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Revenue: $414 million for the quarter. EBITDA: $114 million for the quarter. Net Income: $23.2 million for the quarter. Earnings Per Share (EPS): $0.04 per share. Iron Production: 3.4 million tonnes produced during the quarter. Iron Sales: 3.45 million tonnes sold during the quarter. Iron Recovery Rate: 80.6% during the quarter. Cash Position: Increased from $245 million to close to $300 million during the quarter. Operating Costs: Increased by approximately $5 per tonne due to winter conditions, train derailment, and fuel cost increases. Dividend: $0.02 per share declared, with a new policy aiming for 30% to 40% of trailing 6-month free cash flows. CapEx: $40 million invested in flotation plant and over $50 million on sustaining CapEx. Rana Gruber Acquisition: Completed acquisition, now 100% owners.

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Release Date: May 28, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Champion Iron Ltd (CIAFF) achieved a production of over 3.4 million tonnes and sales of 3.45 million tonnes in Q4 2026, with an iron recovery rate of 80.6%. The company reported revenues of $414 million and an EBITDA of $114 million for the quarter. Champion Iron Ltd (CIAFF) successfully met or exceeded all 14 of its sustainability targets and maintained a flawless environmental record since 2018. The company reduced its GHG emissions by 2.6% year-over-year and achieved a 99.1% recycled water rate at Bloom Lake. Champion Iron Ltd (CIAFF) completed the acquisition of Rana Gruber in Norway, expanding its operational footprint and potential synergies.

Negative Points

The company faced logistical challenges due to a third-party train derailment and harsh winter conditions, impacting productivity. Operating costs trended higher due to planned semiannual shutdowns, winter conditions, and increased fuel prices, adding approximately $5 per tonne. The conflict in the Middle East led to a 4% increase in C3 freight costs, affecting overall expenses. Champion Iron Ltd (CIAFF) reported a net income of $23.2 million and an EPS of $0.04 per share, which may be seen as modest relative to revenues. The company is navigating volatile macroeconomic conditions, impacting its dividend policy and necessitating cash preservation strategies.

Q & A Highlights

Q: Can you give us an idea of how sensitive your costs are to higher fuel costs and oil costs? Are there any measures you can take to reduce these external cost pressures? A: David Cataford, CEO, explained that about 65% of their power is from hydroelectric sources, consuming roughly 40 million liters of fuel per year at the site. The indirect impact is seen in logistics, such as rail and freight costs, which have increased due to higher oil prices.

Story Continues

Q: Could you provide more detail on the ramp-up timing for the DRPF plant? A: David Cataford, CEO, stated that the ramp-up is going well, with multi-day runs producing sellable quality. The expectation is to finalize the ramp-up within 12 months, though they aim to achieve this sooner if possible.

Q: What kind of premiums can be expected for the DRPF product compared to the current P65 price? A: David Cataford, CEO, mentioned that initial cargoes will be trial cargoes, and significant premiums are expected over current prices once the product is established. The feasibility study suggested an ultimate premium of $26 per tonne.

Q: How is the DR market being affected by the conflict in the Middle East, and what impact does it have on your pricing? A: David Cataford, CEO, noted that while some DR market areas are impacted, there is still healthy demand for their material. The conflict has caused some short-term disruptions, but potential benefits are expected once the conflict is resolved.

Q: With the Rana Gruber acquisition complete, what should be expected for Rana's stand-alone cash cost and integration costs? A: David Cataford, CEO, indicated that production levels should not decrease, and they aim to improve iron ore recovery at Rana Gruber. Integration costs will be managed, and potential improvements are expected in the coming months.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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