Champion Iron (CIA) Q3 2025 earnings summary

Executive summary

• Produced over 3.6 million tons and sold just under 3.3 million tons of iron ore concentrate in Q3 FY2025, with revenue of $363.2M and EBITDA of $88.2M, despite a 14-day unplanned loadout stoppage impacting shipments and sales volumes.

• Net income and EPS were negatively impacted by unrealized FX losses and lower-than-expected sales volumes, with EPS at $0.00 for the quarter.

• DRPF project advanced on schedule and budget for December 2025 commissioning, with $69M invested in the quarter and $288M cumulative to date.

• Entered a binding partnership with Nippon Steel (30%) and Sojitz (19%) for the Kami Project, initiating a definitive feasibility study expected by mid-2026.

• No significant environmental issues reported; continued engagement with First Nations and local communities.

Financial highlights

• Revenue for the quarter was $363.2M, with EBITDA at $88.2M and EBITDA margin of 24%.

• Net income was $1.7M, down 91% sequentially and 99% year-over-year, impacted by a $21.1M unrealized FX loss.

• Operating costs remained elevated at $78.7/dmt sold, with all-in sustaining cost at $93.9/dmt sold.

• Cash and cash equivalents stood at $93.1M, with available liquidity of $595M at quarter-end.

• Net cash decreased mainly due to dividend payments ($51.8M), significant CapEx for the DRPF project, and lower sales.

Outlook and guidance

• DRPF project remains on track for December 2025 commissioning, expected to upgrade half of Bloom Lake’s capacity to DR quality pellet feed.

• Kami Project feasibility study underway, with completion targeted for mid-2026 and up to $490M in partner contributions before further capital is needed.

• CapEx run rate expected to normalize to around $60M per quarter, excluding DRPF, after recent elevated spending.

• Liquidity expected to improve as 2.9M wmt of stockpiled concentrate is gradually sold.

• First DR product contracts expected to be signed in late 2025, targeting sales in 2026.