Champion Iron Ltd. · ASX:CIA
Champion Iron — Investor Day (March 2024)
120 slides from Champion Iron's investor day presentation, Mar 20, 2024
Slide 1: A Rare Solution to Decarbonize Steelmaking
= A RARE SOLUTION TO DECARBONIZE STEELMAKING CHAM PION IRON AX
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 2s ‘This presentation (he "Presentation )containsinformaton about ChampioniranLinited(‘Champion‘or the "Company currentas at thedatehereafor a at suchearlar dateas may bespecifedherain Ths Presertationdoesnatcorstiutear formpartof, andshouldratte construedas, anaertosellaris
Slide 3: Attending Executives and Directors
ATTENDING EXECUTIVES AND DIRECTORS CHAMPION IRON 2s EXECUTIVES DIRECTORS MICHAEL O‘KEEFFE DAVID CATAFORD MICHAEL MARCOTTE GARY LAWLER RONNIE BEEVOR Executive Chairman Chief Executive Officer Senior Vice-President Director Director Corporate Development and Capital Markets
Slide 4: Agenda
AGENDA CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF TOPIC TIME PRESENTERS Welcome remarks Smin Michael Marcotte Message from . . , the Executive Chairman 5 min Michael O'Keeffe introduction and 15min David Cataford sustainability commitment Market dynamics 30 min Michael Marcotte Industry ins
Slide 5: Introduction Video
INTRODUCTION VIDEO CHAMPION IRON 2s CHAMPION IRON 249 A rare solution to decarbonize steelmaking
Slide 6: Message from the Executive Chairman
MESSAGE FROM THE EXECUTIVE CHAIRMAN CHAMPION IRON 2s CHAMPION IRON 24
Slide 7: Introduction
ae mint CHAMPION IRON 2M TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 8: Introduction: Vision
X: CIA | ASX: CIA | OTCOX: INTRODUCTION CHAMPION IRON 23 VISION orig seat <2 = $4 ~ es Sigs ti) Leveragerthe force: ot responsible’ at materials +o décarbonize/and brighten the future.
Slide 9: Introduction: Mission
INTRODUCTION CHAMPION IRON 2s MISSION Produce responsible materials with ingenuity to reduce the carbon footprint with and for those who seek change.
Slide 10: Upholding Values for a Sustainable Future
INTRODUCTION CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF UPHOLDING VALUES FOR A SUSTAINABLE FUTURE PRIDE Develop a collective sense of belonging in all spheres of iron ore mining INGENUITY Leverage employee creativity and expertise to achieve and maintain efficient practices aimed at operatio
Slide 11: Largest Publicly Listed Pure-Play High-Grade Iron Ore Producer Globally
INTRODUCTION CHAMPION IRON 2s LARGEST PUBLICLY LISTED PURE-PLAY HIGH-GRADE IRON ORE PRODUCER GLOBALLY 24 largest hub of high-grade exports globally High-purity iron ore produced with renewable power and with one of the lowest carbon intensity 9.0%! management ownership 8.4% Québec government shareho
Slide 12: Sustainability Commitment
a SUSTAINABILITY COMMITMENT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF eee Pa Sys
Slide 13: The Company of Tomorrow Now
SUSTAINABILITY COMMITMENT CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF THE COMPANY OF TOMORROW NOW Health & Safety Core priority > Zero fatalities > Introduced training programs to identify and prevent work-related incidents > Ultimate target of zero harm ee Environment Minimizing impact > No
Slide 14: Demonstrated Contribution to Society and Community
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s DEMONSTRATED CONTRIBUTION TO SOCIETY AND COMMUNITY it: ia L Inauguration of the skatepark Since Bloom Lake recommissioning (FY 2019) > >1,170employees4 > $848M income, mining and municipal taxes paid! > 59 local and First Nations jobs > $484M gains for Inve
Slide 15: A Safe Working Environment Is Top Priority
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s A SAFE WORKING ENVIRONMENT IS TOP PRIORITY > No major environmental issue since the recommissioning of Bloom Lake in 2018 > Fully compliant results following multiple regulatory audits by provincial and federal authorities > Increased training and awareness
Slide 16: Responsible Tailings Construction Method
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s RESPONSIBLE TAILINGS CONSTRUCTION METHOD Bloom Lake Mining Project THE SAFE TAILINGS MANAGEMENT STRATEGY
Slide 17: Committed to Reduce Carbon Emissions
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s COMMITTED TO REDUCE CARBON EMISSIONS > Substantial investments completed since recommissioning in 2018, enabling the Company's CO; emission intensity per tonne to be reduced by approximately 30% compared to the previous owner > Committing to greenhouse gas
Slide 18: Envisioned Roadmap to Net Zero 2050
SUSTAINABILITY COMMITMENT CHAMPION IRON 2s ENVISIONED ROADMAP TO NET ZERO 2050 VISION TO.REDUCE GHG EMISSIONS THROUGH THREE STAGES. OF INITIATIVES. Current life-of-mine ("LOM") ending:in calendar: 2040! 2030 -40% target At 8.8 Kg of Seep U : ‘e eee (completed) Champion already holds an: industry lea
Slide 19: Work Programs Identified to Reduce Emissions
SUSTAINABILITY COMMITMENT CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF WORK PROGRAMS IDENTIFIED TO REDUCE EMISSIONS IN LINE WITH THE COMPANY'S TARGETS INVESTMENTS COMPLETED TO-DATE Progress towards net zero 2050 LEN 8% 19% oy oN 3% Ore Tailings Electric conveyor pumping boilers system system
Slide 20: Champion Iron
CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX: CIAFF
Slide 21: Steel Is Critical for the Transition to a Low Carbon Economy
MARKET DYNAMICS CHAMPION IRON 2s STEEL IS CRITICAL FOR THE TRANSITION TO A LOW CARBON ECONOMY » NS Geothermal Hydro Nuclear Electric Bioenergy Concentrated Hydrogen Wind Solar PV Electric _ Networks Solar Power Vehicles | Steel Copper Aluminum Nickel Zinc Dysprosium Neodymium Praseodymium Silicon Te
Slide 22: Steel Is Critical to Enable Infrastructure Required for Decarbonization
MARKET DYNAMICS CHAMPION IRON 2s STEEL IS CRITICAL TO ENABLE INFRASTRUCTURE REQUIRED FOR DECARBONIZATION > Under the Accelerated Energy Transition (AET) of 1.5°C, over 3.5 billion additional tonnes of steel will be required by 2050, representing over 50% of total material used across infrastructure
Slide 23: The Steel Industry Needs to Evolve to Limit Emissions
MARKET DYNAMICS CHAMPION IRON 2s THE STEEL INDUSTRY NEEDS TO EVOLVE TO LIMIT EMISSIONS Mining Freight 1% 2% Agglomeration Agriculture, forestry and 3 iM 12% > Steelmaking increased its share of global emissions sn in the last 20 years, now Waste representing 8%-10% of * . . Chemicals Reduction and g
Slide 24: Steelmaking Methods and Required Supply Chain
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF STEELMAKING METHODS AND REQUIRED SUPPLY CHAIN METHOD BF-BOF Blast Furnace Basic Oxygen Furnace ~2.2t CO,e/t emissions DRI-EAF Direct Reduced Iron Electric Arc Furnace 0.3-1.0t? co,e/t emissions © INPUTS ZA\ a. Lower grades a Iron or
Slide 25: DR Quality Iron Ore Demand Will Increase Across Steelmaking Methods
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF DR QUALITY IRON ORE DEMAND WILL INCREASE ACROSS STEELMAKING METHODS 1.5°C PATHWAY CRUDE STEEL PRODUCTION BY TECHNOLOGY MIX > (MTPA AND MARKET SHARE) 2022 30 35 40 45 2050 MMM oei-eAF Ml Scrap-EAF MM sar-80F: Ml BF-Bor BF-BOF CCUS2 S
Slide 26: Significant DRI Demand Growth Is Expected
MARKET DYNAMICS CHAMPION IRON 2s SIGNIFICANT DRI DEMAND GROWTH IS EXPECTED METAL DEMAND GROWTH BY 2050 EXPECTED UNDER A GLOBAL ENERGY TRANSITION (AET 2.0°C SCENARIO)! Copper ff 7% Aluminum [ff 9% Molybdenum | 11% Lead J 1s% Neodymium [I 37% Silver [I sox Nickel i o9% Vanadium iE 159% 231° OR! a sss%
Slide 27: DRI-EAF Steelmaking Will Increase Demand for Pellets and High-Purity Iron
MARKET DYNAMICS CHAMPION IRON 2s DRI-EAF STEELMAKING WILL INCREASE DEMAND FOR PELLETS AND HIGH-PURITY IRON CUMULATIVE HISTORICAL FORECAST DEMAND PRODUCTION! (2023-2050) 6x More demand for DR ee pellets by 2050 than the cumulative historical eee production to support the steel industry's transition t
Slide 28: Significant Deficit of DR Grade Iron Ore Expected
MARKET DYNAMICS CHAMPION IRON 2s SIGNIFICANT DEFICIT OF DR GRADE IRON ORE EXPECTED AS A RESULT OF DRI DEMAND GROWTH DR GRADE IRON ORE SUPPLY/DEMAND BALANCE BY 2031 (Mtpa) > Global DR quality iron ore concentrate demand is expected to exceed 300 Mtpa by DEMAND OR iron ore demand’ (ET 2031 SUPPLY? Bra
Slide 29: DR Quality Iron Ore Supply Growth Is Required for the Green Steel Transition
CHAMPION IRON 29 MARKET DYNAMICS TSK:CIA | ASK: CIA | OTCOX: CIAFF DR QUALITY IRON ORE SUPPLY GROWTH IS REQUIRED FOR THE GREEN STEEL TRANSITION WHY IS HIGHER GRADE AND LOWER IMPURITY IRON ORE IMPORTANT? GLOBAL IRON ORE SUPPLY > Reduces energy consumption and coal in traditional steelmaking -15% HPI
Slide 30: Market Leading High-Purity DR Quality Product in a Growing Market
MARKET DYNAMICS CHAMPION IRON 2s MARKET LEADING HIGH-PURITY DR QUALITY PRODUCT IN A GROWING MARKET SUMMARY OF IRON AND GANGUE CONTENTS . . . Primarily Brazil, Canada, © (wy) « Primarily Australia ww y Ukraine and Russia fl = = uy 1 S 12% = ios 2 10% «8% BF QUALITY G 6% 5 am TRANSITION 5 MATERIAL So
Slide 31: Project comparison table
⎪ ⎪ Spare Port Project / Renewable Distance to # Capacity Portfolio Energy Port (Km) (Mtpa)6 MetalloInvest 1 (Russia) Rest of 2 Canada4 3 S11D Champion 4 Iron 7 5 Simandou2,5 6 Iron Bridge 7 Central Eyre3 8 Minas Rio 9 Samarco LKAB 10 (Sweden) 11 CSN (Brazil) 12 Sino Iron
Slide 32: Canadian Iron Ore Produced with One of the Lowest Carbon Intensity Globally
MARKET DYNAMICS CHAMPION IRON 2s CANADIAN IRON ORE IS PRODUCED WITH ONE OF THE LOWEST CARBON INTENSITY GLOBALLY pene cee sence cee eceeecneceeeeeee ees neenenneseeeeneeensenencesscneeeneeseeceences seneeaessaeenenenseenenassenenanenseneenseesseneeanesceeeeneessenneeeneae H EMISSION INTENSITY PER TON
Slide 33: Extracting HPI in Canada Will Help Reduce Steelmaking Emissions Globally
MARKET DYNAMICS CHAMPION IRON 2s EXTRACTING HPI IN CANADA WILL HELP REDUCE STEELMAKING EMISSIONS GLOBALLY O8 0.018t of CO.e emitted by HPI production in Canada? 1.96t of COze/t steel-related emissions abated with DRI-EAF steel produced with HPI in Canada A possible transition of Bloom Lake's total 1
Slide 34: Champion's 66.2% Fe Concentrate Attracts a Premium Over the P62 Index
MARKET DYNAMICS CHAMPION IRON 2s CHAMPION’S 66.2% FE IRON ORE CONCENTRATE ATTRACTS A PREMIUM OVER THE P62 INDEX CHAMPION’S GROSS REALIZED PRICE VS P65 AND P62 INDEX (US$/DMT) $240 $180 $120 $60 2019-01 2020-01 2021-01 2022-01 2023-01 2024-Q1 === P65% Fe - Quarterly Average P62% Fe - Quarterly Averag
Slide 35: Long-Term Iron Ore Consensus Prices Forecast a Significant Decline
MARKET DYNAMICS CHAMPION IRON 2s LONG-TERM IRON ORE CONSENSUS PRICES FORECAST A SIGNIFICANT DECLINE IN PRICES > P62 and P65 index consensus prices are 32.3% and 26.9% below current prices! > Iron ore supply growth is limited by low price expectations, inflationary pressures, rising cost of capital,
Slide 36: Steel Output Outpaced Iron Ore Supply in the Last Economic Cycle
MARKET DYNAMICS CHAMPION IRON TSX: CIA | ASX: CIA | OTCQX: CIAFF STEEL OUTPUT OUTPACED IRON ORE SUPPLY IN THE LAST ECONOMIC CYCLE oN Over the last economic cycle, steel output grew ata Zl" faster rate than iron ore supply This disconnect is partly attributable to increased use ‘Sosy Of Scrap in stee
Slide 37: Newsletter link page
⎪ ⎪ → → → 20200930-september-2020-newsletter.pdf (championiron.com) →
Slide 38: High-Purity Iron Offers Opportunity to Capture Premiums Across Green Steel Supply Chain
CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF MARKET DYNAMICS HIGH-PURITY IRON OFFERS THE OPPORTUNITY TO CAPTURE PREMIUMS ACROSS THE GREEN STEEL SUPPLY CHAIN STEEL VALUE CHAIN AVERAGE PRICES (2021 - Q3/CY23)' 2 (US$/T CFR CHINA) Ee | = it f HU haa & -—— $59 $518 $ 245 Ke 58%Fe $215 AN So 28 iG’
Slide 39: Rising Demand and Emerging Premiums for Green Steel
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF RISING DEMAND AND EMERGING PREMIUMS FOR GREEN STEEL > Recent acceleration in announcements related to green steel supply agreements > Prominent steelmakers and commodity index providers recently introduced green steel premium mechan
Slide 40: Carbon Costs Adjustments
MARKET DYNAMICS CHAMPION IRON 2s CARBON COSTS ADJUSTMENTS > Carbon Border Adjustment Mechanism (CBAM) implemented by the EU aims to address the issue of carbon leakage and encourage decarbonization practices globally > CBAM will be implemented in 2026, and reach its full impact by 2034, which will i
Slide 41: Carbon Costs Adjustments Case Studies: EU and China
MARKET DYNAMICS CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF CARBON COSTS ADJUSTMENTS CASE STUDIES: EU AND CHINA > > Post-2034, all EU steel producers will be exposed to carbon cost obligations BOF producers carbon costs are forecasted to be nearly 16 times higher than their EAF peers once CB
Slide 42: Governments Supporting the Green Steel Transition
GOVERNMENTS SUPPORTING THE GREEN STEEL TRANSITION CHAMPION IRON 2s oR. LOCAL SUPPORT GLOBAL ALIGNMENT TO INCREASE DEMAND FOR GREEN STEEL > Québec & Labrador and > At COP28, several countries including Canada, Germany, UK and US, pledged to procure Newfoundland listed high-purity iron green steel for
Slide 43: Industry Insights
- INDUSTRY INSIGHTS , INC. Continuous Improvement Experts Disclaimer: This section of the Presentation (included in slides 44 to 71) (the “CIX Presentation”) is a presentation by CIX Inc. (Continuous Improvement Experts). The CIX Presentation has been prepared by CIX Inc. The CIX Presentation contai
Slide 44: Presenter Bio
PRESENTER BIO Jeremy was born in Tonbridge, England in 1961 and emigrated to Canada in 1966. Jeremy grew up in Ottawa and attended Queen's University in Kingston, Canada, earning a BSc in Chemical Engineering in 1983 followed by an MSc in Chemical Engineering in 1985. Jeremy is a founding partner an
Slide 45: Steelmaking Processes
Continuous Improvement Experts STEELMAKING PROCESSES
Slide 46: Historical Steelmaking Production by Process
HISTORICAL STEELMAKING PRODUCTION BY PROCESS Cix.. 100% Puddling Bessemer-Thomas Open Hearth 80% Basic Oxygen ' Electric Arc Furnace t Reduction 60% Global Steel Prodcution by Process 1860 1880 1900 1920 1940 1960 1980 2000 2020 Sources: Holappa L. (2019). Historical overview on the development of c
Slide 47: Current Annual Steelmaking Production by Process
CURRENT ANNUAL STEELMAKING PRODUCTION BY PROCESS CRUDE STEEL PRODUCTION IN 2022 Other Europe Other Asia 2.4% 8.1% Russia & other CIS + Ukraine Japan 4.6% 47% North America 5.9% India 6.6% Source: WorldSteel CRUDE STEEL PRODUCTION BY PROCESS IN 2022 =BF mEAF 0% 20% 40% 60% 80% 100% China India Japan
Slide 48: Future Steelmaking Production by Process
FUTURE STEELMAKING PRODUCTION BY PROCESS mC ramon nororenert Ea 1400 115 157 1200 1000 800 1278 600 1182 400 200 ° 2019 2030 2040 2050 2060 2070 = Commercial BF tInnovative BF with CCUS = Commercial DRI = Commercial DRI with CCUS ™ 100% H, DRI Commercial SR Innovative SR with CCUS Source: IEA Energy
Slide 49: Overview of the Steelmaking Process
OVERVIEW OF THE STEELMAKING PROCESS Electric Arc Furnace Steelmaking Source: World Stee! Assaciation 4g
Slide 50: EAF vs Integrated Steel Plant
EAF VS INTEGRATED STEEL PLANT A Metal integrated steel works plant INTEGRATED STEEL PLANT Sie plat Secon ps Veco > Huge associated ono (Rees oe infrastructure - high cost of —— \ investment Coking plant 4 > Several environmental n i 7 = concerns a Coke a i > Utilizes 70-85 % hot metal in tee! scrap
Slide 51: H2-DRI-EAF: Preferred Solution to Decarbonize Steel
H2-DRI-EAF: PREFERRED SOLUTION TO DECARBONIZE STEEL @ COKE/COAL BASED BF and BOF route (80% hot metal and 20% scrap in BOF) 6) DR and EAF route NATURAL CAS (80% hot DRI and 20% scrap in EAF) t) DR and EAF route HYDROGEN (80% hot DRI from green hydrogen and ai 20% scrap in EAF) @ HYDROGEN BASED DR an
Slide 52: Use of BF Pellets and Intermediate Electric Smelting
USE OF BF PELLETS AND INTERMEDIATE ELECTRIC SMELTING > Apotential solution for the use of lower grade BF pellets as DRI feedstock is an intermediate smelting/melting step between DR plant and steel plant. This technology is already offered by suppliers and plant builders (Tenova, Primetals, Metso Ou
Slide 53: Intermediate Electric Smelting
INTERMEDIATE ELECTRIC SMELTING Cix.. USING AN INTERMEDIATE STEP TO ENABLE THE USE OF LOW-GRADE IRON ORE IN DRI-EAF IS SIGNIFICANTLY MORE COMPLEX AND COSTLY Hot DRI transport connects direct Electrical energy supplied by three ff reduction plant with Smelters transformers — energy is required ; for m
Slide 54: Scrap picture placeholder
Scrap picture from Jeremy (see from training, pictures of scrap)
Slide 55: Scrap Supply Challenges
SCRAP SUPPLY CHALLENGES Cix.. > Rising residual levels - copper, tin, nickel, molypbdenum/chrome > &xtraneous materials - dirt, oil, grease fluff, coatings > Proximity of scrap to steelmaking hubs - logistics of collection/transportation and associated CO; footprint > Lack of common global nomenclat
Slide 56: A Solution Is Needed to Achieve High Scrap Recycle Rate
A SOLUTION IS NEEDED TO ACHIEVE HIGH SCRAP RECYCLE RATE > > In North America, the short-term solution is dilution; this is evidenced by the high use of ore-based materials (pig iron, DRI and HBI) in the charge mix to dilute residual levels in the recycled steel The added benefits of DRI and HBI on G
Slide 57: The Challenge with Respect to Scrap Residual Limits
THE CHALLENGE WITH RESPECT TO SCRAP RESIDUAL LIMITS mC Connaus neon ne . SCRAP PRODUCTS AND RESIDUAL LIMITS FOR CERTAIN STEEL Key Drivers Residual limit for exposed auto sheet > Ashortage in prime scrap > Rising copper levels in obsolete OBMs HBI/DRI Residual limit for CQ sheet scrap Pig Iron / GPI
Slide 58: An Example with Copper Residuals in Scrap
AN EXAMPLE WITH COPPER RESIDUALS IN SCRAP mC Cetra noeweneet pe > Currently, the average copper content of scrap recycled in North America is about 0.25-0.30 weight % > Even at this level, to make a product with 0.10 wt. % Cu max, it is necessary to blend around 65% OBM to achieve the targeted chemi
Slide 59: Photo placeholder: DRI and HBI
Jeremy: Photo showing DRI and HBI
Slide 60: A Historical Perspective of OBMs
A HISTORICAL PERSPECTIVE OF OBMs PAST > Ore based metallics “OBMs” (pig iron, DRI and HBI) are > Eliminated the need for charge carbon derived from iron ore as opposed to scrap > Resulted in increased oxygen utilization in the EAF > OBMs have been utilized in EAF operations for many years > The next
Slide 61: Other Considerations for OBM Utilization
OTHER CONSIDERATIONS FOR OBM UTILIZATION mC Cetra noeweneet pe > Helps to close the loop on the circular economy > Enables utilization of more medium/low grade scrap > Greater steelmaking capacity moving to EAF based production > Consistency of EAF operations > Pacing of operations Source: Image fro
Slide 62: Example of Merchant Material Flow for HBI
EXAMPLE OF MERCHANT MATERIAL FLOW FOR HBI Cix.. Iron Oxide Pellets, Lumps & Concentrate Direct Reduction Hot Briquetting Transfer | Iron & Steel a 4 Production — i Y Shipping per IMO guidelines for DRI (A) Soft-loading Source: Midrex 62
Slide 63: Merchant DR Pellet Short-Term Demand Projection
MERCHANT DR PELLET SHORT-TERM DEMAND PROJECTION Cix.. > ron ore pellet prices are largely a function of demand for the Chinese steel industry v In the latter part of 2021, as China reduced integrated steel production, pellet prices have dropped > However, increased demand globally for EAF based stee
Slide 64: DRI Demand Long-Term Projections
DRI DEMAND LONG-TERM PROJECTIONS DRI production in 2050 - scenario comparison - mt 900 Metallics demand BQO 796 Metalics undergo a major overhaul 700 mt— Scrap DRI Hot Metal | 600 Base (2021) 750 117 1369 596 500 549 Base (2050) 1200(1.6) @ 27924) @ 1150/0864) 400 WET1.5 (2050) 1294(17x) @ 549(47%)
Slide 65: Wire Rod and Hot Rolled Coil
⎪ ⎪ → → → WIRE ROD Low Grade High grade Bearing Alloy Machine Structural Low Carbon Valve Spring Suspension Spring Cold Heading Rebar Tire Cord Piano Wire EAF (SCRAP) high DRI utilization EAF (DRI and SCRAP) HOT ROLLED COIL High grade Low Grade Can Stock Automotive (Interior Parts) Construction Auto
Slide 66: Value-in-Use Concept
S KY cx +77 LR Continuous Improvement Experts VALUE-IN-USE ("VIU") CONCEPT 66
Slide 67: Value-in-Use Model Input Parameters
VALUE-IN-USE MODEL INPUT PARAMETERS LOW IS GOOD HIGH IS GOOD > % ACID GANGUE (Si0,, Al,0,) - Higher gangue results > %Fe TOTAL - As high as possible in increased kWh, higher yield losses, higher flux -> % METALLIZED Fe (PURE Fe) - Want this as high as requirements, higher slag generation possible >
Slide 68: Impact of Acid Gangue Content in EAF Explained
IMPACT OF ACID GANGUE CONTENT IN EAF EXPLAINED mC Conmanas neroenent be > The higher the gangue content, the greater the flux requirement in the EAF > Fluxes combine to form calcium silicate, di-calcium silicate - consumes about 740 kWh per tonne of slag > Larger slag quantity results in greater yie
Slide 69: DR Pellet VIU Calculation Inputs
DR PELLET VIU CALCULATION INPUTS DR pellet provenance Bloom Lake Lead competitor 1 Lead competitor 2. Lead competitor 3 Assumed purchase cost (US$/t) 400 400 400 400 Fe Tot 93.1% 92.1% 92.0% 92.4% Fe Met 87.5% 86.6% 86.5% 86.8% Metallization 94.0% 94.0% 94.0% 94.0% c 2.0% 2.0% 2.0% 2.0% siO, 1.5% 1.
Slide 70: DR Pellet VIU Calculation Outputs
DR PELLET VIU CALCULATION OUTPUTS OMP OR OMP OR OMP OR BLOO f Assumed DRI purchase cost US$/t 400 400 400 400 (+) ADJUSTMENTS Change C us$ -0.03 -0.03 -0.02 Dolo Lime us$ 2.48 2.32 2.47 Lime us$ -0.41 0.83 -0.52 Kwh us$ 0.7 1.03 0.66 Productivity us$ 0.38 0.56 0.36 (+) Fe YIELD Kg Fe/Kg DR pellet 0.
Slide 71: Conclusion
CONCLUSION STEELMAKING > DRI and HBI have evolved into a high-quality charge material for the EAF with multiple benefits > Benefits are highly dependent on practices and local plant parameters > Benefits are best quantified using a VIU model > Roof feeding gives considerable benefits SCRAP vs. OBMs
Slide 72: a re
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Slide 73: A Rare Solution to Decarbonize Steelmaking
A RARE SOLUTION TO DECARBONIZE STEELMAKING CHAMPION IRON A
Slide 74: Operational and Financial Performance
OPERATIONAL AND/FINANCIAL STP inae oe PE R FOR MAN Cc E TSX: CIA | ASX: CIA 7 pf ae
Slide 75: Bloom Lake a World Class Asset
OPERATIONAL PERFORMANCE CHAMPION IRON 2s BLOOM LAKE A WORLD CLASS ASSET > BLOOM LAKE PRODUCTION Significant investments completed to recommission the Bloom (M WMT/YEAR) 1 2 Lake Phase | in 2018 and complete the Phase II expansion in nz g_! 2022 - 79 8079 reel i 8 Increased operational stability, res
Slide 76: Rail Transportation and Logistics
OPERATIONAL PERFORMANCE CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX: CIAFF RAIL TRANSPORTATION AND LOGISTICS E} RAIL OVERVIEW > Champion signed a long-term contract with QNSEL, providing haulage capacity exceeding Bloom Lake's nameplate capacity of 15 Mtpa Slower than anticipated ramp-up in railway
Slide 77: Production and Operations
OPERATIONAL PERFORMANCE CHAMPION IRON 2s PRODUCTION AND OPERATIONS > Since 2018 restart: Bloom Lake mine consistently exceeded mining tonnage targets set out in the Phase | restart study, demonstrating bulk mining expertise, while ore grades reconciled with expectations > Recent performance: Materia
Slide 78: Production and Operations
OPERATIONAL PERFORMANCE CHAMPION IRON 2s PRODUCTION AND OPERATIONS > Since 2018 restart: Iron ore concentrate production in line with Phase | restart study, including low variability quarter over quarter > Recent performance: Record quarterly iron ore production of 4.04M wmt in Q3/FY24. Work program
Slide 79: Diversified Global Customer Base
SALES PERFORMANCE CHAMPION IRON 2s DIVERSIFIED GLOBAL CUSTOMER BASE > Benefiting from its high-purity iron ore concentrate, Champion completed sales to a large array of global customers, including over 35 customers since the 2018 recommissioning > Asignificant portion of sales are secured with long-
Slide 80: Premium Product Pricing
SALES PERFORMANCE CHAMPION IRON 2s PREMIUM PRODUCT PRICING > Gross realized price of US$130.6/dmt! since 2018 restart, which compares favourably with the P65 high-grade index average of US$130.5/dmt and 15% premium over P62 AVERAGE REALIZED SELLING PRICE SINCE 2018 RESTART 32.6 $136.5 $130.5 $130.6
Slide 81: Competitive Cost Structure
FINANCIAL PERFORMANCE CHAMPION IRON 2s COMPETITIVE COST STRUCTURE TOTAL CASH COST Approx. 40% (C$/DMT) — Beer i since 2014 = ---- “ i 1) increase IN Canada since 200" i duct Price Index (IPP 1) increase aa +32% Industrial POPRE wa eno - — ge £ $81.3" ; $737' $73.0" . ; i $0 | 7 2014 2015 2016 2017 F
Slide 82: Value-in-Use Adjusted Iron Ore Cost Curve
FINANCIAL PERFORMANCE CHAMPION IRON 2s COMPETITIVE COST STRUCTURE VALUE-IN-USE (VIU) ADJUSTED IRON ORE COST CURVE (CFR, 62% FE FINES EQUIVALENT)! CHAMPION IRON 43 Since 2018, Champion's ViU-adjusted cost position proved to compete with the industry leading iron ore producers C$/DMT 750 MILLION WET M
Slide 83: Competitive Cost Structure
FINANCIAL PERFORMANCE CHAMPION IRON 2s COMPETITIVE COST STRUCTURE > Near-term outlook: Ongoing work programs to optimize operations as the Company completes the ramp-up of the Phase Il expansion project are expected to benefit total cash cost per tonne in the near-term TOTAL CASH COST TOTAL CASH COS
Slide 84: Financial Results
FINANCIAL PERFORMANCE CHAMPION IRON 2s FINANCIAL RESULTS > Total cash flow from operations (“CFO”) represents 66% of total EBITDA since Bloom Lake restart in 201982 +> Near-term outlook: Financial results expected to benefit in the near-term from increasing production volumes and normalizing operati
Slide 85: Capital Management Summary
FINANCIAL PERFORMANCE CHAMPION IRON 2s CHAMPION HAS A TRACK RECORD OF RESPONSIBLE CAPITAL MANAGEMENT CAPITAL MANAGEMENT SUMMARY (C$M) | $168.02 Ti =z — $387.4 — Te Equity Net Debt Cash Sustaining Expansion Dividend Buyback of QIO Other Cash Issuance Proceeds from Operations CAPEX and Dev CAPEX Payme
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⎪ ⎪ → → →
Slide 99: ⎪ ⎪ → → → → →
⎪ ⎪ → → → → →
Slide 100: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 101: ⎪ ⎪
⎪ ⎪
Slide 102: Tailings Management Facility
⎪ ⎪ Tailings Management Facility
Slide 103: ⎪ ⎪ → ▪ ▪ → →
⎪ ⎪ → ▪ ▪ → →
Slide 104: ⎪ ⎪ → →
⎪ ⎪ → →
Slide 105: ⎪ ⎪ > > >
⎪ ⎪ > > >
Slide 106: ⎪ ⎪ → → →
⎪ ⎪ → → →
Slide 107: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 108: See with Vincent for 5 yr perspective
⎪ ⎪ → → See with Vincent for 5 yr perspective →
Slide 109: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 110: ⎪ ⎪
⎪ ⎪
Slide 111: ⎪ ⎪
⎪ ⎪
Slide 112: ⎪ ⎪
⎪ ⎪
Slide 113: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 114: ⎪ ⎪
⎪ ⎪
Slide 115: ⎪ ⎪ ⎪ ⎪
⎪ ⎪ ⎪ ⎪
Slide 116: ⎪ ⎪
⎪ ⎪
Slide 117: ⎪ ⎪
⎪ ⎪
Slide 118: ⎪ ⎪
⎪ ⎪
Slide 119: ⎪ ⎪
⎪ ⎪
Slide 120: ⎪ ⎪
⎪ ⎪