Champion Iron Reports Its FY2026 Third Quarter Results and Advances the Drpf Project as Planned
1
Page
PRESS RELEASE
CHAMPION IRON REPORTS ITS FY2026 THIRD QUARTER RESULTS AND ADVANCES
THE DRPF PROJECT AS PLANNED
▪
Quarterly production of
3.7M
wmt,
record
sales of
3.9M
dmt, revenue of
$472M
, net income of
$65M
,
EBITDA of
$152M
1
and EPS of
$0.12
▪
DRPF project initial commissioning underway as it advances towards delivering the first shipment by end
of calendar H1/2026, as planned
▪
Reduced iron ore concentrate inventories stockpiled at Bloom Lake by
1.1M
wmt to
0.6M
wmt
▪
Announced a cash tender offer to acquire Rana Gruber with financial support from La Caisse and a new
term loan commitment by Scotiabank
MONTRÉAL,
January
28, 2026
/ SYDNEY,
January
29, 2026
-
Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“
Champion
” or the
“
Company
”) reports its operational and financial results for its financial
third
quarter ended
December
31, 2025
.
Champion’s CEO, Mr.
David Cataford, said, “I am proud of our team’s ingenuity and perseverance as we advance strategic initiatives designed to
unlock value for our stakeholders in the coming months and reinforce our leadership in the high
-
purity iron ore i
ndustry. We expect to continue to
benefit from sales of high
-
purity iron ore inventories previously stockpiled at Bloom Lake
.
New markets will become available as we
initiat
e
shipments of DR quality iron ore from our DRPF project in the near term. Addition
ally, we remain focused on the potential closing of the Rana
Gruber acquisition, which will diversify our portfolio with another proven high
-
purity iron ore operation, as well as the anticipated completion of
the Kami project definitive feasibility study,
leveraging our partnership with Nippon Steel and Sojitz. As our multi
-
year growth capital investment
cycle at Bloom Lake nears completion, we continue to rigorously evaluate growth opportunities and capital allocation strategi
es to optimize
shareholder ret
urns.”
Conference Call Details
Champion will host a conference call and webcast on
January
29, 2026
, at
9:00 AM (Montréal time)
/ January 30, 2026, at
1:00
AM
(
Sydney time)
to discuss the results of the financial
third
quarter ended
December
31, 2025
. 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
December
31, 2025
;
2
Page
•
Quarterly production of 3.7
million wmt of high
-
grade 66.5% Fe concentrate for the three
-
month period ended December
31,
2025,
compared to 3.6
million wmt of high
-
grade 66.3% for the same prior
-
year period;
•
Record quarterly sales of 3.9
million dmt for the three
-
month period ended December
31,
2025
,
up 18% from the same prior
-
year period;
•
Iron ore concentrate stockpiled at Bloom Lake decreased by 1.1
million
wmt quarter
-
over
-
quarter bringing the total to 0.6
million wmt
as at December
31, 2025, despite a railway interruption caused by a third
-
party train derailment on December 28, 2025. Rail services
gradually resumed on January 4, 2026. As some tonnes were hauled to the
P
ort
of
Sept
-
Îles
and not sold, partly due to an outage of the
ship loaders in December 2025, stockpiled iron ore concentrate at the port temporarily reached 0.9
million wmt as at
December
31,
2025
;
•
Cumulative iron ore concentrate inventories held at Bloom Lake and
at
the
Port of Sept
-
Îles totall
ed
1.5
million wmt as at
December
31,
2025, compared to 1.8
million wmt as at September 30, 2025. The Company is evaluating inventory management
strategies and expects to sell volumes
held
at the port in the near term;
and
•
Strong mining performance with 22.6
million
wmt of material mined and hauled at Bloom Lake for the
three
-
month period ended
December
31,
2025, an increase of 13% compared to the same prior
-
year period, driven by additional and
improve
d utilization of loading
equipment, and availability of haul trucks.
Financial Results
•
Gross average realized selling price of
US$116.8
/dmt
1
, compared to the P65 index average price of
US$118.8
/dmt in the period;
•
Net average realized selling price of
US$86.9
/dmt
1
, a decrease of
6%
quarter
-
over
-
quarter and an increase of
10%
year
-
over
-
year;
•
C1 cash cost for the iron ore concentrate loaded onto vessels at the Port of Sept
-
Îles totalled
$73.9
/dmt
1
(
US$53.0
/dmt)
2
, representing
a decrease of
3%
quarter
-
over
-
quarter and
6%
year
-
over
-
year;
•
Net income of
$65.0
million
, representing EPS of
$0.12
, compared to
net income of
$56.8
million
with EPS of
$0.11
in the previous
quarter, and
net income of
$1.7
million
with EPS of
$0.00
in the same prior
-
year period;
•
EBITDA of
$152.4 million
1
, compared to
$174.8 million
1
in the previous quarter
and
$88.2 million
1
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”) held in a restricted cash account by Kami Iron Min
e Partnership
(the “Kami Partnership”), totalled
$245.1
million as at December
31, 2025, a decrease of $80.4
million since September
30, 2025, mainly
due to capital expenditures and the payment of the ninth consecutive semi
-
annual dividend, partially o
ffset by
robust
net cash flows
from operating activities
; and
•
Strong available liquidity to support growth initiatives and general corporate purposes totalled $751.4
million
1
as at December
31, 2025,
compared to $840.4 million
1
as at September 30, 2025.
DRPF Project Update
•
DRPF project, designed to upgrade half of Bloom Lake’s capacity to DR quality pellet feed iron ore grading up to 69% Fe, prog
ress
ed
as
planned
, with m
echanical commissioning initiated and
initial
commercial shipments of DR quality iron anticipated by the end of the
first half of the 2026 calendar year, gradually increasing thereafter;
•
T
ransfer of knowledge from the construction teams to the internal teams
began
, along with the commissioning of certain equipment,
including the electrical distribution and
the
heating, ventilation and air conditioning (HVAC) system, and the pressurization of part of the
water
process
;
•
Quarterly and cumulative investments totalled
$32.9
million
and
$440.5
million
, respectively, as at
December
31, 2025
, compared to
an
estimated
cumulative investment of $500
million, in line with the inflation
-
adjusted estimated total capital expenditure of
$470.7
million detailed in the project study highlights released in January
2023; and
•
Through its ongoing discussions with prospective customers, including in the Middle East and North Africa,
Champion
expects to secure
commercial agreements for its anticipated production of DR quality iron ore, which is expected to attract pricing premiums ov
er the
Company’s existing high
-
purity iron ore concentrate.
3
Page
Development and Other Growth Initiatives
•
Continued work on the Kami Project’s DFS, which is expected to be completed by the end of the 2026 calendar year; and
•
Entered into a transaction agreement with Rana Gruber ASA (“Rana Gruber”), a leading Norwegian producer of high
-
grade iron ore, on
the terms of a conditional recommended voluntary cash tender offer to acquire all of the issued and outstanding shares of Ran
a Gruber
at a price of NOK
79 (US$7.79)
3
per share (the “Offer”), representing an implied total equity value of approximately NOK
2,930
million
(US$289
million)
3
(the “
Rana Gruber
Transaction”).
To
fund the
Rana Gruber
Transaction, in addition to using cas
h on hand, the Company
receive
d
financial support from Caisse de dépôt et placement du Québec (“La Caisse”), who has agreed to participate in an equity priva
te
placement
of subscription receipts
by Champion
,
and from The bank of Nova Scotia (“Scotiabank”), who has
provided a binding
commitment for
a new term loan. Additional details on the
Rana Gruber
Transaction can be found on the Company’s press release dated
December
21,
2025 (Montréal), available under its profile on SEDAR+ at
www.sedarplus.ca
, the ASX at
www.asx.com.au
and the
Company’s website at
www.championiron.com
.
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.
Q3
FY26
Q2
FY26
Q/Q Change
Q3
FY25
Y/Y Change
Operating Data
Waste mined and hauled (wmt)
12,088,600
12,888,300
(6)
%
9,694,200
25
%
Ore mined and hauled (wmt)
10,549,700
10,016,000
5
%
10,347,500
2
%
Material mined and hauled (wmt)
22,638,300
22,904,300
(1)
%
20,041,700
13
%
Stripping ratio
1.15
1.29
(11)
%
0.94
22
%
Ore milled (wmt)
10,443,200
9,967,600
5
%
10,305,300
1
%
Head grade Fe (%)
29.1
29.6
(2)
%
29.3
(1)
%
Fe recovery (%)
79.7
79.6
—
%
79.1
1
%
Product Fe (%)
66.5
66.5
—
%
66.3
—
%
Iron ore concentrate produced (wmt)
3,661,400
3,551,600
3
%
3,620,600
1
%
Iron ore concentrate sold (dmt)
3,895,300
3,850,900
1
%
3,287,400
18
%
Bloom Lake produced
3.7
million
wmt of high
-
grade
66.5%
Fe concentrate during the
three
-
month period ended December
31,
2025
,
which was
comparable to production recorded during the same period in
2024
.
T
he Company continues to encounter higher ore hardness, partly attributable
to a specific extension of a pit being mined to enable shorter haul access to waste dumps
. Despite this situation
, this year’s quarterly production
was positively impacted by increased recoveries resulting from improved performance of
the gravimetric systems following
the application of
work programs and
optimization of
operations. During the
three
-
month
period ended December
31,
2025
, the Fe recovery rate was
79.7%
,
compared to
79.1%
for the same period in
2024
. The increase in
iron ore concentrate
production
was mostly offset by the negative impact of lower
head grade, and a planned
maintenance
-
related
power interruption by the service provider during the
three
-
month period ended
December
31,
2025
. While recovery rates are expected to
fluctuate in accordance with the mine plan
and its variations in ore grade
, the Company
will remain focused on improving and stabilizing recovery rates over time.
The impact of the recent
ly
encountered
ore hardness
,
which
is easing
compared to previous quarters, is mitigated by strong mining performance, which should enable
the
optimized blending of material from different
pits.
Despite a breakdown on the port operator’s ship
loaders
at the end of
December 2025
, sales volumes increased by
18%
during the
three
-
month
period ended December
31,
2025
, compared to the same prior
-
year period, and exceeded production for the fourth consecutive quarter. While a
planned shutdown of third
-
party port operations for infrastructure maintenance impacted both financial quarters, during the three
-
month period
end
ed December 31, 2024, sales volumes were also affected by the breakdown of a critical piece of equipment at the Bloom Lake’s
train load
-
out facility, which caused a 14
-
da
y interruption of rail haulage activities.
Despite
a third
-
party train derailment
that occurred late in December 2025, the level of iron ore concentrate stockpiled at Bloom Lake decreased
4
Page
by
1.1
million
wmt to reach
0.6
million
wmt as at
December
31, 2025
. Since the volume hauled was not fully sold during the quarter, the iron ore
concentrate stockpiled at the
P
ort
of
Sept
-
Îles totalled
0.9
million
wmt at quarter
-
end. This temporary accumulation of
iron ore
concentrate at
the port was in part due to the unexpected
ship
loaders
breakdown
outlined above,
and also resulted from
the Company’s
strategic decision to
maintain a certain level of stockpiles during the commissioning phase of the DRPF project. Cumulative iron ore concentrate in
ventories at Bloom
Lake
and
at
the port
totalled
1.5
million
wmt as at December 31, 2025, compared to
1.8
million
wmt as at September 30, 2025. The Company is
currently evaluating on
-
site and port inventory management strategies in anticipation of the expected change to its product offering with DRPF
quality iron ore
and expects to sell the iron ore concentrate
held
at the port in the near term.
During the
three
-
month period ended December
31,
2025
, the Company mined and hauled
22.6
million
wmt
of waste and ore, surpassing the
20.0
million
wmt recorded in the same prior
-
year period. This
strong
mining performance was driven by additional loading equipment, as well as
improved
utilization and availability of haul trucks. During the
quarter
, the Company also commissioned a new drill
which allowed
the Company
to mine and haul a higher volume of waste material, resulting in a stripping ratio of
1.15
for the
three
-
month period ended December
31,
2025
,
higher than the
0.94
ratio recorded in the same pr
ior
-
year period. Champion anticipates maintaining elevated stripping activity in upcoming
periods, consistent with its LoM plan.
3. Financial Performance
Q3
FY26
Q2
FY26
Q/Q Change
Q3
FY25
Y/Y Change
Financial Data
(in thousands of dollars)
Revenues
472,309
492,890
(4)
%
363,170
30
%
Cost of sales
287,712
293,398
(2)
%
258,728
11
%
Other expenses
28,747
21,648
33
%
17,290
66
%
Net finance costs
2,101
25,643
(92)
%
30,508
(93)
%
Net income
64,972
56,794
14
%
1,741
3632
%
EBITDA
1
152,408
174,823
(13)
%
88,216
73
%
Statistics
(in dollars per dmt sold)
Gross average realized selling price
1
162.9
157.5
3
%
158.8
3
%
Net average realized selling price
1
121.3
128.0
(5)
%
110.5
10
%
C1 cash cost
1
73.9
76.2
(3)
%
78.7
(6)
%
AISC
1
89.7
96.9
(7)
%
93.9
(4)
%
Cash operating margin
1
31.6
31.1
2
%
16.6
90
%
A.
Revenues
Revenues totalled
$472.3
million
for the
three
-
month period ended December
31,
2025
,
up
$109.1
million
from revenues of
$363.2
million
in the
same period in
2024
. Higher revenues were attributable to an
18%
increase in sales volume as outlined in the previous section and a
higher net
average realized selling price
.
For the
three
-
month period ended December
31,
2025
, the gross average realized selling price
of
US$116.8/dmt
1
was lower than the P65 index
average price of
US$118.8/dmt
. Sales contracts using backward
-
looking iron ore index pricing contributed to lower selling prices as index prices
on these contracts were lower than the P65 index average price during the period. In addition, the
2.5
million
dmt iron ore subject to pricing
adjustments as at
December
31, 2025
, were evaluated using an average forward selling
price of
US$117.4/dmt
, below the P65 index average
price. The gross average realized selling price was also negatively impacted by the Company’s strategic transition to a highe
r grade DRPF product.
Accordingly, Champion intentionally reduced volumes of iron ore concentrate sol
d under long
-
term sales contracts to retain a greater proportion
of its iron ore concentrate for the short
-
term and spot markets, which have recently experienced greater pricing volatility and pricing discounts.
Positive
provisional pricing adjustments on prior
-
quarter sales of
$4.4
million
(
US$3.3
million
) were recorded during the
three
-
month period
ended December
31,
2025
, representing a
favourable
impact of
US$0.8
/dmt
for the
3.9
million
dmt sold during the quarter. A final average selling
price of
US$115.1
/dmt was established for the
2.5
million
dmt of iron ore subject to pricing adjustments as at
September
30, 2025
, which were
provisionally priced at
US$113.8
/dmt.
5
Page
Despite an
11%
increase in the average C3 index, freight and other costs of
US$30.7/dmt
during the
three
-
month period ended December
31,
2025
,
were in line with the same prior
-
year period. Sales contracts using backward
-
looking pricing contributed to lower freight costs as the C3 index
used was lower than the average index for the period.
After taking into account sea freight and other costs of
US$30.7/dmt
and the
positive
provisional pricing adjustments of
US$0.8/dmt
, the
Company obtained a net average realized selling price of
US$86.9/dmt
(C$
121.3
/dmt
1
) for its high
-
grade iron ore concentrate shipped during the
three
-
month period ended December
31,
2025
.
B.
Cost of Sales and C1 Cash Cost
For the
three
-
month period ended December
31,
2025
, the cost of sales totalled
$287.7
million
with a C1 cash cost of
$73.9
/dmt
1
, compared to
$258.7
million
with a C1 cash cost of
$78.7
/dmt
1
for the same period in
2024
.
With similar production volumes, mining and processing costs totalled
$47.3
/dmt produced
1
for the
three
-
month period ended
December
31,
2025
, representing a
5%
decrease, compared to
$49.6
/dmt produced
1
in the same prior
-
year period. This decrease was mainly
driven by lower subcontractors costs primarily associated with
equipment maintenance at the facilities.
Land transportation and port handling costs for the
three
-
month period ended December
31,
2025
, were
$26.5
/dmt sold
1
, comparable to the
same prior
-
year period despite significantly higher
sales
volumes. While higher sales volumes contributed to the amortization of fixed costs of
the port yard facilities, the disconnect between iron ore concentrate volumes railed from the site and the volume of sales lo
aded
onto vessels
during the period offset this effect.
As at December
31, 2025, stockpiled iron ore concen
trate at the port increased to 0.9
million wmt as the
tonnages hauled were not fully sold during the period.
The C1 cash cost was
also
impacted by changes in the valuation of iron ore concentrate inventory, which incorporate mining and processing costs
from the previous quarter, along with variations in production and sales volumes. Due to the scheduled semi
-
annual maintenance completed i
n
September 2025, cash cost per tonne for the period was impacted by the destocking of iron ore inventories, as the destocked t
onnes carried a
higher unit value than the cost of the iron ore produced in the period.
C
.
Net Income & EBITDA
For the
three
-
month period ended December
31,
2025
, the Company generated net income of
$65.0
million
(EPS of
$0.12
), compared to
$1.7
million
(EPS of
$0.00
) for the same prior
-
year period. These increases were attributable to a higher gross profit and an unrealized foreign
exchange gain resulting from the revaluation of net monetary liabilities denominated in U.S. dollars, partially offset by hig
her income a
nd mining
taxes.
For the
three
-
month period ended December
31,
2025
, the Company generated EBITDA of
$152.4
million
1
, representing an EBITDA margin of
32%
1
,
compared to
$88.2
million
1
, representing an EBITDA margin of
24%
1
, for the same period in
2024
. Higher EBITDA and EBITDA margins were mainly
driven by higher sales volumes, a higher net average realized selling price and lower cash cost.
D
.
All
-
in Sustaining Cost & Cash Operating Margin
During the
three
-
month period ended
December
31,
2025
, the Company realized an AISC of
$89.7
/dmt
1
, compared to
$93.9
/dmt
1
for the same
period in
2024
. Higher iron ore concentrate
sales volumes
led to lower unit costs, favourably impacting AISC for the period, partially offset by
higher sustaining capital expenditures and general and administrative expenses.
The Company generated a cash operating margin of
$31.6
/dmt
1
for each tonne of high
-
grade iron ore concentrate sold during the
three
-
month
period ended December
31,
2025
, compared to
$16.6
/dmt
1
for the same prior
-
year period.
This increase
was due to a higher net average realized
selling price and a lower AISC for the period.
4. Exploration Activities
During the
three and nine
-
month periods ended December
31,
2025
, the Company maintained all its properties in good standing and did not enter
into any farm
-
in arrangements.
6
Page
T
he Company transferred its Kami properties to the Kami Partnership
on September 29, 2025,
and an aggregate 49% interest in the Kami
Partnership was acquired by Nippon Steel and Sojitz in exchange for cash contributions. The Kami Partnership was created to j
ointly conduct and
fund certain components of the DFS on a pro
-
rata basis, in accordance
with the Partners’ respective ownership interests.
During the
three and nine
-
month periods ended December
31,
2025
,
$1.1
million
and
$16.3
million
in exploration and evaluation expenditures
were incurred, respectively, compared to
$9.2
million
and
$16.6
million
, respectively, for the same prior
-
year periods. The lower investment year
-
over
-
year was due to the transfer of the Kami properties
in the Kami Partnership and the acquisition by the Partners of the aggregate 49% interest
in the Kami Partnership
in September 2025.
Exploration and evaluation expenditures were related to activities carried out in Québec and Newfoundland and Labrador. Detai
ls on exploration
projects, along with maps, are available on the Company’s website at
www.championiron.com
under the
Operations & Projects
section.
5. Cash Flows
—
Purchase of Property, Plant and Equipment
Three Months Ended
Nine Months Ended
December
31,
December
31,
(in thousands of dollars)
2025
2024
2025
2024
Tailings lifts
21,050
21,514
59,297
65,615
Stripping and mining activities
7,334
5,400
39,048
33,307
Other sustaining capital expenditures
18,572
11,279
60,762
43,198
Sustaining Capital Expenditures
46,956
38,193
159,107
142,120
DRPF project
32,907
69,335
100,981
192,477
Other capital development expenditures at Bloom Lake
7,258
74,741
45,607
142,315
Purchase of Property, Plant and Equipment as per Cash Flows
87,121
182,269
305,695
476,912
Sustaining Capital Expenditures
The tailings
-
related investments for the
three and nine
-
month periods ended December
31,
2025
, were in line with the Company’s long
-
term plan
to support the LoM operations. As part of its ongoing tailings infrastructure monitoring and inspections, Champion remains co
mmitted to its safe
tailings strategy and continues to implement its long
-
term inv
estment plan for tailings infrastructure.
During the third quarter of the 2025 financial year, the Company proceeded with
the expansion of its
tailings and waste storage capacity to
accommodate increased operational throughput
,
and
also
initiated other expansion phases in the current year. Tailings
-
related construction
activities are typically conducted between May and November, when weather conditions are more favourable.
Stripping and mining activities for the
three and nine
-
month periods ended December
31,
2025
, were comprised of
$2.8
million
and
$17.9
million
,
respectively, of mine development costs, including topographic and pre
-
cut drilling work, the details of which are contained in the Company’s
mine plan (
$5.0
million
and
$27.0
million
, respectively, for the same periods in
2024
). During the
three and nine
-
month periods ended
December
31,
2025
, stripping and mining activities were also comprised of
$4.6
million
and
$
21.2
million
, respectively, of capitalized stripping
costs (
$0.4
million
and
$6.3
million
, respectively, for the same periods in
2024
).
Other sustaining capital investments for the
three and nine
-
month periods ended December
31,
2025
, mainly included expenditures related to
mining equipment rebuild programs. These are aligned with the Company’s long
-
term investment strategy to support growth initiatives across
the LoM.
DRPF Project
During the
three and nine
-
month periods ended December
31,
2025
, the Company spent
$32.9
million
and
$101.0
million
, respectively, in capital
expenditures related to the DRPF project (
$69.3
million
and
$192.5
million
, respectively, for the same prior
-
year periods). Investments during the
year mainly consisted of construction activities, including mechanical, piping and electrical work, all of which are progress
ing as planned.
Cumulative investments totalled
$440.5
million
as at
December
31, 2025
.
Other Capital Development Expenditures at Bloom Lake
7
Page
During the
three and nine
-
month periods ended December
31,
2025
, other capital development expenditures at Bloom Lake totalled
$7.3
million
and
$45.6
million
, respectively (
$74.7
million
and
$142.3
million
, respectively, for the same periods in
2024
), and are detailed as follows:
Three Months Ended
Nine Months Ended
December
31,
December
31,
(in thousands of dollars)
2025
2024
2025
2024
Infrastructure improvements and conformity (i)
4,989
5,763
20,180
30,828
Mine maintenance garage expansion
72
612
529
8,075
Deposits
or final payment for mining equipment
578
117
16,201
19,537
Railcars
—
59,647
—
69,370
Other (ii)
1,619
8,602
8,697
14,505
Other Capital Development Expenditures at Bloom Lake
7,258
74,741
45,607
142,315
(i)
Infrastructure improvements and conformity expenditures included various capital projects aimed at improving the performance
or capacity
of assets and complying with various regulations governing mining practices.
(ii)
Other expenditures included cash capitalized borrowing costs on the DRPF project.
6. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on
January
29, 2026
, at 9:00 AM (Montréal time) / January 30, 2026,
at
1:00
AM
(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 free +1
-
888
-
699
-
1199 within North America or +61
-
2
-
8017
-
1385
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
-
660
-
6345 within North America or +1
-
289
-
819
-
1450 overseas, and entering passcode
59710
#.
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
kilometres north of Fermont, Québec. Bloom Lake is an open
-
pit operation with two concentration
plants that primarily source energy from renewable
hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce
lower 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 fro
m one of the highest purity resources globally, Champion is investing to upgrade half of the Bloom Lake’s mine capacity
to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake’s high
-
grade and lower contaminant iron ore products ha
ve
attracted a premium to the P62
index. Champion
transports
its iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept
-
Îles,
Québec, and has delivered its iron ore concentrate
to global markets
, including China, Japan, the Middle Eas
t, Europe, South Korea, India and
Canada. In addition to Bloom Lake, Champion holds a 51% interest in Kami Iron Mine Partnership, an entity
also
owned
by Nippon Steel
Corporation
and Sojitz
Corporation
,
which owns the Kami Project
. The Kami Project is located near available infrastructure and only 21 kilometres southeast
of Bloom Lake. Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the C
luster II portfolio
of properties, loc
ated within 60
kilometres
south of Bloom Lake.
Cautionary Note Regarding Forward
-
Looking Statements
This
press release
contains certain information and statements that may constitute “forward
-
looking information” under applicable securities
legislation (“Forward
-
Looking Statements”). Forward
-
Looking Statements are statements that are not historical facts and are generally
, but not
always, identified by the use of words such as “will”, “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“continues”, “forecasts”,
“projects”, “predicts”, “intends”, “anticipates”, “aims”, “targets” or “believes”, or variatio
ns 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 oth
er factors beyond the Company’s ability to predict or control.
8
Page
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, recovery rates, production, economic and other benefits, nameplate capacity and related
opportunities and benefits
, including the Company’s
focus on improving and stabilizing recovery rate
s over time
; (ii) the project to upgrade the
Bloom Lake iron ore concentrate to a higher grade and to convert approximately half of Bloom Lake’s increased nameplate capac
ity of 15M wmt
per year to commercially produce a DR quality pellet feed iron ore (the DRPF proje
ct), expected DRPF project timeline, capital expenditures, budget
and financing, production metrics, technical parameters, pricing premiums, efficiencies, economic and other benefits, related
engagement with,
and expectations with respect to, pr
ospective customers, the expected commissioning, commercial shipments of iron ore and ramping
-
up of the
DRPF project and the impact thereof on production, sales and financial results and the timing thereof; (iii) the Kami Project
Study (including LoM),
the
Kami Project’s potential to produce a DR grade product, expected timeline and construction period, economics, production, tec
hnical
parameters, stakeholder and government engagement, efficiencies and economic and other benefits and evaluation of opportuni
ties to improve
project economics; (iv) the Kami Partnership with Nippon Steel Corporation and Sojitz Corporation with respect to the Kami Pr
oject, the completion
of a DFS and the timing thereof; (v)
the Rana Gruber Transaction, including the expected sources of financing of the transaction and the
consummation of the financing contemplated by the committed debt financing with Scotiabank and the equity private placement w
ith La Caisse
and the expectati
ons regarding whether the Rana Gruber Transaction will b
e completed
and the timing thereof
, including whether any conditions
to completion of the tender offer will be satisfied or waived
; (
vi) the shift in steel industry production methods, expected rising demand for higher
-
grade iron ore products and DRI globally and related market deficit and higher premiums, and the Company’s participation ther
ein, contribution
thereto and positioning in
connection therewith, including the transition of the Company’s product offering (including producing high
-
quality
DRPF pro
ducts) and the expansion of its geography
, markets
and customer base, related investments and expected benefits thereof; (vii)
maintaining elevated stripping activities; (
vii
i) stockpiled ore levels, the pace of destocking, shipping and sales of accumulated iron ore
concentrate inventories and their impact on the operating costs and the cost of sales; (
i
x) ore inventory management strategies; (x) the
Company’s safe tailings strategy and tailings investment plan; (xi) the Company’s cash requirements for the next 12 months, t
he Company’s
positioning to fund such cash requirements and estimated future intere
st payments; (xii) production and recovery rates and levels, ore
character
istics and the Company’s performance and related strategies and work programs to optimize operations, including ore blending
optimization; (xiii) pricing of the Company’s products (including provisional pricing); (x
iv
) the Company’s expected iron ore concentrate production
and sales, mining and hauling activities and related costs; (x
v
) the Company’s iron ore concentrate pricing trends compared to the P65 index;
(x
v
i) the Company’s
strategic and
growth
initiatives
and opportunities generally
and their poten
tial to optimize shareholder returns, unlock value
for stakeholders and reinforce the Company’s leadership
in the high
-
purity iron ore industry
.
Risks
Although
the Company
believes the expectations expressed in such
f
orward
-
l
ooking
s
tatements 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 tho
se expressed in Forward
-
Looking
Statements include, without limitation: (i) future prices of iron ore; (ii) future transportation costs; (iii) general econom
ic, competitive, political
and social uncertainties; (iv) continued availability of capital and fin
ancing and general economic, market or business conditions; (v) timing and
uncertainty of industry shift to electric arc furnaces, impacting demand for high
-
grade feed; (vi) failure of plant, equipment or processes
,
including those of third party providers
or counterparties,
to operate as anticipated; (vii) delays in obtaining governmental approvals, necessary
permitting or in the completion of development or construction activities; (viii) the results of feasibility studies; (ix) ch
anges in the assumptions
used to prepare fe
asibility studies; (x) project delays; (xi) geopolitical events; and (xii) the effects of catastrophes and public health cris
es on the
global economy, the iron ore market and Champion’s operations, as well as those factors discussed in t
he section entitled “Risk Factors” of the
Company’s Management’s Discussion and Analysis for the financial year ended
March
31, 2025
,
and for the quarter ended
December 31, 2025
,
each
available 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
.
In addition, Champion is also subject to the various risks and uncertainties relating to the Rana Gruber Transaction, includi
ng risks relating to the
timing and completion of the Rana Gruber Transaction; the availability of borrowings to be drawn down unde
r, and the utilization of, various