Champion Iron (CIA) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly sales of 3.5M dmt iron ore concentrate and production of 3.2M wmt in Q4 FY2025, despite operational challenges from maintenance, winter logistics, and ore hardness.

• Cash cost was ~$80/dmt for Q4 FY2025, with operational focus on destocking and managing harder ore.

• Strengthened community relations, met or exceeded 13 of 14 sustainability/ESG targets, and achieved a 15% year-over-year reduction in GHG emissions per tonne mined.

• No major environmental incidents; safety procedures reviewed after a minor snowfall-related injury.

Financial highlights

• Q4 FY2025 revenue reached $425.3M, EBITDA was $130M, and EPS was $0.08; net income was $39.1M.

• Cash position increased by $24.4M to $117.5M after $100M in project and sustaining CapEx.

• Available liquidity, including credit facilities, totaled $605.9M at quarter-end.

• Declared eighth semi-annual dividend of $0.10 per share for shareholders of record on June 13, 2025.

• Over CAD 2.68B in cash generated from operations since 2017, with CAD 400M returned to shareholders.

Outlook and guidance

• DRPF project at Bloom Lake progressing on schedule, with commissioning expected in December 2025; $339.6M invested to date out of $470.7M budget.

• Kami Project feasibility and permitting phase advancing, with completion targeted for end of calendar 2026 and minimal near-term cash outlay.

• Liquidity expected to improve as 2.6M wmt of stockpiled iron ore concentrate is sold.

• Focus on signing first DR-grade contracts by year-end and targeting Europe, North Africa, and Middle East markets.

• Elevated stripping activity and ore hardness challenges expected to persist, impacting recovery rates and costs.