Champion Iron Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Orest Wowkodaw - Scotiabank - Analyst : I wanted to ask a question about your CapEx. The sustaining capital over the last two quarters looks pretty elevated relative to quarters before that and certainly versus the technical report. If we just exclude the DPRF growth capital, just wondering if we should expect sort of the run rate that we've seen in the last two quarters of about $110 million a quarter, excluding DPRF? Or should we expect that to fall back down towards the $60 million per quarter level moving forward? Obviously, you're making lots of investments here. I'm just wondering how much is left to go.

Question: Orest Wowkodaw - Scotiabank - Analyst : Okay. And just as a follow-up, the DPRF product that you're bringing on, was any of that intended to go to US customers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 2:00PM, CIA.AX - Q3 2025 Champion Iron Ltd Earnings Call

Question: Orest Wowkodaw - Scotiabank - Analyst : Okay. And with start-up of that plant now within, call it, 10, 11 months, can you give us an update on where you are in terms of signing contracts? Are negotiations underway? Or do you need to be closer to production?

Question: Alexander Pearce - BMO Capital Markets - Analyst : So you mentioned in your comments, David, that the shipping run rate did seem to improve ahead of the low [tonne] issues. I just wonder whether you could provide a bit of an update for us in terms of how quickly you think you can get those additional stockpile tonnes down the rail over and above your production rate?

Question: Alexander Pearce - BMO Capital Markets - Analyst : Great. And then maybe I can just ask the second question, which is just around maintenance. Now, in fact, given the issues in the last quarter, you undertook more maintenance, I think. But typically, Q4 is a bit of a maintenance quarter. So I just wondered, do you expected more maintenance-light quarter this time in Q4? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 2:00PM, CIA.AX - Q3 2025 Champion Iron Ltd Earnings Call

Question: Nick Giles - B. Riley - Analyst : Okay. Just on Kami. Congratulations on the agreement with Nippon; that's really great to see. I was wondering if you could remind us on the estimated cost of the feasibility study in total and then net to Champion.

Question: Nick Giles - B. Riley - Analyst : David, that's really helpful. I really appreciate all the detail there. My next question is just maybe more on the operating cost side, still a little higher than you'd like. You've done some extra maintenance. It seems like volumes could be looking stronger in the quarters ahead. So how should we think about the impact of greater fixed cost absorption? And is there any way to quantify the cost impact of re-handling volumes?

Question: Craig Hutchison - TD Cowen - Analyst : Just on the DRPF commissioning. Can you give us a sense of how long that commissioning process will take? And then once you are commissioned, is the plan to sort of blend your product across the Phase 1 and Phase 2 initially until you get a sort of price set for the DR material? And then maybe just a follow-up, if you guys were selling DR product right now, can you give us a sense of just what the market price is for that product over above maybe the 65% index, if there's any clarity on that?

Question: Craig Hutchison - TD Cowen - Analyst : I appreciate that. Just as a follow-up question, is there an actual quotable price today for an entry-level DR grade product? Any sense of what that pricing would be today versus the 65% index, if that information is out there?

Question: Orest Wowkodaw - Scotiabank - Analyst : David, did I hear you say in the preamble that in the current market, the 65% product was taking a discount in China relative to the, call it, spot price? And I'm just wondering if that is continuing here in the calendar first quarter?