- Record quarterly production of 4.0M wmt, surpassing
Bloom Lake's expanded nameplate capacity, revenue of$507M , EBITDA of$247M 1 and EPS of$0.24 - Advanced work programs in connection with the final investment decision for the
DRPF Project - Positive results from the Kami Project Study, positioning the Company to consider strategic partnerships to advance the project
Champion's CEO, Mr.
Conference Call Details
Champion will host a conference call and webcast on
1. Quarterly Highlights
Operations and Sustainability
- No serious injuries and no major environmental incidents reported in the quarter;
- Published Champion's 2023 Annual Modern Slavery Statement, highlighting the Company's commitment to upholding human rights;
- Production exceeded
Bloom Lake's recently expanded nameplate capacity, resulting in a record quarterly production of 4.0 million wmt (3.9 million dmt) of high-grade 66.3% Fe concentrate for the three-month period endedDecember 31, 2023 , up 17% from the previous quarter, and 36% over the same period last year; - Record quarterly iron ore concentrate sales of 3.2 million dmt for the three-month period ended
December 31, 2023 , up 12% and 20% from the previous quarter and the prior-year period, respectively; and - While
Bloom Lake's production capacity increased during the period, exceeding its expanded nameplate capacity, the rail operator did not haul at contracted levels. This haulage shortfall resulted in the inability to ship all of the iron ore concentrate produced during the period. Additionally, rail service was interrupted for several days after heavy rains in late December. Accordingly, iron ore concentrate stockpiled atBloom Lake increased by 0.8 million wmt to 2.4 million wmt during the three-month period endedDecember 31, 2023 . The Company is engaging with the rail operator to receive contracted haulage services to ensure thatBloom Lake's increased production, as well as iron ore concentrate currently stockpiled atBloom Lake , is hauled over future periods.
Financial Results
- Gross realized selling price of
US$144.0 /dmt1, compared to the P65 index average ofUS$138.7 /dmt in the period; - Net realized selling price of
US$115.6 /dmt1, representing a 15% increase quarter-on-quarter, and a 20% increase year-on-year; - C1 cash cost of
$73.0 /dmt1 (US$53.6 /dmt)2, a decrease of 1% quarter-on-quarter, and 4% year-on-year, respectively; - EBITDA of
$246.6 million 1, an increase of 59% quarter-on-quarter, and 109% year-on-year, respectively; - Net income of
$126.5 million , an increase of 94% quarter-on-quarter, and 146% year-on-year, respectively; - EPS of
$0.24 , an increase of 85% quarter-on-quarter, and 140% year-on-year, respectively; - Strong cash position at quarter-end with
$387.4 million in cash and cash equivalents as atDecember 31, 2023 , an increase of$70.8 million sinceSeptember 30, 2023 ; - Procured a new
US$230 million term loan, maturing inNovember 2028 with no principal repayment beforeJune 2026 (the "Financing"). Repaid theUS$180 million outstanding balance from the Company's existingUS$400 million revolving facility, with the proceeds of the Financing, and extended its maturity fromMay 2026 toNovember 2027 ; - Available liquidity, including amounts available from the Company's credit facilities, totalling
$937.6 million 1 at quarter-end, compared to$645.9 million 1 as atSeptember 30, 2023 , to support growth initiatives; and - Paid the fifth semi-annual dividend of
$0.10 per ordinary share onNovember 28, 2023 , totalling$51.8 million .
- The Kami Project Study (the "Study") evaluated the construction of mining and processing facilities to produce Direct Reduction ("DR") grade pellet feed iron ore from the mining properties of the Kami mine located in the Labrador Trough in southwestern
Labrador andNewfoundland . The Study details a 25-year life of mine with average annual DR quality iron ore concentrate production of approximately 9.0M wmt per annum at above 67.5% Fe; - Project construction period is estimated at 48 months, following a final investment decision, and it benefits from permitting work completed by the Project's previous owner;
- Total capital expenditures of
$3,864 million , resulting in a Net Present Value ("NPV") of$541 million and Internal Rate of Return ("IRR") of 9.8% after-tax, based on conservative pricing dynamics compared to prevailing iron ore prices; NPV of$2,195 million and IRR of 14.8% after-tax, based on the previous three calendar year average of the P65 index price; - Benefiting from expected access to hydroelectric power and significant investments to reduce its GHG emissions, including a near pit crushing facility and conveyor circuit for ore and waste, the Project is expected to have an emission intensity of approximately 6.7 kilogram of CO2 per tonne of DR grade pellet feed iron ore produced, positioning the Project as potentially one of the lowest emitting producers of DR grade pellet feed iron ore locally and globally; and
- Completion of the Study enables the Company to evaluate the Project in relation to its portfolio of other organic growth opportunities, while aiming to maintain a prudent balance sheet and avoid equity dilution. The Company expects to continue optimizing the Project, engage with stakeholders, evaluate opportunities to improve its economics, advance permitting and work on strategic partnership opportunities prior to considering a final investment decision.
Direct Reduction Pellet Feed Project Update
- With significant available liquidity and allocation of additional hydroelectric power from Hydro-
Québec , securing access to renewable power required for the DRPF project, the Board provided a final investment decision to proceed with the DRPF project onJanuary 30, 2024 (Montréal time); - The DRPF project final investment decision secures the project's expected commissioning in the second half of calendar year 2025, a timeline which is subject to completing key construction milestones in mid-2024 calendar year; and
- Project remains on budget, with quarterly investments of
$31.0 million and a cumulative investment of$59.9 million , as atDecember 31, 2023 , from the total capital expenditures of$470.7 million as estimated in the results of the study released inJanuary 2023 .
Other Growth and Development
- Recognizing its positive impact in reducing GHG emissions in steelmaking and its importance in the green steel supply chain, high-purity iron ore was listed on the province of
Québec's andNewfoundland andLabrador's critical minerals lists, joining other minerals such as nickel, copper and cobalt; and - Advanced a study, which is expected to be completed in the near term, in collaboration with a major international steelmaking partner, to re-commission the Pointe-Noire Iron Ore Pelletizing Facility (the "Pellet Plant") to produce DR grade pellets.
2. Kami Project Study
Project Description
The Project is expected to benefit from several competitive advantages including:
- a sizeable high-purity iron resource, significantly de-risked by the Project's previous owners;
- location near available infrastructure and
Bloom Lake , enabling potential synergies; - potential Project ranking as one of the lowest emitting high-purity iron ore projects, both locally and globally, by leveraging expected access to hydroelectric power;
- a supportive
Newfoundland andLabrador government which identified high-purity iron ore within their critical minerals plan; and - advanced permitting work completed by the previous owner.
The Study did not incorporate prospects for potential economic support from governments to encourage development of critical minerals, preferential funding opportunities or other economic incentives, which could improve economics and influence a final investment decision.
Economic Summary and Key Assumptions
KEY ASSUMPTION SUMMARY | UNIT | ||
Mineral reserves | M dmt | 643 | |
Production life of mine | Years | 25 | |
Average annual production | M dmt | 8.6 | |
Average annual production wet | M wmt | 9.0 | |
Average Fe In-situ grade to plant | % | 29.2 % | |
Average Fe metallurgical recovery | % | 76.4 % | |
Average concentrate grade sold | % Fe | DR quality iron ore above 67.5% | |
Average stripping ratio | Waste:Ore | 1.6 | |
MACROECONOMIC AND MARKET ASSUMPTIONS | C$ | US$ | |
P65 Index CFR China Iron ore price (Kami iron ore | $/dmt | 156.0 | 120.0 |
Average shipping cost | $/dmt | 28.6 | 22.0 |
Average foreign exchange rate | C$:US$ | 1.30 | |
CAPITAL COSTS | C$ | US$ | |
Construction period | Months | 48 | |
Initial CAPEX | M | 3,864 | 2,972 |
OPERATING COST PER TONNE SOLD | C$ | US$ | |
Total cash cost (C1 Cost) | $/dmt | 76.1 | 58.5 |
Total AISC | $/dmt | 89.5 | 68.9 |
ECONOMIC RESULTS | BASE PRICE SCENARIO | MARKET PRICE SCENARIO (3-Year Trailing Scenario: CY2021-2023) | ||
C$ | US$ | C$ | US$ | |
P65 Index CFR China Iron ore price (Kami iron ore | 156.0 | 120.0 | 197.9 | 152.2 |
C3 Index price ($/wmt) | 28.6 | 22.0 | 31.2 | 24.0 |
PRE-TAX | ||||
NPV in M at 8% discount rate | 1,482 | 1,140 | 4,034 | 3,103 |
IRR | 12.1 % | 18.0 % | ||
AFTER-TAX | ||||
NPV in M at 8% discount rate | 541 | 416 | 2,195 | 1,688 |
IRR | 9.8 % | 14.8 % | ||
Payback period (years) | 7 | 5 | ||
All other assumptions besides P65 index and C3 index are held constant |
Mine
Concentrator Plant
The proposed Kami concentrator plant is based on the flowsheet developed and contained in previous studies completed by the Project's former owner, the 2023 test work and input from the Company and its advisors' engineering teams and manufacturers. The proposed concentrator is designed to process ore grading at 29.2% total Fe over a 25-year mine life. The test work conducted during 2023 resulted in the redesign of a revised process flowsheet that will enable the production of a DR quality iron ore concentrate at or above 67.5% Fe and below 2.5% SiO2 + Al2O3, with an iron recovery of 76.4%, allowing an average life of mine production of 9.0M wmt per year.
The flowsheet includes proven and modern technologies for processing iron ore, including a gyratory crusher, autogenous mill, gravity separation circuit consisting of spirals and Reflux™ Classifiers currently operating in the Bloom Lake Phase II concentrator, a magnetic separation circuit consisting of a ball mill, and low intensity magnetic separators. The flowsheet will also include regrind mills and a reverse flotation circuit that will enable the production of DR quality iron ore concentrate.
Infrastructure and Regional Advantages
Tailings Management
The Tailings Management Facility ("TMF") will consist of a total of five centerline construction method dams built in nine total embankment stages over the life of the facility. Tailings slurry will be pumped from the plant in two streams, coarse and fines. In addition, the TMF will enable the storage of solid waste tailings from the processing plant, as well as operational, storm and snow water management. Contact water, consisting of runoff and embankment seepage, will be collected with collection ditches.
DRPF Quality Iron Ore and Pricing
The Project is expected to produce a DR quality iron ore. With an increased focus on reducing GHG emissions in the steelmaking processes, the steel industry is experiencing a structural shift in its production methods. This dynamic is expected to create additional demand for higher-purity iron ore products, as the industry transitions towards using alternative technologies to produce liquid iron, such as the use of Direct Reduced Iron in Electric Arc Furnaces instead of Blast Furnaces and Basic Oxygen Furnaces.
As DR grade quality iron ore is a niche product in the iron ore industry, representing approximately 5% of the global seaborne iron ore production, pricing tends to be directly negotiated between producers and buyers without an available global pricing index. Due to its higher Fe content and lower impurities, pricing for DR grade iron ore product, used as a raw material input to make DR grade pellets, is expected to attract a significant premium over the traditional high-grade iron ore P65 index and correlates with the DR grade pellet indices. The Company believes, in tandem with several market experts, that the accelerating transition to reduce emissions in the steelmaking process will result in rising demand for DRPF products. As a result of this expected rising demand and product scarcity, the Company believes that its industry leading DRPF quality product will attract increasing premiums over time. In addition to
The Study's base case economic assumption utilizes a conservative blended net realized price based on a P65 index price of
Project Timeline
The Project benefits from the permitting work completed by its previous owner and has an estimated construction period of approximately 48 months following a final investment decision.
Study and Qualified Persons
The Study will be filed under the Company's profile on SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com within 45 days of the date of this news release. The following Qualified Persons participated in the preparation of the Study:
André Allaire ,P. Eng . –BBA Inc. Christian Beaulieu ,P.Geo . – consultant forG Mining Services Inc. Alexandre Dorval ,P.Eng . –G Mining Services Inc. Mathieu Girard ,P.Eng . – SoutexSiavash Farhangi ,P.Eng . – WSP Canada Inc.- Marie-Hélène Paquette,
P. Eng . – AtkinsRéalis Inc. Emmanuelle Millet ,P. Geo . – AtkinsRéalis Inc.Tarek Khoury ,P. Eng . –Systra Canada Inc.
Each of these Qualified Persons has reviewed and approved, or has prepared, as applicable, the disclosure of the scientific and technical information contained in this news release that is relevant to their area of responsibility and verified the data underlying such technical information. Reference is made to the Study that will be filed under the Company's profile on SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com.
Mineral Resource and Mineral Reserve Estimates
The following table presents the mineral resource estimate for the
Mineral Resource Estimate
Category | Density | Mass | TFe | Mag Fe | Hem Fe | Mag+Hem | MnO | SiO2 | |
(t/m3) | (Mt) | ( %) | ( %) | ( %) | ( %) | ( %) | ( %) | ||
Rose Central | Measured | 3.47 | 93.8 | 29.3 | 16.9 | 9.37 | 26.3 | 2.2 | 45.1 |
Indicated | 3.46 | 363.7 | 28.9 | 17.4 | 7.39 | 24.8 | 1.9 | 45.6 | |
M&I | 3.46 | 457.5 | 29.0 | 17.3 | 7.80 | 25.1 | 1.9 | 45.5 | |
Inferred | 3.44 | 59.8 | 28.0 | 16.7 | 7.47 | 24.2 | 1.6 | 46.1 | |
Measured | 3.48 | 81.7 | 31.0 | 9.2 | 19.8 | 29.1 | 1.2 | 50.7 | |
Indicated | 3.45 | 338.5 | 29.9 | 13.9 | 13.6 | 27.5 | 1.2 | 50.0 | |
M&I | 3.46 | 420.2 | 30.1 | 13.0 | 14.8 | 27.8 | 1.2 | 50.2 | |
Inferred | 3.30 | 89.8 | 29.9 | 11.7 | 16.1 | 27.8 | 0.9 | 49.5 | |
Measured | 3.59 | 37.0 | 30.5 | 21.4 | 7.10 | 28.5 | 1.3 | 46.5 | |
Indicated | 3.57 | 60.8 | 30.3 | 21.5 | 5.91 | 27.4 | 1.2 | 46.0 | |
M&I | 3.58 | 97.8 | 30.4 | 21.5 | 6.36 | 27.8 | 1.3 | 46.2 | |
Inferred | 3.55 | 13.4 | 29.6 | 23.1 | 3.34 | 26.5 | 1.2 | 46.1 | |
Total | Measured | 3.49 | 212.4 | 30.2 | 14.8 | 13.0 | 27.8 | 1.6 | 47.5 |
Indicated | 3.46 | 763.0 | 29.5 | 16.2 | 10.0 | 26.2 | 1.5 | 47.6 | |
M&I | 3.47 | 975.5 | 29.6 | 15.9 | 10.7 | 26.6 | 1.5 | 47.6 | |
Inferred | 3.37 | 163.0 | 29.2 | 14.5 | 11.9 | 26.4 | 1.2 | 48.0 |
Notes on Mineral Resources:
1. | The Mineral Resource estimate described above has been prepared in accordance with the CIM Standards ( | ||
2. | The qualified person for this Mineral Resource Estimate is | ||
3. | The effective date of the Mineral Resource Estimate is | ||
4. | The cut-off grade used to report Open Pit Mineral Resources is 15.0% total iron (TFe). | ||
5. | Density is applied by rock type and is related to the amount of iron in each block. | ||
6. | Pit optimization parameters are described as follows: | ||
i. | Based on a P65 index iron price of | ||
ii. | Concentrate grade of 65.2% Fe | ||
iii. | Exchange rate of 1.30 C$:US$ | ||
iv. | Metallurgical recoveries of 83.55% | ||
v. | Mining costs of | ||
vi. | Total ore based costs of | ||
vii. | Overall slope angle varies from 48.4° to 51.6° for the footwall and hanging wall domains respectively. | ||
7. | Measured, indicated and inferred mineral resources have been defined mainly based on drill hole spacing. | ||
8. | Mineral resources (Rose Central, | ||
9. | The tonnages and grades outlined above are reported inside a block model with parent block size of 10 m x 20 m x 10 m, and subblocks of 5 m x 10 m x 5 m. | ||
10. | Tonnages have been expressed in the metric system and metal content as percentages. Totals may not add up due to rounding. | ||
11. | Mineral resources are not mineral reserves as they have not demonstrated economic viability. The quantity and grade of reported inferred mineral resources are uncertain in nature. | ||
12. | The qualified person is not aware of any factors or issues that materially affect the mineral resource estimate other than normal risks faced by mining projects in the province in terms of environmental, permitting, taxation, socio-economic, marketing, political factors and additional risk factors regarding indicated and inferred resources. | ||
13. | See the appendix to the Company's quarterly activities report filed on |
The proven and probable mineral reserves for the
Mineral Reserve Estimate
Mineral Reserves by Category | Unit | Proven | Probable | Proven & Probable |
Crude Ore Tonnage | Mt | 167 | 476 | 643 |
Crude Hematite Grade | % HemFe | 13.84 | 10.6 | 11.4 |
Crude Magnetite Grade | % MagFe | 13.18 | 15.1 | 14.6 |
Crude Total Iron Grade | % TotFe | 29.7 | 29.0 | 29.2 |
Concentrate Tonnage | Mt | 54.8 | 157.6 | 212.4 |
Concentrate Iron Grade | % Fe | 67.6 | 67.6 | 67.6 |
Notes on Mineral Reserves: | |
1. | The qualified person for this Mineral Reserve Estimate is |
2 | Mineral Reserves based on an updated Lidar dated |
3. | Mineral Reserves are estimated using a long-term iron price reference price (Platt's 62%) of |
4. | The effective date of the Mineral Reserve Estimate is |
5. | Bulk density of ore is variable but averages 3.1 t/m3. |
6. | Cut-Off Grade of 15% TotFe used to calculate reserves. |
7. | The average stripping ratio is 1.6:1 W:O. |
8. | The Mineral Reserve includes a 1.4% mining dilution. |
9. | The number of metric tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding; with rounding following the recommendations detailed in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). |
10. | See the appendix to the Company's quarterly activities report filed on |
3. Bloom Lake Mine Operating Activities
Phase II and Rail Capacity Update
While the Phase II project was completed as planned and ahead of schedule, the Company faced challenges regarding delays in deliveries and commissioning of additional required mining equipment, creating inefficiencies across the site, which negatively impacted the Company's ability to reach its expanded nameplate capacity. Despite such challenges, Phase II reached commercial production in
Phase II work on third-party infrastructure was completed in the second quarter of the 2024 financial year, further positioning the Company to benefit from additional flexibility and capacity to handle the Company's expanded nameplate capacity at the port facilities in Sept-Îles. The commissioning of three additional locomotives, an additional stacker reclaimer and associated conveyors, positively impacted the Company's shipment capacity and vessel loading time, required to support the expanded production capacity at
Although the commissioning in
The Company is engaging with the rail operator to receive contracted haulage services to ensure that
Impact of Forest Fires
Forest fires emerged on
Despite supply chain challenges caused by multiple highway closures impacting operations during the quarter ended
Operational Performance
Q3 FY24 | Q2 FY24 | Q/Q Change | Q3 FY23 | Y/Y Change | |||
Operating Data | |||||||
Waste mined and hauled (wmt) | 6,993,200 | 6,264,600 | 12 % | 4,371,500 | 60 % | ||
Ore mined and hauled (wmt) | 11,215,800 | 10,593,600 | 6 % | 8,840,400 | 27 % | ||
Material mined and hauled (wmt) | 18,209,000 | 16,858,200 | 8 % | 13,211,900 | 38 % | ||
Stripping ratio | 0.62 | 0.59 | 5 % | 0.49 | 27 % | ||
Ore milled (wmt) | 11,137,000 | 10,339,700 | 8 % | 8,503,400 | 31 % | ||
Head grade Fe (%) | 29.4 | 28.2 | 4 % | 28.5 | 3 % | ||
Fe recovery (%) | 81.4 | 77.8 | 5 % | 80.1 | 2 % | ||
Product Fe (%) | 66.3 | 66.1 | — % | 66.0 | — % | ||
Iron ore concentrate produced (wmt) | 4,042,600 | 3,447,200 | 17 % | 2,962,500 | 36 % | ||
Iron ore concentrate sold (dmt) | 3,227,500 | 2,883,800 | 12 % | 2,694,200 | 20 % |
During the three-month period ended
During the three-month period ended
The iron ore head grade for the three-month period ended
The Company's average Fe recovery rate was 81.4% for the three-month period ended
With higher head grade and Fe recovery,
4. Financial Performance
Q3 FY24 | Q2 FY24 | Q/Q Change | Q3 FY23 | Y/Y Change | |||
Financial Data (in thousands of dollars) | |||||||
Revenues | 506,891 | 387,568 | 31 % | 351,233 | 44 % | ||
Cost of sales | 235,457 | 212,584 | 11 % | 209,070 | 13 % | ||
Other expenses | 27,219 | 20,192 | 35 % | 23,780 | 14 % | ||
Net finance costs | 8,747 | 11,634 | (25 %) | 1,858 | 371 % | ||
Net income | 126,462 | 65,281 | 94 % | 51,406 | 146 % | ||
EBITDA1 | 246,609 | 155,036 | 59 % | 118,206 | 109 % | ||
Statistics (in dollars per dmt sold) | |||||||
Gross average realized selling price1 | 195.8 | 169.4 | 16 % | 171.6 | 14 % | ||
Net average realized selling price1 | 157.1 | 134.4 | 17 % | 130.4 | 20 % | ||
C1 cash cost1 | 73.0 | 73.7 | (1 %) | 76.0 | (4 %) | ||
AISC1 | 83.9 | 99.1 | (15 %) | 86.7 | (3 %) | ||
Cash operating margin1 | 73.2 | 35.3 | 107 % | 43.7 | 68 % |
A. Revenues
Revenues totalled
The gross average realized selling price was
The gross average realized selling price of
The average C3 Baltic Capesize Index ("C3 index") for the three-month period ended
Provisional pricing adjustments on prior quarter sales of
After taking into account sea freight and other costs of
B. Cost of Sales and C1 Cash Cost
For the three-month period ended
The cost of sales and C1 cash cost for the three-month period ended
Mining and processing costs for the 3.9 million dmt produced in the three-month period ended
C. Net Income & EBITDA
For the three-month period ended
For the three-month period ended
D. All In Sustaining Cost & Cash Operating Margin
During the three-month period ended
The Company generated a cash operating margin of
5. Exploration Activities
During the three and nine-month periods ended
6. Cash Flows — Purchase of Property, Plant and Equipment
Three Months Ended | Nine Months Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in thousands of dollars) | ||||||||
Tailings lifts | 11,662 | 10,547 | 66,649 | 47,972 | ||||
Stripping and mining activities | 7,227 | 3,207 | 17,032 | 18,000 | ||||
Mining equipment rebuild and replacement | 5,095 | 5,741 | 20,330 | 16,649 | ||||
Other sustaining capital expenditures | 47 | — | 269 | — | ||||
Sustaining capital expenditures | 24,031 | 19,495 | 104,280 | 82,621 | ||||
DRPF project | 30,989 | — | 59,010 | — | ||||
Other capital development expenditures at | 41,656 | 36,822 | 79,442 | 174,894 | ||||
Purchase of property, plant and equipment as per cash flows | 96,676 | 56,317 | 242,732 | 257,515 |
Sustaining Capital Expenditures
The increases in tailings-related investments for the three and nine-month periods ended
Stripping and mining activities for the three-month period ended
The increase in the Company's mining equipment rebuild program for the nine-month period ended
During the three and nine-month periods ended
Other Capital Development Expenditures at
During the three-month period ended
During the nine-month period ended
7. Qualified Person and Data Verification
Mr.
The mineral resource qualified person,
8. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on
An online archive of the webcast will be available by accessing the Company's website at www.championiron.com/investors/events-presentations. A telephone replay will be available for one week after the call by dialing +1-888-390-0541 within
About
Champion, through its wholly-owned subsidiary
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain information and statements that may constitute "forward-looking information" under applicable Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "aims", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control.
Specific Forward-Looking Statements
All statements, other than statements of historical facts included in this press release that address future events, developments or performance that Champion expects to occur are forward-looking statements. Forward-looking statements include, among other things, Management's expectations regarding: (i) the Company's Phase II expansion project, its impact on nameplate capacity, economic and other benefits and associated costs; (ii)
Deemed Forward-Looking Statements
Statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves can be profitably mined in the future. Actual reserves and resources may be greater or less than the estimates provided herein.
Risks
Although Champion believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such forward-looking statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed in forward-looking statements include, without limitation: (i) the results of feasibility studies; (ii) changes in the assumptions used to prepare feasibility studies; (iii) project delays; (iv) timing and uncertainty of industry shift to green steel and Electric Arc Furnaces; (v) continued availability of capital and financing and general economic, market or business conditions; (vi) general economic, competitive, political and social uncertainties; (vii) future prices of iron ore; (viii) future transportation costs; (ix) failure of plant, equipment or processes to operate as anticipated; * delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; and (xi) the effects of catastrophes and public health crises, including the impact of COVID-19 on the global economy, the iron ore market and Champion's operations, as well as those factors discussed in the section entitled "Risk Factors" of the Company's 2023 Annual Report, Annual Information Form and MD&A for the financial year ended
Additional Updates
All of Champion's forward-looking information contained in this press release is given as of the date hereof or such other date or dates specified in the forward-looking statements and is based upon the opinions and estimates of Champion's Management and information available to Management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of the forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Champion cautions that the foregoing list of risks and uncertainties is not exhaustive. Readers should carefully consider the above factors as well as the uncertainties they represent and the risks they entail.
Abbreviations
Unless otherwise specified, all dollar figures stated herein are expressed in millions of Canadian dollars, except for: (i) tabular amounts which are in thousands of Canadian dollars; and (ii) per share or per tonne amounts. The following abbreviations and definitions are used throughout this press release: US$ (
For additional information on
This document has been authorized for release to the market by the Chief Executive Officer of
The Company's unaudited Condensed Consolidated Financial Statements for the three and nine-month periods ended
_______________________________ |
1 This is a non-IFRS financial measure, ratio or other financial measure. The measure is not a standardized financial measure under the financial reporting framework used to prepare the financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section below — Non-IFRS and Other Financial Measures for definitions of these metrics and reconciliations to the most comparable IFRS measure when applicable. Additional details for these non-IFRS and other financial measures, have been incorporated by reference and can be found in section 21 of the Company's MD&A for the three and nine-month periods ended |
2 See the "Currency" section of the MD&A for the three and nine-month periods ended |
Non-IFRS and Other Financial Measures
The Company has included certain non-IFRS financial measures, ratios and supplementary financial measures in this press release to provide investors with additional information in order to help them evaluate the underlying performance of the Company. These measures are mainly derived from the Financial Statements but do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Management believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors with an improved ability to understand the results of the Company's operations. Non-IFRS and other financial measures should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS. The exclusion of certain items from non-IFRS financial measures does not imply that these items are necessarily non-recurring.
The Company presents certain of its non-IFRS measures and other financial measures in
EBITDA and EBITDA Margin
Q3 FY24 | Q2 FY24 | Q3 FY23 | ||
(in thousands of dollars) | ||||
Income before income and mining taxes | 204,981 | 112,187 | 85,629 | |
Net finance costs | 8,747 | 11,634 | 1,858 | |
Depreciation | 32,881 | 31,215 | 30,719 | |
EBITDA | 246,609 | 155,036 | 118,206 | |
Revenues | 506,891 | 387,568 | 351,233 | |
EBITDA margin | 49 % | 40 % | 34 % |
Available Liquidity
As at | As at | |||
2023 | 2023 | |||
Cash and cash equivalents | 387,373 | 316,530 | ||
Undrawn amounts under credit facilities | 550,253 | 329,386 | ||
Available liquidity | 937,626 | 645,916 |
C1 Cash Cost
Q3 FY24 | Q2 FY24 | Q3 FY23 | ||
Iron ore concentrate sold (dmt) | 3,227,500 | 2,883,800 | 2,694,200 | |
(in thousands of dollars except per tonne) | ||||
Cost of sales | 235,457 | 212,584 | 209,070 | |
Less: Bloom Lake Phase II start-up costs | — | — | (4,292) | |
235,457 | 212,584 | 204,778 | ||
C1 cash cost (per dmt sold) | 73.0 | 73.7 | 76.0 |
All-In Sustaining Cost
Q3 FY24 | Q2 FY24 | Q3 FY23 | ||
Iron ore concentrate sold (dmt) | 3,227,500 | 2,883,800 | 2,694,200 | |
(in thousands of dollars except per tonne) | ||||
Cost of sales | 235,457 | 212,584 | 209,070 | |
Less: Bloom Lake Phase II start-up costs | — | — | (4,292) | |
Sustaining capital expenditures | 24,031 | 60,446 | 19,495 | |
G&A expenses | 11,206 | 12,729 | 9,212 | |
270,694 | 285,759 | 233,485 | ||
AISC (per dmt sold) | 83.9 | 99.1 | 86.7 |
Cash Operating Margin and Cash Profit Margin
Q3 FY24 | Q2 FY24 | Q3 FY23 | ||
Iron ore concentrate sold (dmt) | 3,227,500 | 2,883,800 | 2,694,200 | |
(in thousands of dollars except per tonne) | ||||
Revenues | 506,891 | 387,568 | 351,233 | |
Net average realized selling price (per dmt sold) | 157.1 | 134.4 | 130.4 | |
AISC (per dmt sold) | 83.9 | 99.1 | 86.7 | |
Cash operating margin (per dmt sold) | 73.2 | 35.3 | 43.7 | |
Cash profit margin | 47 % | 26 % | 34 % |
Gross Average Realized Selling Price per dmt Sold
Q3 FY24 | Q2 FY24 | Q3 FY23 | |
Iron ore concentrate sold (dmt) | 3,227,500 | 2,883,800 | 2,694,200 |
(in thousands of dollars except per tonne) | |||
Revenues | 506,891 | 387,568 | 351,233 |
Provisional pricing adjustments | (15,997) | (1,559) | 5,205 |
Freight and other costs | 140,971 | 102,411 | 105,987 |
Gross revenues | 631,865 | 488,420 | 462,425 |
Gross average realized selling price (per dmt sold) | 195.8 | 169.4 | 171.6 |
SOURCE
© Canada Newswire, source