Champion Iron Ltd Q4 2019 Earnings Call Transcript

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

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : A quick question on the reserves for the expansion study. It looks like you shifted from 400 million to 800 million tonnes. Silly question, but does this include Fire Lake North? I noticed you've got $70 odd million CapEx of rail in there? And if not, what -- can you talk us through where these reserves are based? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 20, 2019 / 12:30PM, CIA.AX - Q4 2019 Champion Iron Ltd Earnings Call

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : Understood. And could you give us a bit of an indication ahead of the 43-101 coming out what this stripping ratio is going to look like on the new one as compared to what it is now?

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : Comparing (inaudible)

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : Not too much of a lift then.

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : And could you just tell me that the budget that you've done allocated this year, is that against the future CapEx? Or is that still working up on pre-builds start, if you like?

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : Perfect and do you have a date in mind for switching the expanded mill on? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 20, 2019 / 12:30PM, CIA.AX - Q4 2019 Champion Iron Ltd Earnings Call

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : Perfect. And a final question on the existing operations. You mentioned earlier that your ore mining was being impacted by the increased stripping. I noticed your stripping is a little above your life of mine estimates. Can you give us sort of some guidance on how much waste movement that you're looking at going forward? Should we expect that sort of 3.5 million odd tonnes to drop back down into the 2s again every quarter?

Question: Brock Salier - Sprott Capital Partners, Research Division - Analyst : Got you. So we should look at mining rates on those, don't waste movement rates staying where they are in the current quarter onwards from the prior quarter?

Question: Stefan Ioannou - Cormark Securities Inc., Research Division - Analyst : Great-looking study. Just trying to reconcile, you mentioned earlier in the Q&A that you're looking to start up the mill in Q1 of '21. Just wondering how that corresponds with the 21-month build-out for Phase 2. And once we get through this year with this CAD 68 million spend, how do you sort of see the spending schedule progress through 2020 and beyond in terms of actually money in, money out to get it done?

Question: Hayden Bairstow - Macquarie Research - Analyst : Just a couple for me, just on sort of more medium term, I guess, just on the rail agreements, there's obviously various stages in the [realm] at work. I mean is there any things that potentially changes in terms of excess charges as you move to the 15 million tonnes? And just also, (inaudible) I guess on the capacity of that 15 million, I mean where do you see the bottlenecks actually being at the process plant, the bottleneck and actually the [20 years grade] capacity through the infrastructure? Or how should we think about that given the variability of seasonality in the shipping rates?

Question: Scott Schier - Clarksons Platou Securities, Inc., Research Division - Analyst : Congratulations on the solid quarter in Phase 2. So we're sitting here today with iron ore prices near a 5-year high, or at a 5-year high, as you noted. Obviously, iron ore is really kind of a spot market and I know you guys are completely unhedged. But have there been any discussions on trying to lock in some of today's pricing going forward? Or what are your thoughts around that?

Question: Scott Schier - Clarksons Platou Securities, Inc., Research Division - Analyst : That's very helpful color. Having said that, have any buyers approached you trying to lock in some of your supply more long term?