Champion Iron Ltd. · ASX:CIA
Champion Iron — Conference Presentation (February 2023)
24 slides from Champion Iron's conference presentation, February 2023
Slide 1: Conference Presentation February 2023
CONFERENCE PRESENTATION FEBRUARY 2023 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 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 12% Agriculture, forestry and soil management 18% → The steel industry Waste 3% Reduction and represents more than Chemicals Smelting 7.2% of global CO2 (2%)
Slide 6: 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 7: 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 8: Green Steel Transition Underway
GREEN STEEL TRANSITION UNDERWAY NEW EAF CAPACITY TO INCREASE DEMAND FOR DRI ANNOUNCED & UNDER CONSTRUCTION EAF 500 EAF CAPACITY TO DOUBLE IN KEY REGIONS CAPACITY DURING THE 18 MONTHS ENDING 2015-2030 JUNE 20222 CAPACITY (MT) 250 19.6MT 37.2MT 29.5MT 0 New EAF capacity to require ~30Mt/year of 2015 2
Slide 9: 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 10: DRPF Product: Expected Deficit
DRPF PRODUCT: EXPECTED DEFICIT DR-GRADE IRON ORE SUPPLY/DEMAND BALANCE BY 2031 Million tonnes 1 Demand DR iron ore demand 303 Supply2 Brazil 21 Sweden 7 → As a result of rising DR quality iron ore demand and limited Canada 15 expected supply, the market Russia 11 deficit is expected to be Ukraine 1
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: Producing with a Low Emission Footprint
PRODUCING WITH A LOW EMISSION FOOTPRINT 150 CHAMPION HIGHLIGHTS 140 Canadian Iron Ore Production is Advantaged by 130 Kg of CO2 emitted per Kg of CO2 emitted per tonne of iron ore produced (scope 32) → Significant hydropower generation capacity tonne of iron 120 → Direct access to seaborne transport
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 BLOOM LAKE PRODUCTION HISTORY → FY2023 results: Record iron ore (MILLION WMT/YEAR) 15,0 15.0 concentrate production of 8.1M wmt in 14,0 nine months ending December 31, 2022 Expected Nameplate inc. Phase II 12,0 10,0 8,0
Slide 15: Proven Cost Structure
PROVEN COST STRUCTURE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF TOTAL CASH COST2 VALUE-IN-USE ADJUSTED IRON ORE COST $100 (C$/DMT) CURVE (CFR, 62% FE FINES EQUIVALENT) $58,9 $50 $0 2014 2015 2016 2017 FY2019 FY2020 FY2021 FY2022 PREVIOUS OWNERS CHAMPION IRON → FY2023 results: Total cash costs2 of $71.7/t
Slide 16: Robust Financial Results
ROBUST FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF → FY2023 results: Reported EBITDA1 and adjusted → Balance sheet as of Dec 31th, 2022 EPS1 of $297.5M and $0.27, respectively, for the $166.3M Cash & S-T investments nine months ended December 31, 2022 $238.5M Working capital 1,2 $1 000 EBI
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: Phase II – Ramping-up as Scheduled
PHASE II – RAMPING-UP AS SCHEDULED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF → >US$1.6B project initiated in 2011 by Bloom Lake’s previous owner is expected to double Bloom Lake’s nameplate capacity → Achieved commercial production milestone in December 2022 and nameplate capacity expected to be reached i
Slide 19: 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 20: DRPF Project Study Highlights
DRPF PROJECT STUDY HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 20
Slide 21: 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 21
Slide 22: DRPF Project: Investing in Our Vision
DRPF PROJECT: INVESTING IN OUR VISION TSX: CIA ⎪ ASX: CIA ⎪ OTCQX : CIAFF → $10M approved by the Board of Directors on January 26, 2023, to maintain the 30-months project timeline → Final investment decision pending securing additional power and non-dilutive funding C$ US$ Net Present Pre-tax NPV8%
Slide 23: 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 23
Slide 24: 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
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