Champion Iron Posts $127M EBITDA on Record 3.5M dmt Sales in Q4 FY25

Operational Highlights and Production Challenges

Champion Iron Limited closed its financial year 2025 with a strong fourth quarter, reporting a quarterly production of 3.2 million wet metric tonnes (wmt) of high-grade iron ore concentrate. This represented a 13% decline from the previous quarter, primarily due to scheduled semi-annual shutdowns of both concentration plants and geological challenges related to ore hardness. Despite these operational headwinds, the company achieved record quarterly sales of 3.5 million dry metric tonnes (dmt), an 18% increase year-over-year, supported by enhanced rail logistics and additional railcars commissioned in prior quarters.

The Bloom Lake Mining Complex saw a notable reduction in stockpiled iron ore concentrate, with inventories decreasing by 341,000 wmt to 2.6 million wmt. This destocking was facilitated by improved rail shipment capabilities, although seasonal weather conditions and maintenance schedules are expected to continue influencing transportation logistics.

Financial Performance and Dividend Declaration

Financially, Champion Iron delivered robust results with revenues of $425 million and an EBITDA of $127 million, marking a 44% increase quarter-over-quarter and a 50% rise compared to the same period last year. The net average realised selling price improved by 8% quarter-over-quarter to US$84.9 per dmt, despite a lower P65 index benchmark. Operating costs were affected by the geological sequence and maintenance activities, with a C1 cash cost of $80 per dmt, slightly higher than the previous year.

Net income surged to $39.1 million, reflecting improved gross profit and operational efficiencies. The company’s cash balance increased to $117.5 million, and available liquidity stood at $606 million, underpinning ongoing growth initiatives. In light of these strong financials, Champion Iron declared its eighth consecutive semi-annual dividend of $0.10 per ordinary share, signalling confidence in its cash flow stability.

Progress on Growth Projects and Strategic Partnerships

Champion Iron continues to advance its Direct Reduction Pellet Feed (DRPF) project, designed to upgrade half of Bloom Lake’s capacity to produce higher-grade iron ore concentrate with up to 69% iron content. The project remains on schedule for commissioning in December 2025, with cumulative investments reaching $340 million out of an estimated $471 million total. This upgrade positions the company to meet rising demand for premium iron ore products aligned with the steel industry's shift toward electric arc furnace production.

Additionally, Champion has entered a binding agreement with Nippon Steel Corporation and Sojitz Corporation to jointly develop the Kami Project. Negotiations and a definitive feasibility study are underway, targeting completion by the end of 2026. This partnership underscores Champion’s strategic intent to expand its high-quality iron ore portfolio and strengthen its presence in key global markets.

Sustainability and Operational Excellence

On the sustainability front, Champion met or exceeded most of its annual targets, adhering to leading disclosure frameworks such as the Global Reporting Initiative and the Task Force on Climate-Related Financial Disclosures. The company reported no major environmental incidents during the quarter, though it reviewed safety procedures following a minor snowfall-related event. Champion’s operations benefit from renewable hydroelectric power, reinforcing its commitment to lower contaminant, high-purity iron ore production.

Looking ahead, management is focused on reducing operating costs and optimizing recovery rates, which have been challenged by ore hardness. The company also plans to maintain elevated stripping ratios consistent with its life-of-mine plan, while exploring opportunities to increase Bloom Lake’s nameplate capacity beyond 15 million wmt per year.