Declares ninth consecutive semi-annual dividend of $0.10 per ordinary share
DRPF project advancing as scheduled towards an expected start of commissioning in December 2025
Reduced iron ore concentrate inventories stockpiled at Bloom Lake by 0.5M wmt to 1.7M wmt
MONTRÉAL, Oct. 29, 2025 /CNW/ - SYDNEY, October 30, 2025 - Champion Iron Limited (TSX:CIA) (ASX: CIA) (OTCQX:CIAFF) ("Champion" or the "Company") reports its operational and financial results for its financial second quarter ended September 30, 2025.
Champion's CEO, Mr. David Cataford, said, "We successfully capitalized on rising iron ore prices by delivering robust quarterly financial results, while completing our scheduled semi-annual maintenance at our site and on the third-party railway. I'm especially proud of our teams' commitment to operating Bloom Lake sustainably while optimizing operations and advancing the DRPF project towards its completion. We are pleased to have formalized the strategic partnership with Nippon Steel and Sojitz to advance the Kami Project through the ongoing definitive feasibility study. With robust financial liquidity, we remain focused on maximizing shareholder value while creating a positive impact for our host communities."
Conference Call Details
Champion will host a conference call and webcast on October 30, 2025, at 9:00 AM (Montréal time) / October 31, 2025, at 12:00 AM (Sydney time) to discuss the results of the financial second quarter ended September 30, 2025. The conference call details are set out at the end of this press release.
1. Quarterly Highlights
Operations and Sustainability
No serious workplace-related injuries or major environmental incidents were reported during the three-month period ended September 30, 2025;
Quarterly production of 3.6 million wmt of high-grade 66.5% Fe concentrate for the three-month period ended September 30, 2025, up 12% over the same period last year. Quarterly production compares favourably to that of the fourth quarter of the 2025 financial year, during which the Company also completed scheduled semi-annual maintenance of both concentration plants;
Record quarterly sales of 3.9 million dmt were achieved for the three-month period ended September 30, 2025, up 18% from the same prior-year period, reducing iron ore concentrate stockpiled at Bloom Lake by 477,000 wmt quarter-over-quarter, and bringing the total to 1.7 million wmt as at September 30, 2025; and
Strong mining performance with a record 22.9 million wmt of material mined and hauled at Bloom Lake for the three-month period ended September 30, 2025, an increase of 23% compared to the same period last year, driven by the optimization and recent deployment of additional mining equipment.
Financial Results
Gross average realized selling price of US$114.2/dmt1, compared to the P65 index average price of US$117.4/dmt in the period;
Net average realized selling price of US$92.9/dmt1, an increase of 27% quarter-over-quarter and 18% year-over-year;
C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $76.2/dmt1 (US$55.3/dmt)2, representing a decrease of 7% quarter-over-quarter and 2% year-over-year;
Net income of $56.8 million, representing EPS of $0.11, compared to $23.8 million with EPS of $0.05 in the previous quarter, and $19.8 million with EPS of $0.04 in the same prior-year period;
EBITDA of $174.8 million1, compared to $57.8 million1 quarter-over-quarter and $74.5 million1 year-over-year;
Cash balance, excluding the initial cash contributions from Nippon Steel Corporation ("Nippon Steel") and Sojitz Corporation ("Sojitz", and collectively with Nippon Steel, the "Partners") held in a restricted cash account by Kami Iron Mine Partnership (the "Kami Partnership"), totalled $325.5 million as at September 30, 2025, an increase of $149.5 million since June 30, 2025, benefiting from the proceeds of the US$500 million Senior Unsecured Notes issuance on July 2, 2025, and robust cash flows from operating activities, partially offset by the senior credit facilities repayment, significant capital expenditure and the dividend payment;
Strong available liquidity to support growth initiatives and general corporate purposes totalled $840.4 million1 as at September 30, 2025, compared to $536.6 million1 as at June 30, 2025, mainly attributable to the net proceeds of long-term debt; and
Semi-annual dividend of $0.10 per ordinary share declared on October 29, 2025 (Montréal) / October 30, 2025 (Sydney), in connection with the semi-annual results for the period ended September 30, 2025.
DRPF Project Update
The DRPF project, designed to upgrade half of Bloom Lake's capacity to DR quality pellet feed iron ore grading up to 69% Fe, is progressing as scheduled, with initial commissioning expected to begin in December 2025 and commercial shipments of DR quality iron anticipated by the end of the first half of the 2026 calendar year, gradually increasing thereafter.
Quarterly and cumulative investments totalled $20.6 million and $407.6 million, respectively, as at September 30, 2025. The Company expects to advance the project into the commissioning phase with an approximate cumulative investment of $500 million, in line with the inflation-adjusted estimated total capital expenditure of $470.7 million detailed in the project study highlights released in January 2023; and
Through its ongoing discussions with prospective customers, including in the Middle East and North Africa, the Company expects to secure commercial agreements for its anticipated production of DR quality iron ore, which is expected to attract pricing premiums over the Company's existing high-purity iron ore concentrate.
Kami Project Update
On September 29, 2025, the Company completed the initial closing (the "Initial Closing") of the transactions contemplated by the previously announced framework agreement with Nippon Steel and Sojitz for the joint ownership and potential development of the Kami Project (the "Framework Agreement"). Concurrently with the Initial Closing, the Partners made their initial cash contributions in an aggregate amount of $68.6 million, out of a total planned cash contribution of $245 million, and paid their pro-rata share of the feasibility study costs already incurred by the Company. Following the Initial Closing, the Company holds a 51% interest in the Kami Partnership; and
Submitted the Environmental Impact Statement required by the Government of Newfoundland and Labrador in July 2025 and continued work on the Kami Project's DFS, which is expected to be completed by the end of the 2026 calendar year.
2. Bloom Lake Mine Operating Activities
The Company performs the scheduled maintenance of both of its plants in the second and fourth financial quarters, which may create significant quarter-over-quarter variances in production output and mining and processing costs.
Q2 FY26
Q1 FY26
Q/Q Change
Q2 FY25
Y/Y Change
Operating Data
Waste mined and hauled (wmt)
12,888,300
10,963,600
18 %
9,323,600
38 %
Ore mined and hauled (wmt)
10,016,000
10,070,700
(1) %
9,287,100
8 %
Material mined and hauled (wmt)
22,904,300
21,034,300
9 %
18,610,700
23 %
Stripping ratio
1.29
1.09
18 %
1.00
29 %
Ore milled (wmt)
9,967,600
10,500,700
(5) %
9,125,000
9 %
Head grade Fe (%)
29.6
28.2
5 %
29.1
2 %
Fe recovery (%)
79.6
78.2
2 %
78.7
1 %
Product Fe (%)
66.5
66.3
— %
66.3
— %
Iron ore concentrate produced (wmt)
3,551,600
3,520,600
1 %
3,170,100
12 %
Iron ore concentrate sold (dmt)
3,850,900
3,831,800
— %
3,265,700
18 %
Bloom Lake produced 3.6 million wmt of high-grade iron ore concentrate during the three-month period ended September 30, 2025, an increase of 12% compared to 3.2 million wmt produced during the same period in 2024, during which production was interrupted for approximately one week due to nearby forest fires in July 2024.
The Company recently encountered higher ore hardness, partly attributable to a specific extension of a pit being mined to enable shorter haul access to waste dumps. Despite the impact of this ore hardness, quarterly production was positively impacted by increased recoveries resulting from the improved performance of the gravimetric systems following work programs and optimization of operations. As a result, during the three-month period ended September 30, 2025, the Fe recovery was 79.6%, compared to 78.7% for the same period in 2024. While the recovery rates are expected to fluctuate in accordance with the mine plan and its variations in ore grade, the Company will remain focused on improving and stabilizing recovery rates over time. The ore hardness challenge is expected to moderate in upcoming periods as the Company continues to deliver strong mining performance, which should allow it to optimize the blending of material from different pits.
During the three-month period ended September 30, 2025, despite a shutdown of third-party rail operations for infrastructure maintenance lasting several days, sales volumes exceeded production for the third consecutive quarter, thereby reducing the level of iron ore concentrate stockpiled at Bloom Lake by 477,000 wmt to reach 1.7 million wmt as at September 30, 2025. The Company expects that stockpiled volumes of iron ore concentrate will continue to decrease in future periods. However, the pace of future destocking is expected to vary due to scheduled semi-annual maintenance work at the mine and on the rail network, as well as seasonal transportation constraints. Champion continues to work closely with the rail operator to receive consistent contracted haulage services, ensuring that both ongoing production and existing stockpiles at Bloom Lake are hauled over future periods.
During the three-month period ended September 30, 2025, the Company set a new record by mining and hauling 22.9 million tonnes of waste and ore, surpassing the 18.6 million tonnes of waste and ore recorded in the same prior-year period. This improvement in mining performance was driven by Champion's investments in additional haul trucks and loading equipment during the second half of the previous financial year, as well as enhanced utilization and availability of mining equipment. The strong mining performance enabled the Company to mine and haul a higher volume of waste material, resulting in a stripping ratio of 1.29 for the three-month period ended September 30, 2025, higher than the 1.00 ratio recorded in the same prior-year period. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with its LoM plan.
3. Financial Performance
Q2 FY26
Q1 FY26
Q/Q Change
Q2 FY25
Y/Y Change
Financial Data (in thousands of dollars)
Revenues
492,890
390,027
26 %
350,980
40 %
Cost of sales
293,398
313,928
(7) %
252,960
16 %
Other expenses
21,648
18,712
16 %
23,153
(7) %
Net finance costs (income)
25,643
(13,256)
(293) %
7,486
243 %
Net income
56,794
23,784
139 %
19,807
187 %
EBITDA1
174,823
57,753
203 %
74,536
135 %
Statistics (in dollars per dmt sold)
Gross average realized selling price1
157.5
146.0
8 %
