Champion Iron (CIA) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly iron ore concentrate sales of 3.4M dmt and production of 3.9M wmt, up 18% sequentially and 57% year-over-year, driven by operational improvements and no major shutdowns.

• Revenues reached $467.1M, EBITDA $181.2M, and net income $81.4M, with EPS of $0.16, reflecting higher sales volumes and improved realized prices.

• Maintained strong safety and environmental performance, with no significant incidents or major environmental issues reported.

• DRPF project advanced on schedule and on budget, with $58.5M invested in the quarter and $153.8M cumulative out of a $470.7M budget; high-purity iron ore added to Canada's critical minerals list.

• Operations quickly resumed after a preventive evacuation due to nearby forest fires, with no impact on facilities.

Financial highlights

• Quarterly revenues of $467.1M, up 57% year-over-year and 40% sequentially; EBITDA of $181.2M and net income of $81.4M, with EBITDA margin at 39%.

• Net average realized selling price was US$125.3/t, with a positive provisional pricing adjustment of US$20.8M.

• C1 cash cost was $76.9/dmt, flat sequentially and down 5% year-over-year; AISC was $91.6/dmt, down 3% year-over-year.

• Cash and cash equivalents at $294.7M, with available liquidity exceeding $860.8M at quarter-end.

• Cash operating margin rose to $44.1/dmt, up from $21.8/dmt year-over-year.

Outlook and guidance

• DRPF project remains on schedule and on budget, targeting commissioning in H2 2025 within a $470.7M capex.

• Additional mining equipment and railcars ordered to support potential production increases beyond current nameplate capacity.

• Liquidity expected to benefit from future sales of 3.0M wmt iron ore concentrate stockpiled at Bloom Lake.

• High-purity iron ore's addition to the critical minerals list expected to support higher product premiums and green steel initiatives.