Slide 1: Fiscal 2021 - Annual General Meeting
i =r BRET FISCAL 2021 - ANNUAL GENERAL MEETING AUGUST 25, 2021 - 6H PM (MONTREAL TIME) AUGUST 26, 2021 - 8H AM (SYDNEY TIME) xi | 05 A PREMIUM PRODUCT, TIER 1 JURISDICTION, HIGH QUALITY INFRASTRUCTURE CHAMPION IRON aA
Slide 2: Presentation disclaimer
⎪ ⎪ his presentation (the ‘‘Presentation’’) contains information about Champion Iron Limited, current as at the date hereof or as at such earlier date as may be specified herein. This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the so
Slide 3: FY2021 Highlights: New Records Set
FY2021 HIGHLIGHTS: NEW RECORDS SET CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCOX: CIAFF CONCENTRATE PRODUCED 8,001,200 WMT REVENUE $1,281.8M CONCENTRATE SOLD 7,684,500 DMT EBITDA $819.5M TOTAL CASH COST $54.2/DMT NET INCOME $464.4M ALL-IN SUSTAINING COST $62.8/DMT EPS $0.97 Wee
Slide 4: FY2021: Health & Safety
FY2021: HEALTH & SAFETY CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF > Overall improvement of health and safety statistics year over year > Continuous monitoring and improvement of the Bloom Lake mine’s HES protocols >No serious injuries reported during the period QUEBEC IRON ORE + CONTRACTOR
Slide 5: FY2021: Focus on Sustainability
FY2021: FOCUS ON SUSTAINABILITY CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF >No occurrence of major environmental issues > Completed the Company's first Sustainability Report, highlighting its alignment with stakeholders on environmental, social and governance matters and responsibilities >
Slide 6: FY2021: Creating a Positive Impact
FY2021: CREATING A POSITIVE IMPACT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF 551 Employees* 37 Local and indigenous jobs* $204M Sourcing from local suppliers* $150M Corporate taxes** $147M Mining duties** $91M Salaries & benefits** 100% compliance with tailings management* 86% Of mining wa
Slide 7: Announced Ramp Up of Operations
⎪ ⎪ → → → ANNOUNCED RAMP UP OF OPERATIONS FURTHER TO THE GOVERNMENT COVID-19 CONTAINMENT DIRECTIVES APPOINTED ALEXANDRE BELLEAU AS CHIEF OPERATING OFFICER APPOINTED LOUISE GRONDIN TO THE BOARD OF DIRECTORS ANNOUNCED FINAL APPROVAL OF THE PHASE II PROJECT AND INCREASE OF THE CREDIT FACILITY ANNOUNCED
Slide 8: FY2021: Industry Overview
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF FY2021: INDUSTRY OVERVIEW > P65 index average of US$143.7/dmt in FY2021, an increase of 35% from the previous year > Average premium of P65 over P62 of 12.1%, effectively unchanged from the previous year > Volatile C3 freight index averaging US$15.
Slide 9: Fiscal 2021: Operational Results
FISCAL 2021: OPERATIONAL RESULTS CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF
Slide 10: FY2021: Results
FY2021: RESULTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF PROVEN PRODUCTION AND COST STRUCTURE > Highest annual production on record ~~ BLOOM LAKE PRODUCTION HISTORY (MILLION WMT/YEAR) YAY Sy “Y ess & > Ss ” s s oom 8.00 PREVIOUS OWNERS CHAMPION IRON 2 > Annual total cash cost up 2.8% year
Slide 11: FY2021: Operations Overview
FY2021: OPERATIONS OVERVIEW CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX: CIAFF Increase in ore milled and continuous improvement of iron ore recovery to 83.5% Consistent product quality with no pricing penalties for contaminants Ongoing work to identify bottlenecks and optimize operations VVVY Post
Slide 12: CHAMPION IRON 24
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF
Slide 13: FY2021: Premium Product Pricing
FY2021: PREMIUM PRODUCT PRICING CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > FY2021 Gross realized price, including provisional price adjustments, of US$147.8/t, which is above the P65 high- grade index average of US$143.7/t > Net realized price of $166.8/t, an increase of 61% year over yea
Slide 14: FY2021: Financial Results
FY2021: FINANCIAL RESULTS CHAMPION IRON 241 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Year over year increase in EBITDA and adjusted EPS of 136% and 206%, respectively > Annual total cash costs of $54.2/t, up 2.8% year over year, primarily due to inefficiencies related to COVID-19 > Post FY2021 results:
Slide 15: FY2020 > FY2021: Positioned for Growth
FY2020 > FY2021: POSITIONED FOR GROWTH CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX: CIAFF CASH ON HAND’ INCREASE OF $381.8M YOY LONG-TERM DEBT’ DECREASE OF $57.4M YOY Y Deployed $112.3M during FY2021 on Phase Il expansion related projects** $298.7M FYE20 Cash on hand* Cash from operations Change in
Slide 16: FY2021: Robust Balance Sheet
FY2021: ROBUST BALANCE SHEET CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF mibevel Fye022/01 Strong Financial Partners Cash & S-T Investments $636.5M $423.3M “ny éetrate Scotiabank. a Restricted cash $44.0M $43.4M GENERALE RBC. Investissement = Were Working capital $122.7M $126.8M @cppa PA Sus
Slide 17: FY2021: Diligent Balance Sheet Management
FY2021: DILIGENT BALANCE SHEET MANAGEMENT CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF Post FY2021 Results: > Redeemed at face value all QIO preferred shares outstanding held by Caisse de Depot et placement du Québec for $185M (>) CDPQ > Redemption in full has removed the obligation to pay fut
Slide 18: TSX: CIA | ASX: CIA | OTCQX: CIAFF
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF
Slide 19: Premium Industry Position
PREMIUM INDUSTRY POSITION CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Benefitting from premium pricing, Champion currently ranks as a cost leader within the industry (62% Fe equivalent) 120 SEABORN IRON ORE CASH COSTS BY OPERATORS (CFR CHINA, 62% FE FINES EQUIVALENT, US$/T) 100 8 aX US$/DR
Slide 20: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF > Procured 3 new customers in 2021 fiscal year and engaged 25 different customers since commissioning of Bloom Lake in February 2018 > Diversified global sales mix unaffected despite the impact of the COVID-19 pandemic on
Slide 21: Continuous Product Improvement
CONTINUOUS PRODUCT IMPROVEMENT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Advanced laboratory testing to produce a 69%+ Fe iron ore concentre > Preliminary results indicate an ability to upgrade the Bloom Lake Concentrate using mild regrinding and a silica flotation stage > Product would
Slide 22: Phase II Advancing as per Expectations
PHASE II ADVANCING AS PER EXPECTATIONS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Project progressing as planned with completion expected by mid-2022 > Cumulative work programs of $263.6M* as of June 30, 2021 > Progress on key milestones, including: v Agreement to expand the existing rail
Slide 23: Kami Project Acquired
KAMI PROJECT ACQUIRED: FEASIBILITY STUDY WORK INITIATED CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX: CIAFF V On April 1, 2021, Champion completed the acquisition of the Kami project, a high-grade iron ore project near available infrastructure, strategically located only a few kilometres south east o
Slide 24: Positioning for the Future
POSITIONING FOR THE FUTURE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF V On July 12, 2021, Champion completed the acquisition of the Lac Lamélée south property in addition to a 1.5% net smelter royalty interest on the Company's Moiré Lake property and Fermont Properties portfolio > Acquisiti
Slide 25: Sustainable Vision
SUSTAINABLE VISION CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF JV Announced a collaborative relationship with Caterpillar and Toromont Cat to develop, test and implement a suite of advanced technologies on Cat equipment at Bloom Lake using proprietary artificial intelligence and analytics ba
Slide 26: Fiscal Year 2022 Focus
FISCAL YEAR 2022 FOCUS CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Priority on the health and safety of our employees, partners and communities > Diligently advance the Phase II expansion project for completion by mid-2022 > Manage costs while mitigating the inefficiencies created by COVID-
Slide 27: Premium Industry Position
PREMIUM INDUSTRY POSITION CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF ® PRIDE ave INGENUITY 4) RESPECT TRANSPARENCY > Arenewed 3-year collective agreement was reached on June 23, 2021 > Revised agreement reaffirms our long-term partnership with our workers UPHOLDING OUR VALUES FORA SUSTAINAB
Slide 28: Thank You!
THANK.YOU! CHAMPION IRON ZX TSX: CIA | ASX: CIA | OTCQX : CIAFF Contact us for more information. David Cataford, CEO | Michael Marcotte, Vice-President Investor Relations info(@championiron.com | 514-316-4858 1100 René-Lévesque West, Suite 610, Montréal, OC, H3B 4N4 www.championiron.com
Slide 29: Appendix
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX : CIAFF APPENDIX NOTES ON HISTORICAL ESTIMATES USED IN THE PRESENTATION 1 The historical Kami Project resource estimates are based on the National Instrument 43-101 technical report entitled “Feasibility Study of the Rose Deposit and Resource Estimate for
Slide 30: Appendix (continued)
APPENDIX (CONTINUED) CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX : CIAFF NOTES ON HISTORICAL ESTIMATES USED IN THE PRESENTATION 4, The historical Consolidated Fire Lake resource estimates are based on the National Instrument 43-101 technical report entitled “Preliminary Feasibility Study of the Wes