Slide 1: Second Quarter of the 2023 Financial Year
SECOND QUARTER OF THE 2023 FINANCIAL YEAR TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Webcast Presentation – October 27, 2022 PREMIUM PRODUCT TIER 1 JURISDICTION HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF This presentation (the "Presentation") contains information about Champion Iron Limited ("Champion" or the "Company"), current as at the date hereof or as at such earlier date as may be specified herein. This Presentation does not constitute or form part
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF DAVID CATAFORD MICHAEL O’KEEFFE ALEXANDRE BELLEAU DONALD TREMBLAY MICHAEL MARCOTTE Chief Executive Officer Executive Chairman Chief Operating Officer Chief Financial Officer Senior Vice-President Corporate Development and Capital Market
Slide 4: FY2023 Second Quarter Highlights
FY2023 SECOND QUARTER HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 2,857,300 WMT $300.6M $277.4M $65.9/DMT REVENUES CASH & SHORT-TERM CONCENTRATE PRODUCED TOTAL CASH COST1 INVESTMENTS $84.3M 2,793,400 DMT EBITDA1 $473.8M CONCENTRATE SOLD $81.9/DMT $29.3M SHORT-TERM AND ALL-IN SUSTAINING COST1 ADJUS
Slide 5: Sustainability Focused
SUSTAINABILITY FOCUSED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → No occurrence of any major environmental issues and overall improvement in health and safety statistics, compared to the previous quarter → In collaboration with public health officials, completed preventive surveillance and workshops relat
Slide 6: Community & Sustainability
COMMUNITY & SUSTAINABILITY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → As part of an annual commitment and in line with our Company's values, organized workshops and commemoration activities on the National Day for Truth and Reconciliation on September 30, 2022, aimed at familiarizing Champion's employees
Slide 7: Industry Overview
INDUSTRY OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → The benchmark P62 iron ore index declined over 25% from the previous quarter, mainly attributable to weakened global economic conditions and reduced steel output in China amid Covid lockdowns and reduced activity in the property sector → The hig
Slide 8: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 8
Slide 9: Operations Overview
OPERATIONS OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Record iron ore production and sales up 37% and 43% year on Iron Ore Concentrate Produced Ore Mined and Hauled year, respectively, were positively impacted by the commissioning (Mwmt) (Mwmt) of the Phase II expansion at Bloom Lake 3 8 → Lower
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Revenues of $300.6M, EBITDA1 of $84.3M and adjusted EPS1 of $0.06 EBITDA1 (C$M) $250 → Financial results positively impacted by higher iron ore volumes sold, more than offset by decreasing iron ore prices, expected transitional start-up costs
Slide 11: Transitional Costs in Phase II Ramp-Up
TRANSITIONAL COSTS IN PHASE II RAMP-UP TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Quarterly cash cost1 per tonne positively impacted by the increase in iron ore volumes sold in relation to the Phase II project and lower operational stripping → Additional production volumes from the Phase II project, once
Slide 12: Provisional Price Adjustment
PROVISIONAL PRICE ADJUSTMENT TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → 0.67M tonnes which were subject to provisional pricing at the end of Q1/FY23 realized final prices during the quarter → Q2/FY23 negative provisional pricing adjustment of -US$14.8M represents a negative impact of US$5.3/dmt on the ave
Slide 13: Average Realized Selling Price
AVERAGE REALIZED SELLING PRICE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Q2/FY23 average gross realized price1 of US$120.6/t, comparing favourably to the P65 index average of US$115.5/t during the period → Average gross realized price1 positively impacted by sales based on fixed backward-looking iron ore
Slide 14: Cash Change Details
CASH CHANGE DETAILS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Operating cash flow before working capital of $76.3M, resulting in an increase in cash equivalent of $90.3M to $277.4M, quarter on quarter → Cash and short-term investments impacted by structural investments towards the Phase II commissioning,
Slide 15: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF STRONG LIQUIDITY POSITION CONTINUED CAPITAL RETURN STRATEGY $277.4M Cash & S-T investments → A dividend of $0.10 per ordinary share declared on October $138.9M Working capital 1,2 26, 2022 (Montréal time), in connection with the
Slide 16: Growth Projects
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF GROWTH PROJECTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF
Slide 17: Phase II – Ramping-Up as Scheduled
PHASE II – RAMPING-UP AS SCHEDULED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Phase II project’s cumulative production in the period compares favorably to the scheduled ramp-up production assumptions → Last major on-site work program in relation to the Phase II equipment has been completed in the period a
Slide 18: Phase II Expected Nameplate
SIGNIFICANT PRODUCTION INCREASE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Benefiting from the Bloom Lake Phase II project’s contribution in the period, the Q2/FY23 production results represent an increase of 46.8% over the Phase I average quarterly production results since commissioning in 2018 → Additio
Slide 19: Green Steel Supply Chain Solutions
GREEN STEEL SUPPLY CHAIN SOLUTIONS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Champion is well positioned to service the steel industry’s transition to Electric Arc Furnaces (EAF) with its growth projects focused on Direct Reduction (DR) quality iron ore products → Study evaluating the reprocessing → Adva
Slide 20: Rising DR Pellet Premiums
RISING DR PELLET PREMIUMS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Recent economic cycles demonstrate lower volatility for DR pellet premiums compared to iron ore index prices (P62 & P65) → Rising demand and limited supply for DR products resulted in rising DR pellet premiums currently at US$75.5/t1 ove
Slide 21: DR Products Are a Green Steel Solution
DR PRODUCTS ARE A GREEN STEEL SOLUTION TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 100,000 electric vehicles sales PRIMARY STEEL MAKING 900KG OF STEEL PER 170 TONNES OF STEEL projected in Canada in 20225 RAW MATERIALS METHOD & EMISSIONS ELECTRIC CAR2 PER 2MW TURBINE3 43 additional wind turbines4 required to
Slide 22: Thank You to Our Staff
THANK YOU TO OUR STAFF TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF PRIDE INGENUITY RESPECT TRANSPARENCY Upholding our values for a sustainable future 22
Slide 23: Thank You!
THANK YOU! Contact us for more information: Michael Marcotte, Senior Vice-President – Corporate Development and Capital Markets info@championiron.com 514-316-4858