Champion Iron (TSE:CIA) Releases Earnings Results

Champion Iron (TSE:CIA) released its quarterly earnings data on Thursday. The company reported C$0.05 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$414.51 million during the quarter. Champion Iron had a net margin of 9.48% and a return on equity of 11.28%.

Here are the key takeaways from Champion Iron’s conference call:

• Champion posted a solid Q4 with 3.4 million tons produced, 3.45 million tons sold, CAD 414 million in revenue, and CAD 114 million of EBITDA. Iron recovery also improved to 80.6%.
• Management said operations were hurt by a planned maintenance shutdown, a third-party train derailment, and a harsh winter that hurt logistics and increased costs by about CAD 5 per ton. Despite that, Bloom Lake moved about 21 million tons at the mine for the quarter.
• The company said it met or exceeded all 14 sustainability targets and recorded another quarter with no major environmental issues at Bloom Lake. It also highlighted a 99.1% water recycling rate and a 2.6% year-over-year reduction in GHG emissions.
• Champion announced a new dynamic dividend policy targeting semi-annual payouts of 30%–40% of trailing six-month free cash flow, while also declaring a CAD 0.02 per share dividend for now. Management said the more conservative payout reflects volatile fuel and freight conditions and a focus on cash preservation.
• The DRPF flotation plant is nearing completion, with about CAD 480 million of the CAD 500 million budget already invested and ramp-up underway. Management expects to sell first cargoes in coming weeks or months and said the plant remains on track to be fully ramped next year within budget.

Champion Iron Stock Down 6.3%

Shares of Champion Iron stock opened at C$4.45 on Friday. Champion Iron has a 12-month low of C$3.43 and a 12-month high of C$6.14. The company has a quick ratio of 2.01, a current ratio of 2.60 and a debt-to-equity ratio of 70.43. The stock has a 50 day moving average price of C$4.95 and a two-hundred day moving average price of C$5.20. The stock has a market capitalization of C$2.37 billion, a P/E ratio of 13.09, a PEG ratio of -1.35 and a beta of 0.52.

Wall Street Analysts Forecast Growth

Separately, B. Riley Financial raised shares of Champion Iron to a “strong-buy” rating in a research report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company’s stock. Based on data from MarketBeat.com, Champion Iron currently has a consensus rating of “Buy” and a consensus price target of C$6.33.

About Champion Iron

Champion Iron Ltd is engaged in the exploration and development of iron ore properties in Quebec, Canada. The company’s operating segment include Mine Site, Exploration and Evaluation, and Corporate. It generates maximum revenue from Mine Site segment. The company projects include Fire Lake North, Powderhorn/Gullbridge, Moire, Quinto Claims, Harvey Tuttle, O’keefe-Purdy, and others.