- Record quarterly production of 3.45M wmt, revenue of $388M, EBITDA of $155M1, EPS of $0.13
- Declared a dividend of $0.10 per
ordinary share
- DRPF Project remains on schedule with completion of work
programs
MONTRÉAL, Oct. 25,
2023 /CNW/ - (Sydney, October 26,
2023) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX:
CIAFF) ("Champion" or the "Company") is pleased to announce its
operational and financial results for the 2024 financial year
second quarter ended September 30,
2023.
Conference Call Details
Champion will host a conference call and webcast on
October 26, 2023, at 9:00 AM
(Montréal time) / October 27, 2023,
at 12:00 AM (Sydney time) to
discuss the results for the financial second quarter ended
September 30, 2023. Call details are outlined at the end of
this press release.
Champion's CEO, Mr. David
Cataford, said: "Thanks to its agility, our team achieved a
new quarterly production record of 3.45 million wmt. Following the
quarter end, our team realized the full potential of Bloom Lake
with production levels now reaching its expanded nameplate capacity
of 15 Mtpa in the most recent 30 days. Our operating costs per
tonne are also on track to continue improving as we benefit from
continuous optimization work programs. Additionally, we remain
confident in our ability to advance the Direct Reduction Pellet
Feed Project ("DRPF Project") to potential completion by the second
half of calendar 2025. This project will not only continue to
benefit the Québec Côte-Nord region, but it is also essential for
supplying a critical raw material required for the accelerating
shift towards green steelmaking."
1. Highlights
Sustainability and Health & Safety
- No serious injuries and no major environmental incidents
reported in the quarter;
- Appointed Ms. Jessica McDonald
to the Board at the Company's Annual General Shareholders' Meeting
held in August 2023.
Ms. McDonald brings extensive leadership and directorship
experience to the Company and this appointment enabled Champion to
exceed the 30% female Board representation threshold that the
Company committed to in its 2022 Sustainability Report;
- Recognized National Day for Truth and Reconciliation on
September 30 for the second year in a
row, by organizing full day workshops and commemoration activities
aimed at familiarizing Champion's employees with the Innu
culture;
- Concluded a 10-year financial partnership with the Innu Nikamu
Festival, one of the most important events celebrating First
Nations music and art in North
America, to help promote and increase awareness of the Innu
culture and language; and
- Participated in several community engagements, including
fundraising events to support local residents fighting cancer and
struggling local families, sponsorship of the annual First Nations
and Québec Regional Economic Circle, contributions to local
facilities to promote First Nations employment and several 2023
scholarships offered in sports, arts and recreation to encourage
young people from the Innu community to pursue their studies.
Operations and Finance
- Achieved a record quarterly production of 3.45 million wmt of
high-grade 66.1% Fe concentrate for the three-month period ended
September 30, 2023, an increase of 21%, compared to the
same period last year due to the continued solid performance of
Phase II since achieving commercial production in
December 2022. Record production was realized despite several
days of unscheduled outage related to a major crusher ore belt
failure in one of the Company's conveyor systems, affecting the
availability of the Phase II concentrator;
- Realized a record quarterly material mined and hauled of nearly
17 million wmt for the three-month period ended
September 30, 2023, up 14% from the previous quarter,
enabled by the contribution of additional mining equipment
commissioned during the financial year. Ore milled by both plants
reached a new high at 10 million wmt for the three-month period
ended September 30, 2023, up 4% from the previous
quarter, enabled by ongoing infrastructure optimization. With the
solid performance of the mine and the processing plants, the
Company continues its progress towards reaching its expanded 15
Mtpa production nameplate capacity;
- Quarterly iron ore concentrate sales of 2.9 million dmt for the
three-month period ended September 30, 2023, comparable
to the same period in 2022, and up 12% from the previous quarter,
as railway capacity gradually resumed after the June 2023 forest fires. Shipments during the
period were also impacted by the railway service provider's annual
planned maintenance lasting several days, together with a few days'
outage caused by a train derailment in the northern switching yard,
which fortunately caused no injuries or negative environmental
impact. As a result, the Company had 1.6 million wmt of iron ore
concentrate stockpiled at Bloom Lake as at September 30, 2023. With additional locomotives
in service and rail operations resuming at full capacity after the
scheduled maintenance in September
2023, the Company expects its tonnage sold to meet and
possibly exceed tonnage produced as it clears iron ore concentrate
inventories at the mine site in upcoming periods;
- Cost of sales was $73.7/dmt1 (US$55.0/dmt)2, a decrease of 9% for
the three-month period ended September 30, 2023, compared
to $81.3/dmt1
(US$60.5/dmt)2 in the
previous quarter, positively impacted by semi-annual railway
services trailing fuel price adjustments and by higher shipment
volumes amortizing fixed handling costs at the port. The cost of
sales per dmt sold slightly increased, compared to $71.5/dmt1 (US$54.8/dmt)2 for the same period in
2022, and continued to be negatively impacted by the utilization of
contractors to fill vacant positions, higher maintenance costs
driven by planned and unplanned maintenance activities and below
normal run rate shipment levels to amortize mostly fixed costs at
the port facilities in Sept-Îles;
- Revenues of $387.6 million for
the three-month period ended September 30, 2023
($300.6 million for the same period
in 2022), net cash flow from operating activities of $162.2 million ($87.1
million for the same period in 2022), EBITDA of $155.0 million1 ($84.3 million1 for the same period in
2022) and net income of $65.3 million
with EPS of $0.13 ($19.5 million with EPS of $0.04 for the same period in 2022);
- Strong cash position and liquidity at quarter-end with
$316.5 million in cash and cash
equivalents and short-term investments as at September 30,
2023 ($277.4 million as at
September 30, 2022), an increase of
$66.2M since June 30, 2023, and available liquidity, including
amounts available from the Company's credit facilities, totalling
$645.9 million1 at
quarter-end, compared to $579.2
million1 as at June 30,
2023; and
- Fifth consecutive semi-annual dividend of $0.10 per ordinary share declared on October 25, 2023 (Montréal time) /
October 26, 2023 (Sydney
time), in connection with the semi-annual results for the period
ended September 30, 2023.
Direct Reduction Pellet Feed Project Update
- Cumulative investments totalled $28.9
million, as at September 30, 2023, from previously
approved initial budgets, including ongoing detailed engineering
work and on-site activities, in preparation for upcoming civil work
programs; and
- Work programs completed to date secured the project completion
timeline, scheduled for the second half of calendar year 2025
pending a final investment decision, which is expected in the near
term.
Other Growth and Development
- The Company continues to pursue organic growth opportunities,
with the Kamistiatusset iron ore project (the "Kami Project")'s
feasibility study, evaluating the viability to produce a Direct
Reduction ("DR") grade pellet feed product, and an additional
study, 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. Both
studies are expected to be completed in the near term; and
- Issued a technical report in respect of Bloom Lake prepared
pursuant to National Instrument 43-101 – Standards of Disclosure
for Mineral Projects ("NI 43-101") and Chapter 5 of the ASX Listing
Rules entitled "Mineral Resources and Mineral Reserves for the
Bloom Lake Mine, Fermont, Québec,
Canada", prepared by BBA Inc., SRK
Consulting (U.S.), Inc., Soutex and Quebec Iron Ore Inc. and dated
September 28, 2023 (the "2023
Technical Report"), confirming the 18-year LoM, based on the
mineral reserves, with an opportunity to extend operations beyond
the LoM plan, with a 40% increase to the measured and indicated
resources and a 360% increase to inferred resources.
2. Bloom Lake Mine Operating
Activities
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
2022
|
Variance
|
|
2023
|
2022
|
Variance
|
|
|
|
|
|
|
|
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
Waste mined and hauled
(wmt)
|
|
6,264,600
|
4,572,900
|
37 %
|
|
11,463,100
|
10,178,900
|
13 %
|
Ore mined and hauled
(wmt)
|
|
10,593,600
|
8,214,700
|
29 %
|
|
20,187,100
|
14,407,800
|
40 %
|
Material mined and
hauled (wmt)
|
|
16,858,200
|
12,787,600
|
32 %
|
|
31,650,200
|
24,586,700
|
29 %
|
|
|
|
|
|
|
|
|
|
Stripping
ratio
|
|
0.59
|
0.56
|
5 %
|
|
0.57
|
0.71
|
(20 %)
|
|
|
|
|
|
|
|
|
|
Ore milled
(wmt)
|
|
10,339,700
|
8,102,700
|
28 %
|
|
20,235,300
|
14,124,900
|
43 %
|
Head grade Fe
(%)
|
|
28.2
|
29.5
|
(4 %)
|
|
28.5
|
30.2
|
(6 %)
|
Fe recovery
(%)
|
|
77.8
|
78.6
|
(1 %)
|
|
78.0
|
79.3
|
(2 %)
|
Product Fe
(%)
|
|
66.1
|
66.1
|
— %
|
|
66.1
|
66.1
|
— %
|
Iron ore concentrate
produced (wmt)
|
|
3,447,200
|
2,857,300
|
21 %
|
|
6,844,400
|
5,139,900
|
33 %
|
Iron ore concentrate
sold (dmt)
|
|
2,883,800
|
2,793,400
|
3 %
|
|
5,447,300
|
4,807,300
|
13 %
|
Impact of Forest Fires
Forest fires emerged on May 28,
2023, north of Sept-Îles, Québec, resulting in railway
service interruptions between Bloom Lake and the port of Sept-Îles
between May 30 and June 10, 2023.
There was no damage to Champion's facilities and no significant
damage was identified to the railway following inspections by its
operator besides the destruction of the power and communication
line on the affected rail sections. As forest fires subsided in the
region, railway services resumed at partial capacity on
June 10, 2023, until they returned to
normal levels during the quarter ended September 30, 2023, after repairs to the damaged
electrical poles and wires over several kilometers were completed.
As a result, shipments and sales were impacted in the first half of
the 2024 financial year.
Despite supply chain challenges caused by multiple highway
closures impacting operations, Bloom Lake operated continuously
throughout the railway interruptions and stockpiled iron ore
concentrate at the mining complex. The Company responded to the
situation by triggering its emergency response plan and managed
supply chain risks by focusing mine operations on critical
activities required to feed the two plants. This impacted the
Company's ability to move waste and generate blasted ore inventory
in the first quarter of the 2024 financial year. The Company also
used its crusher's stockpiles to supply the two plants during that
period and suffered from a short power outage which impacted
operations for a full day.
As at September 30, 2023, the
Company had 1.6 million wmt of iron ore concentrate in inventory at
the Bloom Lake site. Although the recent commissioning of three
additional locomotives received in June
2023 had a positive impact on the volume of concentrate
transported to Sept-Îles, it was offset by an annual planned
maintenance shutdown of the railway facilities lasting several days
and its reduced capacity in the first half of the quarter, as well
as a few days' outage caused by a train derailment. The Company and
its rail service provider are working diligently to maximize the
transportation of tonnes from Bloom Lake to Sept-Îles. The Company
expects its stockpiled iron ore concentrate at Bloom Lake to be
shipped and sold over several upcoming quarters. The Company also
expects to incur additional rehandling costs in future periods to
reclaim the iron ore concentrate from the stockpile.
Phase II Update
Phase II reached commercial production in December 2022 and
the Company continued to make improvements to stabilize and
optimize operations. As expected when delivering a project of this
scale, the Company faced challenges, including delays in deliveries
and commissioning of mining equipment, creating inefficiencies
across the site, which negatively impacted the Company's ability to
reach its full expanded nameplate capacity. Phase II produced at
nameplate capacity for thirty consecutive days for the first time
during the first quarter of the 2024 financial year. Considering
its success in increasing its production at the mine and ore
material milled quarter after quarter, and ongoing work programs,
the Company continues its progress towards reaching its expanded 15
Mtpa production nameplate capacity on a consistent basis. Those
programs aim to increase throughput and ore recoveries, optimize
and synchronize operations, and adapt maintenance practices.
The main Phase II work on third-party infrastructure was
completed in the three-month period ended
September 30, 2023, 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 recent commissioning of the stacker reclaimer and
associated conveyors, and three additional locomotives required to
support the expanded production capacity should positively impact
the Company's shipment capacity and vessel loading time.
Operational Performance
Second Quarter of the 2024 Financial Year vs Second Quarter of
the 2023 Financial Year
In the three-month period ended September 30, 2023,
16.9 million tonnes of material were mined and hauled, compared to
12.8 million tonnes during the same period in 2022, an increase of
32%, attributable to the contribution of additional equipment
commissioned during the financial year. This also represents a 14%
improvement over the volume mined and hauled in the previous
quarter due to a higher utilization of mining equipment associated
with an increase in the number of operators and better equipment
availability. The stripping ratio of 0.59 for the three-month
period ended September 30, 2023, is comparable to the
same period in 2022, and increased as planned, compared to 0.54 in
the previous quarter.
During the three-month period ended
September 30, 2023, an unscheduled outage related to a
major crusher ore belt failure in one of the Company's conveyor
systems negatively impacted the availability of the Phase II
concentrator for several days. Despite this situation, the two
plants processed 10.3 million tonnes of ore during the three-month
period ended September 30, 2023, compared to 8.1 million
tonnes for the same prior-year period, an increase of 28%, driven
by the progress of the Phase II ramp-up to reach Bloom Lake's
expanded production nameplate capacity of 15 Mtpa. Material
processed by the two plants also increased by 4%, compared to 9.9
million tonnes in the previous quarter, and reached the two mills
feed nameplate capacity during the three-month period ended
September 30, 2023.
The iron ore head grade for the three-month period ended
September 30, 2023, was 28.2%, compared to 29.5% for the
same period in 2022, and 28.8% 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 77.8% for the
three-month period ended September 30, 2023, compared to
78.6% for the same period in 2022, and 78.2% during the previous
quarter. In the context of constrained rail capacity, the Company
adjusted the mine plan to process more challenging ore from some
areas, which negatively impacted recovery rates during the period.
The Company remains confident in its ability to reach the average
LoM expected Fe recovery rate target of 82.0% in upcoming quarters
at Bloom Lake, as detailed in the 2023 Technical Report.
Despite the impact of an unscheduled outage lasting several days
to repair a conveyor system, and lower head grade and recovery, the
two processing plants delivered a record production of 3.45 million
wmt of high-grade iron ore concentrate during the three-month
period ended September 30, 2023, an increase of 21%
compared to 2.9 million wmt during the same period in 2022 and an
increase of 1.5% compared to the previous quarter.
First Six Months of the 2024 Financial Year vs First Six Months
of the 2023 Financial Year
The Company mined and hauled 31.7 million tonnes of material
during the six-month period ended September 30, 2023, compared
to 24.6 million tonnes for the same period in 2022, an increase of
29% driven by additional mining equipment in operation.
The stripping ratio was 0.57 for the six-month period ended
September 30, 2023, compared to 0.71 for the same period in
2022, slightly lower than the Company's plan for the 2024 financial
year. The Company strategically focused on mining ore in the first
months of the 2024 financial year with a reduced mining equipment
capacity and limited fuel reserves caused by supply challenges
related to the June 2023 forest
fires, as fuel inventories were prioritized for critical
activities.
The two plants processed 20.2 million tonnes of ore during the
six-month period ended September 30, 2023, an increase of 43%
over the same period in 2022, and produced a record of 6.8 million
wmt of high-grade iron ore concentrate, compared to 5.1 million wmt
for the same period in 2022, benefiting from the Phase II
ramp-up.
The iron ore head grade of 28.5% for the six-month period ended
September 30, 2023, is consistent with the LoM head grade
average. The lower average Fe recovery rate for the six-month
period ended September 30, 2023, was mainly attributable to
the processing of more challenging ore from some areas in the pits
and to a slight backlog in the recovery circuit maintenance due to
significant efforts deployed on solving conveying challenges in the
past months. Significant improvements were made to increase the
reliability and productivity of the Company's crushed ore conveying
systems which should allow the Company to resume its proven ability
to stabilize and optimize its recovery circuits.
3. Financial Performance
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
2022
|
Variance
|
|
2023
|
2022
|
Variance
|
|
|
|
|
|
|
|
|
|
Financial Data
(in thousands of dollars)
|
|
|
|
|
|
|
|
|
Revenues
|
|
387,568
|
300,621
|
29 %
|
|
684,730
|
579,942
|
18 %
|
Cost of
sales
|
|
212,584
|
199,841
|
6 %
|
|
421,069
|
369,248
|
14 %
|
Other
expenses
|
|
20,192
|
16,839
|
20 %
|
|
39,837
|
32,444
|
23 %
|
Net finance
costs
|
|
11,634
|
10,765
|
8 %
|
|
18,560
|
14,955
|
24 %
|
Net income
|
|
65,281
|
19,530
|
234 %
|
|
81,938
|
61,084
|
34 %
|
EBITDA1
|
|
155,036
|
84,331
|
84 %
|
|
220,841
|
179,261
|
23 %
|
|
|
|
|
|
|
|
|
|
Statistics
(in dollars per dmt sold)
|
|
|
|
|
|
|
|
|
Gross average realized
selling price1
|
|
169.4
|
157.0
|
8 %
|
|
169.1
|
171.0
|
(1 %)
|
Net average realized
selling price1
|
|
134.4
|
107.6
|
25 %
|
|
125.7
|
120.6
|
4 %
|
C1 cash
cost1
|
|
73.7
|
65.9
|
12 %
|
|
77.3
|
69.3
|
12 %
|
AISC1
|
|
99.1
|
81.9
|
21 %
|
|
96.7
|
86.8
|
11 %
|
Cash operating
margin1
|
|
35.3
|
25.7
|
37 %
|
|
29.0
|
33.8
|
(14 %)
|
A. Revenues
Second Quarter of the 2024 Financial Year vs Second Quarter of
the 2023 Financial Year
Revenues totalled $387.6 million
for the three-month period ended September 30, 2023,
compared to $300.6 million for the
same period in 2022, due to a higher IODEX 65% Fe CFR China Index
("P65"), lower freight and other costs, a weaker Canadian dollar
over the same prior-year period and a slight increase in sales
volume to 2.9 million tonnes of high-grade iron ore concentrate,
compared to 2.8 million tonnes for the same period in 2022.
As expected, sales volume for the period was affected by the
reduced railway capacity at the beginning of the quarter due to the
forest fires in June 2023 and a
scheduled maintenance of the railway facilities lasting several
days. A few days' unplanned interruption caused by a train
derailment, which fortunately caused no injuries or environmental
impact, also restricted the transport of iron ore concentrate to
the port of Sept-Îles. With additional locomotives in service and
rail operations resuming at full capacity, the Company expects its
tonnage sold to exceed tonnage produced as it clears iron ore
concentrate inventories at the mine site in upcoming periods.
The gross average realized price was US$126.2/dmt1 during the second
quarter of the 2024 financial year, up from US$120.6/dmt1 for the same period last
year, due to higher P65 index prices. During the three-month period
ended September 30, 2023, the P65 index averaged
US$125.0/dmt, an increase of 8% from
the same quarter last year, representing a premium of 9.6% over the
IODEX 62% Fe CFR China Index ("P62") average price of US$114.0/dmt. Last year, the high-grade premium
over the P62 index averaged 11.8%. The decline in premiums for
high-grade iron ore for the quarter was mainly due to lower
European steel output, a key consuming region for high-grade iron
ore, struggling profitability at global steel mills together with
the robust seasonal seaborn supply of high-grade iron ore.
The gross average realized selling price of US$126.2/dmt1 was higher than the P65
index average price of US$125.0/dmt
for the period, due to the 1.3 million tonnes in transit as at
September 30, 2023, that were provisionally priced using an
average forward price of US$125.9/dmt, which is higher than the P65 index
average price for the period. Gross selling price on sale contracts
using backward-looking iron ore index prices for the three-month
period ended September 30, 2023, were also slightly
higher than to the P65 index average price for the period.
The average C3 Baltic Capesize Index ("C3") for the three-month
period ended September 30, 2023, was US$20.3/t compared to US$24.0/t for the same period in 2022,
representing a decrease of 15%, comparable to the decrease in the
Company's freight and other costs in the three-month period ended
September 30, 2023. While the C3 index declined from the
previous quarter average of US$21.1/t, the Company's freight cost increased
quarter on quarter to US$26.4/dmt due
to sales contracts using backward-looking C3 index prices.
Provisional pricing adjustments on previous quarterly sales of
$1.6 million were recorded during the
three-month period ended September 30, 2023, representing
a positive impact of US$0.5/dmt over
the total volume of 2.9 million dmt sold during the period. This
was due to a slight increase in the P65 index in the first half of
the quarter. During the three-month period ended
September 30, 2023, a final average price of US$122.4/dmt was established for the 1.4 million
tonnes of iron ore that were in transit as at June 30, 2023,
and which were previously evaluated using an average expected price
of US$121.2/dmt.
After taking into account sea freight and other costs of
US$26.4/dmt and the positive
provisional pricing adjustment of US$0.5/dmt, the Company obtained a net average
realized selling price of US$100.3/dmt (C$134.4/dmt)1 for its high-grade iron
ore shipped during the period.
First Six Months of the 2024 Financial Year vs First Six Months
of the 2023 Financial Year
Revenues totalled $684.7 million for the six-month period
ended September 30, 2023, compared to $579.9 million for the same period in 2022,
due to higher sales and higher net average realized selling prices
in Canadian dollars, attributable to the weaker Canadian dollar
over the same prior-year period.
For the six-month period ended September 30, 2023, the
Company sold 5.4 million tonnes of iron ore concentrate, compared
to 4.8 million tonnes for the same prior-year period. This
represents an increase of 13% year-over-year due to Phase II
achieving commercial production in December
2022. Sales volumes during the six-month period ended
September 30, 2023, were negatively impacted by twelve days of
railway interruptions from May 30 to June
10, 2023, due to forest fires in Québec and reduced service
capacity extending into the early part of the second quarter ended
September 30, 2023. As discussed
above, shipments during the first half of the financial year were
also impacted by planned and unplanned rail service
interruptions.
The high-grade iron ore P65 index price averaged US$124.5/dmt for the six-month period ended
September 30, 2023, representing a decrease of 9% from the
period last year. The Company sold its product at a gross average
realized selling price of US$126.0/dmt1. Benefiting from a
premium product, the Company expects its iron ore concentrate
pricing to continue tracking the P65 index in the long term.
Deducting sea freight and other costs of US$26.1/dmt and the negative provisional pricing
adjustments of US$6.1/dmt, the
Company obtained a net average realized selling price of
US$93.8/dmt (C$125.7/dmt)1 for its high-grade iron
ore concentrate.
B. Cost of Sales and C1 Cash Cost
Second Quarter of the 2024 Financial Year vs Second Quarter of
the 2023 Financial Year
For the three-month period ended September 30, 2023,
the cost of sales totalled $212.6 million with a cost of sales per
tonne sold of $73.7/dmt1,
compared to $199.8 million and
$71.5/dmt1 for the same
period in 2022. The cost of sales per dmt sold dropped
significantly during the three-month period ended
September 30, 2023, as expected, compared to $81.3/dmt1 for the first quarter, with
increased shipments and semi-annual fuel price adjustments based on
trailing prices, positively impacting rail service costs.
The cost of sales for the three-month period ended
September 30, 2023, continued to be negatively impacted
by the utilization of contractors to fill vacant positions, high
maintenance costs relating to planned and unplanned maintenance
activities, including costs associated with a breakdown in one of
the Company's conveyor systems and below normal run rate shipment
levels during the quarter to amortize mostly fixed costs at the
port facilities in Sept-Îles. The Company also incurred rehandling
costs at the mine site during the period. This was partially
mitigated by lower fuel and explosives prices, and higher
production levels.
Mining and processing costs for the 3.4 million dmt produced in
the three-month period ended September 30, 2023, totalled
$47.3/dmt produced, a decrease of 6%
compared to $50.3/dmt produced in the
first quarter of the 2024 financial year, reflecting a stronger
mining performance.
First Six Months of the 2024 Financial Year vs First Six Months
of the 2023 Financial Year
For the six-month period ended September 30, 2023, the cost
of sales totalled $421.1 million, compared to $369.2 million for the same period in 2022,
with cost of sales per tonne sold of $77.3/dmt1, compared to $76.8/dmt1 for the six-month period
ended September 30, 2022.
The cost of sales for the six-month period ended
September 30, 2023, was impacted by the same factors that
affected the cost of sales for the second quarter ended
September 30, 2023.
Mining and processing costs for the 6.6 million dmt produced in
the six-month period ended September 30, 2023, totalled
$48.8/dmt produced, compared to
$45.6/dmt produced in the same
prior-year period.
Due to the high stockpile levels at the mine site, attributable
to railway interruptions, the Company expects to incur additional
rehandling costs to reclaim the iron ore concentrate from the
stockpile to rail it to the port, which should negatively impact
the cost of sales in future periods.
C. Net Income & EBITDA
Second Quarter of the 2024 Financial Year vs Second Quarter of
the 2023 Financial Year
For the three-month period ended September 30, 2023,
the Company generated EBITDA of $155.0 million1, representing an
EBITDA margin of 40%1, compared to $84.3 million1, representing an
EBITDA margin of 28%1, for the same period in 2022.
Higher EBITDA was mainly due to higher revenues, as described
above.
For the three-month period ended September 30, 2023,
the Company generated net income of $65.3 million (EPS of $0.13), compared to $19.5 million (EPS of $0.04) for the same period last year. The
year-over-year increase in net income is attributable to higher
gross profits partially offset by higher current income and mining
taxes.
First Six Months of the 2024 Financial Year vs First Six Months
of the 2023 Financial Year
For the six-month period ended September 30, 2023, the
Company generated EBITDA of $220.8 million1, representing an
EBITDA margin of 32%1, compared to $179.3 million1, representing an
EBITDA margin of 31%1, for the same prior-year period.
This year-over-year increase in EBITDA is mainly attributable to
higher sales volumes following the commissioning of Phase II and
the increase in the net average realized selling price in Canadian
dollars due to the weaker Canadian dollar over the same prior-year
period, partially offset by higher production costs.
For the six-month period ended September 30, 2023, the
Company generated net income of $81.9 million (EPS of $0.16), compared to $61.1 million (EPS of $0.12) for the same prior-year period. The
year-over-year increase in net income is mainly due to higher gross
profit.
D. All In Sustaining Cost and Cash Operating Margin
During the three-month period ended
September 30, 2023, the Company realized an AISC of
$99.1/dmt1, compared to
$81.9/dmt1 for the same
period in 2022. The increase was due to higher C1 cash costs,
higher sustaining capital expenditures and G&A expenses. Refer
to section 5 — Cash Flows – Purchase of Property, Plant and
Equipment for details on sustaining capital expenditures.
The Company generated a cash operating margin of $35.3/dmt1 for each tonne of
high-grade iron ore concentrate sold during the three-month period
ended September 30, 2023, compared to $25.7/dmt1 for the same prior-year
period. The variation is mainly due to a higher net average
realized selling price for the period, partially offset by higher
AISC.
During the six-month period ended September 30, 2023,
the Company recorded an AISC of $96.7/dmt1, compared to $86.8/dmt1 for the same period in
2022. The increase was due to higher C1 cash costs as well as
higher sustaining capital expenditures and G&A expenses per dmt
sold.
The cash operating margin totalled $29.0/dmt1 for the six-month period
ended September 30, 2023, compared to $33.8/dmt1 for the same prior-year
period. The variation is mainly due to higher AISC, partially
offset by a higher net average realized selling price in Canadian
dollars.
4. Exploration Activities
Bloom Lake Mineral Resources and Reserves Update
The 2023 Technical Report, which was filed on October 3, 2023, confirmed the 18 years' LoM
based on the mineral reserves with an average LoM yearly production
of 15.2 million wmt of high purity iron ore concentrate at 66.2%
Fe, an average iron metallurgical recovery of 82.0% and plant feed
grade of 28.6% Fe. The 2023 Technical Report also confirmed an
expansion opportunity considering a 40% increase to the measured
and indicated resources and a 360% increase to the inferred
resources.
The Company is not aware of any new information or data that
materially affects the information included in the 2023 Technical
Report and confirms that all material assumptions and technical
parameters underpinning the estimates in the 2023 Technical Report
continue to apply and have not materially changed.
The 2023 Technical Report can be found under the Company's
profile on SEDAR+ at www.sedarplus.ca.
Exploration and Evaluation Activities
During the three and six-month periods ended
September 30, 2023, the Company maintained all of its
properties in good standing and did not enter into any
farm-in/farm-out arrangements. During the three and six-month
periods ended September 30, 2023, $4.6 million and $7.3 million in exploration and evaluation
expenditures were incurred, respectively, compared to $0.9 million and $3.1 million, respectively, for the same
prior-year periods. During the three and six-month periods ended
September 30, 2023, exploration and evaluation
expenditures mainly consisted of costs associated with work related
to updating the Kami Project feasibility study, claim renewal fees
and claim staking around the Kami property. In addition, the
Company started a 2000 metres diamond drill campaign for hydro
geological characterization in September 2023, expected to be
completed by the end of 2023. Details on exploration projects and
maps are available on the Company's website at www.championiron.com
under the section Operations & Projects.
5. Cash Flows — Purchase of Property,
Plant and Equipment
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
Tailings
lifts
|
|
43,041
|
|
28,440
|
|
54,987
|
|
37,425
|
Stripping and mining
activities
|
|
6,542
|
|
3,730
|
|
9,805
|
|
14,793
|
Mining equipment
rebuild and replacement
|
|
10,683
|
|
4,011
|
|
15,235
|
|
10,908
|
Other sustaining
capital expenditures
|
|
180
|
|
—
|
|
222
|
|
—
|
Sustaining capital
expenditures
|
|
60,446
|
|
36,181
|
|
80,249
|
|
63,126
|
|
|
|
|
|
|
|
|
|
DRPF Project
|
|
16,938
|
|
—
|
|
28,021
|
|
—
|
Other capital
development expenditures at Bloom Lake
|
|
13,002
|
|
42,403
|
|
37,786
|
|
138,072
|
Purchase of property,
plant and equipment as per cash flows
|
|
90,386
|
|
78,584
|
|
146,056
|
|
201,198
|
Sustaining Capital Expenditures
The increases in tailings-related investments for the three and
six-month periods ended September 30, 2023, are part of
the Company's long-term plan to prepare the site for a higher level
of operations with the commissioning of Phase II. As part of the
Company's ongoing and thorough tailings infrastructure monitoring
and inspections, the Company continues to invest in its safe
tailings strategy and is implementing its long-term tailings
investment plan.
The increase in stripping and mining activities during the
three-month period ended September 30, 2023, compared to
the same period in the previous financial year, is mainly
attributable to investments made for the ongoing construction of
additional access ramps for $1.8
million. No stripping cost was capitalized during the
three-month period ended September 30, 2023. The decrease
in stripping and mining activities during the six-month period
ended September 30, 2023, is due to the low level of
waste moved at the mine due to limited mining equipment
availability early in the period, until all equipment was fully
commissioned. The stripping and mining activities for the six-month
period ended September 30, 2023, were slightly lower than
the Company's plan for the 2024 financial year, due to the
prioritization of critical activities to mitigate the impacts of
the forest fires in the first quarter.
The increase in the Company's mining equipment rebuild program
for the three and six-month periods ended
September 30, 2023, is attributable to the major overhaul
of its growing mining fleet over the last two years to prepare for
additional mining activities driven by the Company's expansion. The
mining equipment rebuild program is in line with the Company's
fleet management program for the 2024 financial year.
DRPF Project
During the three and six-month periods ended
September 30, 2023, $16.9 million and $28.0 million, respectively, were spent in
capital expenditures related to the DRPF Project. Investments
mainly consisted of on-site preparation activities, engineering
work and long lead-time equipment purchasing. Cumulative
investments of $28.9 million
were deployed on the DRPF Project as at September 30,
2023.
Other Capital Development Expenditures at Bloom Lake
During the three-month period ended
September 30, 2023, other capital development
expenditures at Bloom Lake totalled $13.0 million, compared to $42.4 million in the same 2022 period.
During the three-month period ended September 30, 2023,
the expenditures mainly consisted of $5.6 million in infrastructure improvements
and conformity ($7.1 million for the
same period last year), $6.8 million
for the garage expansion to support the expanded fleet, and
$5.1 million in deposits for
mining equipment ($4.5 million for
the same period last year). The expenditures for the same period
last year also included $26.2 million
related to Phase II and $5.1 million
in capitalized borrowing costs. During the three-month periods
ended September 30, 2023 and 2022,
other capital development expenditures were partially offset by the
receipt of a government grant of $5.2M related to the Company's greenhouse gas
emissions and energy consumption reduction initiatives.
During the six-month period ended September 30, 2023,
other capital development expenditures at Bloom Lake totalled
$37.8 million, compared to
$138.1 million in the same
prior-year period. During the six-month period ended
September 30, 2023, the expenditures mainly consisted of
$14.6 million in infrastructure
improvements and conformity ($9.9
million for the same period last year), including the
construction of two pads to expand the mine's capacity to stockpile
concentrate near the loadout, $15.2
million for the expansion of the garage, and $11.7 million in deposits for mining
equipment ($19.2 million for the same
period last year). The expenditures for the first six-month period
of last year also included $94.0
million related to Phase II and $9.6
million in capitalized borrowing costs.
6. Qualified Person and Data
Verification
Mr. Vincent Blanchet, P. Eng.,
Engineer at Quebec Iron Ore Inc., the Company's subsidiary and
operator of Bloom Lake, is a "qualified person" as defined by
NI 43-101 and has reviewed and approved, or has prepared, as
applicable, the disclosure of the scientific and technical
information contained in this press release and has confirmed that
the relevant information is an accurate representation of the
available data and studies for the relevant projects. Mr.
Blanchet's review and approval does not include statements as to
the Company's knowledge or awareness of new information or data or
any material changes to the material assumptions and technical
parameters underpinning the 2023 Technical Report. Mr. Blanchet is
a member of the Ordre des ingénieurs du Québec.
7. Conference Call and Webcast
Information
A webcast and conference call to discuss the foregoing results
will be held on October 26, 2023, at 9:00 AM (Montréal time) / October 27, 2023, at 12:00 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 +1-888-390-0546 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
509012 #.
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. In January 2023, the
Company announced the positive findings of a study evaluating the
upgrade of half of the Bloom Lake mine's capacity to a direct
reduction quality pellet feed iron ore and approved an initial
budget to advance the project. 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 sold its iron ore concentrate to
customers 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
Consolidated Fire Lake North iron ore project, located
approximately 40 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
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 expected achievement of
nameplate capacity, throughput, recovery rates, economic and other
benefits, impact on nameplate capacity, milestones and associated
costs; (ii) Bloom Lake's life of mine, recovery rates, production
metrics, economic and other benefits; (iii) 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,
upcoming works, approvals and benefits; (iv) the study evaluating
the re-commissioning of the Pointe-Noire Iron Ore Pelletizing
Facility to produce DR grade pellets, including its anticipated
completion timeline; (v) the Kami Project's feasibility study, its
purpose, including evaluating the potential to produce a DR grade
product, and anticipated completion timeline; (vi) 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 the transition of the Company's product offering
(including producing high quality DRPF products) and expected
benefits thereof; (vii) collaboration between First Nations and
Champion; (viii) optimization work programs, their objectives and
expected results and impact on production and financial results;
(ix) benefits and expected impact of recently commissioned
equipment on production and the Company's shipping capacity; *
shipping and sales of accumulated concentrate inventories and
related rehandling costs and their impact on cost of sales; (xi)
the Company's mining equipment rebuild program, fleet management
program, tailings investment plan and related investments and
benefits; (xii) production and recovery rate targets and the
Company's performance; (xiii) pricing of the Company's products;
(xiv) the Company's expected iron ore concentrate production and
sales; (xv) the Company's iron ore concentrate pricing trends
compared to the P65 index; (xvi) exploration programs and their
anticipated completion timeline; and (xvii) 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 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 the 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
March 31, 2023, 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 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$
(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), G&A (general and
administrative), EBITDA (earnings before interest, tax,
depreciation and amortization), AISC (all-in sustaining cost), EPS
(earnings per share), Board (Board of Directors), Management
(Champion's management team), Bloom Lake or Bloom Lake Mine (Bloom
Lake Mining Complex) and Phase II (Phase II expansion project). 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 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 CEO of Champion Iron Limited, David
Cataford.
The Company's unaudited Condensed Consolidated Financial
Statements for the three and six-month periods ended
September 30, 2023 (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 21 of the Company's
MD&A for the three and six-month periods ended
September 30, 2023, 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 three and six-month periods ended
September 30, 2023, 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.
|
Non-IFRS and Other Financial Measures
The Company has included certain non-IFRS financial measures,
ratios and supplementary financial measures in this press release,
as listed in the table below, 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.
EBITDA and EBITDA Margin
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(in thousands of
dollars)
|
|
|
|
|
|
|
|
|
Income before income
and mining taxes
|
|
112,187
|
|
45,511
|
|
141,153
|
|
116,459
|
Net finance
costs
|
|
11,634
|
|
10,765
|
|
18,560
|
|
14,955
|
Depreciation
|
|
31,215
|
|
28,055
|
|
61,128
|
|
47,847
|
EBITDA
|
|
155,036
|
|
84,331
|
|
220,841
|
|
179,261
|
Revenues
|
|
387,568
|
|
300,621
|
|
684,730
|
|
579,942
|
EBITDA
margin
|
|
40 %
|
|
28 %
|
|
32 %
|
|
31 %
|
Available Liquidity
|
|
As at
September 30,
|
|
As at June
30,
|
|
|
2023
|
|
2023
|
|
|
|
|
|
Cash and cash
equivalents
|
|
316,530
|
|
250,340
|
Undrawn amounts under
credit facilities
|
|
329,386
|
|
328,835
|
Available
liquidity
|
|
645,916
|
|
579,175
|
C1 Cash Cost
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Per tonne
sold
|
|
|
|
|
|
|
|
|
Iron ore concentrate
sold (dmt)
|
|
2,883,800
|
|
2,793,400
|
|
5,447,300
|
|
4,807,300
|
|
|
|
|
|
|
|
|
|
(in thousands of
dollars except per tonne)
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
212,584
|
|
199,841
|
|
421,069
|
|
369,248
|
Less: Incremental costs
related to COVID-19
|
|
—
|
|
(305)
|
|
—
|
|
(1,145)
|
Less: Bloom Lake Phase
II start-up costs
|
|
—
|
|
(15,391)
|
|
—
|
|
(34,867)
|
|
|
212,584
|
|
184,145
|
|
421,069
|
|
333,236
|
|
|
|
|
|
|
|
|
|
C1 cash cost (per dmt
sold)
|
|
73.7
|
|
65.9
|
|
77.3
|
|
69.3
|
All-In Sustaining Cost
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Per tonne
sold
|
|
|
|
|
|
|
|
|
Iron ore concentrate
sold (dmt)
|
|
2,883,800
|
|
2,793,400
|
|
5,447,300
|
|
4,807,300
|
|
|
|
|
|
|
|
|
|
(in thousands of
dollars except per tonne)
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
212,584
|
|
199,841
|
|
421,069
|
|
369,248
|
Less: Incremental costs
related to COVID-19
|
|
—
|
|
(305)
|
|
—
|
|
(1,145)
|
Less: Bloom Lake Phase
II start-up costs
|
|
—
|
|
(15,391)
|
|
—
|
|
(34,867)
|
Sustaining capital
expenditures
|
|
60,446
|
|
36,181
|
|
80,249
|
|
63,126
|
G&A
expenses
|
|
12,729
|
|
8,564
|
|
25,678
|
|
20,836
|
|
|
285,759
|
|
228,890
|
|
526,996
|
|
417,198
|
AISC (per dmt
sold)
|
|
99.1
|
|
81.9
|
|
96.7
|
|
86.8
|
Cash Operating Margin and Cash Profit Margin
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September 30,
|
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Per tonne
sold
|
|
|
|
|
|
|
|
|
Iron ore concentrate
sold (dmt)
|
|
2,883,800
|
|
2,793,400
|
|
5,447,300
|
|
4,807,300
|
|
|
|
|
|
|
|
|
|
(in thousands of
dollars except per tonne)
|
|
|
|
|
|
|
|
|
Revenues
|
|
387,568
|
|
300,621
|
|
684,730
|
|
579,942
|
Net average realized
selling price (per dmt sold)
|
|
134.4
|
|
107.6
|
|
125.7
|
|
120.6
|
|
|
|
|
|
|
|
|
|
AISC (per dmt
sold)
|
|
99.1
|
|
81.9
|
|
96.7
|
|
86.8
|
Cash operating margin
(per dmt sold)
|
|
35.3
|
|
25.7
|
|
29.0
|
|
33.8
|
Cash profit
margin
|
|
26 %
|
|
24 %
|
|
23 %
|
|
28 %
|
Gross Average Realized Selling Price per dmt Sold
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September 30,
|
|
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Per tonne
sold
|
|
|
|
|
|
|
|
Iron ore concentrate
sold (dmt)
|
2,883,800
|
|
2,793,400
|
|
5,447,300
|
|
4,807,300
|
|
|
|
|
|
|
|
|
(in thousands of
dollars except per tonne)
|
|
|
|
|
|
|
|
Revenues
|
387,568
|
|
300,621
|
|
684,730
|
|
579,942
|
Provisional pricing
adjustments
|
(1,559)
|
|
20,931
|
|
45,247
|
|
36,599
|
Freight and other
costs
|
102,411
|
|
117,131
|
|
191,108
|
|
205,492
|
Gross
revenues
|
488,420
|
|
438,683
|
|
921,085
|
|
822,033
|
|
|
|
|
|
|
|
|
Gross average realized
selling price (per dmt sold)
|
169.4
|
|
157.0
|
|
169.1
|
|
171.0
|
SOURCE Champion Iron Limited