Champion Iron (CIA) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly sales of 3.8M dmt iron ore concentrate, with production of 3.5M wmt, despite operational challenges from ore hardness, lower head grade, and a two-day Hydro-Québec shutdown.

• Revenue reached $390M, EBITDA was $58M, and EPS was $0.05 for the quarter ended June 30, 2025.

• Net income totaled $23.8M, with net cash increasing to $176.1M and available liquidity at $536.6M.

• DRPF project remains on schedule for December 2025 commissioning, with cumulative investment at $387M out of $470.7M planned.

• Entered a framework agreement with Nippon Steel and Sojitz for the Kami Project, with partners contributing $245M for a 49% stake.

Financial highlights

• Quarterly EPS was $0.05, with cash and cash equivalents at $176.1M and working capital of $185.3M as of June 30, 2025.

• Net income was $23.8M, down from $81.4M year-over-year, and EBITDA margin was 14.8%–15% versus 39% last year.

• Total cash cost was $81.9/dmt sold, up 7% year-over-year, and all-in sustaining cost was $96.2/dmt.

• Cash increased by $58.6M quarter-over-quarter, aided by inventory destocking and warrant exercises.

• Net average realized selling price dropped 26% year-over-year to US$73.4/dmt; gross average realized price was US$105.5/dmt, below the P65 index average of US$108.4/dmt.

Outlook and guidance

• DRPF project on track for December 2025 commissioning, with commercial shipments expected in H1 2026 and gradual ramp-up.

• Kami Project DFS expected by end of 2026; partnership with Nippon Steel and Sojitz to fund development.

• Costs expected to remain elevated next quarter due to hard ore and stockpile use, with improvement anticipated in the second half as ore blend normalizes.

• Anticipates continued elevated stripping activity and further reduction of stockpiled concentrate, though pace may vary due to maintenance and logistics.

• Anticipate positive provisional price adjustment next quarter if iron ore prices remain strong.