Champion Iron ships first DRPF cargo, reports quarterly loss

Canada-based Champion Iron completed its first commercial shipment of direct reduction pellet feed (DRPF) but reported a net loss of C$48.4 million for the second quarter of fiscal 2027. The company attributed the result to lower iron ore price indices, higher ocean freight and fuel costs, as well as expenses related to commissioning DRPF production.

The quarter ended September 30, 2026. Revenue was C$403.9 million, up 13.2% from the previous quarter but down 18% year over year. Rana Gruber, the Norwegian producer Champion acquired in April, contributed C$54.3 million. Its results were included for only part of the previous quarter.

Sales reached a record 4.49 million dry metric tons, including 3.91 million tons from Bloom Lake and 587,000 tons from Rana Gruber. Production totaled 3.87 million wet metric tons, of which Bloom Lake accounted for 3.32 million. Output there was affected by inefficiencies during the commissioning of DRPF equipment. Concentrate inventories at Bloom Lake and the Port of Sept-Îles fell to 1.0 million tons from 1.7 million at the end of June.

The C1 cash cost of producing and delivering concentrate to vessels was C$82.9 per dry metric ton, down 1% quarter over quarter but up 9% year over year. All-in sustaining costs were C$97.9 per ton, compared with C$111.3 in the first quarter of fiscal 2027.

Champion’s cumulative DRPF investment reached C$497 million as of September 30. The company said it had secured additional test cargoes and commercial agreements for shipments in the third quarter. It gave no numerical guidance for the next quarter, saying elevated freight rates would continue to weigh on net revenue.

“Completing an initial sale of DRPF material marks an important milestone for us. Additional commercial shipments scheduled for the coming quarter reflect growing market interest in the product and the potential to expand our reach to customers through shorter freight routes,” Chief Executive David Cataford said. He added that after completing a major, multi-year investment cycle at Bloom Lake, Champion’s priorities were to optimize its assets, strengthen its balance sheet and reduce costs.