Core Viewpoint - Champion Iron reported steady production and improving unit costs in its fiscal 2026 third-quarter results, alongside progress on its direct reduction pellet feed (DRPF) project and a fully financed acquisition of Norway-based Rana Gruber [5][6]. Market Conditions - The quarter was described as "pretty flat" for key benchmarks and logistics, with the P65 index averaging about $118 per tonne, a slight increase of roughly 1%, while the premium for P65 over P62 decreased slightly [1]. Production and Sales - The company produced approximately 3.7 million tonnes of concentrate and sold just under 3.9 million tonnes during the quarter, with a significant reduction in mine-site stockpiles by about 1.1 million tonnes to roughly 600,000 tonnes [4][8]. Financial Performance - Champion reported a net realized price near C$121 per tonne, cash costs delivered just under C$74 per tonne, and generated approximately C$470 million in revenue, C$150 million in EBITDA, and C$65 million in net income [8][11]. - Cash totaled roughly C$245 million as of December 31, with about $1.1 billion in total liquidity across facilities [12]. DRPF Project - The DRPF project is nearing completion with a total investment of about $500 million, all equipment installed, and commissioning activities begun, targeting first DRPF tonnes in the first half of the year [7][13]. - Management expects about 12 months to reach full nameplate capacity after start-up, with initial cargoes likely carrying trial discounts until product quality is consistently demonstrated [15]. Acquisition of Rana Gruber - The acquisition of Rana Gruber is fully financed, including approximately $39 million in cash, $100 million support from La Caisse, and a $150 million underwritten term loan [6][17]. - Rana Gruber is described as a robust operation with attractive margins and proximity to European customers, which aligns with Champion's strategy to expand its client base [18]. Future Initiatives - Work continues on the feasibility study and permitting for the Kami project, with expectations to finalize the feasibility study and potentially obtain a construction permit by the end of the year [19]. - The company is coming out of a seven-year capital spending cycle totaling roughly $2.5 billion, expressing confidence in high-grade premiums and capital return opportunities in the coming years [20].

Company Overview - Champion Iron has a nameplate capacity of 15 million tonnes per annum (mtpa) of high-purity 66.2% Fe iron ore concentrate[18] - The company's enterprise value is approximately C$2.5 billion with EBITDA of C$348 million over the last 12 months[19] - Management ownership is 9.0% and the government of Québec owns 8.3%[19] Green Steel Transition - Steelmaking represents approximately 10% of global CO2 emissions, with 85% of these emissions generated by the reduction and smelting of iron ore[24] - DRI production grew at a compounded annual growth rate of 6.2% since 2020, while crude steel production saw a slight decline[32] - Europe has invested approximately €14.6 billion to support 15 DRI/EAF projects[35] Product Quality and Market Position - Champion's DRPF project is expected to produce a market-leading DR quality product with 69% Fe[42] - Australia's major iron ore producers' average contaminants increased by 12% over the last decade[47] - Bloom Lake's emission intensity is 8.95 kg of CO2 per tonne of iron ore produced[49] Recent Results and Financials - FY25 production was 13.8M wmt, representing 92.2% of Bloom Lake's nameplate capacity of 15M wmt[54] - FY25 saw record annual iron ore concentrate sales of 13.5M dmt, a 15.9% year-over-year increase[65] - Total cash cost for FY25 was $78.3/dmt[68] - The company has $176.1 million in cash and cash equivalents and $185.3 million in working capital as of June 30, 2025[73] Growth Initiatives - The DRPF project is progressing as scheduled, with commissioning planned to start in December 2025 and commercial shipments expected in the first half of calendar 2026[92] - Cumulative investments in the DRPF project totaled $387.0 million as of June 30, 2025, out of an estimated total capital expenditure of $470.7 million[92] - Nippon Steel and Sojitz made initial cash contributions of $68.6M to Kami Iron Mine Partnership for a 49% interest in the Kami Project[98]