Champion Iron Ltd. · ASX:CIA
Champion Iron — Non-Deal Roadshow (June 2019)
43 slides from Champion Iron's roadshow presentation, June 2019
Slide 1: Roadshow Presentation June 2019
ROADSHOW PRESENTATION JUNE 2019 a PREMIUM PRODUCT, TIER 1 JURISDICTION, C HAM P| O N | R O N Lx HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 24 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: Corporate Overview
CORPORATE OVERVIEW BLOOM LAKE
Slide 4: Structural Shift in Iron Ore
STRUCTURAL SHIFT IN IRON ORE ✓ Champion sells based on P65 premium benchmark > > >
Slide 5: Canada 2nd Largest Region in High-Grade
CANADA 2ND LARGEST REGION IN HIGH-GRADE > > SWEDEN – 16,1 RUSSIA CANADA 52 18,1 > UKRAINE 17 2,5 INDIA 385,4 AUSTRALIA 31,7 BRAZIL SOUTH AFRICA – 14,0
Slide 6: Competing on Cost Curve
COMPETING ON COST CURVE > GLOBAL COST CURVE (CFR CHINA – ADJUSTED FOR VIU) > BLOOM LAKE
Slide 7: Positioned for Profitability
POSITIONED FOR PROFITABILITY > >
Slide 8: Corporate Snapshot
CORPORATE SNAPSHOT (CIA-TSX; CIA-ASX) MARKET STATISTICS (C$M) SHAREHOLDERS
Slide 9: History of Bloom Lake vs Iron Ore Price
HISTORY OF BLOOM LAKE VS IRON ORE PRICE (C$/T) QIO Acquires Bloom Lake Cliffs Acquires Bloom Lake Recommissioned CLM for C4.9B Cliffs seeks creditor QIO Releases protection Feasibility Study 1st Shipment VALE Events
Slide 10: Labrador Trough = World-Class Opportunity
LABRADOR TROUGH = WORLD-CLASS OPPORTUNITY > > > > > >
Slide 11: Cost Structure Improvement (2014 vs Today)
COST STRUCTURE IMPROVEMENT (2014 VS TODAY) >
Slide 12: Bloom Lake Today
BLOOM LAKE TODAY CHAMPION IRON 24 > Achieved highest production on record > Achieved lowest cash cost on record BLOOM LAKE PRODUCTION BLOOM LAKE TOTAL CASH COST (C$/dmt) - HISTORY (WMT/YEAR) FISCAL 2019 7,000,000 $60 6,000,000 _—— $50 $7.03 $49.40 $19.28 $40 5,000,000 $30 $2.22 4,000,000 $10.59 “ Le
Slide 13: Diversified Customer Base
DIVERSIFIED CUSTOMER BASE Product sold to 12 different GERMANY – 5% CHINA SOUTH KOREA – 2% customers in 1st year of operation > > > 35% JAPAN - 28% INDIA – 2% UK – 2% BAHRAIN – 22% SINGAPOOR – 3%
Slide 14: Realized Pricing (FQ4/19)
REALIZED PRICING (FQ4/19) CHAMPION IRON 2 Q4 NET AVERAGE REALIZED SELLING PRICE ™ Increase © Decrease @ Total 120.00 $ 27.30 $ 104.40 $ 100.00 $ 82.70 $ 80.00 $ (21.60) $ r dmt sold 60.00 $ $p 40.00 $ 20.00 $ - $ aS Premium over P62 Freights & Other FX Conversion (US$) (US$) (CAS) Index P62 Selling
Slide 15: Operational Results
OPERATIONAL RESULTS BLOOM LAKE OPERATIONAL RESULTS FOR FISCAL 2019 > Achieved nameplate capacity > Focus on quality with continuous improvement in ore recovery > No penalties for contaminants since restart > Achieved record monthly recovery of 81.7% in February 2019 > Successful first winter of oper
Slide 16: Financial Results
FINANCIAL RESULTS > > > > Cash Operating Margin per Tonne 120.00 $ 100.00 $ 100.00 $ 80.00 $ 80.00 $ CA$ per dmt 60.00 $ 60.00 $ 40.00 $ 40.00 $ 20.00 $ 20.00 $ - $ - $ Q1 2019 Q2 2019 Q3 2019 Q4 2019 30-06- 30-09- 31-12- 03-31- 2018 2018 2018 2019 Cash Operating Margin Total All-in Sustaining Cost
Slide 17: Simplified Corporate Structure, Full Upside to Growth Initiatives
SIMPLIFIED CORPORATE STRUCTURE FULL UPSIDE TO GROWTH INITIATIVES → → → →
Slide 18: Rapidly Improving Balance Sheet
RAPIDLY IMPROVING BALANCE SHEET Q3 2019 Q4 2019
Slide 19: Strong Leverage to Commodity Price
STRONG LEVERAGE TO COMMODITY PRICE > >
Slide 20: Bloom Lake Phase 1 7.4Mtpa
BLOOM LAKE PHASE 1 7.4MTPA > > > > > >
Slide 21: Bloom Lake Phase 2 Robust Economics
BLOOM LAKE PHASE 2 ROBUST ECONOMICS
Slide 22: Bloom Lake Phase 2 Positioning as a Global Leader
BLOOM LAKE PHASE 2 POSITIONING AS A GLOBAL LEADER > >
Slide 23: Bloom Lake Phase 2 Rapid Timeline to Production
BLOOM LAKE PHASE 2 RAPID TIMELINE TO PRODUCTION PHASES / EVENTS 2019 2020 2021 (CALENDAR PERIODS) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 24: Regional Opportunities Phase 3
REGIONAL OPPORTUNITIES PHASE 3 > > >
Slide 25: Health & Safety
HEALTH & SAFETY CHAMPION IRON 29 > Continuous improvement on safety since declared commercial production > Bloom Lake statistics are meeting annual targets including “Lost Time Injury Frequency Rate” and “Disability Injury Severity Rate” > Lost time injury remains below benchmark for open pit mine*
Slide 26: Environmental Focused
ENVIRONMENTAL FOCUSED CHAMPION IRON 24 CONVEYOR SYSTEM Reduction of 3,400,000L ELECTRIC BOILER CONVERSION of diesel 9,300 t/yr GHG Reduction of 3,800,000L Fuel oil gE 5 a 10,300 t/yr GHG - 40% TAILINGS PUMPING SYSTEM Reduction of 4,900,000L of diesel 13,600 t/yr GHG - 25% 2014 GHG EMISSIONS 2014 FIX
Slide 27: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM > > > > > > > > > > > > > > > > > > >
Slide 28: Track-Record of Success
TRACK-RECORD OF SUCCESS $20 $15 $10 $5 – Sep-04 May-06 Jan-08 Oct-09 Jun-11 > > > > > > > > > > > > > > >
Slide 29: Slide 29
Slide 30: Corporate Structure
CORPORATE STRUCTURE Champion Iron Limited 100% CHAMPION IRON 29 Corporate Structure Ressources Québec 63.20% Champion Iron Mines 100% Fermont Property Holdings - 8 prospective land properties > 700km? 36.80% Québec Iron Ore (“QIO”) 100% Bloom Lake Mine and Infrastructure Note: QIO is consolidated in
Slide 31: Iron Ore Value Chain
IRON ORE VALUE CHAIN SLINTER PELLETS >
Slide 32: Tailing Management
TAILING MANAGEMENT > > > > > Centerline/Downstream Upstream
Slide 33: Infrastructure and Logistics
INFRASTRUCTURE AND LOGISTICS > > > > > > > > > > > > > > > > > >
Slide 34: Bloom Lake Updated Recovery Flowsheet
BLOOM LAKE UPDATED RECOVERY FLOWSHEET > > > > >
Slide 35: Investment Highlights: Updated Feasibility Economics Phase 1
INVESTMENT HIGHLIGHTS UPDATED FEASIBILITY ECONOMICS – PHASE 1
Slide 36: Bloom Lake - Reserves & Resources
BLOOM LAKE - RESERVES & RESOURCES FEASBILITY STUDY – MARCH/2017
Slide 37: Valuable and Sought-After Product
VALUABLE AND SOUGHT-AFTER PRODUCT > > > > > ✓ ✓ ✓
Slide 38: Bloom Lake Mine Complex
BLOOM LAKE CHAMPION IRON 24 MINE COMPLEX
Slide 39: Phase 1 Plant
PHASE 1 PLANT CHAMPION IRON 24 39
Slide 40: Phase 2 Plant
PHASE 2 PLANT CHAMPION IRON 24 40
Slide 41: Multi-User Port
MULTI-USER PORT CHAMPION IRON 29 41
Slide 42: First Vessel
FIRST VESSEL CHAMPION IRON 24 4l
Slide 43: Thank You!
THANK YOU! Contact us for more information. DAVID CATAFORD, MICHAEL MARCOTTE, CEO VP INVESTOR RELATIONS dcataford@championrionmines.com mmarcotte@championironmines.com 1100 René-Lévesque Blvd. West, Suite 610 Montreal QC H3B 4N4 Lx Tel.: +1 514 316 4858 M P Fax.: +1 514 819 8100 CHA | 0 N CHAMPIONIR