Highlights

• DRPF project reaches a major milestone, with first direct reduction quality iron ore produced and commercial shipment expected in the third quarter of calendar 2026.
• Rana Gruber acquisition expands Champion’s global footprint, adding a proven high-purity iron ore producer in Norway.
• Liquidity remains strong at CAD653 million, providing flexibility for operations, development projects and growth initiatives.

Champion Iron Limited (ASX: CIA) recorded a significant start to FY27 on 30 July 2026, driven by progress at its Direct Reduction Pellet Feed (DRPF) facility and the integration of Rana Gruber following the acquisition. During the quarter, the company produced 3.9 million wet metric tonnes (wmt) of iron ore concentrates, sold 3.3 million dry metric tonnes (dmt), and generated revenue of CAD357 million alongside EBITDA of CAD33 million. Investors are now watching whether these strategic moves can unlock stronger long-term value despite near-term earnings pressure.

Operational Growth Meets Short-Term Pressure

Champion Iron recorded quarterly revenue of CAD356.9 million, compared with CAD390.0 million in the prior-year period. The decline reflected lower Bloom Lake shipment volumes during the DRPF commissioning phase, although the company benefited from the inclusion of Rana Gruber revenue following the acquisition completed on 10 April 2026.

The company reported a quarterly net loss of CAD41.5 million, compared with net income of CAD23.8 million in the corresponding period. Quarterly earnings were affected by a CAD17.2 million unrealised foreign exchange loss and CAD17.6 million in unfavourable fair value movements on derivative instruments.

EBITDA declined to CAD32.8 million from CAD57.8 million year-over-year, affected by DRPF start-up costs of CAD6.6 million, derivative impacts and inventory valuation adjustments related to Rana Gruber.

DRPF Project Creates Future Upside

Champion completed the DRPF project within its revised budget of CAD500 million, with cumulative investment reaching CAD493.7 million by 30 June 2026. The project is designed to produce higher-purity iron ore products targeted towards the direct reduction steelmaking market.

Bloom Lake produced 3.5 million wmt during the quarter, while DRPF infrastructure contributed 0.6 million wmt as commissioning progressed. Product quality continued improving, with weighted average iron grade increasing to 66.5% Fe.

Rana Gruber Expands Iron Ore Platform

Following the acquisition, Rana Gruber contributed 0.4 million wmt of production during the quarter. The Norwegian operation produced high-purity iron ore concentrates with a weighted average product grade of 65.2% Fe.

With operations established in both Canada and Norway, Champion has expanded its global footprint and enhanced its role as a producer of premium high-purity iron ore concentrates. The company’s ability to successfully integrate Rana Gruber and convert DRPF production into commercial sales will remain key catalysts for future growth.

Note- All data presented is based on information available at the time of writing.

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