CHAMPION IRON REPORTS ITS FY2026 FOURTH QUARTER RESULTS

Champion Iron reported its FY2026 fourth‑quarter results on May 27, 2026. Revenue of C$415 million was down from C$425 million a year earlier. Net income fell to C$23.2 million ($0.04 EPS) versus C$39.1 million ($0.08 EPS), and EBITDA dropped to C$114 million from C$127 million. Production rose 8% to 3.4 M wmt of 66.2% Fe concentrate, while sales were steady at 3.5 M dmt, constrained earlier in the quarter by a third‑party rail derailment until January 12, 2026. Costs moved higher: C1 cash cost increased 12% sequentially to C$82.7/dmt (US$60.3/dmt) and all‑in sustaining cost reached C$96.9/dmt. The Company completed the US$300 million acquisition of Norway‑based Rana Gruber ASA in April, funded by a new four‑year US$150 million term loan, a US$100 million private placement from Caisse de dépôt et placement du Québec, and cash on hand. Credit facilities were refinanced, extending maturity to April 2030. The Direct Reduction Pellet Feed (DRPF) project at Bloom Lake completed initial production tests, with commercial saleable product expected by the end of June 2026. Most notably, the semi‑annual dividend was cut to $0.02 per share from the prior $0.10, and a new policy aims to pay 30–40% of trailing free cash flow starting in FY2027. The Kami Project definitive feasibility study remains on track for H2 2026.

The FY2026 Q4 results are modestly negative but mostly reflective of known conditions. The dividend cut, the sharp reduction in net income, and the rise in unit costs stand out. The closure of the Rana Gruber acquisition is positive but was fully anticipated after the 92.48% tender acceptance was disclosed in April. DRPF progress is on schedule, so no surprise there. The revised dividend policy signals management’s concern over declining margins and a volatile macro environment. While the acquisition is expected to be accretive, the immediate financial picture is weaker, and the stock price may react negatively as investors reset dividend expectations. The overall news is not a game changer; it confirms a softening quarter and introduces a materially lower payout. Hence, the release warrants a Routine – Negative classification.

Champion Iron Limited is a Canadian‑domiciled, ASX‑/TSX‑listed producer of high‑purity iron ore concentrate from the Bloom Lake Mining Complex in Quebec. Bloom Lake generates approximately 15 Mtpa of 66.5% Fe concentrate, beneficiated with renewable hydroelectric power, making it one of the lowest‑carbon iron ore operations globally. The company is nearing completion of a Direct Reduction Pellet Feed (DRPF) upgrade that will allow it to sell a higher‑value product suitable for the direct‑reduction iron/steel route. Additionally, Champion holds a 51% interest in the Kami Iron Mine Partnership (with Nippon Steel and Sojitz) and recently acquired Norway’s Rana Gruber ASA, a producer of high‑grade hematite and magnetite with access to low‑cost renewable energy, further diversifying its portfolio and customer base.