DRPF project commissioning advancing as planned, with initial production tests successfully completed in March 2026 and production of commercially sellable product expected by the end of calendar Q2 2026
The previously announced acquisition of Rana Gruber, a proven high-purity iron ore producer in Norway, closed in April 2026
MONTRÉAL, April 29, 2026 /CNW/ - SYDNEY, April 30, 2026 - Champion Iron Limited (ASX: CIA) (TSX:CIA) (OTCQX:CIAFF) ("Champion" or the "Company") reports production results and mining operating expenditures for its financial fourth quarter ended March 31, 2026. Detailed operational and audited annual financial results are scheduled to be released prior to the Company hosting a conference call and webcast on May 28, 2026.
Champion's CEO, Mr. David Cataford, said: "Our team remains focused on efficiency and disciplined execution as we advance initiatives to optimize operations, strengthen sales performance and progress our growth projects. Concurrently, our DRPF project remains on schedule, with first sellable commercial production expected in the second quarter of the calendar year. In parallel, the recent closing of the Rana Gruber ASA ("Rana Gruber") transaction marks a significant milestone for Champion. It reinforces our leadership as a low carbon producer of high-purity iron ore while expanding our cash flows, positioning us to capitalize on opportunities to maximize long-term value for our shareholders and the communities in which we operate."
Conference Call DetailsChampion will host a conference call and webcast on May 28, 2026, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results of the fourth quarter and financial year ended March 31, 2026. 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 March 31, 2026;
Quarterly production of 3.4 million wmt of high-purity 66.2% Fe concentrate for the three-month period ended March 31, 2026, an 8% increase over the same prior-year period, and comparable to that of the second quarter of the 2026 financial year, during which the Company also completed scheduled semi-annual maintenance at both concentration plants;
Quarterly sales of 3.5 million dmt for the three-month period ended March 31, 2026, comparable to the same prior-year period, despite a railway interruption caused by a third-party train derailment that lasted until January 4, 2026, with continued rail service disruptions thereafter until the rail operator's activities resumed to normal, as well as particularly challenging winter conditions;
Iron ore concentrate stockpiled at Bloom Lake and at the port decreased to 1.3 million wmt as at March 31, 2026, from 1.5 million wmt as at December 31, 2025; and
Strong mining performance at Bloom Lake with 20.9 million wmt of material mined and hauled during the three-month period ended March 31, 2026, an increase of 3% compared to the same prior-year period, driven by additional and improved utilization of loading and drilling equipment and haul trucks availability.
Financial Results
C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled approximately $82.7/dmt1 (US$60/dmt), an increase of 12% quarter-over-quarter, mainly attributable to the scheduled semi-annual maintenance at both concentration plants, and an increase of 3% year-over-year. C1 cash cost for the three-month period ended March 31, 2026, was negatively impacted by higher land transportation and port handling costs, with lower volumes transported to the port yard facilities due to the train derailment and severe winter conditions, along with a significant rise in fuel prices at the end of the quarter attributable to the conflict in the Middle East;
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") that is held in a restricted cash account by Kami Iron Mine Partnership (the "Kami Partnership"), totalled $296.8 million as at March 31, 2026, an increase of $51.7 million since December 31, 2025, benefiting from robust net cash flows from operating activities, while the Company continued to advance the DRPF project and invest in sustainable capital expenditures; and
Strong available liquidity of $812.4 million1 as at March 31, 2026, compared to $751.4 million1 as at December 31, 2025, supporting growth initiatives and general corporate purposes.
DRPF Project Update
DRPF project, designed to upgrade up to half of Bloom Lake's capacity to DR quality pellet feed iron ore grading up to 69% Fe, progressed as planned. The initial sellable production is anticipated to occur by the end of the second quarter of the 2026 calendar year, with production volumes gradually increasing thereafter;
Commissioning activities advanced concurrently with construction work, with the strengthening of pre-operational verifications and wet commissioning, enabling the successful completion of the initial production tests in March 2026; and
Quarterly and cumulative investments totalled approximately $39 million and $480 million, respectively, as at March 31, 2026, compared to an estimated cumulative investment of $500 million.
Development and Other Growth Initiatives
On April 10, 2026, the Company completed its acquisition of Rana Gruber, on the terms of its previously announced recommended voluntary cash tender offer. 92.48% of the issued and outstanding shares of Rana Gruber were deposited in the tender offer. The Company subsequently completed the compulsory acquisition of the remaining shares and became the owner of 100% of the shares of Rana Gruber on April 17, 2026. The transaction was finalized at a total purchase price of approximately US$300 million, plus related fees and expenses (the "Acquisition"), and was funded from a combination of a new secured 4-year US$150 million term loan (the "Term Loan"), the net proceeds of an equity private placement of US$100 million from Caisse de dépôt et placement du Québec, and cash on hand. Additional details on the Acquisition are available in the Company's press release dated April 10, 2026 (Montréal), available under its profile on the ASX at www.asx.com.au, SEDAR+ at www.sedarplus.ca, and the Company's website at www.championiron.com;
In connection with the Acquisition, Champion and certain of its subsidiaries refinanced the Company's syndicated senior credit facilities, effective on April 1, 2026, in order to, among other things, extend the maturity to April 2030, establish the Term Loan and amend the US$400 million senior secured revolving credit facility, including to take into account the Acquisition;
Kami Iron Mine Partnership received financial support from Natural Resources Canada, under the First and Last Mile Fund (formerly the Critical Minerals Infrastructure Fund Program), to advance feasibility work for key energy and transportation infrastructure of the Kami Project; and
Continued work on the Kami Project's definitive feasibility study ("DFS"), which is expected to be completed in the second half of the 2026 calendar year.
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.
Q4 FY26
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Q4 FY25
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Operating Data
Waste mined and hauled (wmt)
