InvestSMART

Champion Iron Limited (ASX:CIA)

ALERT: Price-sensitive ASX Announcement for CIA
Current share price for CIA : $2.060 -0.2 (-8.85%)+
Announcement
Release
29 Oct 2026 8:21AM
Price at Release
$2.260
Full Release
download
Summary
Champion Iron Limited’s investor presentation for the second quarter of FY2027, dated 29 October 2026, outlines a weaker quarter financially despite strong sales, as lower iron ore prices, elevated freight and fuel costs, and Bloom Lake’s transition toward direct reduction pellet feed (DRPF) production pressured margins; consolidated production was 3.87 million wmt and sales reached a record 4.49 million dmt, generating revenue of $403.9 million, EBITDA of $3.7 million, adjusted EBITDA of $23.3 million, EPS of $(0.09), cash of $267.7 million including Kami partnership cash, and available loans of $404.1 million, while Bloom Lake produced 3.3 million wmt and sold 3.9 million dmt with DRPF commissioning progressing within its $500 million budget and targeting commercial production toward the end of FY2027, including the inaugural commercial DRPF shipment and additional Q3 FY27 cargo agreements, Rana Gruber contributed 0.5 million wmt of production and 0.6 million dmt of sales, and management highlighted liquidity support from inventory sales, covenant flexibility, operational optimisation, a rising DR pellet premium, and Champion’s strategic positioning as a producer of high-purity iron ore to support steel decarbonisation, alongside community and sustainability initiatives in Québec and Norway.
Key Points
  • Investor presentation for Champion Iron Limited covering Q2 FY2027, dated 29 October 2026.
  • Consolidated production was 3,872,500 wmt and concentrate sold was a record 4,494,100 dmt.
  • Quarterly revenue was $403.9 million, EBITDA was $3.7 million and adjusted EBITDA was $23.3 million.
  • EPS was $(0.09) and adjusted EPS was $(0.06).
  • Total cash cost was $82.9/dmt sold and all-in sustaining cost was $97.9/dmt sold.
  • Cash totalled $267.7 million, including $214.4 million cash and $53.3 million held in the Kami Iron Mine Partnership.
  • Working capital was $122.2 million, short- and long-term debt was $1,303.1 million, and available loans were $404.1 million.
  • Bloom Lake produced 3.3 million wmt, including 0.6 million wmt through the DRPF plant, and sold 3.9 million dmt.
  • Bloom Lake’s weighted average product grade increased to 66.7% while Fe recovery fell to 78.2% due mainly to DRPF commissioning impacts.
  • Bloom Lake total cash cost was $82.5/dmt sold and all-in sustaining cost was $94.4/dmt sold.
  • The DRPF project was completed within its $500 million budget excluding ramp-up costs and is ramping up toward commercial production by the end of FY2027.
  • Champion completed the inaugural commercial shipment of DRPF product and secured additional test cargoes and commercial agreements for Q3 FY27.
  • Rana Gruber produced 0.5 million wmt and sold 0.6 million dmt during the quarter.
  • Rana Gruber reported total cash cost of $85.3/dmt sold, all-in sustaining cost of $97.1/dmt sold and net realized price of $92.5/dmt sold.
  • Gross average realized selling price was US$105.5/t, below the P65 index average of US$112.8/t, with freight and other costs of US$40.4/t.
  • Management noted recent abnormally elevated C3 freight rates relative to P65 iron ore pricing.
  • The presentation highlighted a rising DR pellet premium, which management linked to continued shortage of DR-quality material.
  • Champion said liquidity should continue to benefit from iron ore concentrate inventories held by QIO and Rana Gruber totalling 1.3 million wmt as at 30 September 2026.
  • The company amended financial covenants under its senior secured credit facility to provide additional flexibility and maintain access to liquidity.
  • Community and sustainability updates included activities for the National Day for Truth and Reconciliation, the Land Guardians Agreement with ITUM, regional engagement in Québec and Norway, the Escoumins River restoration project, and operational best-practice workshops with Rana Gruber teams.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.