Champion Iron Ltd. · ASX:CIA
Champion Iron — Shareholder Meeting (August 2023)
25 slides from Champion Iron's shareholder meeting presentation, Aug 30, 2023
Slide 1: Financial Year 2023 - Annual General Meeting
1% FINANCIAL YEAR 2023 - ANNUAL GENERAL MEETING AUGUST 30, 2023 - SH PM (MONTREAL TIME) AUGUST 31, 2023 - 7H AM (SYDNEY TIME) ~ A RARE SOLUTION TO DECARBONIZE STEELMAKING PULL HERE i { Wy i 36300 49700 1675 7 " = H j i j | i r —— CHAMPION IRON:-23
Slide 2: Disclaimer
DISCLAIMER CHAMP TON IRON 2s This Presentationdaes nat constitutear farm part of and shauldnat beconstruedas, an affer to sellor issue ar the solicitation afan affer te buyar acquire securities of Champion ar anyaf its subsidiaries ar affiiatesor any ather person in any jurisdiction ar an inducement
Slide 3: Formal Business of the Annual General Meeting
CHAMPION IRON 24 FORMAL BUSINESS OF THE ANNUAL GENERAL MEETING TSX: CIA | ASX: CIA | OTCOX: CIAFF > Receiving and considering the Company’s Financial Report, together with the Directors’ Report and Auditors’ Report for the financial year ended March 31, 2023. > Adopting the Remuneration Report, as s
Slide 4: FY2023 Highlights: New Records Set
FY2023 HIGHLIGHTS: NEW RECORDS SET CHAMPION IRON 2a FINANCIAL YEAR 2023 RESULTS AND BALANCE SHEET AS OF MARCH 31, 2023 bof ml m O¥O eC = 11,186,600 WMT $73.9/DMT $1,395.1M $326.8M CONCENTRATE PRODUCED TOTAL CASH COST! REVENUES CASH & CASH EQUIVALENTS $493.2M $487.7M 1 $86.5/DMT EBITDA SHORT-TERM al
Slide 5: FY2023: Health & Safety and Environment
FY2023: HEALTH & SAFETY AND ENVIRONMENT CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF > Improved health and safety statistics year on year > QI1/FY24 Highlights: = Optimized emergency response programs to be deployed in the event of forest fires near or at the mine site = Additional awareness
Slide 6: FY2023: Creating a Positive Impact
FY2023: CREATING A POSITIVE IMPACT CHAMPION IRON 2a 977 Employees? 51 Local and indigenous jobs! $429M Procurement from local suppliers? $122.4M Mining, income and corporate taxes? $128.4M Salaries & benefits® 100% Compliance with tailings management! 96% Mining wastewater reused or recycled? 74.2 H
Slide 7: Enhanced ESG Disclosure
CHAMPION IRON 24 ENHANCED ESG DISCLOSURE TSX: CIA | ASX: CIA | OTCQX: CIAFF ‘chamPION RON 25 > Published the Company's 2022 Sustainability Report, aligned with several Environmental Social and Governance (ESG) disclosure frameworks including: ¥ Global reporting Initiative (GRI) ¥ Sustainability Acco
Slide 8: Completed First Rail Shipments from Bloom Lake's Phase II Expansion
⎪ ⎪ → → → COMPLETED FIRST RAIL SHIPMENTS FROM BLOOM LAKE’S PHASE II EXPANSION ENTERED A DEFINITIVE PURCHASE AGREEMENT TO ACQUIRE THE POINTE NOIRE PELLETIZING FACILITY AND ENTERED MOU WITH AN INTERNATIONAL STEELMAKER REFINANCED THE CREDIT FACILITY WITH A REVOLVING FACILITY COMMITTED TO GHG EMISSION R
Slide 9: FY2023: Industry Overview
CHAMPION IRON 24 FY2023: INDUSTRY OVERVIEW TSK:CIA | ASK CI | OTCOK CAFE > P65 index average of US$131.4/dmt in FY2023, a decrease of 27% from the previous year, attributable to decelerating economic activity and steel production globally > Average premium of P65 over P62 of 13.1%, 4.3 percentage po
Slide 10: Champion Iron
CHAMPION IRON 29 TSX: CIA | ASX: CIA | OTCQX : CIAFF
Slide 11: FY2023: Ongoing Phase II Ramp Up
FY2023 : ONGOING PHASE II RAMP UP CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCOX: CIAFF > May 2022: Announced the completion of the Phase |I project's first rail shipment > January 2023: Announced reaching commercial production at the Phase II project > QI1/FY24 Results: Reported record production of
Slide 12: FY2023: Premium Product Pricing
FY2023: PREMIUM PRODUCT PRICING CHAMPION IRON 2s TSX: CIA | ASX: CIA | OTCOX: CIAFF > FY2023 gross realized price!, including provisional price adjustments, of US$132.0/dmt, which compares favorably with the P65 high-grade index average of US$131.4/dmt > Net realized price of $131.7/dmt, a decrease
Slide 13: FY2023: Proven Cost Structure
CHAMPION IRON 24 TSX: CIA | ASX: CIA | OTCQX: CIAFF FY2023: PROVEN COST STRUCTURE 140 TOTAL CASH COST (C$/DMT) VALUE-IN-USE ADJUSTED IRON ORE COST $100 CURVE (CFR, 62% FE FINES EQUIVALENT) w Ny 3 aA USD PER OMT a aod é8ses A za uo o (=) ny 5 & & « X 3 < < 250 500 750 1000 1250 1500 PREVIOUS OWNERS C
Slide 14: FY2023: Diversified Customer Base
FY2023: DIVERSIFIED CUSTOMER BASE CHAMPION IRON 2a Successfully increased spot market sales during the Phase II project ramp-up period Continued to diversify customer base including securing long-term sales agreements with customers ex-China NNN Increased visibility of the Company's current and futu
Slide 15: FY2023: Financial Results
CHAMPION IRON 24 FY2023: FINANCIAL RESULTS TSK CIR | ASK CI | OTCOX: CAFE > Financial results negatively impacted by lower net realized prices year on year and higher operating costs resulting from inflationary pressures and transitional costs required to increase Bloom Lake’s production towards its
Slide 16: FY2022 > FY2023: Positioned for Growth
FY2022 > FY2023: POSITIONED FOR GROWTH CHAMPION IRON 2s > Substantial investments and capital return completed in FY2023: = $312.9M CAPEX including $97.2M invested to complete the Phase II expansion project and $30M investments in third- party infrastructure to support Bloom Lake's expanded nameplat
Slide 17: Net cash decrease of $9.8M YoY
⎪ ⎪ → → $479.8M $250.3M Net cash1,5 Net cash1,5 decrease of decrease of $9.8M YoY $12.1M QoQ $187.0M Notes Non-IFRS financial measure, ratio or other financial measure. Refer to the disclaimer at the p.2 Receivables: $162.2M; Income and mining taxes receivables: $37.9M; Prepaid expenses and advances
Slide 18: TSX: CIA | ASX: CIA | OTCQX: CIAFF
TSX: CIA ⎪ ASX: CIA ⎪ OTCQX: CIAFF
Slide 19: Total HPI demand will increase by 1.8x in 2035 and 2.5x in 2050
⎪ ⎪ → → → → HPI demand for DRI HPI demand for BF-BOF 831 833 769 649 Total HPI demand will X 2.5 increase by 1.8x in 2035 X 1.8 479 and 2.5x in 2050 361 675 762 763 298 518 129 233 181 132 93 69 69 2022 30 35 40 45 2050
Slide 20: Product Development and Growth Initiatives
PRODUCT DEVELOPMENT —— AND GROWTH INITIATIVES ee IRON 2 jotca x ihe
Slide 21: End of 2017 M+I resources, Rio Tinto Notice to ASX
⎪ ⎪ → End of 2017 M+I resources, Rio Tinto Notice to ASX ‘’Changes to Simandou Ore Reserves and Mineral Resources’’, March 2018; See Champion`s November 2022 investor presentation at www.championiron.com for additional disclosure
Slide 22: Project Milestones
⎪ ⎪ PROJECT MILESTONES → → → ✓ ✓ ✓ →
Slide 23: Financial Year 2024 Focus
CHAMPION IRON 24 FINANCIAL YEAR 2024 FOCUS TSX: CIA | ASX: CIA | OTCOX: CIAEF > Ongoing sustainable environmental management and priority on the health and safety of our employees, partners and communities Optimize operations at Bloom Lake to complete the Phase Il ramp up to achieve and maintain the
Slide 24: Thank You to Our Staff
CHAMPION IRON 24 THANK YOU TO OUR STAFF TSX: CIA | ASX: CIA | OTCQX: CIAFF UPHOLDING OUR VALUES FORA SUSTAINABLE FUTURE LAA PRIDE INGENUITY RESPECT TRANSPARENCY, 24
Slide 25: Thank You!
THANK YOU! CHAMPION IRON 2d Contact us for more information David Cataford, CEO Michael Marcotte, Senior Vice-President Corporate Development and Capital Markets info(@championiron.com | 514-316-4858 1155 René-Lévesque West, Suite 3300, Montréal, QC, H3B 3X7 www.championiron.com