DRPF project commissioning advancing as planned, with initial production tests successfully completed in March 2026 and production of commercially saleable 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
Announced the framework for future shareholder returns
MONTRÉAL, May 27, 2026 /CNW/ - SYDNEY, May 28, 2026 - Champion Iron Limited (ASX: CIA) (TSX:CIA) (OTCQX:CIAFF) ("Champion" or the "Company") reports operational and financial results for its financial fourth quarter ended March 31, 2026.
Champion's CEO, Mr. David Cataford, said, "This year marks the tenth anniversary of Champion's acquisition of Bloom Lake mine in April 2016, a defining milestone that laid the foundation for our long-term vision. Supported by an engaged workforce, the successful execution of multiple growth projects, and the recent acquisition of Rana Gruber, Champion continues to distinguish itself with customers worldwide as a leading supplier of high-purity iron ore. Beyond our operational achievements, we are proud to create lasting value for all stakeholders through strong partnerships with governments, local communities and First Nations. Although we are near the completion of a multi-year growth capital investment cycle at Bloom Lake, our focus is to protect our financial liquidities in response to the volatile macroeconomic environment and rising fuel and freight prices. Looking forward, our revised dividend policy will align our shareholder returns with our Company's financial capacity."
Conference Call Details
Champion 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;
Met or exceeded most annual sustainability targets set in the Company's previous sustainability report, which incorporated industry best practice disclosure frameworks, including the Global Reporting Initiative, the Sustainability Accounting Standards Board and the Task Force on Climate-Related Financial Disclosures;
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 impacted operations until January 12, 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 of Sept-Îles decreased to 1.3 million wmt as at March 31, 2026, from 1.5 million wmt as at December 31, 2025;
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; and
Champion's Board has approved a revised shareholder return framework for future dividends designed to adapt to market conditions. Under this dividend policy, the Company aims to provide semi-annual dividends equivalent of 30% to 40% of the Company's trailing six-month free cash flows, with the potential for special dividends at the discretion of the Board (the "Dividend Policy"). The Dividend Policy provides flexibility for potentially higher dividend distributions in periods of strong financial results and low capital investments, while preserving the Company's balance sheet in periods of softer profitability and increased capital requirements. The Dividend Policy will apply to the semi-annual results of the 2027 financial year. While maintaining a focus on preserving the Company's liquidity in response to volatile macroeconomic conditions, the Board declared a semi-annual dividend of $0.02 per ordinary share on May 27, 2026 (Montréal) / May 28, 2026 (Sydney), in connection with the annual results for the period ended March 31, 2026.
Financial Results
Gross average realized selling price of US$120.5/dmt1, compared to the P65 index average price of US$120.8/dmt in the period;
Net average realized selling price of US$87.5/dmt1, an increase of 1% quarter-over-quarter and 3% year-over-year;
C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept-Îles totalled $82.7/dmt1 (US$60.3/dmt)2, 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 period was negatively impacted by lower volumes transported to the port yard facilities due to rail service disruptions 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;
Net income of $23.2 million, representing EPS of $0.04, compared to net income of $65.0 million with EPS of $0.12 in the previous quarter, and net income of $39.1 million with EPS of $0.08 in the same prior-year period;
EBITDA of $114.3 million1, compared to $152.4 million1 in the previous quarter and $127.4 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") 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 saleable production anticipated to occur by the end of June 2026, 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 $39.0 million and $479.5 million, respectively, as at March 31, 2026, compared to an estimated cumulative investment of $500 million.
Development and Other Growth Initiatives
On April 17, 2026, the Company completed the acquisition of 100% of the shares of Rana Gruber ASA ("Rana Gruber"), a leading Norwegian producer of high-purity iron ore. The acquisition was completed at a total purchase price of approximately US$300 million, plus related fees and expenses (the "Acquisition"), which was funded by a combination of a newly 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 provided 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;
The Kami Partnership received financial support from Natural Resources Canada, under the First and Last Mile Fund (formerly, the Critical Minerals Infrastructure Fund), to advance feasibility work for the Kami Project's key energy and transportation infrastructure; 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
Q3 FY26
Q/Q Change
Q4 FY25
Y/Y Change
Operating Data
Waste mined and hauled (wmt)
10,979,800
12,088,600
(9) %
10,886,200
1 %
Ore mined and hauled (wmt)
9,915,100
10,549,700
(6) %
9,470,100
5 %
Material mined and hauled (wmt)
20,894,900
22,638,300
(8) %
20,356,300
3 %
Stripping ratio
1.11
1.15
(3) %
1.15
(3) %
Ore milled (wmt)
9,744,200
10,443,200
(7) %
9,160,300
6 %
Head grade Fe (%)
28.8
29.1
(1) %
29.2
(1) %
Fe recovery (%)
80.6
79.7
1 %
78.3
3 %
Product Fe (%)
66.2
66.5
— %
66.5
— %
Iron ore concentrate produced (wmt)
3,435,100
3,661,400
(6) %
3,167,000
8 %
Iron ore concentrate sold (dmt)
3,455,400
3,895,300
(11) %
3,495,300
(1) %
Bloom Lake produced 3.4 million wmt of high-purity 66.2% Fe concentrate during the three-month period ended March 31, 2026, an 8% increase over the same period in 2025, mainly attributable to higher mill productivity and Fe recovery, partially offset by lower head grade. During the three-month period ended March 31, 2026, the Fe recovery rate increased to 80.6% from 78.3% for the same period in 2025, benefiting from improved performance of the gravimetric systems, following work programs and operational optimizations. While Fe recovery rates are expected to fluctuate in accordance with the mine plan and variations in ore grade, the Company remains focused on improving and stabilizing Fe recovery rates over time.
Iron ore concentrate sales volumes during the three-month period ended March 31, 2026, were comparable to the same prior-year period, and exceeded production for the fifth consecutive quarter, as the Company continued to destock iron ore concentrate inventories stockpiled at Bloom Lake and at the Port of Sept-Îles. Volumes sold were affected by a third-party train derailment that impacted rail services early in the period, with disruptions affecting a significant portion of the quarter. Despite this impact, cumulative iron ore concentrate inventories at Bloom Lake and at the port totalled 1.3 million wmt as at March 31, 2026, compared to 1.5 million wmt as at December 31, 2025. The Company is currently evaluating its on-site and port inventory management strategies in anticipation of the expected change to its product offering with DRPF quality iron ore, in order to maintain adequate levels of stockpiled iron ore saleable products, manage inventories of different iron ore qualities, production and sales logistics.
During the three-month period ended March 31, 2026, the Company mined and hauled 20.9 million wmt of waste and ore, exceeding the 20.4 million wmt recorded in the same prior-year period. This strong mining performance was driven by the addition of loading equipment and the recent commissioning of a new drill, as well as improved utilization and availability of haul trucks. The stripping ratio for the three-month period ended March 31, 2026 was 1.11, compared to a 1.15 ratio recorded in the same prior-year period. Champion anticipates maintaining this stripping cadence in upcoming periods, consistent with its LoM plan.
3. Financial Performance
Q4 FY26
Q3 FY26
Q/Q Change
