures per tonne, mitigated by higher volumes of iron ore concentrate sold during the period. The Company generated a cash operating margin of $28.6/dmt1 for each tonne of high-grade iron ore concentrate sold during the three-month period ended March 31, 2025, compared to $24.1/dmt1 for the same prior-year period. The variation was due to a higher net average realized selling price, partially offset by a higher AISC for the period. 4. Conference Call and Webcast Information A webcast and conference call to discuss the foregoing results will be held on May 29, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time). Listeners may access a live webcast of the conference call from the Investors section of the Company's website at or by dialing toll free +1-888-699-1199 within North America or +61-2-8017-1385 from Australia. An online archive of the webcast will be available by accessing the Company's website at A telephone replay will be available for one week after the call by dialing +1-888-660-6345 within North America or +1-289-819-1450 overseas, and entering passcode 25785#. About Champion Iron Limited Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce lower contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate. Benefiting from one of the highest purity resources globally, Champion is investing to upgrade half of the Bloom Lake's mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake's high-grade and lower contaminant iron ore products have attracted a premium to the P62 index. Champion ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, and has delivered its iron ore concentrate globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion owns the Kamistiatusset mining properties, a project with an expected annual production of 9M wmt per year of direct reduction quality iron grading above 67.5% Fe, located near available infrastructure and only 21 kilometres southeast of Bloom Lake. In December 2024, Champion entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership to evaluate the potential development of the Kami Project, including the completion of a definitive feasibility study. Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 kilometres south of Bloom Lake. Cautionary Note Regarding Forward-Looking Statements This press release contains certain information and statements that may constitute "forward-looking information" under applicable securities legislation ("Forward-Looking Statements"). Forward-Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of words such as "will", "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "aims", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Inherent in Forward-Looking Statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. Specific Forward-Looking Statements All statements, other than statements of historical facts, included in this press release that address future events, developments or performance that Champion expects to occur are Forward-Looking Statements. Forward-Looking Statements include, among other things, Management's expectations regarding: (i) Bloom Lake's LoM, recovery rates, production, nameplate capacity and related opportunities and benefits, as well as potential increase thereof and related work programs and investments, delivery and commissioning and financing of additional railcars and their impact on sales and shipment flexibility and capabilities; (ii) the project to upgrade the Bloom Lake iron ore concentrate to a higher grade and to convert approximately half of Bloom Lake's increased nameplate capacity of 15M wmt per year to commercially produce a DR quality pellet feed iron ore (the DRPF project), expected project timeline, capital expenditures, production metrics, technical parameters, pricing premiums, efficiencies, economic and other benefits; (iii) the formation of the Partnership with Nippon Steel Corporation and Sojitz Corporation with respect to the Kami Project, the completion of the definitive feasibility study for the Kami Project and the timing thereof, the negotiations of and entering into definitive transaction documents with the Partners and terms thereof; (iv) the shift in steel industry production methods, expected rising demand for higher-grade iron ore products globally and related market deficit and higher premiums, and the Company's participation therein, contribution thereto and positioning in connection therewith, including related research and development and the transition of the Company's product offering (including producing high-quality DRPF products), related investments and expected benefits thereof; (v) the Company's ESG related initiatives; (vi) maintaining higher stripping activities; (vii) stockpiled ore levels, the pace of destocking, shipping and sales of accumulated iron ore concentrate inventories and their impact on liquidity; (viii) increased shipments of iron ore, impact of the delivery and commissioning of additional railcars, and rolling stock, related rail capacity, and continued partnership with the rail operator; (ix) the impact of iron ore price fluctuations on the Company and its financial results and the occurrence of certain events and their impact on iron ore prices and demand for high-grade iron ore products; * production and recovery rates and levels, ore characteristics and the Company's performance and related work programs to optimize operations; (xi) pricing of the Company's products (including provisional pricing); (xii) the Company's expected iron ore concentrate production and sales, mining and hauling activities and related costs; (xiii) the Company's iron ore concentrate pricing trends compared to the P65 index; (xiv) available liquidity to support the Company's growth projects; and (xv) the Company's growth and opportunities generally. Risks Although Champion believes the expectations expressed in such Forward-Looking Statements are based on reasonable assumptions, such Forward-Looking Statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such Forward-Looking Statements. Factors that could cause actual results to differ materially from those expressed in Forward-Looking Statements include, without limitation: (i) future prices of iron ore; (ii) future transportation costs; (iii) general economic, competitive, political and social uncertainties; (iv) continued availability of capital and financing and general economic, market or business conditions; (v) timing and uncertainty of industry shift to electric arc furnaces, impacting demand for high-grade feed; (vi) failure of plant, equipment or processes to operate as anticipated; (vii) delays in obtaining or maintaining governmental approvals, necessary permitting or in the completion of development or construction activities; (viii) the results of feasibility studies; (ix) changes in the assumptions used to prepare feasibility studies; * project delays; (xi) geopolitical events; and (xii) the effects of catastrophes and public health crises on the global economy, the iron ore market and Champion's operations, as well as those factors discussed in the section entitled "Risk Factors" of the Company's management's discussion and analysis for the financial year ended March 31, 2025 ("MD&A"), available under the Company's profile on SEDAR+ at the ASX at and the Company's website at There can be no assurance that any such Forward-Looking Statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such Forward-Looking Statements. Accordingly, readers should not place undue reliance on Forward-Looking Statements. Additional Updates All of the Forward-Looking Statements contained in this press release are given as of the date hereof or such other date or dates specified in the Forward-Looking Statements and are based upon the opinions and estimates of Champion's Management and information available to Management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of the Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update one or more Forward-Looking Statements, no inference should be drawn that it will make additional updates with respect to those or other Forward-Looking Statements. Champion cautions that the foregoing list of risks and uncertainties is not exhaustive. Readers should carefully consider the above factors as well as the uncertainties they represent and the risks they entail. Abbreviations Unless otherwise specified, all dollar figures stated herein are expressed in millions of Canadian dollars, except for: (i) tabular amounts which are expressed in thousands of Canadian dollars; and (ii) per share or per tonne (including dmt and wmt) amounts, which are expressed in Canadian dollars or United States dollars, as indicated. The following abbreviations and definitions are used throughout this press release: US$ (United States dollar), C$ (Canadian dollar), Fe (iron ore), wmt (wet metric tonnes), dmt (dry metric tonnes), M (million), km (kilometers), LoM (life of mine), Bloom Lake or Bloom Lake mine (Bloom Lake Mining Complex), DR (direct reduction), DRPF (direct reduction pellet feed), Kami Project (Kamistiatusset project), P62 index (Platts IODEX 62% Fe CFR China index), P65 index (Platts IODEX 65% Fe CFR China index), C3 index (C3 Baltic Capesize index), EBITDA (earnings before income and mining taxes, net finance costs and depreciation), AISC (all-in sustaining cost), EPS (earnings per share) and Management (Champion's management team). The utilization of "Champion" or the "Company" refers to Champion Iron Limited and/or one, or more, or all of its subsidiaries, as applicable. "IFRS" refers to International Financial Reporting Standards. For additional information on Champion Iron Limited, please visit our website at: This document has been authorized for release to the market by the Board of Directors. The Company's audited Consolidated Financial Statements for the year ended March 31, 2025 (the "Financial Statements") and associated MD&A are available under the Company's profile on SEDAR+ ( the ASX ( and the Company's website ( ___________________________________ 1 This is a non-IFRS financial measure, ratio or other financial measure. This measure is not a standardized financial measure under the financial reporting framework used to prepare the financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section below — Non-IFRS and Other Financial Measures for definitions of these metrics and reconciliations to the most comparable IFRS measure when applicable. Additional details for these non-IFRS and other financial measures, have been incorporated by reference and can be found in section 23 of the Company's MD&A for the year ended March 31, 2025, available on SEDAR+ at the ASX at and the Company's website under the Investors section at 2 See the "Currency" subsection of the MD&A for the year ended March 31, 2025, included in section 8 — Key Drivers, available on SEDAR+ at the ASX at and the Company's website under the Investors section at Non-IFRS and Other Financial Measures The Company has included certain non-IFRS financial measures, ratios and supplementary financial measures in this press release to provide investors with additional information in order to help them evaluate the underlying performance of the Company. These measures are mainly derived from the Financial Statements but do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Management believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors with an improved ability to understand the results of the Company's operations. Non-IFRS and other financial measures should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS. The exclusion of certain items from non-IFRS financial measures does not imply that these items are necessarily non-recurring. The Company presents certain of its non-IFRS measures and other financial measures in United States dollars in addition to Canadian dollars to facilitate comparability with measures presented by other companies. EBITDA and EBITDA Margin (in thousands of dollars)Q4 FY25 Q3 FY25 Q4 FY24Income before income and mining taxes74,646 21,347 46,693 Net finance costs11,286 30,508 8,831 Depreciation41,446 36,361 29,575 EBITDA 127,378 88,216 85,099 Revenues425,345 363,170 332,673 EBITDA margin30 % 24 % 26 % Available Liquidity As at March 31,As at December 31, (in thousands of dollars)20252024Cash and cash equivalents117,45193,096 Undrawn amounts under credit facilities488,410501,919 Available liquidity605,861595,015 C1 Cash Cost Q4 FY25 Q3 FY25 Q4 FY24Iron ore concentrate sold (dmt)3,495,300 3,287,400 2,968,900(in thousands of dollars, except per dmt data) Cost of sales279,644 258,728 227,496C1 cash cost (per dmt sold)80.0 78.7 76.6 All-in Sustaining Cost Q4 FY25 Q3 FY25 Q4 FY24Iron ore concentrate sold (dmt)3,495,300 3,287,400 2,968,900(in thousands of dollars, except per dmt data) Cost of sales279,644 258,728 227,496 Sustaining capital expenditures33,230 38,193 19,759 General and administrative expenses12,457 11,813 13,973 325,331 308,734 261,228AISC (per dmt sold)93.1 93.9 88.0 Cash Operating Margin and Cash Profit Margin Q4 FY25 Q3 FY25 Q4 FY24Iron ore concentrate sold (dmt)3,495,300 3,287,400 2,968,900(in thousands of dollars, except per dmt data) Revenues425,345 363,170 332,673 Net average realized selling price (per dmt sold)121.7 110.5 112.1AISC (per dmt sold)93.1 93.9 88.0 Cash operating margin (per dmt sold)28.6 16.6 24.1 Cash profit margin24 % 15 % 21 % Gross Average Realized Selling Price per dmt SoldQ4 FY25 Q3 FY25 Q4 FY24 Iron ore concentrate sold (dmt) 3,495,300 3,287,400 2,968,900 (in thousands of dollars, except per dmt data)Revenues 425,345 363,170 332,673 Provisional pricing adjustments (5,389) 17,407 31,005 Freight and other costs 140,627 141,568 130,074 Gross revenues 560,583 522,145 493,752 Gross average realized selling price (per dmt sold) 160.4 158.8 166.3 SOURCE Champion Iron Limited View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
29-04-2025
- Business
- Cision Canada
CHAMPION IRON REPORTS ITS FY2025 FOURTH QUARTER PRODUCTION AND SALES Français
Quarterly production of 3.2M wmt, record sales of 3.5M dmt and cash cost of approximately $80/dmt 1 Reduced inventories stockpiled at Bloom Lake by 0.3M wmt to 2.6M wmt DRPF project advancing as planned for commissioning in December 2025 MONTRÉAL, April 29, 2025 /CNW/ - (Sydney, April 30, 2025) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") reports production results and mining operating expenditures for its financial fourth quarter ended March 31, 2025. Detailed operational and audited financial results are scheduled to be released prior to the Company hosting a conference call and webcast on May 29, 2025. Champion's CEO, Mr. David Cataford, said, "Our team's agility and dedication were key to the successful completion of our scheduled semi-annual maintenance program during the period. While scheduled maintenance was expected to temporarily impact production, it also provided an opportunity to strategically reduce stockpiled iron ore inventories, despite seasonal logistical challenges. As global economies face uncertainties with rising trade tensions, our Company benefits from robust financial liquidities and diversified global partners, enabling us to diligently advance our growth initiatives." Conference Call Details Champion will host a conference call and webcast on May 29, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of the financial fourth quarter ended March 31, 2025. Call details are set out at the end of this press release. 1. Quarterly Highlights Operations and Sustainability During the three-month period ended March 31, 2025, no major environmental incidents were reported, but following a snowfall incident that caused minor injuries, safety procedures were reviewed as part of the Company's continuous improvement process; Quarterly production of 3.2 million wmt (3.1 million dmt) of high-grade 66.5% Fe concentrate for the three-month period ended March 31, 2025, down 13% from the previous quarter, mainly attributable to the scheduled semi-annual shutdowns of both concentration plants, and down 3% over the same period last year; Record quarterly sales of 3.5 million dmt for the three-month period ended March 31, 2025, up 6% from the previous quarter and 18% from the prior-year period due to the commissioning of additional rail equipment in the previous quarter, and despite winter conditions that usually impact rail shipments; Iron ore concentrate stockpiled at Bloom Lake decreased by 341,000 wmt quarter-over-quarter to 2.6 million wmt as at March 31, 2025, as sales volumes exceeded production volumes during the quarter, benefiting from improved rail shipment capabilities. The Company is confident that the iron ore concentrate currently stockpiled at Bloom Lake will continue to decrease in future periods; and Record material mined and hauled at Bloom Lake, totalling 20.4 million tonnes for the three-month period ended March 31, 2025, up 2% from the previous quarter and 27% from last year. Financial Results C1 cash cost for the iron ore concentrate delivered to Sept-Îles port facilities totalled approximately $80/dmt 1 (US$56/dmt), an increase of 2% quarter-over-quarter, and 4% year-on-year; Cash balance totalled $117.5 million as at March 31, 2025, an increase of $24.4 million since December 31, 2024, mainly resulting from the reduction in iron ore concentrate stockpiled at Bloom Lake, while continuing to advance the DRPF project; and Available liquidity to support growth initiatives, including amounts available from the Company's credit facilities, totalled $605.9 million 1 at quarter-end, compared to $595.0 million 1 as at December 31, 2024. 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, is progressing as planned, with the commissioning phase expected to start in December 2025; As part of the previously disclosed binding agreement to form a partnership (the "Partnership") for the joint ownership and development of the Kami Project (the "Transaction") with Nippon Steel Corporation and Sojitz Corporation (collectively, the "Partners"), the Company and the Partners have made progress towards finalizing the definitive documentation with respect to the Transaction. During the period, Champion and the Partners advanced the definitive feasibility study for the Kami Project (the "DFS") which is expected to be completed in the end of calendar 2026; and The Company received financial support from the Government of Québec for the development of a technology using Bloom Lake's iron ore in battery production and for the development of innovative technologies and processes, including geometallurgical tools to improve knowledge of mineral deposits and optimize the planning, concentration and production of high-purity iron. These two scientific research projects highlight the rare high-purity of Bloom Lake's iron ore and its potential to contribute to technologies beyond the green steel supply chain. 2. Bloom Lake Mine Operating Activities Bloom Lake produced 3.2 million wmt (3.1 million dmt) of high-grade iron ore concentrate during the three-month period ended March 31, 2025, a decrease of 3% compared to 3.3 million wmt (3.2 million dmt) during the same period in 2024. As expected, during the three-month period ended March 31, 2025, production was impacted for several days by the scheduled semi-annual shutdowns of both concentration plants and adjustments to maintenance and recovery strategies caused by the adaptation to new ore feed zones, in line with the Company's long-term mine plan. Bloom Lake's overall performance was also impacted by winter conditions, which primarily affected transportation logistics and equipment availability. During the three-month period ended March 31, 2025, Champion achieved record sales volumes attributable to the additional railcars and rolling stock recently commissioned by the Company and the rail operator, respectively. Due to the scheduled semi-annual shutdowns, sales volumes exceeded production, enabling the reduction in iron ore concentrate stockpiled at Bloom Lake by 341,000 wmt quarter-over-quarter to 2.6 million wmt as at March 31, 2025. The Company is confident that the iron ore concentrate currently stockpiled at Bloom Lake will continue to decrease in future periods as Champion should continue to benefit from the recent improvement in rail shipment capabilities. Future destocking of iron ore inventories is expected to occur at different rates considering the scheduled semi-annual maintenance work at the mine and on the railroads, and the seasonal impact on transportation logistics. Champion continues to seek improvements from the rail operator in order to receive contracted haulage services on a continued basis to ensure that Bloom Lake's production, as well as the iron ore concentrate currently stockpiled at Bloom Lake, is hauled over future periods. The Company's focus remains to deploy work programs tailored to optimize operations and reliably produce at Bloom Lake's nameplate capacity. Additionally, Champion continues to analyze opportunities to structurally increase Bloom Lake's nameplate capacity beyond 15 Mtpa over time. To optimize operations, since the fourth quarter of the 2024 financial year, the Company has arranged for both plants' scheduled maintenance to occur in the financial second and fourth quarters. This creates significant quarter-over-quarter variances in production output, mining and processing costs and inventory valuation at quarter-end. Q4 FY25 Q3 FY25 Q/Q Change Q4 FY24 Y/Y Change Operating Data Waste mined and hauled (wmt) 10,886,200 9,694,200 12 % 6,498,700 68 % Ore mined and hauled (wmt) 9,470,100 10,347,500 (8) % 9,471,200 — % Material mined and hauled (wmt) 20,356,300 20,041,700 2 % 15,969,900 27 % Stripping ratio 1.15 0.94 22 % 0.69 67 % Ore milled (wmt) 9,160,300 10,305,300 (11) % 9,349,100 (2) % Head grade Fe (%) 29.2 29.3 — % 28.7 2 % Fe recovery (%) 78.3 79.1 (1) % 80.2 (2) % Product Fe (%) 66.5 66.3 — % 66.1 1 % Iron ore concentrate produced (wmt) 3,167,000 3,620,600 (13) % 3,275,400 (3) % Iron ore concentrate sold (dmt) 3,495,300 3,287,400 6 % 18 % During the three-month period ended March 31, 2025, the Company set a new record by mining and hauling 20.4 million tonnes of ore and waste at Bloom Lake, exceeding the previous quarter's output and surpassing last year's volume of 16.0 million tonnes recorded during the same period last year. This quarter-over-quarter improvement in mining performance was driven by the Company's strategic investments in additional haul trucks and loading equipment, as well as enhanced utilization and availability of mining equipment. Champion anticipates maintaining elevated stripping activity levels in future periods, in accordance with its LoM plan. The strong mining performance allowed the Company to mine and haul a higher volume of waste material, resulting in a stripping ratio of 1.15 for the three-month period ended March 31, 2025, significantly higher than the 0.69 ratio recorded in the same prior-year period and the 0.94 ratio in the previous quarter. During the three-month period ended March 31, 2025, the two concentration plants at Bloom Lake processed 9.2 million tonnes of ore, comparable to the same prior-year period. Although both periods were impacted by scheduled semi-annual shutdowns of the concentration plants, the volumes processed during the three-month period ended March 31, 2025, remained adversely impacted by ore hardness and limited milling capacity. The iron ore head grade for the three-month period ended March 31, 2025, was 29.2%, comparable to the same period in 2024. The variation in head grade was within the anticipated range of normal fluctuations outlined in the mine plan. Champion's average Fe recovery rate was 78.3% for the three-month period ended March 31, 2025, compared to 80.2% for the same period in 2024. This decrease was primarily attributable to the geological sequence encountered since the previous quarter. The normal evolution of the mine plan required adjustments to ore blending strategies, hardness management and recovery circuits. The Company continues to optimize its operations and remains focused on improving and stabilizing recovery rates over time, despite the expectation that ore hardness challenges will persist in the coming months. 3. Mining and Processing Operating Expenditures For the three-month period ended March 31, 2025, the cost of sales totalled approximately $280 million with a C1 cash cost of $80/dmt 1, compared to $227.5 million with a C1 cash cost of $76.6/dmt 1 for the same period in 2024, and $258.7 million with a C1 cash cost of $78.7/dmt 1 for the previous quarter. C1 cash cost for the three-month period ended March 31, 2025, was impacted by higher mining and processing costs, primarily driven by slightly higher costs related to the scheduled semi-annual shutdowns performed at both concentration plants, higher stripping activities aligned with the long-term mine plan, and additional maintenance on crushers and grinding circuits that experienced premature wear due to the hardness of the ore processed. The increase in mining and processing costs was partially offset by lower land transportation and port handling costs, mainly attributable to the rail operator's semi-annual fuel price indexation and increased sales volumes during the period to amortize fixed costs at the Sept-Îles port facilities. 4. Exploration Activities During the three-month period ended March 31, 2025, the Company maintained all its properties in good standing and no farm-in or farm-out arrangements came into effect. Subject to final negotiations and the execution of definitive transaction documents, the Partners agreed to jointly conduct and fund certain components of the Kami Project's DFS on a pro-rata basis, in accordance with their respective ownership interests. Expected reimbursements of expenditures already incurred by Champion pursuant to the existing collaboration agreement with the Partners were deducted from exploration and evaluation assets; approximately $11 million was incurred in exploration and evaluation expenditures, compared to $1.6 million for the same prior-year period; and exploration and evaluation expenditures were related to activities carried out in Québec and Newfoundland and Labrador. Details on exploration projects, along with maps, are available on the Company's website at under the Operations & Projects section. 5. Conference Call and Webcast Information A webcast and conference call to discuss the foregoing results will be held on May 29, 2025, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time). Listeners may access a live webcast of the conference call from the Investors section of the Company's website at or by dialling toll free +1-888-699-1199 within North America or +61-2-8017-1385 from Australia. An online archive of the webcast will be available by accessing the Company's website at A telephone replay will be available for one week after the call by dialling +1-888-660-6345 within North America or +1-289-819-1450 overseas, and entering passcode 25785#. About Champion Iron Limited Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 km north of Fermont, Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce low contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate. Benefiting from one of the highest purity resources globally, Champion is investing to upgrade half of Bloom Lake's mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake's high-grade and low contaminant iron ore products have attracted a premium to the Platts IODEX 62% Fe iron ore benchmark. Champion ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, and has delivered its iron ore concentrate globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion owns the Kamistiatusset mining properties, a project with an estimated annual production of 9M wmt per year of direct reduction quality iron grading above 67.5% Fe, located near available infrastructure and only a few kilometres south-east of Bloom Lake. In December 2024, Champion entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership to evaluate the potential development of the Kami project, including the completion of a definitive feasibility study. Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 km south of Bloom Lake. Cautionary Note Regarding Forward-Looking Statements This press release includes certain information and statements that may constitute "forward-looking information" under applicable securities legislation. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "aims", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. Specific Forward-Looking Statements All statements, other than statements of historical facts, included in this press release that address future events, developments or performance that Champion expects to occur are forward-looking statements. Forward-looking statements include, among other things, Management's expectations regarding: (i) Bloom Lake's LoM, recovery rates, production, economic and other benefits, nameplate capacity and related opportunities and benefits, as well as potential increase thereof and related work programs and related investments; (ii) the project to upgrade the Bloom Lake iron ore concentrate to a higher grade with lower contaminants and to convert approximately half of Bloom Lake's increased nameplate capacity of 15 Mtpa to commercially produce a DR quality pellet feed iron ore, expected project timeline, capital expenditures, budget and financing, production metrics, technical parameters, efficiencies, economic and other benefits; (iii) the completion of a DFS related to the Kami Project and the Partnership and the timing thereof, the potential to receive future payments based on the financial performance of the Kami Project, the Partner contributions to support the DFS, the negotiations of and entering into definitive transaction documents with the Partners and terms thereof; (iv) the shift in steel industry production methods towards reducing emissions and green steel, and the Company's participation therein, contribution thereto and positioning in connection therewith, including related research and development, and the transition of the Company's product offering; (v) the Company's participation in the development of innovative technologies and processes and related opportunities beyond the green steel supply chain; (vi) maintaining higher stripping activities; (vii) expected ore hardness and recovery rates; (viii) stockpiled ore levels, destocking and related shipping; (ix) increased shipments of iron ore, impact of the delivery of additional railcars and rail equipment, and related railway and port capacity; * the Company's expected iron ore concentrate production and sales, mining and hauling activities and related costs; (xi) available liquidity to support the Company's growth projects and initiatives; and (xii) the Company's growth and opportunities generally. Risks Although Champion believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such forward-looking statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed in forward-looking statements include, without limitation: (i) the results of feasibility studies; (ii) changes in the assumptions used to prepare feasibility studies; (iii) project delays; (iv) timing and uncertainty of industry shift to green steel and electric arc furnaces, impacting demand for high-grade feed; (v) continued availability of capital and financing and general economic, market or business conditions; (vi) general economic, competitive, political and social uncertainties; (vii) future prices of iron ore; (viii) future transportation costs; (ix) failure of plant, equipment or processes to operate as anticipated; * delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; (xi) geopolitical events; and (xii) the effects of catastrophes and public health crises on the global economy, the iron ore market and Champion's operations, as well as those factors discussed in the section entitled "Risk Factors" of the Company's 2024 Annual Report and Annual Information Form for the financial year ended March 31, 2024, all of which are available on SEDAR+ at the ASX at and the Company's website at There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Additional Updates All of the forward-looking information contained in this press release is given as of the date hereof or such other date or dates specified in the forward-looking statements and is based upon the opinions and estimates of Champion's Management and information available to Management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of the forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Champion cautions that the foregoing list of risks and uncertainties is not exhaustive. Readers should carefully consider the above factors as well as the uncertainties they represent and the risks they entail. Abbreviations Unless otherwise specified, all dollar figures stated herein are expressed in Canadian dollars. The following abbreviations are used throughout this release: US$ (United States dollar), C$ (Canadian dollar), Fe (iron ore), wmt (wet metric tonnes), dmt (dry metric tonnes), Mtpa (million tonnes per annum), M (million), k (thousand) km (kilometers), m (meters), LoM (life of mine), Bloom Lake or Bloom Lake Mine (Bloom Lake Mining Complex), DR (Direct Reduction), DRPF (Direct Reduction Pellet Feed), Kami (Kamistiatusset) and Phase II (Phase II expansion project). The utilization of "Champion" or the "Company" refers to Champion Iron Limited and/or one, or more, or all of its subsidiaries, as applicable. "IFRS" refers to International Financial Reporting Standards. For additional information on Champion Iron Limited, please visit our website at: This document has been authorized for release to the market by the Board of Directors. The Company's audited Consolidated Financial Statements and associated Management's Discussion and Analysis for the year ended March 31, 2025, will be available under the Company's profile on SEDAR+ ( on the ASX ( and the Company's website ( on May 29, 2025.
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31-01-2025
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Champion Iron Ltd (CIAFF) Q3 2025 Earnings Call Highlights: Navigating Challenges with ...
Production: Over 3.6 million tonnes produced; just under 3.3 million tonnes sold. Revenue: Approximately $363 million. EBITDA: $88 million. Operating Costs: Approximately CAD79 per tonne delivered. Provisional Price Adjustments: Negative USD4 per tonne on 3.3 million tonnes sold. Cash Position: Decreased from $180 million to about $90 million. Dividend Payment: $52 million. Investment in Flotation Plant: Around $70 million. Net Debt Increase: $100 million associated with mobile equipment and lease financing. Realized Selling Price: Impacted by lack of long-term contracts and exposure to spot pricing. Warning! GuruFocus has detected 5 Warning Signs with CIAFF. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Champion Iron Ltd (CIAFF) managed to produce over 3.6 million tonnes and sell just under 3.3 million tonnes despite a challenging quarter. The company reported no significant environmental issues during the quarter. Champion Iron Ltd (CIAFF) continued to strengthen partnerships with First Nations and Newfoundland and Labrador communities. The company achieved a record quarter in terms of waste mined and ore mined, indicating successful investments in mining equipment. Champion Iron Ltd (CIAFF) signed an agreement with Nippon Steel and Sojitz for the Kami Project, valuing it at CAD500 million, which will be funded by partners. An unplanned event at the load-out resulted in a 14-day halt, impacting shipping and sales capacity. The company faced a provisional price adjustment of USD4 per tonne negative on the 3.3 million tonnes sold. Operating costs remained high, with extra maintenance and re-handling of material contributing to costs. Champion Iron Ltd (CIAFF) experienced a significant cash reduction from $180 million to $90 million, partly due to high CapEx and dividend payments. The company missed EPS consensus forecasts due to a noncash impact from exchange rate changes affecting debt facilities. Q: The sustaining capital over the last two quarters seems elevated. Should we expect this trend to continue, or will it decrease? A: David Cataford, CEO: The recent high levels were due to investments in mining equipment and railcars, which are not typical. Moving forward, we expect sustaining capital to align more closely with the $60 million per quarter level, as outlined in our feasibility study. Q: Is the DRPF product intended for US customers, and what is the status of contract negotiations? A: David Cataford, CEO: Currently, the DRPF product is not intended for US customers due to their preference for pellets. We are targeting markets in the Middle East, North Africa, and Europe. Negotiations have been ongoing for over a year, and we anticipate signing our first contracts by October or November 2025. Q: Can you provide an update on the shipping run rate and stockpile reduction? A: David Cataford, CEO: If IOC's production is at the lower end of their guidance, we have flexibility to reduce stockpiles significantly this year. Even at the higher end, we can still start reducing stockpiles. We expect 2025 to be a good year for destocking, especially after winter. Q: What is the estimated cost of the Kami Project feasibility study, and how will it be funded? A: David Cataford, CEO: The feasibility study, including permitting and infrastructure improvements, is estimated at $60 million. This cost will primarily be covered by our partners, Nippon Steel and Sojitz, so Champion should not need to invest its own cash over the next two years. Q: How will the DRPF commissioning process unfold, and what is the current market price for DR-grade products? A: David Cataford, CEO: We plan to have two separate products initially, focusing on volume over quality. If the market remains as it is, we may blend products for an entry-level DR grade. Currently, DR pellet premiums are around $45, but there is no public pricing for DR-grade concentrate. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
