Champion Iron Ltd. · ASX:CIA
Champion Iron — Investor Presentation (July 2021)
22 slides from Champion Iron's investor presentation, Jul 29, 2021
Slide 1: Premium Product, Tier 1 Jurisdiction, High Quality Infrastructure
PREMIUM PRODUCT, TIER 1 JURISDICTION, HIGH QUALITY INFRASTRUCTURE C HAM Pl 0 N | RO N aA
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX: CIAFF This This presentation (the “Presentation”) contains information about Champion Iran Limited, currentas at the datehereof or as at such earlier date asmay be specifiedherein. This Presentation does not constitute form part of and shauld n
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS CHAMPION IRON 249 TSX: CIA | ASX: CIA | OTCQX: CIAFF V7 DAVID CATAFORD MICHAEL O’KEEFFE NATACHA GAROUTE ALEXANDRE BELLEAU MICHAEL MARCOTTE Chief Executive Officer Executive Chairman Chief Financial Officer Chief Operating Officer Vice-President Investor Relations
Slide 4: FY2022 First Quarter Highlights
FY2022 FIRST QUARTER HIGHLIGHTS CHAMPION IRON 249 TSX: CIA | ASX: CIA | OTCQX: CIAFF rs] 1,936,000 WMT $60.1/DMT REVENUES $545.4M $466.7M TOTAL CASH ON HAND* NET CASH FLOW OPS BEFORE WC Lip wwe \ CONCENTRATE PRODUCED TOTAL CASH COST & RESTRICTED CASH $248.4M EBITDA $405.7M 253.1M SHORT-TERM AND 82.9
Slide 5: Sustainability and Health & Safety
SUSTAINABILITY AND HEALTH & SAFETY CHAMPION IRON Z¥ TSX: CIA | ASX: CIA | OTCQX: CIAFF Industrie Cote-Nord > Maintained the operating rapid testing COVID-19 laboratory at the Bloom Lake mine Pale de vaccination with strict measures to adapt operations and conform to or exceed the Government's direct
Slide 6: Industry Overview
INDUSTRY OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF Iron ore prices continued to rise in the period with global steel demand accelerating globally Vv World Steel Association reported a 17.4% year over year increase for global steel output in the quarter > Rising steel margins, enfo
Slide 7: Bloom Lake Operational Results
BLOOM LAKE OPERATIONAL RESULTS CHAMRION (ata TSX: CIA | ASX: CIA | OTCQX: CIAFF
Slide 8: Operations Overview
OPERATIONS OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Robust operational results despite a scheduled semi-annual Iron ore concentrate Ore mined and hauled maintenance program produced (M wmt) (M wmt) > Stable iron ore recovery in line with target > Strip ratio and head grade in l
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Slide 10: First Quarter Financial Highlights
FIRST QUARTER FINANCIAL HIGHLIGHTS > Record quarterly revenue, EBITDA, net income and EPS > Higher total cash cost mainly resulting from increased costs of the scheduled and completed maintenance program > Cash flows impacted by timing of supplier payments and receivables FINANCIAL RESULTS ($ MILLIO
Slide 11: First Quarter Average Realized Selling Price
FIRST QUARTER CHAMPION IRON 2 AVERAGE REALIZED SELLING PRICE TSX: CIA | ASX: CIA | OTCQX: CIAFF > Average gross realized price 31.3% higher than the previous quarter > Rising demand for high-grade iron ore eliminated discounts and certain additional premiums to the P65 index > Rising coking coal pri
Slide 12: Positive Provisional Price Adjustment
POSITIVE PROVISIONAL CHAMPION IRON 249 PRICE ADJUSTMENT TSX: CIA | ASX: CIA | OTCQX: CIAFF > 1M tonnes which were subject to provisional pricing at the end of 04/FY21 realized final prices during the quarter > Q1/FY22 positive provisional pricing adjustment of $60.9M (US$49.9M) represents a positive
Slide 13: Positive Cash Operating Margin
POSITIVE CASH OPERATING MARGIN CHAMPION IRON 249 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Increased cash operating margin for the seventh consecutive quarter > Total cash cost up 2.9% year over year mainly due to increased costs of the scheduled and completed maintenance > Sustaining costs impacted by t
Slide 14: Diligent Balance Sheet Management
DILIGENT BALANCE SHEET MANAGEMENT CHAMPION IRON 249 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Redeemed 60M QIO preferred shares held by Caisse de Depot et placement du Quebec for $60M > Redemption is expected to reduce future dividend payments and overall cost of capital > $125M in QIO preferred shares w
Slide 15: Cash Change Details
CASH CHANGE DETAILS > Cash flows from operations* of $248.4M, an improvement of 47.2% compared to the previous quarter > Paid the fiscal 2021 taxes payable totalling $191.5M in May 2021 > Cash impacted by the Phase II work programs, the Kami project acquisition, the preferred shares redemption and c
Slide 16: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH CHAMPION IRON 249 TSX: CIA | ASX: CIA | OTCQX: CIAFF $423.3M Cash & S-T investments $43.4M Restricted cash* $126.8M Working capital | | = bd « Net cash* positive of $340.5M (including working capital) ¥Y $3.0M QoQ improvement in net cash* $253.1M Long-term debt (f
Slide 17: CIAFF
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF
Slide 18: Phase II Advancing as per Expectations
PHASE II ADVANCING AS PER EXPECTATIONS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Project progressing as planned with completion expected by mid-2022 PHASE II - CAPEX (C$M) > Construction work accelerating and expected to peak in Q2 fiscal 2022 > Deployed an additional $118.3M in the quar
Slide 19: Positioning for the Future
POSITIONING FOR THE FUTURE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF V_ Initiated work to revise the scope and feasibility study of the recently acquired Kami project V On July 12, 2021, Champion completed the acquisition of the Lac Lamélée south property in addition to a 1.5% net smelter
Slide 20: Thank You to Our Staff
THANK YOU TO OUR STAFF CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Arenewed collective agreement was reached on June 23, 2021 > Revised agreement reaffirms our long-term partnership with our workers PRIDE UPHOLDING ® OUR VALUES af, INGENUITY FORA SUSTAINABLE <Y RESPECT FUTURE > TRANSPARENC
Slide 21: Champion Iron
CHAMPION IRON 249 Contact us for-more information. Michael Marcotte, VP Investér-Relations mmarcotte@championiron.com 514-316-4858
Slide 22: Appendix
APPENDIX CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF NOTES ON HISTORICAL ESTIMATES USED IN THE PRESENTATION The historical Lac Lamélée resource estimates are based on the NI 43-101 technical report entitled “NI 43-10 Technical Report and Mineral Resource Estimate on the Lac Lamélée South Res