Champion Iron Overcomes Shipment Hurdles While Advancing Green Steel Projects

Operational Resilience Amid Disruptions

Champion Iron Limited delivered its third quarter results for the 2025 financial year, showcasing resilience despite a significant operational challenge. A 14-day interruption at the Bloom Lake train load-out facility temporarily halted iron ore shipments, leading to a slight increase in stockpiled concentrate from 2.8 million to 2.9 million wet metric tonnes. Nevertheless, the company achieved record monthly sales in November, moving nearly 1.6 million dry metric tonnes, underscoring strong demand and operational agility.

The company also received 400 additional railcars and saw the commissioning of new rolling stock, which is expected to enhance railway logistics and gradually reduce the stockpile, positioning Champion to better meet customer demand in upcoming quarters.

Financial Performance and Cost Management

Champion reported quarterly revenues of $363.2 million and an EBITDA of $88.2 million. While these figures reflect solid top-line performance, they were negatively impacted by the shipment disruption and a negative provisional pricing adjustment of $12.9 million, which reduced the average realized price by approximately US$3.9 per dry metric tonne.

Mining and processing costs improved significantly, dropping 14% quarter-on-quarter to $49.6 per dry metric tonne produced, driven by higher production volumes and lower maintenance expenses. Land transportation and port handling costs also decreased slightly, despite the logistical challenges. Total cash costs edged up marginally to $78.7 per dry metric tonne sold, influenced by inventory valuation changes and sales volumes.

Strategic Growth Initiatives: DRPF and Kami Projects

Champion continues to advance its Direct Reduction Pellet Feed (DRPF) project, which aims to upgrade half of Bloom Lake’s capacity from 66.2% to 69% iron content. The project remains on schedule and within budget, with commissioning anticipated in December 2025. To date, $287.8 million has been invested out of an estimated $470.7 million total capital expenditure, with engineering nearing completion and key equipment deliveries underway.

In a major strategic move, Champion entered a binding agreement with Nippon Steel Corporation and Sojitz Corporation to jointly evaluate and potentially develop the Kami Project. Nippon and Sojitz will contribute $245 million for a 49% equity stake, with further investments contingent on project milestones. The Kami Project, with a pre-feasibility capital estimate of $3.9 billion and a 48-month construction timeline post-final investment decision, is positioned to produce approximately 9 million wet metric tonnes per year of direct reduction quality iron ore, aligning with the global shift towards green steelmaking.

Sustainability and Community Engagement

Champion reaffirmed its commitment to sustainability and strong community relations, particularly with First Nations partners. The company’s Kapatakan program continues to immerse employees in local Indigenous communities, supporting cultural and social initiatives. Public consultations for the Kami Project are ongoing, reflecting Champion’s proactive approach to stakeholder engagement and environmental stewardship.

Market Context and Outlook

The iron ore market showed modest strength with the P65 index averaging US$118 per tonne, supported by seasonal steel demand and Chinese stimulus measures. Freight costs declined nearly 19% quarter-on-quarter, easing logistical pressures. However, provisional pricing adjustments and foreign exchange losses weighed on net income, which was reported at $1.7 million for the quarter.

Looking ahead, Champion’s liquidity remains robust with over $950 million in combined cash, working capital, and available loans. The company expects to gradually convert its stockpiled concentrate into sales, while its strategic projects position it well to capitalize on the growing demand for high-purity iron ore in the decarbonizing steel industry.