Canadian company Champion Iron Limited announced a net loss of CAD$41.5 million for the first fiscal quarter ended June 30, 2026, compared with a net profit of CAD$23.2 million in the fourth quarter of fiscal year 2026 and a net profit of CAD$23.8 million in the first quarter of fiscal year 2026. Fiscal year 2026. Revenue for the quarter was CAD$356.9 million, down 14% from the previous quarter to CAD$414.5 million and down eight% year-on-year from CAD$390.0 million. The company's EBITDA for the quarter was CAD$32.8 million, compared to CAD $114.3 million in the fourth quarter of FY2026 and CAD$57.8 million. In the first quarter of FY2026.
The net loss resulted from an unrealized foreign exchange loss of $17.2 million of a net monetary liability denominated in foreign currency and an unfavorable fair value adjustment of $17.6 million for derivatives. The results were also impacted by the timing of iron ore shipments related to the commissioning of direct crushing pellets (DRPF), which resulted in the transfer of a portion of revenue to future periods, as well as increased transportation and fuel costs and reduced fixed cost coverage.
Quarterly production was 3.9 million crude metric tons (wmt) of high-purity iron ore concentrates, up 12% from the same period last year, mainly due to the acquisition of Rana Gruber, which contributed 0.4 million wmt, while Bloom Lake produced 3.5 million wmt. Sales totaled 3.3 million metric tons of dry matter (dmt), down 13 percent from the same period last year, reflecting the planned transition and supply chain associated with the expansion of DRPF production at Bloom Lake. Iron ore concentrate reserves at Bloom Lake and the port increased to 1.7 million tons as of June 30, 2026 from 1.3 million tons as of March 31, 2026, when production exceeded sales.
Cash cost C1, the direct cost of producing and shipping iron ore concentrates to ships, was 83.7 Canadian dollars per tonne (60.5 US dollars per tonne), compared to 82.7 Canadian dollars per tonne in the fourth quarter. In the first quarter of fiscal year 2026 and 81.9 Canadian dollars per ton of DMT in the first quarter of fiscal year 2026, reflecting the absorption of fixed costs due to lower sales and significant increases in fuel prices related to the conflict in the Middle East.
Total production maintenance costs increased to CAD$111.3 per tonne of DMT from CAD$96.9 per tonne of DMT in the previous quarter. The net average selling price was 106.9 Canadian dollars per ton of DMT (77.5 US dollars per ton of DMT), which is 11% less than in the previous quarter and 5% more year-on-year. Transportation and other expenses increased by 35% compared to the same period last year and amounted to 36.4 US dollars per ton of dmt, which mainly reflects a 63% increase in the average C3 index.
The company has completed the DRPF, with an estimated project budget of 500 million Canadian dollars and cumulative investments totaling 493.7 million Canadian dollars as of June 30, 2026. During the quarter, Champion produced its first premium iron ore, with the first commercial shipment expected in the third calendar quarter of 2026, and entered into a commercial agreement for a portion of its production capacity in the near term. The company also completed the acquisition of Rana Gruber on April 10, 2026, generating revenue of CAD$23.9 million and a gross loss of CAD$6.0 million for the incomplete quarter. Available liquidity as of June 30, 2026 was CAD$653.1 million, compared to CAD$812.4 million as of March 31, 2026.
David Cataford, Chief Executive Officer of Champion, said: "In the face of economic uncertainty and market volatility, our dedicated team We continue to focus on meeting our strategic priorities and optimizing our operational activities to enhance our competitive position and financial stability. The completion of the DRPF project once again demonstrates our ability to successfully implement large-scale projects, which allows us to attract new customers, continue to participate in the decarbonization of the steel industry and increase sales prices. As we complete the integration of Rana Gruber, our focus is shifting to unlocking opportunities across all of our divisions. business, including cost management initiatives, continuing to realize our long-term vision and strengthening Champion's position as the world's leading supplier of high purity iron ore."
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