BMO Capital analyst Alexander Pearce maintained a Buy rating on Champion Iron on January 28 and set a price target of C$6.50.
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Alexander Pearce has given his Buy rating due to a combination of factors that highlight Champion Iron’s strong operational and financial momentum. The company delivered quarterly EBITDA meaningfully above his estimates and slightly ahead of market expectations, driven primarily by lower-than-forecast operating costs rather than price tailwinds. Shipments from Bloom Lake reached a new high, with rail bottlenecks easing and onsite inventories drawn down, indicating improved logistics and operational stability. At the same time, unit cash costs declined both versus his forecast and quarter-on-quarter, supporting resilient margins even as realized iron ore prices slipped.
Pearce also factors in the strategic upside from ongoing projects and future catalysts. The direct reduction pellet feed (DRPF) plant is moving through mechanical commissioning largely on budget, with first commercial shipments expected around mid‑2026, which should enhance product mix and margin potential given the growing demand for high-grade, low‑carbon iron ore. Reflecting the cost improvements and operational progress, he has modestly raised his FY26 EBITDA forecast while keeping shipment volume expectations intact. In addition, upcoming milestones such as shareholder approval for the Rana Gruber acquisition and the ramp-up of the DRPF plant provide further potential value drivers, supporting his view that the shares should continue to outperform.
In another report released on January 20, RBC Capital also maintained a Buy rating on the stock with a C$8.00 price target.
CIA’s price has also changed moderately for the past six months – from A$4.870 to A$6.340, which is a 30.18% increase.