Champion Iron Posts $88M EBITDA with 3.6M wmt Production in Q3 FY2025

Operational Resilience Amid Challenges

Champion Iron Limited has delivered its financial third quarter results for FY2025, showcasing operational resilience despite some setbacks. The company produced 3.6 million wet metric tonnes (wmt) of high-grade iron ore concentrate, a 14% increase from the previous quarter but a 10% decline compared to the same period last year. Sales volumes remained steady at 3.3 million dry metric tonnes (dmt), despite a 14-day rail load-out facility outage at the Bloom Lake mine in December, which temporarily halted shipments and led to a slight increase in stockpiled concentrate.

Record mining activity was a highlight, with 20 million tonnes of material mined and hauled during the quarter, an 8% increase quarter-on-quarter and 10% year-on-year. This was supported by additional haul trucks and loading equipment, enhancing operational capacity and efficiency.

Financial Performance Reflects Market Pressures

Financially, Champion Iron reported revenues of $363 million, a 28% decrease year-on-year, primarily due to lower iron ore prices and negative provisional pricing adjustments. The gross average realised selling price was US$113.4/dmt, below the P65 index average of US$118.0/dmt. The net average realised price stood at US$78.8/dmt, stable quarter-on-quarter but down 32% year-on-year.

EBITDA improved 18% from the previous quarter to $88 million but was down 64% compared to the prior year. Net income fell sharply to $1.7 million, a 91% drop quarter-on-quarter, heavily impacted by a $21.1 million unrealised foreign exchange loss on U.S. dollar-denominated liabilities. The company’s cash balance decreased to $93.1 million, reflecting ongoing investments and dividend payments.

Strategic Growth Initiatives: DRPF and Kami Projects

Champion Iron continues to invest heavily in its growth projects. The Direct Reduction Pellet Feed (DRPF) project is progressing on budget and schedule, with $288 million invested to date out of an estimated $471 million total. Commissioning is expected by December 2025, positioning the company to supply higher-grade iron ore aligned with the green steel transition, which commands pricing premiums.

In a significant strategic move, Champion entered a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership to jointly develop the Kami Project. This partnership will fund a definitive feasibility study (DFS), expected to complete by mid-2026, with initial contributions of $245 million for a 49% equity stake. The collaboration aims to leverage Champion’s high-purity iron ore resources and operational expertise alongside global industry leaders.

Outlook and Operational Optimisation

Despite the operational hiccup at the rail load-out facility, Champion is confident that stockpiled concentrate levels will reduce as rail capacity improves with the recent commissioning of 400 additional railcars. The company is also exploring ways to structurally increase Bloom Lake’s nameplate capacity beyond 15 million tonnes per annum over time.

Champion’s CEO, David Cataford, emphasised the company’s commitment to supporting the green steel transition and highlighted the strategic importance of the DRPF and Kami projects in securing long-term value. The company’s focus on operational stability and strategic partnerships underpins its growth ambitions amid a challenging iron ore market.