Champion Iron Ltd. · ASX:CIA
Champion Iron — Conference Presentation (July 2023)
22 slides from Champion Iron's conference presentation, Jul 13, 2023
Slide 1: Conference Presentation June 2023
CONFERENCE PRESENTATION JUNE 2023 A RARE SOLUTION TO DECARBONIZE STEELMAKING
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 par
Slide 3: Corporate Overview
CORPORATE OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF LARGEST PUBLICLY LISTED PURE-PLAY HIGH-GRADE IRON ORE PRODUCER GLOBALLY → 2nd largest hub of high-grade exports globally → 10.1% management ownership1 BLOOM LAKE → Cumulative investments at Bloom Lake ≥US$4.5B → Committed to GHG reduction of 40%
Slide 4: A Global Solution for the Transitioning Steel Industry
A GLOBAL SOLUTION FOR THE TRANSITIONING STEEL INDUSTRY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF
Slide 5: High Purity Iron Ore: A Solution for Green Steel
HIGH PURITY IRON ORE → A SOLUTION FOR GREEN STEEL THE STEEL INDUSTRY WILL NEED TO ADAPT TO LIMIT EMISSIONS Mining Freight 1% 2% Agglomeration Agriculture, forestry 12% and soil management… → The steel industry Waste 3% Reduction and represents more than Chemicals Smelting 7.2% of global CO2 (2%) 85%
Slide 6: Steel Is Critical to Decarbonize
STEEL IS CRITICAL TO DECARBONIZE 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 1.5°C, over 3.5 billion additional tonnes of steel will be required b
Slide 7: Champion Products' Positive Impact
CHAMPION PRODUCTS’ POSITIVE IMPACT STEEL MAKING PRIMARY METHOD & EMISSIONS RAW MATERIALS Blast Furnace (BF) / Iron Ore Champion’s 66.2% iron ore 66.2% Basic Oxygen Furnace (BOF) Coal Fe reduces emissions by 2.01 tCO2 eq/t steel1 ~10% in the BF/BOF Champion’s Direct Reduction Direct Reduced Iron (DRI
Slide 8: Significant Impact Towards Reducing Emissions
SIGNIFICANT IMPACT TOWARDS REDUCING EMISSIONS Champion’s concentrate reduces emissions in BF/BOF steel making Proven ability to produce DR grade pellet feed enables Champion to engage with DRI/EAF steel makers Compared to Low Grade Iron Ore Compared to BF/BOF Process 15Mtpa1 DRPF 15Mtpa1 66.2% BF/BO
Slide 9: 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 10: 69% Fe DRPF: Prime Product in a Niche Market
69% FE DRPF: PRIME PRODUCT IN A NICHE MARKET SUMMARY OF IRON CONTENT AND GANGUE CONTENT Volumes primarily Volumes primarily from Brazil, from Australia Canada, Ukraine and Russia 12% 66.2% 10% Fe Gangue Content (Silica + Alumina) DRPF 8% Project BF QUALITY 69% Fe 6% TRANSITION 4% MATERIAL 2% DR QUAL
Slide 11: Providing a Global Scale Solution
PROVIDING A GLOBAL SCALE SOLUTION CHAMPION CONTROLS ONE OF THE LARGEST RESERVES AND RESOURCES CAPABLE OF PRODUCING HIGH-GRADE IRON ORE, INCLUDING POTENTIAL ACCESS TO RENEWABLE POWER AND AVAILABLE INFRASTRUCTURE Active Project Pipeline Project Both Active/ 10 Pipeline 2 1 4 5 Est. Marketable Reserves
Slide 12: 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 reduce nearly 9.7
Slide 13: Champion Iron Recent Results
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF CHAMPION IRON RECENT RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF 13
Slide 14: Setting New Production Records at Bloom Lake
SETTING NEW PRODUCTION RECORDS AT BLOOM LAKE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 15.0 → Facilities reached expanded designed nameplate BLOOM LAKE PRODUCTION HISTORY (MILLION WMT/YEAR) capacity of 15Mtpa on several operating days in the Expected nameplate Including phase II quarter Previous owners 7,9
Slide 15: Proven Cost Structure
PROVEN COST STRUCTURE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF $100 TOTAL CASH COST (C$/DMT) VALUE-IN-USE ADJUSTED IRON ORE COST CURVE (CFR, 62% FE FINES EQUIVALENT) $80 $ 73,9 $60 $40 $20 $0 PREVIOUS OWNERS CHAMPION IRON → Proven and competitive cost profile → FY2023 results: Total cash costs2 of $73.9/
Slide 16: Robust Financial Results
ROBUST FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF → Significant investments at Bloom Lake produced robust financial results, positioning the Company to diligently consider growth opportunities while continuing its capital return strategy $327.1M Cash & S-T investments Cash net of debt of
Slide 17: Product Development and Growth Initiatives
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF PRODUCT DEVELOPMENT AND GROWTH INITIATIVES TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF 17
Slide 18: Green Steel Supply Chain Solutions
GREEN STEEL SUPPLY CHAIN SOLUTIONS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF → 69% Fe DRPF quality iron → Kami project feasibility study → Feasibility study to produce ore Project DR pellets in Pointe-Noire FEASIBILITY STUDY COMPLETED H2/2023 H2/2023 Conceptual Flotation Plant Kami project Pointe Noire Pe
Slide 19: DRPF Project – Overview
DRPF PROJECT – OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF 66.2% 69% Fe Fe → Project to upgrade the Phase II plant from 66.2% to a 69% Fe DRPF quality iron ore PROJECT HIGHLIGHTS → Capex of $470.7M (US$351.3M) → 7.5 Mtpa → 30 Months construction → Significant additional pricing premium 19
Slide 20: DRPF Project: Investing in Our Vision
DRPF PROJECT: INVESTING IN OUR VISION TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Rendering of the concentrator II including → Project initiated in February 2023 with a cumulative initial budget of the proposed modifications $62M approved by the Board of Directors to maintain the 30-month construction timeli
Slide 21: Our People Are Our Most Valuable Asset
OUR PEOPLE ARE OUR MOST VALUABLE ASSET TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF CREATING A POSITIVE IMPACT FOR LOCAL COMMUNITIES WITH OUR EXPERTISE, ROBUST CULTURE AND VALUES PRIDE INGENUITY RESPECT TRANSPARENCY UPHOLDING OUR VALUES FOR A SUSTAINABLE FUTURE 21
Slide 22: Thank You!
THANK YOU! TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF Contact us for more information Michael Marcotte, CFA Senior Vice-President – Corporate Development and Capital Markets info@championiron.com 514-316-4858