CHAMPION IRON REPORTS FY2024 FOURTH QUARTER RESULTS, ROBUST ANNUAL RESULTS AND DECLARES DIVIDEND
- Quarterly revenue of
$333M , EBITDA of$85M 1 and EPS of$0.05 - FY2024 revenue of
$1,524M , EBITDA of$553M 1 and EPS of$0.45 - Declares a dividend of
$0.10 per ordinary share - DRPF project advancing as planned with an expected completion in H2/2025
Champion's CEO, Mr.
Conference Call Details
Champion will host a conference call and webcast on
1. Quarterly Highlights
Operations and Sustainability
- No serious injuries or major environmental incidents reported in the quarter;
- Met and exceeded most annual sustainability Key Performance Indicators detailed in the Company's 2023 Sustainability Report, which incorporated industry best practice disclosure frameworks, including the
Global Reporting Initiative ("GRI"), Sustainability Accounting Standard Board ("SASB") andTask Force on Climate-Related Financial Disclosures ("TCFD"). The 2023 Sustainability Report is available on the Company's website at www.championiron.com; - Quarterly production of 3.3 million wmt (3.2 million dmt) of high-grade 66.1% Fe concentrate for the three-month period ended
March 31, 2024 , down 19% from the previous quarter, and up 6% over the same period last year; and - Quarterly iron ore concentrate sales of 3.0 million dmt for the three-month period ended
March 31, 2024 , down 8% and 4% from the previous quarter and the prior-year period, respectively.
Financial Results
- Gross realized selling price of
US$123.4 /dmt1, compared to the P65 index average ofUS$135.9 /dmt in the period; - Net realized selling price of
US$82.9 /dmt1, representing a 28% decrease quarter-on-quarter, and 25% year-on-year; - C1 cash cost of
$76.6 /dmt1 (US$56.8 /dmt)2, an increase of 5% quarter-on-quarter, and a decrease of 3% year-on-year; - EBITDA of
$85.1 million 1, a decrease of 65% quarter-on-quarter, and 57% year-on-year; - Net income of
$25.8 million , a decrease of 80% quarter-on-quarter, and 71% year-on-year; - EPS of
$0.05 , a decrease of 79% quarter-on-quarter, and 71% year-on-year; - Strong cash position at quarter-end with
$400.1 million in cash and cash equivalents as atMarch 31, 2024 , an increase of$12.7 million sinceDecember 31, 2023 , and$73.3 million since the beginning of the financial year; - Available liquidity to support growth initiatives, including amounts available from the Company's credit facilities, totalled
$942.1 million 1 at quarter-end, compared to$937.6 million 1 as atDecember 31, 2023 ; and - Semi-annual dividend of
$0.10 per ordinary share declared onMay 30, 2024 (Montréal ) /May 31, 2024 (Sydney ), in connection with annual results for the period endedMarch 31, 2024 .
2. Bloom Lake Mine Operating Activities
Shipments were negatively impacted during the three-month period ended
The Company continues to seek improvements from the rail operator to receive contracted haulage services to ensure that
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Q4 FY24 |
Q3 FY24 |
Q/Q Change |
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Q4 FY23 |
Y/Y Change |
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Operating Data |
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Waste mined and hauled (wmt) |
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6,498,700 |
6,993,200 |
(7) % |
|
5,023,900 |
29 % |
Ore mined and hauled (wmt) |
|
9,471,200 |
11,215,800 |
(16) % |
|
9,193,800 |
3 % |
Material mined and hauled (wmt) |
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15,969,900 |
18,209,000 |
(12) % |
|
14,217,700 |
12 % |
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Stripping ratio |
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0.69 |
0.62 |
11 % |
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0.55 |
25 % |
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Ore milled (wmt) |
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9,349,100 |
11,137,000 |
(16) % |
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9,054,600 |
3 % |
Head grade Fe (%) |
|
28.7 |
29.4 |
(2) % |
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28.4 |
1 % |
Fe recovery (%) |
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80.2 |
81.4 |
(1) % |
|
78.6 |
2 % |
Product Fe (%) |
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66.1 |
66.3 |
— % |
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66.1 |
— % |
Iron ore concentrate produced (wmt) |
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3,275,400 |
4,042,600 |
(19) % |
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3,084,200 |
6 % |
Iron ore concentrate sold (dmt) |
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2,968,900 |
3,227,500 |
(8) % |
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3,092,900 |
(4) % |
During the three-month period ended
The stripping ratio of 0.69 for the three-month period ended
During the three-month period ended
The iron ore head grade for the three-month period ended
The Company's average Fe recovery rate was 80.2% for the three-month period ended
With higher Fe recovery and comparable head grade,
3. Financial Performance
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Q4 FY24 |
Q3 FY24 |
Q/Q Change |
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Q4 FY23 |
Y/Y Change |
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Financial Data (in thousands of dollars) |
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Revenues |
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332,673 |
506,891 |
(34 %) |
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463,913 |
(28 %) |
Cost of sales |
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227,496 |
235,457 |
(3 %) |
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244,444 |
(7 %) |
Other expenses |
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20,425 |
27,219 |
(25 %) |
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23,748 |
(14 %) |
Net finance costs |
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8,831 |
8,747 |
1 % |
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8,774 |
1 % |
Net income |
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25,791 |
126,462 |
(80 %) |
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88,217 |
(71 %) |
EBITDA1 |
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85,099 |
246,609 |
(65 %) |
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195,709 |
(57 %) |
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Statistics (in dollars per dmt sold) |
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Gross average realized selling price1 |
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166.3 |
195.8 |
(15 %) |
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183.2 |
(9 %) |
Net average realized selling price1 |
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112.1 |
157.1 |
(29 %) |
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150.0 |
(25 %) |
C1 cash cost1 |
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76.6 |
73.0 |
5 % |
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79.0 |
(3 %) |
AISC1 |
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88.0 |
83.9 |
5 % |
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85.7 |
3 % |
Cash operating margin1 |
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24.1 |
73.2 |
(67 %) |
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64.3 |
(63 %) |
A. Revenues
Revenues totalled
Negative provisional pricing adjustments on prior quarter sales of
The gross average realized selling price of
Freight and other costs increased by 16% for the three-month period ended
Sales volume during the three-month period ended
After taking into account sea freight and other costs of
B. Cost of Sales and C1 Cash Cost
For the three-month period ended
Land transportation and port handling costs for the three-month period ended
Mining and processing costs for the 3.2 million dmt produced in the three-month period ended
C. Net Income & EBITDA
For the three-month period ended
For the three-month period ended
D. All In Sustaining Cost & Cash Operating Margin
During the three-month period ended
The Company generated a cash operating margin of
4. Conference Call and Webcast Information
A webcast and conference call to discuss the foregoing results will be held on
An online archive of the webcast will be available by accessing the Company's website at www.championiron.com/investors/events-presentations. A telephone replay will be available for one week after the call by dialing +1-888-390-0541 within
About
Champion, through its wholly-owned subsidiary
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain information and statements that may constitute "forward-looking information" under applicable securities legislation. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "aims", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control.
Specific Forward-Looking Statements
All statements, other than statements of historical facts, included in this press release that address future events, developments or performance that Champion expects to occur are forward-looking statements. Forward-looking statements include, among other things, Management's expectations regarding: (i)
Deemed Forward-Looking Statements
Statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves can be profitably mined in the future. Actual reserves and resources may be greater or less than the estimates provided herein.
Risks
Although Champion believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such forward-looking statements involve known and unknown risks, uncertainties and other factors, most of which are beyond the control of the Company, which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed in forward-looking statements include, without limitation: (i) the results of feasibility studies; (ii) changes in the assumptions used to prepare feasibility studies; (iii) project delays; (iv) timing and uncertainty of industry shift to green steel and electric arc furnaces, impacting demand for high-grade feed; (v) continued availability of capital and financing and general economic, market or business conditions; (vi) general economic, competitive, political and social uncertainties; (vii) future prices of iron ore; (viii) future transportation costs; (ix) failure of plant, equipment or processes to operate as anticipated; * delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; and (xi) the effects of catastrophes and public health crises, including the impact of COVID-19, on the global economy, the iron ore market and Champion's operations, as well as those factors discussed in the section entitled "Risk Factors" of the Company's 2024 Annual Report and Annual Information Form for the financial year ended
There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
Additional Updates
All of the forward-looking information contained in this press release is given as of the date hereof or such other date or dates specified in the forward-looking statements and is based upon the opinions and estimates of Champion's Management and information available to Management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of the forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Champion cautions that the foregoing list of risks and uncertainties is not exhaustive. Readers should carefully consider the above factors as well as the uncertainties they represent and the risks they entail.
Abbreviations
Unless otherwise specified, all dollar figures stated herein are expressed in millions of Canadian dollars, except for: (i) tabular amounts which are in thousands of Canadian dollars; and (ii) per share or per tonne amounts. The following abbreviations and definitions are used throughout this press release: US$ (
For additional information on
This document has been authorized for release to the market by the Chief Executive Officer of
The Company's audited Consolidated Financial Statements for the year ended
_______________________________________ |
1
This is a non-IFRS financial measure, ratio or other financial measure. The measure is not a standardized financial measure under the financial reporting framework used to prepare the financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section below — Non-IFRS and Other Financial Measures for definitions of these metrics and reconciliations to the most comparable IFRS measure when applicable. Additional details for these non-IFRS and other financial measures, have been incorporated by reference and can be found in section 22 of the Company's MD&A for the year ended |
2
See the "Currency" section of the MD&A for the year ended |
Non-IFRS and Other Financial Measures
The Company has included certain non-IFRS financial measures, ratios and supplementary financial measures in this press release to provide investors with additional information in order to help them evaluate the underlying performance of the Company. These measures are mainly derived from the Financial Statements but do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Management believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors with an improved ability to understand the results of the Company's operations. Non-IFRS and other financial measures should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS. The exclusion of certain items from non-IFRS financial measures does not imply that these items are necessarily non-recurring.
The Company presents certain of its non-IFRS measures and other financial measures in
EBITDA and EBITDA Margin
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Q4 FY24 |
Q3 FY24 |
Q4 FY23 |
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(in thousands of dollars) |
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Income before income and mining taxes |
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46,693 |
204,981 |
144,457 |
Net finance costs |
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8,831 |
8,747 |
8,774 |
Depreciation |
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29,575 |
32,881 |
42,478 |
EBITDA |
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85,099 |
246,609 |
195,709 |
Revenues |
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332,673 |
506,891 |
463,913 |
EBITDA margin |
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26 % |
49 % |
42 % |
Available Liquidity
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As at |
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As at |
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2024 |
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2023 |
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Cash and cash equivalents |
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400,061 |
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387,373 |
Undrawn amounts under credit facilities |
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542,000 |
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550,253 |
Available liquidity |
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942,061 |
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937,626 |
C1 Cash Cost
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Q4 FY24 |
Q3 FY24 |
Q4 FY23 |
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Iron ore concentrate sold (dmt) |
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2,968,900 |
3,227,500 |
3,092,900 |
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(in thousands of dollars except per tonne) |
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Cost of sales |
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227,496 |
235,457 |
244,444 |
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C1 cash cost (per dmt sold) |
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76.6 |
73.0 |
79.0 |
All-In Sustaining Cost
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Q4 FY24 |
Q3 FY24 |
Q4 FY23 |
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Iron ore concentrate sold (dmt) |
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2,968,900 |
3,227,500 |
3,092,900 |
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(in thousands of dollars except per tonne) |
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Cost of sales |
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227,496 |
235,457 |
244,444 |
Sustaining capital expenditures |
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19,759 |
24,031 |
9,303 |
G&A expenses |
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13,973 |
11,206 |
11,466 |
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261,228 |
270,694 |
265,213 |
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AISC (per dmt sold) |
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88.0 |
83.9 |
85.7 |
Cash Operating Margin and Cash Profit Margin
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Q4 FY24 |
Q3 FY24 |
Q4 FY23 |
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Iron ore concentrate sold (dmt) |
|
2,968,900 |
3,227,500 |
3,092,900 |
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(in thousands of dollars except per tonne) |
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Revenues |
|
332,673 |
506,891 |
463,913 |
Net average realized selling price (per dmt sold) |
|
112.1 |
157.1 |
150.0 |
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AISC (per dmt sold) |
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88.0 |
83.9 |
85.7 |
Cash operating margin (per dmt sold) |
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24.1 |
73.2 |
64.3 |
Cash profit margin |
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21 % |
47 % |
43 % |
Gross Average Realized Selling Price per dmt Sold
|
Q4 FY24 |
Q3 FY24 |
Q4 FY23 |
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Iron ore concentrate sold (dmt) |
2,968,900 |
3,227,500 |
3,092,900 |
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(in thousands of dollars except per tonne) |
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Revenues |
332,673 |
506,891 |
463,913 |
Provisional pricing adjustments |
31,005 |
(15,997) |
(14,325) |
Freight and other costs |
130,074 |
140,971 |
117,137 |
Gross revenues |
493,752 |
631,865 |
566,725 |
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Gross average realized selling price (per dmt sold) |
166.3 |
195.8 |
183.2 |
SOURCE