Champion Iron (CIA) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 production was 3.17M wmt, sales were 3.27M dmt, with revenues of $351.0M and net income of $19.8M; operations were impacted by forest fires and plant shutdowns, but sales exceeded production due to resumed rail haulage.

• No significant workplace or environmental incidents occurred, maintaining a strong safety record since 2018.

• Community engagement included a new First Nations program, strengthening local partnerships.

• The DRPF project at Bloom Lake is progressing on schedule and on budget, with $218.4M invested to date and commissioning expected in H2 2025.

• Record material mined and hauled was achieved in the quarter despite operational disruptions.

Financial highlights

• Q2 revenues were $351.0M, EBITDA was $74.5M, and net income was $19.8M, all down quarter-on-quarter due to lower sales volumes and realized prices.

• Cash and cash equivalents stood at $183.8M at period end, with net cash flow from operations at $134.7M for Q2.

• C1 cash cost per dmt sold was $77.2 for the half-year, and AISC was $96.3 per dmt.

• Dividend of $0.10 per share declared for the seventh consecutive period.

• Total liquidity exceeded $1.0B, including cash, working capital, and credit facilities.

Outlook and guidance

• DRPF project commissioning is on track for H2 2025, with $218.4M invested out of $470.7M total capex.

• The company is positioned to fund all cash requirements for the next 12 months from existing cash, forecasted operating cash flows, and undrawn credit facilities.

• Ongoing work to increase Bloom Lake's nameplate capacity beyond 15 Mtpa and improve rail haulage flexibility with 400 new railcars.

• DR-grade market targeted for future growth, with most tons expected to be committed by end of next summer.

• Continued focus on decarbonization and emission reduction targets, aiming for carbon neutrality by 2050.