Slide 1: First Quarter of the 2023 Financial Year
FIRST QUARTER OF THE 2023 FINANCIAL YEAR TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF Webcast Presentation – July 28, 2022 PREMIUM PRODUCT TIER 1 JURISDICTION HIGH QUALITY INFRASTRUCTURE
Slide 2: Disclaimer
DISCLAIMER TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF This presentation (the "Presentation") contains information about Champion Iron Limited ("Champion" or the "Company"), 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
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF DAVID CATAFORD MICHAEL O’KEEFFE ALEXANDRE BELLEAU MICHAEL MARCOTTE Chief Executive Officer Executive Chairman Chief Operating Officer Senior Vice-President Corporate Development and Capital Markets 3
Slide 4: FY2023 First Quarter Highlights
FY2023 FIRST QUARTER HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 2,282,600 WMT $279.3M $187.1M CONCENTRATE PRODUCED $74.0/DMT REVENUES CASH & SHORT-TERM TOTAL CASH COST1 $94.9M INVESTMENTS 2,013,900 DMT EBITDA1 $41.6M $363.2M CONCENTRATE SOLD $93.5/DMT SHORT-TERM AND ALL-IN SUSTAINING COST1 NET IN
Slide 5: Health & Safety and Environment
HEALTH & SAFETY AND ENVIRONMENT TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → No serious injuries reported during the period → No occurrence of any major environmental issues → Improved health & safety statistics compared to FY2022 results → Completed additional health and safety training, emergency simulati
Slide 6: Community & Sustainability
COMMUNITY & SUSTAINABILITY TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → In collaboration with First Nations communities and in accordance with the framework of Toward Sustainable Mining (“TSM”) certification, initiated a conservation and biodiversity management program aimed at preserving the local salmon p
Slide 7: Industry Overview
INDUSTRY OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Iron ore prices decreased by 6% from the previous quarter, mainly attributable to China’s reoccurring COVID-19 related lockdowns and seasonal increase in iron ore supply from major producing hubs → High-grade iron ore premiums remained elevated
Slide 8: Operational & Financial Results
OPERATIONAL & FINANCIAL RESULTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF 8
Slide 9: Operations Overview
OPERATIONS OVERVIEW TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Record production of 2.28Mt, up 18% year on year, was Iron Ore Concentrate Produced Ore Mined and Hauled positively impacted by the Phase II commissioning, despite the (Mwmt) (Mwmt) negative impact of a planned scheduled maintenance and 6 unpl
Slide 10: First Quarter Financial Highlights
FIRST QUARTER FINANCIAL HIGHLIGHTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Revenues of $279.3M, EBITDA1 of $94.9M and EPS of $0.08 EBITDA1 ($M) → Higher operating costs negatively impacted by transitional costs in anticipation of Phase II commercial production and global inflationary $200 pressures → H
Slide 11: Transitional Costs in Phase II Ramp-Up
TRANSITIONAL COSTS IN PHASE II RAMP-UP TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Quarterly cash cost1 per tonne negatively impacted by transitional and expected upfront expenditures in anticipation of the Phase II commercial production, unplanned third-party shutdowns and planned maintenance of additiona
Slide 12: Proven Competitive Cost Profile
PROVEN COMPETITIVE COST PROFILE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Benefitting from premium pricing, recent data ranks Champion among the cost leaders in the industry (62% Fe equivalent) SEABORN IRON ORE CASH COSTS BY OPERATORS (CFR CHINA, 62% FE FINES EQUIVALENT) US$/dry tonne Million tonnes (wet
Slide 13: Provisional Price Adjustment
PROVISIONAL PRICE ADJUSTMENT TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → 0.69M tonnes which were subject to provisional pricing at the end of Q4/FY22 realized final prices during the quarter → Q1/FY23 negative provisional pricing adjustment of -US$12.9M represents a negative impact of US$6.4/dmt on the ave
Slide 14: First Quarter Average Realized Selling Price
FIRST QUARTER AVERAGE REALIZED SELLING PRICE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Q1/FY23 average gross realized price1 of US$149.6/t, negatively impacted by sales in transit at quarter end, provisionally priced using forward prices which were lower than the P65 index average price for the period, a
Slide 15: Cash Change Details
CASH CHANGE DETAILS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Operating cash flow before working capital of $79.1M → Cash and short-term investments of $187.1M negatively impacted by: Payment of $95.2M in mining and income taxes Dividend payment of $51.7M completed on June 28, 2022 Timing of iron o
Slide 16: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF $187.1M Cash & S-T investments $363.2M Short-term & Long-term debt 3 $145.8M Working capital 1,2 $383.9M Available & undrawn loans 4 27% 44% 46% Q4/FY22 52% Q1/FY23 21% 4% 6% Notes: 1Non-IFRS financial measure, ratio or other fin
Slide 17: Growth Projects
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF GROWTH PROJECTS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF
Slide 18: Phase II – Significant Milestone
PHASE II – SIGNIFICANT MILESTONE TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Commissioning achieved ahead of the previously anticipated mid-2022 target despite pandemic-related challenges → On May 3, 2022, announced the completion of the Phase II expansion project’s first rail shipments containing 24,304 w
Slide 19: Phase II – Ramping-Up as Scheduled
PHASE II – RAMPING-UP AS SCHEDULED TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Commissioning of the Phase II project’s first production line achieved in late April 2022, with the second production line commissioned in June 2022 → Phase II project’s cumulative production to date compares favorably to the sc
Slide 20: Green Steel Supply Chain Solutions
GREEN STEEL SUPPLY CHAIN SOLUTIONS TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → Champion is well positioned to service the steel industry’s transition to Electric Arc Furnaces (EAF) with its growth projects focused on Direct Reduction (DR) quality iron ore products → Study evaluating the reprocessing → Adva
Slide 21: Green Steel Transition Accelerating
GREEN STEEL TRANSITION ACCELERATING TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF → The steel industry, which produces 8% of global CO2 emissions, is transitioning from Blast Furnaces to EAF to reduce emissions → The transition towards EAF steelmaking is accelerating globally, including the announcement of 59
Slide 22: Thank You to Our Staff
THANK YOU TO OUR STAFF TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF PRIDE INGENUITY RESPECT TRANSPARENCY Upholding our values for a sustainable future 22
Slide 23: Thank You
THANK YOU! Contact us for more information: Michael Marcotte, Senior Vice-President – Corporate Development and Capital Markets info@championiron.com 514-316-4858