Champion Iron Limited reported a solid Q4 FY2025 with record iron ore concentrate sales of 3.5 million dmt and steady production despite scheduled maintenance and ore hardness issues. The company is progressing its Direct Reduction Pellet Feed (DRPF) project on track for December 2025 commissioning.
- Q4 production of 3.2 million wmt, down 13% QoQ due to scheduled plant shutdowns
- Record quarterly sales of 3.5 million dmt, up 6% QoQ and 18% YoY
- Iron ore concentrate inventories at Bloom Lake reduced by 0.3 million wmt
- C1 cash cost rose slightly to approximately $80/dmt
- DRPF project advancing as planned for December 2025 commissioning
Operational Performance Amid Seasonal and Geological Challenges
Champion Iron Limited delivered its FY2025 fourth quarter production and sales results, revealing a nuanced operational picture. Production of high-grade 66.5% Fe iron ore concentrate at the Bloom Lake mine totaled 3.2 million wet metric tonnes (wmt), marking a 13% decline from the previous quarter. This decrease was primarily due to scheduled semi-annual maintenance shutdowns of both concentration plants and adjustments to ore feed zones, compounded by the persistent challenges of ore hardness and winter logistics.
Despite the production dip, Champion achieved record quarterly sales of 3.5 million dry metric tonnes (dmt), a 6% increase quarter-over-quarter and an 18% rise year-over-year. This sales growth was supported by the commissioning of additional rail equipment, which improved shipment capacity and allowed the company to reduce stockpiled iron ore concentrate at Bloom Lake by 341,000 wmt to 2.6 million wmt. The company expressed confidence that inventory levels will continue to decline in upcoming periods as rail logistics improve further.
Cost Management and Financial Position
The company reported a C1 cash cost of approximately $80 per dry metric tonne, representing a modest 2% increase from the prior quarter and a 4% rise compared to the same period last year. The cost uptick was attributed to higher mining and processing expenses linked to maintenance activities, increased stripping ratios, and equipment wear from ore hardness. However, these were partially offset by lower transportation and port handling costs due to improved sales volumes and fuel price indexation.
Financially, Champion Iron strengthened its liquidity position, ending the quarter with $117.5 million in cash, up $24.4 million from December 2024, and total available liquidity of $605.9 million. This robust financial footing supports ongoing growth initiatives, including the advancement of the DRPF project and exploration activities.
Progress on Growth and Strategic Partnerships
The Direct Reduction Pellet Feed (DRPF) project, aimed at upgrading half of Bloom Lake’s capacity to produce pellet feed iron ore grading up to 69% Fe, remains on schedule for commissioning in December 2025. This upgrade is expected to enhance product quality and align with the steel industry's shift toward lower emissions.
Champion also advanced its partnership with Nippon Steel Corporation and Sojitz Corporation on the Kami Project, moving closer to finalizing definitive agreements and progressing the definitive feasibility study, targeted for completion by the end of 2026. Additionally, the company secured government funding for innovative research projects leveraging Bloom Lake’s high-purity iron ore in battery production and geometallurgical tools, underscoring the ore’s versatility beyond traditional steelmaking.
Outlook and Operational Optimization
Looking ahead, Champion Iron plans to maintain elevated stripping activity consistent with its life-of-mine plan and optimize operations to reliably achieve Bloom Lake’s nameplate capacity of 15 million tonnes per annum. The company is also exploring opportunities to increase this capacity structurally over time. Scheduled maintenance will continue to create quarter-over-quarter production variances, but the company remains focused on stabilizing recovery rates and managing ore hardness challenges.
A conference call and webcast are scheduled for May 29, 2025, where management will provide detailed financial results and further insights into operational progress and strategic initiatives.
Bottom Line?
Champion Iron’s Q4 results highlight resilience and strategic progress, but operational and market dynamics will test its growth trajectory in the coming quarters.
Questions in the middle?
- How will Champion manage ore hardness challenges to stabilize recovery rates?
- What are the detailed capital expenditure plans and timelines for the DRPF project?
- How will the Kami Project partnership impact Champion’s production profile and financials post-2026?