Champion Iron Limited press release
CHAMPION IRON REPORTS ITS FY2026 THIRD QUARTER RESULTS AND ADVANCES THE DRPF PROJECT AS PLANNED
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CHAMPION IRON REPORTS ITS FY2026 THIRD QUARTER RESULTS AND ADVANCES THE DRPF PROJECT AS PLANNED Canada NewsWire
Quarterly production of 3.7M wmt, record sales of 3.9M dmt, revenue of $472M, net income of $65M, EBITDA of $152M1 and EPS of $0.12
DRPF project initial commissioning underway as it advances towards delivering the first shipment by end of calendar H1/2026, as planned
Reduced iron ore concentrate inventories stockpiled at Bloom Lake by 1.1M wmt to 0.6M wmt
Announced a cash tender offer to acquire Rana Gruber with financial support from La Caisse and a new term loan commitment by Scotiabank
MONTRÉAL, Jan. 28, 2026 /CNW/ - SYDNEY, January 29, 2026 - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") reports its operational and financial results for its financial third quarter ended December 31, 2025.
Champion's CEO, Mr. David Cataford, said, "I am proud of our team's ingenuity and perseverance as we advance strategic initiatives designed to unlock value for our stakeholders in the coming months and reinforce our leadership in the high-purity iron ore industry. We expect to continue to benefit from sales of high-purity iron ore inventories previously stockpiled at Bloom Lake. New markets will become available as we initiate shipments of DR quality iron ore from our DRPF project in the near term. Additionally, we remain focused on the potential closing of the Rana Gruber acquisition, which will diversify our portfolio with another proven high-purity iron ore operation, as well as the anticipated completion of the Kami project definitive feasibility study, leveraging our partnership with Nippon Steel and Sojitz. As our multi-year growth capital investment cycle at Bloom Lake nears completion, we continue to rigorously evaluate growth opportunities and capital allocation strategies to optimize shareholder returns."
Conference Call Details
Champion will host a conference call and webcast on January 29, 2026, at 9:00 AM (Montréal time) / January 30, 2026, at 1:00 AM (Sydney time) to discuss the results of the financial third quarter ended December 31, 2025. The conference call details are set out at the end of this press release.
1. Quarterly Highlights
Operations and Sustainability
No serious workplace-related injuries or major environmental incidents were reported during the three-month period ended December 31, 2025;
Quarterly production of 3.7 million wmt of high-grade 66.5% Fe concentrate for the three-month period ended December 31, 2025, compared to 3.6 million wmt of high-grade 66.3% for the same prior-year period;
Record quarterly sales of 3.9 million dmt for the three-month period ended December 31, 2025, up 18% from the same prior-year period;
Iron ore concentrate stockpiled at Bloom Lake decreased by 1.1 million wmt quarter-over-quarter bringing the total to 0.6 million wmt as at December 31, 2025, despite a railway interruption caused by a third-party train derailment on December 28, 2025. Rail services gradually resumed on January 4, 2026. As some tonnes were hauled to the Port of Sept-Îles and not sold, partly due to an outage of the ship loaders in December 2025, stockpiled iron ore concentrate at the port temporarily reached 0.9 million wmt as at December 31, 2025;
Cumulative iron ore concentrate inventories held at Bloom Lake and at the Port of Sept-Îles totalled 1.5 million wmt as at December 31, 2025, compared to 1.8 million wmt as at September 30, 2025. The Company is evaluating inventory management strategies and expects to sell volumes held at the port in the near term; and
Strong mining performance with 22.6 million wmt of material mined and hauled at Bloom Lake for the three-month period ended December 31, 2025, an increase of 13% compared to the same prior-year period, driven by additional and improved utilization of loading equipment, and availability of haul trucks.
Financial Results
Gross average realized selling price of US$116.8/dmt1, compared to the P65 index average price of US$118.8/dmt in the period;
Net average realized selling price of US$86.9/dmt1, a decrease of 6% quarter-over-quarter and an increase of 10% year-over-year;
C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $73.9/dmt1 (US$53.0/dmt)2, representing a decrease of 3% quarter-over-quarter and 6% year-over-year;
Net income of $65.0 million, representing EPS of $0.12, compared to net income of $56.8 million with EPS of $0.11 in the previous quarter, and net income of $1.7 million with EPS of $0.00 in the same prior-year period;
EBITDA of $152.4 million1, compared to $174.8 million1 in the previous quarter and $88.2 million1 in the same prior-year period;
Cash balance, excluding the unused portion of the initial cash contributions from Nippon Steel Corporation ("Nippon Steel") and Sojitz Corporation ("Sojitz", and collectively with Nippon Steel, the "Partners") held in a restricted cash account by Kami Iron Mine Partnership (the "Kami Partnership"), totalled $245.1 million as at December 31, 2025, a decrease of $80.4 million since September 30, 2025, mainly due to capital expenditures and the payment of the ninth consecutive semi-annual dividend, partially offset by robust net cash flows from operating activities; and
Strong available liquidity to support growth initiatives and general corporate purposes totalled $751.4 million1 as at December 31, 2025, compared to $840.4 million1 as at September 30, 2025.
DRPF Project Update
DRPF project, designed to upgrade half of Bloom Lake's capacity to DR quality pellet feed iron ore grading up to 69% Fe, progressed as planned, with mechanical commissioning initiated and initial commercial shipments of DR quality iron anticipated by the end of the first half of the 2026 calendar year, gradually increasing thereafter;
Transfer of knowledge from the construction teams to the internal teams began, along with the commissioning of certain equipment, including the electrical distribution and the heating, ventilation and air conditioning (HVAC) system, and the pressurization of part of the water process;
Quarterly and cumulative investments totalled $32.9 million and $440.5 million, respectively, as at December 31, 2025, compared to an estimated cumulative investment of $500 million, in line with the inflation-adjusted estimated total capital expenditure of $470.7 million detailed in the project study highlights released in January 2023; and
Through its ongoing discussions with prospective customers, including in the Middle East and North Africa, Champion expects to secure commercial agreements for its anticipated production of DR quality iron ore, which is expected to attract pricing premiums over the Company's existing high-purity iron ore concentrate.
Development and Other Growth Initiatives
Continued work on the Kami Project's DFS, which is expected to be completed by the end of the 2026 calendar year; and
Entered into a transaction agreement with Rana Gruber ASA ("Rana Gruber"), a leading Norwegian producer of high-grade iron ore, on the terms of a conditional recommended voluntary cash tender offer to acquire all of the issued and outstanding shares of Rana Gruber at a price of NOK 79 (US$7.79)3 per share (the "Offer"), representing an implied total equity value of approximately NOK 2,930 million (US$289 million)3 (the "Rana Gruber Transaction"). To fund the Rana Gruber Transaction, in addition to using cash on hand, the Company received financial support from Caisse de dépôt et placement du Québec ("La Caisse"), who has agreed to participate in an equity private placement of subscription receipts by Champion, and from The bank of Nova Scotia ("Scotiabank"), who has provided a binding commitment for a new term loan. Additional details on the Rana Gruber Transaction can be found on the Company's press release dated December 21, 2025 (Montréal), available under its profile on SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com.
2. Bloom Lake Mine Operating Activities
The Company performs both its plants' scheduled maintenance in the second and fourth financial quarters, which may create significant quarter-over-quarter variances in production output and mining and processing costs.
Q3 FY26
Q2 FY26
Q/Q Change
Q3 FY25
Y/Y Change
Operating Data
Waste mined and hauled (wmt)
12,088,600
12,888,300
(6) %
9,694,200
25 %
Ore mined and hauled (wmt)
10,549,700
10,016,000
5 %
10,347,500
2 %
Material mined and hauled (wmt)
22,638,300
22,904,300
(1) %
20,041,700
13 %
Stripping ratio
1.15
1.29
(11) %
0.94
22 %
Ore milled (wmt)
10,443,200
9,967,600
5 %
10,305,300
1 %
Head grade Fe (%)
29.1
29.6
(2) %
29.3
(1) %
Fe recovery (%)
79.7
79.6
— %
79.1
1 %
Product Fe (%)
66.5
66.5
— %
66.3
— %
Iron ore concentrate produced (wmt)
3,661,400
3,551,600
3 %
3,620,600
1 %
Iron ore concentrate sold (dmt)
3,895,300
3,850,900
1 %
3,287,400
18 %
Bloom Lake produced 3.7 million wmt of high-grade 66.5% Fe concentrate during the three-month period ended December 31, 2025, which was comparable to production recorded during the same period in 2024. The Company continues to encounter higher ore hardness, partly attributable to a specific extension of a pit being mined to enable shorter haul access to waste dumps. Despite this situation, this year's quarterly production was positively impacted by increased recoveries resulting from improved performance of the gravimetric systems following the application of work programs and optimization of operations. During the three-month period ended December 31, 2025, the Fe recovery rate was 79.7%, compared to 79.1% for the same period in 2024. The increase in iron ore concentrate production was mostly offset by the negative impact of lower head grade, and a planned maintenance-related power interruption by the service provider during the three-month period ended December 31, 2025. While recovery rates are expected to fluctuate in accordance with the mine plan and its variations in ore grade, the Company will remain focused on improving and stabilizing recovery rates over time. The impact of the recently encountered ore hardness, which is easing compared to previous quarters, is mitigated by strong mining performance, which should enable the optimized blending of material from different pits.
Despite a breakdown on the port operator's ship loaders at the end of December 2025, sales volumes increased by 18% during the three-month period ended December 31, 2025, compared to the same prior-year period, and exceeded production for the fourth consecutive quarter. While a planned shutdown of third-party port operations for infrastructure maintenance impacted both financial quarters, during the three-month period ended December 31, 2024, sales volumes were also affected by the breakdown of a critical piece of equipment at the Bloom Lake's train load-out facility, which caused a 14-day interruption of rail haulage activities.
Despite a third-party train derailment that occurred late in December 2025, the level of iron ore concentrate stockpiled at Bloom Lake decreased by 1.1 million wmt to reach 0.6 million wmt as at December 31, 2025. Since the volume hauled was not fully sold during the quarter, the iron ore concentrate stockpiled at the Port of Sept-Îles totalled 0.9 million wmt at quarter-end. This temporary accumulation of iron ore concentrate at the port was in part due to the unexpected ship loaders breakdown outlined above, and also resulted from the Company's strategic decision to maintain a certain level of stockpiles during the commissioning phase of the DRPF project. Cumulative iron ore concentrate inventories at Bloom Lake and at the port totalled 1.5 million wmt as at December 31, 2025, compared to 1.8 million wmt as at September 30, 2025. The Company is currently evaluating on-site and port inventory management strategies in anticipation of the expected change to its product offering with DRPF quality iron ore and expects to sell the iron ore concentrate held at the port in the near term.
During the three-month period ended December 31, 2025, the Company mined and hauled 22.6 million wmt of waste and ore, surpassing the 20.0 million wmt recorded in the same prior-year period. This strong mining performance was driven by additional loading equipment, as well as improved utilization and availability of haul trucks. During the quarter, the Company also commissioned a new drill which allowed the Company to mine and haul a higher volume of waste material, resulting in a stripping ratio of 1.15 for the three-month period ended December 31, 2025, higher than the 0.94 ratio recorded in the same prior-year period. Champion anticipates maintaining elevated stripping activity in upcoming periods, consistent with its LoM plan.
3. Financial Performance
Q3 FY26
Q2 FY26
Q/Q Change
Q3 FY25
Y/Y Change
Financial Data (in thousands of dollars)
Revenues
472,309
492,890
(4) %
363,170
30 %
Cost of sales
287,712
293,398
(2) %
258,728
11 %
Other expenses
28,747
21,648
33 %
17,290
66 %
Net finance costs
2,101
25,643
(92) %
30,508
(93) %
Net income
64,972
56,794
14 %
1,741
3632 %
EBITDA1
152,408
174,823
(13) %
88,216
73 %
Statistics (in dollars per dmt sold)
Gross average realized selling price1
162.9
157.5
3 %
158.8
3 %
Net average realized selling price1
121.3
128.0
(5) %
110.5
10 %
C1 cash cost1
73.9
76.2
(3) %
78.7
(6) %
AISC1
89.7
96.9
(7) %
93.9
(4) %
Cash operating margin1
31.6
31.1
2 %
16.6
90 %
A. Revenues
Revenues totalled $472.3 million for the three-month period ended December 31, 2025, up $109.1 million from revenues of $363.2 million in the same period in 2024. Higher revenues were attributable to an 18% increase in sales volume as outlined in the previous section and a higher net average realized selling price.
For the three-month period ended December 31, 2025, the gross average realized selling price of US$116.8/dmt1 was lower than the P65 index average price of US$118.8/dmt. Sales contracts using backward-looking iron ore index pricing contributed to lower selling prices as index prices on these contracts were lower than the P65 index average price during the period. In addition, the 2.5 million dmt iron ore subject to pricing adjustments as at December 31, 2025, were evaluated using an average forward selling price of US$117.4/dmt, below the P65 index average price. The gross average realized selling price was also negatively impacted by the Company's strategic transition to a higher grade DRPF product. Accordingly, Champion intentionally reduced volumes of iron ore concentrate sold under long-term sales contracts to retain a greater proportion of its iron ore concentrate for the short-term and spot markets, which have recently experienced greater pricing volatility and pricing discounts.
Positive provisional pricing adjustments on prior-quarter sales of $4.4 million (US$3.3 million) were recorded during the three-month period ended December 31, 2025, representing a favourable impact of US$0.8/dmt for the 3.9 million dmt sold during the quarter. A final average selling price of US$115.1/dmt was established for the 2.5 million dmt of iron ore subject to pricing adjustments as at September 30, 2025, which were provisionally priced at US$113.8/dmt.
Despite an 11% increase in the average C3 index, freight and other costs of US$30.7/dmt during the three-month period ended December 31, 2025, were in line with the same prior-year period. Sales contracts using backward-looking pricing contributed to lower freight costs as the C3 index used was lower than the average index for the period.
After taking into account sea freight and other costs of US$30.7/dmt and the positive provisional pricing adjustments of US$0.8/dmt, the Company obtained a net average realized selling price of US$86.9/dmt (C$121.3/dmt1) for its high-grade iron ore concentrate shipped during the three-month period ended December 31, 2025.
B. Cost of Sales and C1 Cash Cost
For the three-month period ended December 31, 2025, the cost of sales totalled $287.7 million with a C1 cash cost of $73.9/dmt1, compared to $258.7 million with a C1 cash cost of $78.7/dmt1 for the same period in 2024.
With similar production volumes, mining and processing costs totalled $47.3/dmt produced1 for the three-month period ended December 31, 2025, representing a 5% decrease, compared to $49.6/dmt produced1 in the same prior-year period. This decrease was mainly driven by lower subcontractors costs primarily associated with equipment maintenance at the facilities.
Land transportation and port handling costs for the three-month period ended December 31, 2025, were $26.5/dmt sold1, comparable to the same prior-year period despite significantly higher sales volumes. While higher sales volumes contributed to the amortization of fixed costs of the port yard facilities, the disconnect between iron ore concentrate volumes railed from the site and the volume of sales loaded onto vessels during the period offset this effect. As at December 31, 2025, stockpiled iron ore concentrate at the port increased to 0.9 million wmt as the tonnages hauled were not fully sold during the period.
The C1 cash cost was also impacted by changes in the valuation of iron ore concentrate inventory, which incorporate mining and processing costs from the previous quarter, along with variations in production and sales volumes. Due to the scheduled semi-annual maintenance completed in September 2025, cash cost per tonne for the period was impacted by the destocking of iron ore inventories, as the destocked tonnes carried a higher unit value than the cost of the iron ore produced in the period.
C. Net Income & EBITDA
For the three-month period ended December 31, 2025, the Company generated net income of $65.0 million (EPS of $0.12), compared to $1.7 million (EPS of $0.00) for the same prior-year period. These increases were attributable to a higher gross profit and an unrealized foreign exchange gain resulting from the revaluation of net monetary liabilities denominated in U.S. dollars, partially offset by higher income and mining taxes.
For the three-month period ended December 31, 2025, the Company generated EBITDA of $152.4 million1, representing an EBITDA margin of 32%1, compared to $88.2 million1, representing an EBITDA margin of 24%1, for the same period in 2024. Higher EBITDA and EBITDA margins were mainly driven by higher sales volumes, a higher net average realized selling price and lower cash cost.
D. All-in Sustaining Cost & Cash Operating Margin
During the three-month period ended December 31, 2025, the Company realized an AISC of $89.7/dmt1, compared to $93.9/dmt1 for the same period in 2024. Higher iron ore concentrate sales volumes led to lower unit costs, favourably impacting AISC for the period, partially offset by higher sustaining capital expenditures and general and administrative expenses.
The Company generated a cash operating margin of $31.6/dmt1 for each tonne of high-grade iron ore concentrate sold during the three-month period ended December 31, 2025, compared to $16.6/dmt1 for the same prior-year period. This increase was due to a higher net average realized selling price and a lower AISC for the period.
4. Exploration Activities
During the three and nine-month periods ended December 31, 2025, the Company maintained all its properties in good standing and did not enter into any farm-in arrangements.
The Company transferred its Kami properties to the Kami Partnership on September 29, 2025, and an aggregate 49% interest in the Kami Partnership was acquired by Nippon Steel and Sojitz in exchange for cash contributions. The Kami Partnership was created to jointly conduct and fund certain components of the DFS on a pro-rata basis, in accordance with the Partners' respective ownership interests.
During the three and nine-month periods ended December 31, 2025, $1.1 million and $16.3 million in exploration and evaluation expenditures were incurred, respectively, compared to $9.2 million and $16.6 million, respectively, for the same prior-year periods. The lower investment year-over-year was due to the transfer of the Kami properties in the Kami Partnership and the acquisition by the Partners of the aggregate 49% interest in the Kami Partnership in September 2025.