Champion Iron Ltd. · ASX:CIA
Champion Iron — Q3 2019 Earnings Presentation
21 slides from Champion Iron's earnings presentation, February 2019
Slide 1: First Grade Mining Development
CHAMPION IRON 249 TSX: CIA | ASX: CIA FIRST GRADE MINING DEVELOPMENT
Slide 2: Disclaimer
CHAMPION IRON 24 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", “f
Slide 3: Conference Call Participants
CHAMPION IRON 24 CONFERENCE CALL PARTICIPANTS ’) i MICHAEL O‘KEEFFE DAVID CATAFORD NATACHA GAROUTE MICHAEL MARCOTTE PRESIDENT & CEO coo CFO VP INVESTOR RELATIONS TSX: CIA | ASX: CIA 2
Slide 4: 2019 Third Quarter Highlights
2019 THIRD QUARTER HIGHLIGHTS yw G& kh ati = ‘xD [ths 4,883,400 WMT 1,791,300 WMT $49.4/DMT ORE MINED CONCENTRATE PRODUCED ‘TOTAL CASH COST 4,531,400 WMT 80.7% $55.5/DMT ORE MILLED ORE RECOVERY ALL-IN SUSTAINING COST TSX: CIA | ASX: CIA CHAMPION IRON 23 su REVENUE $147.5M NET INCOME $31.2M $0.05 EPS
Slide 5: Health and Safety
CHAMPION IRON 24 HEALTH AND SAFETY Lost time injury remains below the benchmark for open-pit mine* QUEBEC IRON ORE + CONTRACTORS BENCHMARK FOR MINE OPEN-PIT -YEAR 2017- (SOURCE*:APSM) Lost Time Injury Frequency Rate (LTIFR) 2.4 8.02 7.47 6.07 15.34 4.32 4.9 Disability Injury Severity Rate (DISR) 3.2
Slide 6: Environment Focus
CHAMPION IRON 24 ENVIRONMENT FOCUS IRON ORE CONVEYOR SYSTEM Reduction of 3,400,000L of diesel ELECTRIC BOILER CONVERSION 9,300 t/yr GHG Reduction of 3,800,000L Fuel oil 10,300 t/yr GHG NN 2014 GHG EMISSIONS TAILINGS PUMPING SYSTEM Reduction of 4,900,000L of diesel 13,600 t/yr GHG TSX: CIA | ASX: CIA
Slide 7: > ule s
> ule s 3 TSX: CIA | ASX: CIA
Slide 8: Operations Overview
CHAMPION IRON 23 OPERATIONS OVERVIEW ORE MINED (WMT) IRON ORE CONCENTRATE > Record production month of 697,700 wmt in October 5,000,000 FLEE SS NN, > Completed first planned "semi-annual" shutdown 5,000,000 2,000,000 4,000,000 1,500,000 Q12019 922019 932019 YTD e oonane 1,000,000 Waste mined (wmt) 3
Slide 9: Focus on Quality with Continuous Improvement in Ore Recovery
CHAMPION IRON 2 FOCUS ON QUALITY WITH CONTINUOUS IMPROVEMENT IN ORE RECOVERY > Product quality remains priority. No contaminant discount on any shipments to date. > Achieved recovery as high as 86% in the period > Work programs in place to achieve target recovery of 83% PRODUCTION (WMT) & RECOVERY (
Slide 10: Third Quarter Financial Results
Slide 11: Third Quarter Financial Results
THIRD QUARTER FINANCIAL RESULTS PRODUCTION RESULTS Iron ore concentrate produced (wmt) Iron ore concentrate sald (dmt) FINANCIAL RESULTS ($ MILLIONS) Revenue EBITDA Operating profit Net profit Cash flow from operation Earnings (loss) per share - basic Avg. realized selling price (per tonne) Total ca
Slide 12: High-Grade Iron Ore
CHAMPION IRON 2 HIGH-GRADE IRON ORE ATTRACTING HIGHER SELLING PRICE > Strong premium of nearly 28% for our material over P62 benchmark Q3 NET AVERAGE REALIZED SELLING PRICE $100.00 us$20.00 Us$91.60 $90.00 CA$20.70 CA$86.20 Ae || L || Mmmm increase and Total $7000 je US$65.50 Mmmm Decrease $60.00 US
Slide 13: Consistent Strong Cash Operating Margin
CHAMPION IRON 2 CONSISTENT STRONG CASH OPERATING MARGIN > Strong cash operating margin contributing to an EBITDA of 41% for the first nine months of operations CASH OPERATING MARGIN PER TONNE $100.0 mmm Total Cash Cost $90.0 . eee ~ 4 mm Total All-in Sustaining Cost $80.0 : $70.0 : eIir3 Cash Operat
Slide 14: Balance Sheet
BALANCE SHEET $316.8 MILLION LONG-TERM DEBT* (FACE VALUE) ° cy $185.4 MILLION CASH & SHORT-TERM INVESTMENTS Mmmm Cash & Working Capital Mmmm Long-Term Debt *Consistent FX of CA$0.77 TSX: CIA | ASX: CIA Q2 2019 CHAMPION IRON 24 Q3 2019 13
Slide 15: Third Quarter Strong Cash Flow Generation
CHAMPION IRON 24 THIRD QUARTER STRONG CASH FLOW GENERATION 147.5 a20) (6.0) (10.0) (84.5) 69) 115.6 MILLIONS OF CA DOLLARS @ a Ss ° Cash from sales Working capital var. Rehab. obligation Exploration & other Balance Operating costs Investments deposit Interest exp. Balance as of Sept. 30 as of Dec. 3
Slide 16: —
CHAMPION IRON 24 TSX: CIA | ASX: CIA — 15
Slide 17: Phase 2 Feasibility Study
CHAMPION IRON 24 PHASE 2 FEASIBILITY STUDY ON TRACK > Extensive capital already sunk by prior owner > Applied for "Option Analysis Report” to Environment of Canada in December > Continue to target summer 2019 for release of "Phase 2" feasibility study > First production expected by 2021 pending fina
Slide 18: Exploration Activities
EXPLORATION ACTIVITIES POWDERHORN - NEWFOUNDLAND Springdale > Assays pending on 3 600m Deep water loading dock > New 4000 m campaign > Samples north of 16% Zn area and 2018 rt ee CHAMPION IRON 24 SUPREME JOINT VENTURE - BLOOM EAST = o Fed n <q =< Oo Fed wn e > New JV with Supreme to test Iron ore an
Slide 19: con
'S > a aS, con fs Hawes
Slide 20: Appendix: Iron Ore Price & Freight
CHAMPION IRON 2 APPENDIX: IRON ORE PRICE & FREIGHT IRON ORE PRICE US$ (P62 & P65) C3 FREIGHT BENCHMARK US$ $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $- 7 01-02-2015 01-02-2016 01-02-2017 01-02-2018 01-02-2019 01-04-2016 01-04-2017 01-04-2018 01-04-2019 TSX: CIA | ASX: CIA mmm P62 PES 19
Slide 21: Thank You!
TSX: CIA | ASX: CIA THANK YOU! Contact us for more information. MICHAEL O’KEEFFE, MICHAEL MARCOTTE, PRESIDENT & CEO VP INVESTOR RELATIONS michael.okeeffe@championrion.com mmarcotte@championironmines.com 1100 René-Lévesque Blvd. West, Suite 610 Montreal QC H3B 4N4 Lx Tel.: +1 514 316 4858 Fans 11 814