Highlights

• Champion Iron produced 3.87 million wet tonnes of iron ore across Bloom Lake and Rana Gruber during the quarter.

• The company reported record sales of 4.49 million dry tonnes, alongside a net loss of CAD 48.4 million.

• Its Bloom Lake direct-reduction pellet feed Facility completed an initial commercial shipment during the September 2026 quarter.

• Champion held CAD 214.4 million in cash and CAD 404.1 million of undrawn Credit facilities at quarter-end.

For Champion Iron Limited (ASX:CIA), a record sales quarter arrived alongside a sharp deterioration in profitability. The iron ore producer reported CAD 403.9 million in Revenue and a CAD 48.4 million net loss for the three months to 30 September 2026, even as its new higher-grade product began reaching customers. The contrast places operating costs and its pellet feed ramp-up at the centre of the coming quarters.

Record Shipments Meet Tighter Economics

Consolidated production reached 3,872,500 wet metric tonnes, 9% above the corresponding quarter. Bloom Lake in Quebec contributed 3,323,700 tonnes, while the recently acquired Rana Gruber operation in Norway supplied 548,800 tonnes. Champion acquired Rana Gruber on 10 April 2026, meaning prior-year comparisons do not reflect the same asset base.

Sales totalled a record 4,494,100 dry metric tonnes, up 35% from the preceding quarter. Bloom Lake produced concentrate averaging 66.7% iron, with shipments moving through the Port of Sept-Îles. Combined inventories at Bloom Lake and the port declined from 1.7 million to 1.0 million wet tonnes during the period.

Price and Cost Pressures Hit Earnings

The gross realised selling price was USD 105.5 per dry tonne, compared with a P65 index average of USD 112.8. Net realised prices were CAD 89.9 per tonne. Bloom Lake recorded C1 cash costs of CAD 82.5 per tonne and all-in sustaining costs of CAD 94.4 per tonne.

Consolidated cash Operating Margin was negative CAD 8.0 per tonne, compared with positive CAD 31.1 a year earlier. Adjusted EBITDA declined to CAD 23.3 million from CAD 174.8 million, while adjusted net loss reached CAD 34.3 million. Rana Gruber separately generated CAD 54.3 million in revenue and a CAD 11.5 million gross loss.

Pellet Feed Plant Enters Commercial Phase

The direct-reduction pellet feed plant at Bloom Lake is designed to produce concentrate grading up to 69% iron. Cumulative Investment reached CAD 497.0 million at 30 September, against a project budget of approximately CAD 500 million. Its first commercial shipment was completed during the quarter.

Further test shipments and commercial arrangements are scheduled for the third quarter of fiscal 2027, with full commercial production targeted by fiscal year-end. Bloom Lake recoveries measured 78.2%, compared with 79.6% a year earlier, with the company identifying tailings losses associated with the new plant.

Liquidity and Milestones Ahead

Quarter-end cash stood at CAD 214.4 million, excluding unused partner contributions held by the Kami partnership. Total Liquidity amounted to CAD 618.4 million, including undrawn facilities. Champion also owns 51% of the Kami Iron Mine Partnership, alongside Nippon Steel and Sojitz, which hold the remaining 49%.

The next operating milestones include customer acceptance of pellet feed, additional shipments, cost trends and covenant compliance. Lower iron ore indices, freight charges and fuel costs remain important variables. Champion has not supplied a numerical production forecast in the September-quarter release.