Slide 1: Fourth Quarter and 2023 Financial Year-End Results
FOURTH QUARTER AND 2023 FINANCIAL YEAR-END RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Webcast Presentation – May 31st, 2023 PREMIUM PRODUCT TIER 1 J URISDICTION 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 Fourth Quarter Highlights
FY2023 FOURTH QUARTER HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 3,084,200 WMT $463.9M $327.1M CONCENTRATE PRODUCED $79.0/DMT REVENUES CASH & SHORT-TERM INVESTMENTS TOTAL CASH COST1 $195.7M 3,092,900 DMT EBITDA1 $487.7M CONCENTRATE SOLD $85.7/DMT $88.2M SHORT-TERM AND ALL-IN SUSTAINING COST1 ADJU
Slide 5: Sustainability Focused
SUSTAINABILITY FOCUSED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → No major environmental issues reported since the recommissioning of Bloom Lake in 2018 → Implementation of risk assessment programs, the update of safety standards and additional presentations to workers, contributed to improved health and
Slide 6: Community & Sustainability
COMMUNITY & SUSTAINABILITY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Hosted Government of Québec Ministers at our Phase II plant's rebranding celebration, with the plant to be named "Tshinanu", meaning "we, together“ in the Innu language → Welcomed the members of six indigenous groups as participants of
Slide 7: Enhanced ESG Disclosure
ENHANCED ESG DISCLOSURE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Published the Company’s 2022 Sustainability Report, aligned with several Environmental Social and Governance (ESG) disclosure frameworks including: Global reporting Initiative (GRI) Sustainability Accounting Standards Board (SASB) Ta
Slide 8: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 8
Slide 9: Industry Overview
INDUSTRY OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → The P62 average iron ore index and the P65 index premium increased by 26.8% and 22.7% respectively, from the previous quarter → Higher iron ore prices during the period mainly attributable to improving macroeconomic indicators in China and seaso
Slide 10: Operations Overview
OPERATIONS OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Record quarterly iron ore production up 65% year-on-year, positively Iron Ore Concentrate Ore Mined and Hauled impacted by the increases in production throughput from the Phase II plant, Produced (Mwmt) (Mwmt) and negatively impacted by previo
Slide 11: Phase II > Significant Milestones
PHASE II > SIGNIFICANT MILESTONES TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 15.0 → Facilities reached expanded designed nameplate capacity BLOOM LAKE PRODUCTION HISTORY (MILLION WMT/YEAR) of 15Mtpa on several operating days in the quarter Expected nameplate Including phase II 11.2 Previous owners 7.9 8.0 7
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Revenues of $463.9M, EBITDA1 of $195.7M and adjusted EPS1 of $0.17 EBITDA1 (C$M) → Financial results positively impacted quarter-on-quarter by higher iron ore $200 volumes sold and higher realized prices, partially offset by higher operating
Slide 13: Transitional and Non-Recurring Cost Impacts
TRANSITIONAL AND NON-RECURRING COST IMPACTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Quarterly cash cost1 per tonne negatively impacted by a longer than expected planned crusher maintenance shutdown, resulting in longer haul cycle times, higher than expected utilization of contractors due to previously
Slide 14: Provisional Price Adjustment
PROVISIONAL PRICE ADJUSTMENT TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → 1.7M tonnes which were subject to provisional pricing at the end of Q3/FY23 realized final pricing during the quarter → Q4/FY23 positive provisional pricing adjustment of US$10.5M represents a positive impact of US$3.4/dmt on the aver
Slide 15: Average Realized Selling Price
AVERAGE REALIZED SELLING PRICE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Q4/FY23 average gross realized price1 of US$135.5/t, slightly below the P65 index average of US$140.1/t during the period → Average gross realized price1 negatively impacted by certain sales contracts based on backward-looking iron
Slide 16: Cash Change Details
CASH CHANGE DETAILS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Cash and short-term investments of $327.1M positively impacted by operating cash flow before working capital of $165.2M and net proceeds of new debt of $26.9M, and partially offset by sustaining expenditures, equipment deposits and other expen
Slide 17: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF FOURTH CONSECUTIVE SEMI-ANNUAL DIVIDEND $327.1M Cash & S-T investments $232.3M Working capital 1,2 → A dividend of $0.10 per ordinary share declared on May 30, 2023 (Montréal time), in connection with the semi- $487.7M Short-term
Slide 18: Growth Projects
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF GROWTH PROJECTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF
Slide 19: DRPF Project: Initial Milestones
DRPF PROJECT: INITIAL MILESTONES TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Rendering of the concentrator II including the proposed modifications 66.2% 69% Fe Fe → In connection with the recently announced positive findings of the Direct Reduction Pellet Feed (DRPF) Project feasibility study, the Board of D
Slide 20: DRPF Product: Visible Demand
DRPF PRODUCT: VISIBLE DEMAND TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Total number of shaft DRI/HBI1 projects by year of beginning operations → To reduce emissions, the steel industry is rapidly transitioning from Blast Furnaces and Basic Oxygen Furnaces (BF-BOF) steelmaking, utilizing coal, to Direct Red
Slide 21: Steel Is Critical to Decarbonise
STEEL IS CRITICAL TO DECARBONISE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Steel will have a critical role for the required infrastructure and applications to decarbonize our economies → Under the Accelerated Energy Transition (AET) of 1.5C, over 3.5 billion additional tonnes of steel will be required by
Slide 22: Green Steel Is a Sustainable Solution
GREEN STEEL IS A SUSTAINABLE SOLUTION TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → The additional 3.5 billion tonnes of steel required by 2050 under the 1.5C AET, could generate 7 billion tonnes of CO2 , equivalent to the emissions generated annually by 650 million cars or nearly half all the current cars g
Slide 23: Low Impact Locally & Scaleable Positive Impact Globally
LOW IMPACT LOCALLY & SCALEABLE POSITIVE IMPACT GLOBALLY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Canadian high-purity iron ore is produced with one of the lowest carbon intensities globally → A complete transition of Bloom Lake’s 15Mtpa nameplate capacity to DRPF quality iron ore could enable avoiding n
Slide 24: 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 → Advancing the Kami project’s feasibility
Slide 25: 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 25
Slide 26: Thank You!
THANK YOU! TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Contact us for more information: Michael Marcotte, Senior Vice-President – Corporate Development and Capital Markets info@championiron.com 514-316-4858