CHAMPION IRON REPORTS ITS FY2027 SECOND QUARTER RESULTS

Champion Iron Limited (CIA) reported second-quarter fiscal 2027 results for the period ended September 30, 2026, highlighting record consolidated sales of 4.5 million dry metric tonnes (dmt) and production of 3.9 million wet metric tonnes (wmt). The company also achieved its first commercial shipment of direct shipping pellet fines (DRPF) and generated revenue of $403.9 million.

Despite the operational highs, the financial outcome was weaker, with the company reporting a net loss of $48.4 million and an adjusted net loss of $34.3 million. EBITDA stood at $3.7 million, while adjusted EBITDA was $23.3 million, representing an 87% year-over-year decline and a 70% drop from the first quarter of fiscal 2027.

Pricing pressures contributed to the margin compression. The net realized price fell to C$89.9 per dmt, or US$64.0 per dmt after freight, marking a 16% quarter-over-quarter decrease and a 30% year-over-year decline. Production costs also rose, with C1 cash costs increasing 9% year-over-year to C$82.9 per dmt. All-in sustaining costs (AISC) were C$97.9 per dmt, up 1% year-over-year but down 12% from the previous quarter. Consequently, AISC exceeded the net realized price, resulting in a negative cash operating margin of C$8.0 per dmt, compared to a positive C$31.1 per dmt a year earlier.

The company concluded the quarter with $214.4 million in cash and $618.4 million in available liquidity, down from $653.1 million in liquidity at June 30, 2026. While a preliminary release on October 14 had already disclosed production, sales, revenue, and net realized price, the final report provided additional detail on costs, EBITDA, and net losses. All figures are in Canadian dollars unless otherwise stated.

Champion Iron Limited (CIA) reported results that confirm weak earnings power, extending beyond a cyclical revenue dip. Adjusted EBITDA stood at $23.3 million, representing a 5.8% margin, while the cash operating margin was negative. A key negative surprise compared to the preliminary release involved cost and margin details: an All-In Sustaining Cost (AISC) of $97.9/dmt against a net realized price of $89.9/dmt meant the company lost money on a cash operating basis per tonne sold.

Compared to the prior-year Q2 FY2026, revenue fell 18%, adjusted EBITDA fell 87%, and net income swung from a positive $56.8 million to a $48.4 million loss. Versus Q1 FY2027, sales rose 35% and revenue rose 13%, but adjusted EBITDA fell 70% and the net loss widened from $41.5 million to $48.4 million.

The market had already moved in anticipation of these figures. From the Q1 FY2027 results release on July 29, 2026, the stock closed at $3.86 and fell to $2.25 on October 27, 2026, a 41.7% decline into this print. On the release date, the stock closed at $2.26, up only 0.4% versus the prior close, suggesting much of the bad news was priced. Even so, the final cost and EBITDA detail validates a lower earnings base and is material to valuation.

Champion Iron Limited (CIA) is a high-purity iron ore producer with operations in Canada and Norway. Its Bloom Lake mine in Quebec is an open-pit operation featuring two concentration plants and a 15 million wmt nameplate capacity, powered primarily by renewable hydroelectricity. The facility produces low-contaminant high-purity concentrate and is currently commissioning the DRPF project to upgrade up to half of its capacity to DR-grade pellet feed of up to 69% Fe.

In Norway, the Rana Gruber mine produces approximately 1.8 million dmt per year of hematite and magnetite concentrates, maintaining continuous production dating back to the 1960s. Champion holds a 51% interest in the Kami Iron Mine Partnership with Nippon Steel and Sojitz. The Kami Project is located about 21 km southeast of Bloom Lake. The company also holds exploration and development properties in the Labrador Trough, including Cluster II. Management background beyond CEO David Cataford is not detailed in the supplied materials.