CHAMPION IRON REPORTS ITS FY2026 THIRD QUARTER RESULTS AND ADVANCES THE DRPF PROJECT AS PLANNED
High-Purity Pivot Gains Momentum as Champion Advances DRPF and Eyes European Expansion
The most recent news release (January 28, 2026) reports Champion Iron's FY2026 third-quarter results (ended December 31, 2025) and provides updates on its major growth initiatives. Key highlights include: - Financial Performance: Revenue of $472.3M CAD, EBITDA of $152.4M CAD, and Net Income of $65.0M CAD ($0.12 EPS). - Operational Output: Produced 3.66M wmt of concentrate; sold 3.89M dmt. - Cost Metrics: C1 cash costs were $73.9/dmt, and All-in Sustaining Costs (AISC) were $89.7/dmt. - DRPF Project: Mechanical commissioning has begun for the Direct Reduction Pellet Feed (DRPF) project. First commercial shipments of 69% Fe DR quality ore are expected by the end of H1 2026. - M&A Activity: The company is proceeding with a voluntary cash tender offer to acquire Rana Gruber ASA (Norway) for NOK 2.93 billion (approx. $79 NOK per share). - Liquidity: Available liquidity stands at $751.4M CAD, including a cash balance of $245.1M CAD.
The news is Material - Positive for several reasons: - Strategic De-risking: The initiation of commissioning for the DRPF project is a major milestone. This allows Champion to transition half of Bloom Lake’s capacity to 69% Fe, which commands significantly higher premiums in the "green steel" (Direct Reduced Iron) market. - M&A Diversification: The Rana Gruber acquisition, if successful, provides jurisdictional diversification into Norway and adds a proven high-purity producer to the portfolio. This reduces the company's 100% reliance on the Labrador Trough/Quebec logistics chain. - Financial Resilience: Despite a 12-day railway disruption in late December/early January 2026 due to a third-party derailment, the company maintained strong sales by drawing down stockpiled inventory. - Realized Pricing: While the net realized price of $86.9/dmt is lower than the gross average ($116.8/dmt), the company is successfully managing the transition away from spot markets to higher-value contracts.
Champion Iron Limited, through its subsidiary Quebec Iron Ore Inc., operates the Bloom Lake Mining Complex in Quebec, Canada. - Flagship Project: Bloom Lake. It has a nameplate capacity of 15M tpa of high-purity (66.2% Fe) concentrate. - DRPF Upgrade: A major project to upgrade 7.5M tpa of production to 69% Fe (DR quality), targeting the decarbonization of the steel industry. - Logistics: Dependent on the Quebec North Shore and Labrador Railway (QNS&L) and the port of Sept-Iles.