Champion Iron Reports FY2024 Fourth Quarter Results, Robust Annual Results and Declares Dividend
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PRESS RELEASE
CHAMPION IRON REPORTS FY2024 FOURTH QUARTER RESULTS, ROBUST ANNUAL
RESULTS AND DECLARES DIVIDEND
▪ Quarterly revenue of $333M, EBITDA of $85M1 and EPS of $0.05
▪ FY2024 revenue of $1,524M, EBITDA of $553M1 and EPS of $0.45
▪ Declares a dividend of $0.10 per ordinary share
▪ DRPF project advancing as planned with an expected completion in H2/2025
Montréal, May 30, 2024 (Sydney, May 31, 2024) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“ Champion” or the “ Company”)
reports its operational and financial results for its financial fourth quarter and financial year ended March 31, 2024.
Champion’s CEO, Mr. David Cataford, said, “Our mission to participate in the decarbonization of steelmaking globally is matched by our
commitment to produce responsible materials locally. As such, I am proud of our environmental track record and of our team’s ability to meet
our ESG commitments, which are aligned with our values and essential to the success of our Company. With our financial and op erational
achievements, we completed the 2024 financial year with a robust balance sheet, enabling us to maintain our capital return st rategy with a
sixth consecutive semi -annual dividend. Furthermore, our DRPF project is on track to produce one of the highest purity iron ores in the world,
enabling Champion to play a greater role in the green steel supply chain. As we march forward with our growth projects, we ar e grateful for the
continuous trust and support of all our stakeholders, including our First Nations partners. ”
Conference Call Details
Champion will host a conference call and webcast on May 31, 2024, at 9:00 AM (Montréal time) / 11:00 PM (Sydney time) to discuss the results
for the financial fourth quarter and financial year ended March 31, 2024. Call details are outlined at the end of this press release.
1. Quarterly Highlights
Operations and Sustainability
• No serious injuries or major environmental incidents reported in the quarter;
• Met and exceeded most annual sustainability Key Performance Indicators detailed in the Company’s 2023 Sustainability Report,
which incorporated industry best practice disclosure frameworks, including the Global Reporting Initiative (“GRI”), Sustainab ility
Accounting Standard Board (“SASB”) and Task Force on Climate -Related Financial Disclosures (“TCFD”). The 2023 Sustainability
Report is available on the Company’s website at www.championiron.com;
• Quarterly production of 3.3 million wmt (3.2 million dmt) of high -grade 66.1% Fe concentrate for the three-month period ended
March 31, 2024, down 19% from the previous quarter, and up 6% over the same period last year; and
• Quarterly iron ore concentrate sales of 3.0 million dmt for the three -month period ended March 31, 2024, down 8% and 4% from the
previous quarter and the prior-year period, respectively.
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Financial Results
• Gross realized selling price of US$123.4/dmt1, compared to the P65 index average of US$135.9/dmt in the period;
• Net realized selling price of US$82.9/dmt1, representing a 28% decrease quarter-on-quarter, and 25% year-on-year;
• C1 cash cost of $76.6/dmt1 (US$56.8/dmt)2, an increase of 5% quarter-on-quarter, and a decrease of 3% year-on-year;
• EBITDA of $85.1 million1, a decrease of 65% quarter-on-quarter, and 57% year-on-year;
• Net income of $25.8 million, a decrease of 80% quarter-on-quarter, and 71% year-on-year;
• EPS of $0.05, a decrease of 79% quarter-on-quarter, and 71% year-on-year;
• Strong cash position at quarter -end with $400.1 million in cash and cash equivalents as at March 31, 2024, an increase of
$12.7 million since December 31, 2023, and $73.3 million since the beginning of the financial year;
• Available liquidity to support growth initiatives, including amounts available from the Company’s credit facilities, totalled
$942.1 million1 at quarter-end, compared to $937.6 million1 as at December 31, 2023; and
• Semi-annual dividend of $0.10 per ordinary share declared on May 30, 2024 (Montréal) / May 31, 2024 (Sydney), in connection with
annual results for the period ended March 31, 2024.
2. Bloom Lake Mine Operating Activities
Bloom Lake’s Phase II reached commercial production in the third quarter of the 2023 financial year and produced at nameplate capacity for
thirty consecutive days for the first time during the first quarter of the 2024 financial year. During the third quarter of t he 2024 financial year,
the Company ran both plants beyond their nameplate capacity to identify operational bottlenecks. The strategy was successful and both plants
produced well above their nameplate capacity, but it impacted the availability of the equipment in the fourth quarter causing unplanned
maintenance activities due to premature wear and tear on the equipment and earlier than expected major maintenance of the pla nts. As the
Company was completing additional maintenance during this quarter, it also solidified its operations and the team was mobiliz ed to identify
and analyze work programs and investments required to structurally increase Bloom Lake’s nameplate capacity beyond 15 Mtpa over time.
Shipments were negatively impacted during the three-month period ended March 31, 2024, as a result of continued lagging railway services as
well as planned and unplanned maintenance activities on the railroad. Due to the ongoing disconnect in railway services and Bloom Lake’s
increasing production capacity, the iron ore concentrate stockpiled at Bloom Lake increased significantly since June 2023. As at
March 31, 2024, the iron ore concentrate stockpiled at the site totalled 2.7 million wmt, an increase of 0.2 million wmt since December 31, 2023.
The Company continues to seek improvements from the rail operator to receive contracted haulage services to ensure that Bloom Lake’s
production, as well as iron ore concentrate currently stockpiled at Bloom Lake, is hauled over future periods. The Company ex pects to incur
additional handling costs in future periods to reclaim the iron ore concentrate from the stockpile which should negatively im pact the cost of
sales in future periods.
Q4 FY24 Q3 FY24 Q/Q Change Q4 FY23 Y/Y Change
Operating Data
Waste mined and hauled (wmt) 6,498,700 6,993,200 (7) % 5,023,900 29 %
Ore mined and hauled (wmt) 9,471,200 11,215,800 (16) % 9,193,800 3 %
Material mined and hauled (wmt) 15,969,900 18,209,000 (12) % 14,217,700 12 %
Stripping ratio 0.69 0.62 11 % 0.55 25 %
Ore milled (wmt) 9,349,100 11,137,000 (16) % 9,054,600 3 %
Head grade Fe (%) 28.7 29.4 (2) % 28.4 1 %
Fe recovery (%) 80.2 81.4 (1) % 78.6 2 %
Product Fe (%) 66.1 66.3 — % 66.1 — %
Iron ore concentrate produced (wmt) 3,275,400 4,042,600 (19) % 3,084,200 6 %
Iron ore concentrate sold (dmt) 2,968,900 3,227,500 (8) % 3,092,900 (4) %
During the three-month period ended March 31, 2024, 16.0 million tonnes of material were mined and hauled, compared to 14.2 million tonnes
during the same period in 2023, an increase of 12%. This increase is attributable to the contribution of additional equipment, a higher utilization
and availability of mining equipment, and reduced trucking cycle time associated with the construction of additional ramp acc esses. Material
mined and hauled during the previous quarter was 18.2 million tonnes, representing a quarter -on-quarter decrease of 12%, mainly attributable
to the lower availability of loading equipment and winter conditions.
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The stripping ratio of 0.69 for the three -month period ended March 31, 2024, was as expected and higher than the same prior -year period.
Lower concentrate production, impacted by mill availabilities during the quarter, reduced the quantity of ore required to be mined and hauled to
feed the plants, en abling the reallocation of mining equipment to move additional waste materials. This resulted in a slightly higher stripping
ratio for the three -month period ended March 31, 2024, compared to a ratio in the previous quarter of 0.62. The Company plans to maintain
higher stripping activities in accordance with the LoM plan over the next quarters.
During the three-month period ended March 31, 2024, the two plants at Bloom Lake processed 9.3 million tonnes of ore, compared to 9.1 million
tonnes for the same prior-year period and 11.1 million tonnes in the previous quarter, an increase of 3% and a decrease of 16%, respectively. Ore
processed during the three -month period ended March 31, 2024, was negatively impacted by longer than planned maintenance activities,
unplanned outages as well as an advanced schedule of expected major plant maintenance, driven by additional production in the previous
quarter. This was attributable to the Company's strategy during the previous quarter to operate the plants beyond their expanded nameplate
capacity to prove their ability to do so and to identify and confirm bottlenecks.
The iron ore head grade for the three-month period ended March 31, 2024, was 28.7%, compared to 28.4% for the same period in 2023 , and
29.4% during the previous quarter. The variation in head grade was within expected normal variations in the mine plan.
The Company’s average Fe recovery rate was 80.2% for the three-month period ended March 31, 2024, compared to 78.6% for the same period
in 2023, and 81.4% during the previous quarter. The year -over-year increase in Fe recovery is attributable to work programs that increased
throughput and ore recoveries. With continuous efforts made to optimize its recovery circuits, the Company expects to reach t he LoM Fe
recovery rate target of 82.0% in the near term.
With higher Fe recovery and comparable head grade, Bloom Lake produced 3.3 million wmt (3.2 million dmt) of high-grade iron ore concentrate
during the three-month period ended March 31, 2024, an increase of 6% compared to 3.1 million wmt (3.0 million dmt) during the same period in
2023, and a decrease of 19% compared to the previous quarter.
3. Financial Performance
Q4 FY24 Q3 FY24 Q/Q Change Q4 FY23 Y/Y Change
Financial Data (in thousands of dollars)
Revenues 332,673 506,891 (34%) 463,913 (28%)
Cost of sales 227,496 235,457 (3%) 244,444 (7%)
Other expenses 20,425 27,219 (25%) 23,748 (14%)
Net finance costs 8,831 8,747 1% 8,774 1%
Net income 25,791 126,462 (80%) 88,217 (71%)
EBITDA1 85,099 246,609 (65%) 195,709 (57%)
Statistics (in dollars per dmt sold)
Gross average realized selling price1 166.3 195.8 (15%) 183.2 (9%)
Net average realized selling price1 112.1 157.1 (29%) 150.0 (25%)
C1 cash cost1 76.6 73.0 5% 79.0 (3%)
AISC1 88.0 83.9 5% 85.7 3%
Cash operating margin1 24.1 73.2 (67%) 64.3 (63%)
A. Revenues
Revenues totalled $332.7 million for the three-month period ended March 31, 2024, compared to $463.9 million for the same period in 2023 due
to a 25% decrease in the net realized selling price, driven by negative provisional pricing adjustments on sales recorded during the previous
quarter, higher freight and other costs, and lower gross selling prices impacted by the estimated price used on provisional sales at quarter-end.
Negative provisional pricing adjustments on prior quarter sales of $31.0 million were recorded during the three-month period ended
March 31, 2024, representing a negative impact of US$8.0/dmt over 3.0 million dmt sold during the quarter, due to a decrease in the P65 index
prices early in the period. During the three-month period ended March 31, 2024, a final average price of US$136.2 /dmt was established for the
1.8 million tonnes of iron ore that were in transit as at December 31, 2023 , and which were previously evaluated using an average expected
price of US$149.6/dmt.
The gross average realized selling price of US$123.4/dmt1 for the three-month period ended March 31, 2024, was lower than the P65 index
average price of US$135.9/dmt for the period due to the 1.8 million tonnes in transit as at March 31, 2024, reevaluated using an average forward
price of US$112.8 /dmt. Sales contracts using backward -looking iron ore index prices also contributed to a lower selling price, as index prices
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were slightly lower than the P65 index average price for the period. The gross average realized selling price was also impacted by a decrease of
3% in the P65 index average price during the three-month period ended March 31, 2024, compared to the same period last year. The P65 index
premium was 10.0% over the P62 index average price of US$123.6/dmt during the quarter, compared to 11.6% in the prior -year period, mainly
impacted by depressed steelmaking profit margins, and up from a premium of 8.1% in the previous quarter.
Freight and other costs increased by 16% for the three -month period ended March 31, 2024, compared to the same prior -year period. This
variation is significantly lower than the 42% increase in the C3 index compared to the same prior-year period, benefitting from favourable fixed
freight agreements on certain vessels negotiated in previous periods and the lag effect of the timing for vessels booking com pared to the
laycan period. The increase in the average C3 index to US$25.7 /t for the period, compared to US$18.1/t for the same period in 2023 , can be
attributed to the conflict in the Red Sea which impacted freight dynamics in the period and much higher demand for vessels in the Atlantic, due
to the unseasonably elevated supply of iron ore from Brazil. Higher demurrage expenses resulting from a combination of higher demurrage
rates, compared to the same period last year, and delayed shipments caused by reduced railway services, negatively impacted t he Company’s
freight and other costs during the three-month period ended March 31, 2024.
Sales volume during the three-month period ended March 31, 2024, was impacted by continued lagging railway services as well as planned and
unplanned maintenance activities on the railroad.
After taking into account sea freight and other costs of US$32.5 /dmt and the negative provisional pricing adjustment of US$8.0 /dmt, the
Company obtained a net average realized selling price of US$82.9/dmt (C$112.1/dmt)1 for its high-grade iron ore shipped during the period.
B. Cost of Sales and C1 Cash Cost
For the three-month period ended March 31, 2024, the cost of sales totalled $227.5 million with a C1 cash cost of $76.6 /dmt1, compared to
$244.4 million with a C1 cash cost of $79.0/dmt1 for the same period in 2023 , and $235.5 million with a C1 cash cost of $73.0 /dmt1 in the
previous quarter. Lower C1 cash cost during the quarter compared to the prior year was driven by the impact of the previous quarter's mining
and processing costs on inventory valuation as at March 31, 2024, and the positive impacts of optimizing operations at Bloom Lake following
the recent completion of the Phase II expansion project.
Land transportation and port handling costs for the three -month period ended March 31, 2024, represented $26.0/dmt sold, up nearly $5/dmt
sold compared to the same period last year. Although additional infrastructure and resources were put in place at the port facilities in Sept -Îles
to accommodate Bloom Lake's nameplate capacity, lower than expected railway services limited the volume of concentrate transp orted to the
port, negatively impacting the land transportation and port handling unit cost.
Mining and processing costs for the 3.2 million dmt produced in the three-month period ended March 31, 2024, totalled $57.6/dmt produced, an
increase of 27% compared to $45.3/dmt produced in the previous quarter, resulting from the lower volume of production at the mine and at the
Company's two plants, and higher costs associated with planned and unplanned maintenance activities. The higher costs incurred during the
quarter had an impact on the Company’s inventory value at the end of the quarter and will impact the cost of sales in upcoming quarters.
C. Net Income & EBITDA
For the three-month period ended March 31, 2024, the Company generated EBITDA of $85.1 million1, representing an EBITDA margin of 26% 1,
compared to $195.7 million1, representing an EBITDA margin of 42% 1, for the same period in 2023 . Lower EBITDA was mainly due to lower net
average realized selling prices.
For the three -month period ended March 31, 2024, the Company generated net income of $25.8 million (EPS of $0.05 ), compared to
$88.2 million (EPS of $0.17 ) for the same prior -year period. The year -over-year decrease in net income is attributable to lower gross profit
partially offset by lower income and mining taxes.
D. All In Sustaining Cost & Cash Operating Margin
During the three -month period ended March 31, 2024, the Company realized an AISC of $88.0/dmt1, compared to $85.7/dmt1 for the same
period in 2023. The increase was attributable to higher sustaining capital expenditures and G&A expenses, partially offset by lower C1 cash
costs. The increase in sustaining capital expenditures was mainly related to mining activities and tailings management that were requ ired to
support the Company's mining plan in future years.
The Company generated a cash operating margin of $24.1/dmt1 for each tonne of high-grade iron ore concentrate sold during the three-month
period ended March 31, 2024, compared to $64.3/dmt1 for the same prior-year period. The variation is due to a lower net average realized selling
price for the period and higher AISC.
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4. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on May 31, 2024, at 9:00 AM (Montréal time) / 11:00 PM (Sydney
time). Listeners may access a live webcast of the conference call from the Investors section of the Company’s website at
www.championiron.com/investors/events-presentations or by dialing toll fre e +1-888-390-0546 within North America or +1 -800-076-068
from Australia.
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 North America or +1-416-764-
8677 overseas, and entering passcode 003567#.
About Champion Iron Limited
Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex, located on the south
end of the Labrador Trough, approximately 13 km north of Fermont, Québec. Bloom Lake is an open -pit operation with two concentrators that
primarily source energy from renewable hydroelectric power. The two concentrators have a combined nameplate capacity of 15 Mtpa and
produce low contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore
concentrate. Benefiting from one of the highest purity resources globally, the Company is investing to upgrade half of the Bl oom Lake mine
capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake's high -grade and low contaminant iron ore products
have attracted a premium to the Platts IODEX 62% Fe iron ore benchmark. The Company ships iron ore concentrate from Bloom Lake by rail, to
a ship loading port in Sept -Îles, Québec, and has delivered its iron ore concentrate globally, including in China, Japan, the Middle East, Europe,
South Korea, India and Canada. In addition to Bloom Lake, Champion owns a portfolio of exploration and development projects in the Labrador
Trough, including the Kamistiatusset Project, located a few kilometres south -east of Bloom Lake, and the Cluster II portfolio of properties,
located within 60 km south of Bloom Lake.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain information and statements that may constitute “forward -looking information” under applicable securities
legislation. 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) Bloom Lake’s LoM and recovery rates; (ii) the project to upgrade the Bloom Lake iron ore concentrate
to a higher grade with lower contaminants and to convert approximately half of Bloom Lake’s increased nameplate capacity of 15 Mtpa to
commercially produce a DR quality pellet feed iron ore, expected project timeline and benefits; (i ii) the future declaration and payment of
dividends and the timing thereof; ( iv) the shift in steel industry production methods towards reducing emissions and green steel production
methods, including expected rising demand for higher -grade iron ore products and related market deficit and higher premiums, and the
Company’s participation therein, contribution thereto and positioning in connection therewith, including related research and development and
the transition of the Company’s product offering (including producing high quality DRPF products) and expected benefits there of; ( v)
sustainability, environmental, social and governance related initiatives, objectives, targets and expectations, expected implications thereof and
the Company’s positioning in connection therewith; (vi) maintaining higher stripping activities; ( vii) stockpiled ore levels, shipping and sales of
accumulated concentrate inventories and related rehandling costs and their impact on the cost of sales; ( viii) increased shipments of iron ore
and related railway and port capacity and transportation and handling costs; ( ix) production and recovery rate targets and the Company’s
performance and related work programs; (x) pricing of the Company’s products (including provisional pricing); and (xi ) the Company’s growth
and opportunities generally.
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 estimate d 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
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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 prepa re feasibility studies;
(iii) project delays; (iv) timing and uncertainty of industry shift to green steel and electric arc furnaces, impacting demand for high -grade feed;
(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; (x) delays in obtaining governmental approvals, necessary permitting or in the completion of developm ent 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 2024
Annual Report and Annual Information Form for the financial year ended March 31, 2024 , all of which are available on SEDAR+ at
www.sedarplus.ca, the ASX at www.asx.com.au and the Company's website at www.championiron.com.
There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from
those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
Additional Updates
All of the 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 ar e used throughout
this press release: US$ (United States dollar), C$ (Canadian dollar), Fe (iron ore), wmt (wet metric tonnes), dmt (dry metric tonnes), Mtpa (million
tonnes per annum), M (million), km (kilometers), LoM (life of mine), Bloom Lake or Bloom Lake Mine (Bloom Lake Mining Complex), Phase II
(Phase II expansion project), DRPF (direct reduction pellet feed), G&A (general and administrative), P62 index (Platts IODEX 62% Fe CFR China
index), P65 index (Platts IODEX 65% Fe CFR China index), C3 index (C3 Baltic Capesize index), EBITDA (earnings before interest, tax, depreciation
and amortization), AISC (all-in sustaining cost), EPS (earnings per share) and Management (Champion’s management team). The utilization of
“Champion” or the “Company” refers to Champion Iron Limited and/or one, or more, or all of its subsidiaries, as applicable. " IFRS" refers to
International Financial Reporting Standards.
For further information, please contact:
Michael Marcotte, CFA
Senior Vice-President, Corporate Development and Capital Markets
514-316-4858, Ext. 1128
For additional information on Champion Iron Limited, please visit our website at: www.championiron.com.
This document has been authorized for release to the market by the Chief Executive Officer of Champion Iron Limited, David Cataford.
The Company’s audited Consolidated Financial Statements for the year ended March 31, 2024 (the ”Financial Statements”) and associated
Management's Discussion and Analysis (“MD&A”) are available under the Company's profile on SEDAR+ ( www.sedarplus.ca), on the ASX
(www.asx.com.au) and the Company's website (www.championiron.com).
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 22 of the Company's MD&A for the year ended March 31, 2024, available on
SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au and on the Company's website under the Investors section at www.championiron.com.
2 See the "Currency" section of the MD&A for the year ended March 31, 2024, included in note 7 — Key Drivers, available on SEDAR+ at www.sedarplus.ca, the ASX at
www.asx.com.au and on the Company's website under the Investors section at www.championiron.com.
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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 U.S. dollars in addition to Canadian dollars to facilitate
comparability with measures presented by other companies.
EBITDA and EBITDA Margin
Q4 FY24 Q3 FY24 Q4 FY23
(in thousands of dollars)
Income before income and mining taxes 46,693 204,981 144,457
Net finance costs 8,831 8,747 8,774
Depreciation 29,575 32,881 42,478
EBITDA 85,099 246,609 195,709
Revenues 332,673 506,891 463,913
EBITDA margin 26 % 49 % 42 %
Available Liquidity
As at March 31, As at December 31,
2024 2023
Cash and cash equivalents 400,061 387,373
Undrawn amounts under credit facilities 542,000 550,253
Available liquidity 942,061 937,626
C1 Cash Cost
Q4 FY24 Q3 FY24 Q4 FY23
Iron ore concentrate sold (dmt) 2,968,900 3,227,500 3,092,900
(in thousands of dollars except per tonne)
Cost of sales 227,496 235,457 244,444
C1 cash cost (per dmt sold) 76.6 73.0 79.0
All-In Sustaining Cost
Q4 FY24 Q3 FY24 Q4 FY23
Iron ore concentrate sold (dmt) 2,968,900 3,227,500 3,092,900
(in thousands of dollars except per tonne)
Cost of sales 227,496 235,457 244,444
Sustaining capital expenditures 19,759 24,031 9,303
G&A expenses 13,973 11,206 11,466
261,228 270,694 265,213
AISC (per dmt sold) 88.0 83.9 85.7
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Cash Operating Margin and Cash Profit Margin
Q4 FY24 Q3 FY24 Q4 FY23
Iron ore concentrate sold (dmt) 2,968,900 3,227,500 3,092,900
(in thousands of dollars except per tonne)
Revenues 332,673 506,891 463,913
Net average realized selling price (per dmt sold) 112.1 157.1 150.0
AISC (per dmt sold) 88.0 83.9 85.7
Cash operating margin (per dmt sold) 24.1 73.2 64.3
Cash profit margin 21 % 47 % 43 %
Gross Average Realized Selling Price per dmt Sold
Q4 FY24 Q3 FY24 Q4 FY23
Iron ore concentrate sold (dmt) 2,968,900 3,227,500 3,092,900
(in thousands of dollars except per tonne)
Revenues 332,673 506,891 463,913
Provisional pricing adjustments 31,005 (15,997) (14,325)
Freight and other costs 130,074 140,971 117,137
Gross revenues 493,752 631,865 566,725
Gross average realized selling price (per dmt sold) 166.3 195.8 183.2