Champion Iron Ltd. · ASX:CIA
Champion Iron — Shareholder Meeting (August 2022)
28 slides from Champion Iron's shareholder meeting presentation, Aug 24, 2022
Slide 1: Financial Year 2022 - Annual General Meeting
FINANCIAL YEAR 2022 - ANNUAL GENERAL MEETING AUGUST 24, 2022 – 6H PM (MONTREAL TIME) AUGUST 25, 2022 – 8H AM (SYDNEY TIME) 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 p
Slide 3: FY2022 Highlights: New Records Set
FY2022 HIGHLIGHTS: NEW RECORDS SET TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF CONCENTRATE 7,907,300 WMT REVENUE $1,460.8M PRODUCED CONCENTRATE SOLD 7,650,600 DMT EBITDA1 $925.8M TOTAL CASH COST1 $58.9/DMT NET INCOME $522.6M ALL-IN SUSTAINING COST1 $73.1/DMT BASIC EPS $1.03 Notes: 1 Non-IFRS financial measur
Slide 4: FY2022: Health & Safety
FY2022: HEALTH & SAFETY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → No serious injuries reported during the period QUEBEC IRON ORE + CONTRACTORS → Implemented additional measures for monitoring FINANCIAL PERIODS contractors' health & safety practices 2019 2020 2021 2022 Q1FY23 → Preventive training of the
Slide 5: FY2022: Focus on Sustainability
FY2022: FOCUS ON SUSTAINABILITY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → No occurrence of major environmental issues → Declared that the National Day for Truth and Reconciliation and the National Indigenous Peoples Day to be treated as an occasion for employees to recognize and honour the culture of Fir
Slide 6: Environmentally Committed
ENVIRONMENTALLY COMMITTED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Committing to greenhouse gas (GHG) emission reductions of 40% by 2030, based on 2014 emission intensity with additional consideration for the targeted nameplate capacity of 15 Mtpa. The Company is also committed to be carbon neutral by 2
Slide 7: FY2022: Creating a Positive Impact
FY2022: CREATING A POSITIVE IMPACT TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 881 Employees* 58 Local and indigenous jobs* $393M Sourcing from local suppliers** $484M Corporate taxes** $475M Mining and income taxes** $117M Salaries & benefits** 100% Compliance with tailings management* 93% Of mining wastewa
Slide 8: FY2022 and FY2023/Q1: Milestones
FY2022 AND FY2023/Q1: MILESTONES TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Mitigated the impact of COVID-19 to the Company’s operations → Acquired the Kami project and completed the first rail shipments from the Phase II expansion project → Acquired the Pointe-Noire pellet plant and announced a MOU with
Slide 9: FY2022: Industry Overview
FY2022: INDUSTRY OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → P65 index average of US$179.9/dmt in FY2022, an increase of 25% from the previous year → Average premium of P65 over P62 of 17.4%, 5.3 percentage points higher than the previous year → Volatile C3 freight index averaging US$28.0/t in FY2
Slide 10: Financial Year 2022 Operational & Financial Results
FINANCIAL YEAR 2022 OPERATIONAL & FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF
Slide 11: FY2022 Results: Stable and Rising Production
FY2022 RESULTS: STABLE AND RISING PRODUCTION TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Production continues to track favourably towards Bloom Lake’s nameplate capacity BLOOM LAKE PRODUCTION HISTORY (MILLION WMT/YEAR) → Q1/FY23 Results: Completed the first production 7,9 8,0 from the Phase II expansion pr
Slide 12: FY2022 Results: Proven Cost Structure
FY2022 RESULTS: PROVEN COST STRUCTURE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Annual total cash costs1 of $58.9/t up 9% year over TOTAL CASH COST1 year primarily due to rising fuel prices, $100 (C$/DMT) commissioning of additional equipment for the Phase II and minor unplanned maintenance $58,9 → Q1/FY
Slide 13: Proven Competitive Cost Profile
PROVEN COMPETITIVE COST PROFILE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Benefitting from premium pricing, recent data ranks Champion among the cost leaders in the industry (62% Fe equivalent) SEABORN IRON ORE CASH COSTS BY OPERATORS (CFR CHINA, 62% FE FINES EQUIVALENT) US$/dry tonne 13 Source: Wood Mac
Slide 14: FY2022: Premium Product Pricing
FY2022: PREMIUM PRODUCT PRICING TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → FY2022 gross realized price1, including provisional price adjustments, of US$188.6/t, which compares favorably to the P65 high-grade index average of US$179.9/t → Net realized price of $190.9/t, an increase of 14.4% year over year
Slide 15: FY2022: Financial Results
FY2022: FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Several record annual financial results with year over year increases in EBITDA1 and adjusted EPS1 of 12.9% and 8.2%, respectively → Stable year on year cash profit margin1 and EBITDA1 margin of 61.7% and 63.4%, respectively → Q1/FY23 Re
Slide 16: FY2021-FY2022: Positioned for Growth
FY2021 FY2022: POSITIONED FOR GROWTH TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Deployed $451.1M in FY2022 on the Phase II expansion project** Paid an inaugural dividend of $50.6M Acquired the Kami project $680.5M $396.4M FYE21 FYE22 *Cash on hand includes short-term investments. Cash includes restr
Slide 17: Diligent Capital Management
DILIGENT CAPITAL MANAGEMENT TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF INCREASED FINANCIAL FLEXIBLITY CONTINUED CAPITAL RETURN STRATEGY → Completed the refinancing of the US$400M Credit → Inaugural dividend of $0.10 per ordinary share paid on Facility with a US$400M general purpose Revolving March 1, 2022 F
Slide 18: FY2022: Robust Balance Sheet
FY2022: ROBUST BALANCE SHEET TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF FY2022 Cash & S-T Investments $352.7M → Decline in net cash1,6 (including working capital) Restricted cash2 $43.8M year over year as the Company advanced the Phase II expansion project Working capital 1,3 $28.4M → Q1/FY23 results: Avail
Slide 19: Positioned for the Future
POSITIONED FOR THE FUTURE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF
Slide 20: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → New agreements with customers ex-China expected to further diversify the Company’s customer base → Unaffected sales dynamic despite the disrupted global trade flows resulting from the conflict in Ukraine Europe Korea 0,9% → Multiple orga
Slide 21: Phase II – Significant Milestone
PHASE II – SIGNIFICANT MILESTONE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Commissioning of the Phase II expansion project achieved ahead of the previously anticipated mid-2022 target despite pandemic- related challenges → On May 3, 2022, completed the project’s first rail shipments containing 24,304 wet
Slide 22: Phase II – Ramping-up as Scheduled
PHASE II – RAMPING-UP AS SCHEDULED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Commissioning of the Phase II project’s first production line achieved in late April 2022, with the second production line commissioned in June 2022 → Phase II project’s cumulative production to date compares favourably to the s
Slide 23: Pelletizing Opportunity
PELLETIZING OPPORTUNITY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Entered into a definitive purchase agreement to → Entered into a MOU with an International steelmaker to acquire the Pointe-Noire pelletizing facility from the complete a feasibility study to evaluate re- Société Ferroviaire et Portuaire d
Slide 24: Green Steel Solutions
GREEN STEEL 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 DR quality iron ore products → Study evaluating the reprocessing → Advancing the Kami project’s → Feasi
Slide 25: Green Steel Transition Accelerating
GREEN STEEL TRANSITION ACCELERATING TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → The steel industry, representing 8% of global CO2 emissions, is transitioning from Blast Furnaces to EAF to reduce emissions → The transition towards EAF steelmaking is accelerating globally, including the announcement of 59 ne
Slide 26: Financial Year 2023 Focus
FINANCIAL YEAR 2023 FOCUS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Priority on the health and safety of our employees, partners and communities → Ramp-up the Phase II expansion project to commercial production → Manage costs while mitigating inflationary pressures → Implement growth strategy and advance
Slide 27: Thank You to Our Staff
THANK YOU TO OUR STAFF TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF PRIDE Upholding our values INGENUITY for a sustainable future RESPECT TRANSPARENCY 27
Slide 28: Thank You!
THANK YOU! TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Contact us for more information David Cataford, CEO Michael Marcotte, Senior Vice-President Corporate Development and Capital Markets info@championiron.com I 514-316-4858 1100 René-Lévesque West, Suite 610, Montréal, QC, H3B 4N4 www.championiron.com