Champion Iron (CIA) Q3 2026 earnings summary

Executive summary

• Achieved quarterly production of 3.7M wmt high-grade 66.5% Fe concentrate and record sales of 3.9M dmt, with revenue of $472.3M, net income of $65M, EBITDA of $152.4M, and EPS of $0.12 for Q3 FY26, driven by strong operational performance and improved costs.

• Reduced mine stockpiles by 1.1M tons, increasing port inventories to 900,000 tons for future vessel loading.

• Maintained strong community engagement and safety record, with significant partnership activities and no major incidents.

• Entered into a fully financed agreement to acquire Rana Gruber for US$289M, expanding European market access and operational synergies, with closing expected in Q2 2026.

• Progressed on the DRPF project, with commissioning underway and first commercial tons expected by end of H1 2026.

Financial highlights

• Revenue of $472.3M, EBITDA of $152.4M, and net income of $65M for the quarter, with EPS of $0.12.

• 3.9M dmt of iron ore concentrate sold, with 3.7M wmt produced and ore recovery at 79.7%.

• Net realized price of CAD 121 per ton, with C1 cash cost at $73.9/dmt and AISC at $89.7/dmt, both improved year-over-year.

• Cash and equivalents at $245.1M as of December 31, with total liquidity up to $1.1B including available loans.

• Provisional price adjustment was minor at $3.3M, impacting results by $0.80 per ton sold.

Outlook and guidance

• DRPF plant commissioning ongoing, with ramp-up to nameplate capacity expected over 12 months; first commercial sales targeted for H1 2026, with meaningful price impact expected in Q3.

• DR grade premiums have increased year-over-year, with expectations for improved margins as product quality is proven.

• Kami project feasibility and permitting on track for completion by year-end, with DFS expected by end of 2026 and potential for future construction.

• Inventory management strategies in place to sell 1.5M wmt of stockpiled iron ore concentrate in the near term.

• Anticipates continued operational improvements and stable ore recoveries.