Champion Iron Ltd. · ASX:CIA

Champion Iron — Investor Presentation (November 2018)

21 slides from Champion Iron's investor presentation, November 2018

  1. Slide 1: Bloom Lake In Production

    PREMIUM PRODUCT, HIGH QUALITY INFRASTRUCTURE, TIER 1 JURISDICTION Bloom Lake In Production November 2018 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends“, “forecast” and sim

  3. Slide 3: Corporate Snapshot (CAD)

    Corporate Snapshot (CAD) Market Statistics Historical Share Price $/sh; TSX:CIA 16-17 Oct: 24 May: TSX Share Price as at Nov. 8th $1.24 Signing of rail and port Announced shipment access agreements and Basic Shares Outstanding (#) 419m closing of financing 22 Feb: of one million tonnes CAD 1,60 arra

  4. Slide 4: History of Bloom Lake

    History of Bloom Lake A series of unique events allowed Champion, with the support of the Quebec Government, to acquire the Bloom Lake mine and associated infrastructure from Cliffs Natural Resources (“Cliffs”) under the Companies' Creditors Arrangement Act (“CCAA”) 2008 -‘10  Consolidated Thompson

  5. Slide 5: Investment Highlights

    Investment Highlights In-Demand Product 1 with a Low Cash Cost  In-demand, high quality 66.2% iron ore product with a low cash cost of C$42.9/dmt High Quality 2 Infrastructure  ~US$3bn spent to date on mine, rail and port by previous owners Achieved ramp up to  Commercial production achieved duri

  6. Slide 6: In-Demand Product

    1 In-Demand Product… Freight Rates from Brazil to China Illustrative Bloom Lake LOM Average Break-Even Analysis $40 Freight Rate (US$/wmt) $30 Feasibility $/dmt $20 $20.85 CAD USD $10 Exchange Rate USD:CAD $0.80 – Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Mining $10.45 $8.36 Premium Between 65% and

  7. Slide 7: ….With a Low Cash Cost

    1 ….With a Low Cash Cost Regional Drivers Bloom Lake Drivers • With almost all operating costs in C$, Bloom Lake benefits from depreciation of Canadian dollar relative to US dollar All cost reduction initiatives have been • Significant reduction in land logistics costs, plus reduced take- or-pay obl

  8. Slide 8: High Quality Infrastructure

    2 High Quality Infrastructure 8

  9. Slide 9: High Quality Infrastructure

    2 High Quality Infrastructure 9

  10. Slide 10: High Quality Infrastructure

    2 High Quality Infrastructure 10

  11. Slide 11: High Quality Infrastructure

    2 High Quality Infrastructure 11

  12. Slide 12: High Quality Infrastructure

    2 High Quality Infrastructure 12

  13. Slide 13: High Quality Infrastructure

    2 High Quality Infrastructure Rail Port  Transported by rail from loading station at  Shipped from Port of Sept-Îles to end buyers Bloom Lake to Port of Sept-Îles  Port of Sept-Îles is one of North America’s  Rail agreement in place with IOC largest ore-handling ports, with 50Mtpy  735 rail car

  14. Slide 14: Achieved ramp up to 7.4Mtpa

    3 Achieved ramp up to 7.4Mtpa Ore Volumes Milled (WMT, quarterly) 6 000 000 4 964 000 5 000 000 4 244 040  Restarted production February 16th 2018 – 1 4 000 000 year after feasibility study 3 000 000  Shipped first capesize vessel with 200,000 wmt 1 754 331 of 66.2% iron ore to China 2 000 000  R

  15. Slide 15: FY2019 Q2 Operational Results

    FY2019 Q2 OPERATIONAL RESULTS 6 000 000 Ore Volumes Mined First quarter of commercial production (WMT, quarterly)  4 000 000  Produced over 1.9 M wmt of high-grade 66% iron ore concentrate during the quarter and 4.0 2 000 000 M wmt since the mine commenced operations;  Achieved name plate capacit

  16. Slide 16: FY2019 Q2 Financial Results

    FY2019 Q2 FINANCIAL RESULTS Average selling price  Revenues of $174.7 million up 16% from $90.4/dmt sold previous quarter ($325.4 million for the first six months);  Operating cash flow totalling $49.6 million Total Cash Cost for the six-month period; $45.2/dmt sold  Cash on hand of $115.6 millio

  17. Slide 17: Attractive Phase 2 Expansion Potential

    4 Attractive Phase 2 Expansion Potential Expansion to 15Mtpy substantially derisked Phase 2 Plant  Cliffs spent ~US$1.2 billion on plant upgrades and expansion plans to increase capacity to ~15Mtpy  Significant investments were made to support Phase 2 expansion (75% complete) which are fully avail

  18. Slide 18: Long Life Asset in Tier 1 Jurisdiction

    5 Long Life Asset in Tier 1 Jurisdiction • 412Mt reserves and 912Mt resource @ 30% Fe Summary of Economic Parameters and Feasibility Results − Reserves support mine life of 21 years @7.4Mtpy Reserve Mt 411.7 concentrate production per feasibility study results Processed Tonnage Mtpy 20 • Established

  19. Slide 19: Attractive Pure-Play Iron Ore Producer

    6 Attractive Pure-Play Iron Ore Producer Champion Iron is attractively valued compared to other iron ore producing companies • On a reserves, resource and production basis EV / Production (US$/t) Champion Iron is attractively valued compared 357 Assumes run-rate 7.4Mtpa to other iron ore producers a

  20. Slide 20: High Quality Team

    7 High Quality Team Management Team Michael O’Keeffe  Former Executive Chairman of Riversdale Mining Limited (2004-2011) where Mr. O’Keeffe led the development of Riversdale Executive Chairman and Mining from a junior until it was acquired by Rio Tinto for A$4 billion CEO  Prior to joining Riversd

  21. Slide 21: Contact

    Contact Person Michael O’Keeffe michael.okeeffe@championiron.com Mailing Address 1100 Rene-Levesque Blvd. West Suite 610 Montreal QC H3B 4N4 Tel: +1 514 316 4858 Fax: +1 514 819 8100 www.championiron.com TSX: CIA / ASX:CIA 21

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