Champion Iron Ltd. · ASX:CIA
Champion Iron — Investor Presentation (February 2023)
39 slides from Champion Iron's investor presentation, February 2023
Slide 1: Investors Presentation February 2023
INVESTORS PRESENTATION FEBRUARY 2023 PREMIUM PRODUCT TIER 1 JURISDICTION CHAM PION IRON AX HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF ‘This presentation (the "Presentation”) contains information about Champion Iran Limited (*Champian” or the “Company"),current as at the datehereof ar as at such earlier date as may be specified herein, This Presentation does not consti
Slide 3: Corporate Overview
CORPORATE OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF LARGEST PUBLICLY LISTED PURE-PLAY HIGH-GRADE IRON ORE PRODUCER, GLOBALLY > énd largest hub of high-grade exports globally > Access to infrastructure, including renewable hydroelectric power > [ey inl ai > 10.1% management owners
Slide 4: Focus on Sustainability
FOCUS ON SUSTAINABILITY CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF + + . . SUSTAINABILITY > No occurrence of major environmental issues since ay~ REPORT recommissioning the Bloom Lake mine in February 2018 > Learn more about our sustainable practices in our 2021 Sustainability Report availa
Slide 5: A Global Solution for the Transitioning Steel Industry
A GLOBAL SOLUTION FOR THE mn TRANSITIONING STEEL INDUSTRY = | ASX: CIA | OTCOX : CIAFF
Slide 6: Steel is Critical for an Energy Transition
STEEL IS CRITICAL FOR AN ENERGY TRANSITION CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF IRON ORE, USED IN STEELMAKING, IS ESSENTIAL FOR LOW CARBON TECHNOLOGIES Raw Materials Critical for the Transition to a Low-carbon Economy . 4 Geothermal Hydro Nuclear Electricity Bioenergy Concentrated Hy
Slide 7: High Purity Iron Ore: A Solution for Green Steel
HIGH PURITY IRON ORE>A SOLUTION FOR GREEN STEEL CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF THE STEEL INDUSTRY WILL NEED TO ADAPT TO LIMIT EMISSIONS > The steel industry significantly increased its share of global emissions in the last 20 years and currently represents more than 7.2% of glo
Slide 8: Notes and sources
Notes and sources: Blast Furnaces (“BF”); Basic Oxygen Furnace (“BOF”); Direct Reduced Iron (“DRI”); Electric Arc Furnace (“EAF”). 1. Champion Iron Limited , Wood Mackenzie | 2. World Steel Association | 3. 2.0 MW turbine models by Vestas contain approx. 170 tonnes of steel (National Renewable Energ
Slide 9: Significant Impact Towards Reducing Emissions
SIGNIFICANT IMPACT TOWARDS REDUCING EMISSIONS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF Lx 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 Com
Slide 10: Embedded Value of High-Purity Iron Ore
EMBEDDED VALUE OF HIGH-PURITY IRON ORE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF Project 66.2% Fe BF/BOF Process DRI/EAF Process 1.9M tonnes US$226M in C02 eq/year = value/year! 9.7M tonnes CO2 US$1,152M in eq/yeart = value/year! EU EMISSION TRADING SYSTEM FORWARD CURVE e140 (EUR/MT CO,)
Slide 11: Green Steel Transition Underway
GREEN STEEL TRANSITION UNDERWAY CHAMPION IRON 2d NEW EAF CAPACITY TO INCREASE DEMAND FOR DRI > The transition from BF/BOF towards DRI/EAF steelmaking is accelerating globally, including the announcement of 59 new EAF plants in China during the 18 months ending June 2022}, which is expected to trigge
Slide 12: DRI Growth Compares Favourably with Other Metals
DRI GROWTH COMPARES FAVOURABLY WITH OTHER METALS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF AN EXPECTED TRANSITION FOR THE STEEL INDUSTRY WILL INCREASE DEMAND FOR DRI Metal Demand Growth by 2050 Expected by a Global Energy Transition (AET 2.0c Scenario) Copper [7% Aluminum I] 3% Molybdenum
Slide 13: Prime Products in a Niche Market
PRIME PRODUCTS IN A NICHE MARKET CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF SINTER FEED SINTER FEED 639% AVERAGE FE % AVERAGE GANGUE % } > Global iron ore . . 62.9% production Fe quality som and purity deteriorated over the last decades 1998 2010 2019 1998 2010 2019 mSilica =Alumina SUMMARY
Slide 14: DRPF Product: Expected Deficit
DRPF PRODUCT: EXPECTED DEFICIT CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF DR-GRADE IRON ORE SUPPLY/DEMAND BALANCE BY 2031 Million tonnes Demand Supply® Balance DR iron ore demand 303 Integrated players Other seaborn producers || 2s neve src Global DR quality iron ore demand is expected to e
Slide 15: Competitor ranking by port, spare capacity and renewable energy
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 16: Producing with a Low Emission Footprint
PRODUCING WITH A LOW EMISSION FOOTPRINT CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF Kg of CO2 emitted per tonne of iran are praduced (scope 3°) 1, Scope 1 figure for cale ‘ce: Wood Mackenzie 2 Canadian Iron Ore Production is Advantaged by > Significant hydropower generation capacity > Direct
Slide 17: Recent Results
CHAMPION IRON CHAMPION IRON 2te | RECENT RESULT a" TSX: CIA | ASX: CIA | OTCOX : CIAFF
Slide 18: Setting New Production Records at Bloom Lake
SETTING NEW PRODUCTION RECORDS AT BLOOM LAKE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF BLOOM LAKE PRODUCTION HISTORY > FY2023 results: Record iron ore (MILLION WMT/YEAR) concentrate production of 8.1M wmt in the nine months ended December 31, 2022, positively impacted by the commissioning
Slide 19: Proven Cost Structure
PROVEN COST STRUCTURE CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF TOTAL CASH COST? $100 (C$/DMT) oo $50. - onal $0 2014 2015 2016 = 2017_-FY20191 FY2020 FY2021 FY2022 PREVIOUS OWNERS CHAMPION IRON & > FY2023 results: Total cash costs? of $71.7/t (US$54.6/t) for the nine months ended Dec 31,
Slide 20: Robust Financial Results
ROBUST FINANCIAL RESULTS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF > £FY2023 results: Reported EBITDA? and adjusted EPS’ of -> Balance sheet positioned for growth as of Dec 31'*, 2022 $297.5M and $0.27, respectively, for the nine months ended December 31, 2022 m $166.3M Cash & S-T investm
Slide 21: Product Development and Growth Initiatives
PRODUCT DEVELOPMENT CHAMPION IRON 23 AND GROWTH INITIATIVES iA | OTCOX
Slide 22: Phase II - Significant Milestone
PHASE II - SIGNIFICANT MILESTONE CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF > >US$1.6B project initiated in 2011 by Bloom Lake’s previous owner is expected to double Bloom Lake’s nameplate capacity > Commissioning of the Phase Il expansion project achieved ahead of the previously anticipat
Slide 23: Phase II - Ramping-up as Scheduled
PHASE II - RAMPING-UP AS SCHEDULED CHAMPION IRON 2d TSX: CIA | ASX: CIA | OTCQX : CIAFF > Achieved commercial production milestone in December 2022 > Phase Il project’s cumulative production as of Q3/FY23 compares favourably to the scheduled ramp-up production assumptions > Ongoing optimization work
Slide 24: Green Steel Supply Chain Solutions
GREEN STEEL SUPPLY CHAIN SOLUTIONS CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF Champion is well positioned to service the steel industry's transition to EAF with its growth projects focused on DR quality iron ore products Positive findings of the feasibility study evaluating the reprocessing
Slide 25: A Global Scale Opportunity
A GLOBAL SCALE OPPORTUNITY CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF REGIONAL ADVANTAGES & OPPORTUNITIES Sticbury Hie diam take Ming > Champion controls 7 iron rich properties within 60 kilometres of the i nh Bloom Lake Mine > Assets located in a proven iron ore operating region including:
Slide 26: DRPF Project Study Highlights
DRPF PROJECT STUDY HIGHLIGHTS CHAMPION IRON 23 TSX: CIA | ASX: CIA | OTCOQX: CIAFF
Slide 27: DRPF Project - Overview
DRPF PROJECT - OVERVIEW CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX : CIAFF > Additional reprocessing and infrastructure required to upgrade the Bloom Lake Phase II plant production from 66.2% to a 69% Fe DRPF quality iron ore (the “Project”), including: = Phase Il circuit optimization = Thickener
Slide 28: DRPF Project: Design and Basic Flow Sheet
DRPF PROJECT: DESIGN AND BASIC FLOW SHEET CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF PROJECT USING PROVEN AND OPTIMIZED TECHNOLOGIES Tower Mill FEED GRINDING > Proven tower mill technology, reducing energy consumption significantly compared to traditional ball mills FLOTATION > Proven proce
Slide 29: DRPF Project: Investing in Our Vision
DRPF PROJECT: INVESTING IN OUR VISION CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF > Total pre-production investments estimated at C$470.7M, including $46.4 in electrical upgrade and port related infrastructure Key Project assumptions including: > Project estimated construction timeline of 3
Slide 30: DRPF Project: Positive Impact for All Stakeholders
DRPF PROJECT: POSITIVE IMPACT FOR ALL STAKEHOLDERS CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX : CIAFF > Positive findings in the feasibility study demonstrate robust Project economics cS US$ a \\, Net Present Pre-tax NPVgo, of $1230.1M — Pre-tax NPV, of $918.0M Value ("NPV") After-tax NPV,q, of $7
Slide 31: DRPF Timeline and Funding
DRPF TIMELINE AND FUNDING CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF > To maintain the Project timeline, the Board of Directors approved a preliminary budget of $10M, to be funded from existing liquidity, to advance the project during the remainder of 2023, including detailed engineering an
Slide 32: Our People Are Our Most Valuable Asset
OUR PEOPLE ARE OUR MOST VALUABLE ASSET CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCQX : CIAFF CREATING A POSITIVE IMPACT FOR LOCAL COMMUNITIES WITH OUR EXPERTISE, ROBUST CULTURE AND VALUES ® PRIDE ata INGENUITY SY RESPECT >) TRANSPARENCY Gd Gd UPHOLDING OUR VALUES FOR A SUSTAINABLE FUTURE y a 32
Slide 33: Thank You!
THANK YOU! persed see” Contact.us for more'informati Michael Marcotte, CFA " Senior Vice-President info(@championiron.com. 514-316-4858
Slide 34: Additional Material
ADDITIONAL MATERIAL CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF
Slide 35: High Grade Ore Reduces Emissions in Steel Making
HIGH GRADE ORE REDUCES EMISSIONS IN STEEL MAKING CHAMPION IRON 2d STEEL MAKING METHODS AND REQUIRED SUPPLY CHAIN +> Champion commercially produces a 66.2% Fe iron ore concentrate and can produce a >67.5% Fe DR quality iron ore concentrate, enabling the Company to reduce emissions in the Blast Furnac
Slide 36: Green Steel Value Chain Pricing
GREEN STEEL VALUE CHAIN PRICING CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF Material value captures in the steel value chain occurs between pellet and HBI as well as the HRC stage 2021 AVERAGE REALIZED PRICES ACROSS THE VALUE CHAIN (USD/T CFR CHINA) A +71% $253 $815 $68 La $475 ees iz A+30%
Slide 37: Growing Industry Lack of Development Capital
GROWING INDUSTRY LACK OF DEVELOPMENT CAPITAL CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX : CIAFF > Globally steel output is rising faster than iron ore supply in major hubs CHINA TOTAL CRUDE STEEL OUTPUT 5- YEAR (10,000 TONS) 10,000 5,000 10,000 TONS 10-2017 10-2018 10-2019 10-2020 10-2021 10-2022
Slide 38: Company Projects Mineral Resources & Reserves
COMPANY PROJECTS MINERAL RESOURCES & RESERVES CHAMPION IRON 2 TSX: CIA | ASX: CIA | OTCOX : CIAFF PROPERTY CHAMPION IRON LIMITED - MINERAL RESOURCES (MILLION ORY METRIC TONNES) orcaTeD ‘ROUP MEASURED Mt Mt Fo MEAS + IND Foe INFERRED Mt SOURCE Elcom Lake Phase l proven and probable reserves are based
Slide 39: Appendix: Notes on Historical Estimates
APPENDIX CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX : CIAFF 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 entited “Feasibility Study of the Rose Deposit and Resource Estimate for
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