Champion Iron (CIA) Q1 2027 earnings summary

Executive summary

• Quarterly production reached 3.9M wmt (up 12–15% year-over-year), driven by Bloom Lake performance and Rana Gruber integration.

• Sales totaled 3.3M dmt, down 3–13% quarter-over-quarter and year-over-year, mainly due to DRPF ramp-up, shipment timing, and logistics.

• Revenues were $357M, with EBITDA of $32.8M and an adjusted net loss of $35.2M to $41.5M, impacted by DRPF start-up costs, inventory adjustments, and FX/derivative losses.

• DRPF project completed on time and within $500M budget, with first contracts signed and initial shipment imminent.

• Integration of Rana Gruber completed, with initial sales and operations impacted by shipping disruptions and acquisition timing.

Financial highlights

• Revenues of $356.9M, EBITDA of $32.8M, net loss of $41.5M, and EPS of $(0.07) for Q1 FY27.

• All-in sustaining cost was $111.3/dmt sold, with C1 cash cost rising to $83.7/dmt due to higher fuel and lower sales volumes.

• Cash position at $198.6M, with available liquidity between $653.1M and close to $1B.

• Net realized selling price was $106.9/t, below the P65 index average of $121.9/t, due to shipment timing and higher freight costs.

• Net debt increased due to acquisition and inventory build, but expected to peak and decline as sales ramp up.

Outlook and guidance

• DRPF project expected to reach commercial production by fiscal year-end, with first commercial shipment in Q2 FY27 and inaugural Capesize vessel sale in Q3 2026.

• Sales and all-in sustaining costs expected to normalize in Q2 as deferred volumes are shipped and DRPF ramp-up continues.

• Focus on integrating Rana Gruber, cost management, and unlocking synergies.

• Premiums from DRPF product expected to start impacting realized prices in Q2, with larger impact in Q3 and Q4.

• Liquidity position expected to benefit from sale of 2.0M wmt iron ore concentrate inventories.