Champion Iron Q2 Net Loss C$48.4 million on Record Sales

Champion Iron (ASX:CIA)'s second quarter FY27 results show record sales volumes outweighed by lower iron ore indexes, higher ocean freight rates, elevated fuel prices and DRPF start-up costs, leaving the company with a net loss.

All dollar figures are in Canadian dollars unless stated. Quarterly production was 3.9 million wmt, up 9% on the prior-year period on the contribution of Rana Gruber, while Bloom Lake produced 3.3 million wmt amid DRPF commissioning. Consolidated sales were a record 4.5 million dmt. Revenues were $403.9 million, down from $492.9 million in the same prior-year period. The net average realized selling price was $89.9/dmt, down 30% year-over-year, and C1 cash cost was $82.9/dmt, up from $76.2/dmt. The net loss was $48.4 million (adjusted net loss of $34.3 million), compared with net income of $56.8 million in the same prior-year period. Adjusted EBITDA was $23.3 million. Cash was $214.4 million and available liquidity was $618.4 million as at September 30, 2026. Champion completed its inaugural commercial shipment of DRPF product and secured additional test-cargoes and commercial agreements for shipments scheduled for the third quarter of the 2027 financial year.

Champion expects the rise in the C3 index to continue affecting net revenues in future months. DRPF product quality is still improving towards target specifications, and the release does not state production or cost guidance.