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Champion Iron Ltd. (AU:CIA)
ASX:CIA
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Champion Iron (CIA) AI Stock Analysis

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AU:CIA

Champion Iron

(Sydney:CIA)

Rating:61Neutral
Price Target:
AU$4.50
▲(7.14% Upside)
Champion Iron's overall stock score reflects a challenging financial performance with declining revenue and profitability margins. Technical analysis indicates bearish momentum, while valuation concerns are mitigated by a strong dividend yield. The earnings call provided mixed insights, with strategic strengths offset by production and cost challenges.
Positive Factors
Financial Performance
Champion reported FQ4/25 EBITDA of C$127M, a 6% beat to our estimate and 8% higher than consensus.
Future Growth Potential
The DRPF project remains on track for year-end completion, indicating good project management and future growth potential.
Operational Performance
Shipments from Bloom Lake exceeded expectations for the second quarter in a row, indicating improved rail capacity and strong operational performance.
Negative Factors
Cash Balance Impact
The cash balance declined by $91 million in the quarter, driven by working capital increases, capital spend on equipment and railcars, the dividend payment, and ongoing spending on the DRPF project.
Pricing Impact
Financial results were impacted by a lower average realized price, an artifact of volatile iron ore prices and pressure on Chinese steel mills.

Champion Iron (CIA) vs. iShares MSCI Australia ETF (EWA)

Champion Iron Business Overview & Revenue Model

Company DescriptionChampion Iron Limited engages in the acquisition, exploration, development, and production of iron ore deposits in Canada. Its flagship projects include the Bloom Lake Mine located in south end of the Labrador; the Consolidated Fire Lake North project that includes the Fire Lake North, Don Lake, Bellechasse, and Oil Can deposits situated in Quebec; and the Kamistiatusset project located in the Labrador. The company sells its iron ore concentrate in China, Japan, the Middle East, Europe, South Korea, India, and internationally. Champion Iron Limited is headquartered in Montreal, Canada.
How the Company Makes MoneyChampion Iron makes money through the extraction and sale of iron ore concentrate, which is a crucial raw material for the steel manufacturing industry. The company generates revenue by selling its high-grade iron ore to steel producers around the world. Key revenue streams include contracts with domestic and international steel manufacturers who require a reliable supply of high-quality iron ore for their production processes. Additionally, Champion Iron may benefit from strategic partnerships and long-term agreements with major players in the steel industry, ensuring stable and predictable revenue flows. Factors contributing to its earnings include the global demand for steel, the quality and grade of its iron ore, and its operational efficiency in mining and production.

Champion Iron Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q1-2026)
|
% Change Since: -13.58%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted logistical and financial strengths, community engagement, and strategic partnerships, but was overshadowed by significant production challenges, increased cash costs, and impacts from external factors like the Hydro-Quebec shutdown and rail maintenance.
Q1-2026 Updates
Positive Updates
Strong Rail and Haul Performance
Managed to rail and haul about 3.8 million tonnes dry, close to 4 million tonnes wet, showing strong logistical capabilities.
Community Engagement and Awards
Received a prize from the Quebec Mining Association for a project with First Nations, highlighting strong community governance and sustainability efforts.
Financial Position Strengthened
Cash increased from $117 million to over $176 million due to warrant exercises and other financial maneuvers.
Partnership with Nippon Steel and Sojitz
Entered into a definitive framework agreement with Nippon Steel and Sojitz, strengthening future project developments.
Positive Iron Ore Pricing Trends
Iron ore price recovery noted, with a spread increase for high-grade material from $9 to $14 per tonne.
Negative Updates
Production Challenges Due to Ore Hardness
Ore hardness and lower head grade reduced production to 3.5 million tonnes. Ore hardness also led to increased fines, impacting recovery.
Hydro-Quebec Shutdown Impact
A two-day shutdown caused by Hydro-Quebec resulted in a production loss of about 300,000 tonnes.
Increased Cash Costs
Cash costs impacted by ore hardness and stockpile material usage, leading to increased operating costs of about $4 per tonne.
Provisional Price Adjustment Loss
Experienced a provisional price adjustment loss of about USD 20 million due to lower than expected settlement prices.
Ongoing Rail Maintenance Impacts
Upcoming rail shutdown for maintenance expected to impact future quarters.
Company Guidance
During Champion's Q1 FY2026 conference call, key metrics highlighted include the rail and haul volume of approximately 3.8 million dry tonnes, which equates to nearly 4 million tonnes wet, and a reported EPS of $0.05 per share. Production was around 3.5 million tonnes, impacted by ore hardness and a Hydro-Quebec shutdown, costing about 300,000 tonnes in lost production. Despite these challenges, the company moved 440,000 tonnes from its stockpile, reducing it to roughly 2.1 million tonnes. Financially, the company reported $390 million in revenues, EBITDA just under $60 million, and a cash cost of CAD 82 per tonne, influenced by inventory and ore hardness issues. The company improved its liquidity with a successful high-yield bond issue, raising USD 500 million, and increasing cash from $117 million to over $176 million. Looking ahead, Champion aims to reduce harder ore usage and finalize its flotation plant by the end of the calendar year within the $470 million budget.

Champion Iron Financial Statement Overview

Summary
Champion Iron shows revenue growth but faces challenges in profitability and operational efficiency. The balance sheet is stable but with declining return on equity. Cash flow management is concerning due to negative free cash flow, despite strong operating cash generation.
Income Statement
65
Positive
Champion Iron has shown a steady increase in revenue over the years, with a positive revenue growth rate from 2024 to 2025. However, there is a declining trend in gross profit and net profit margins, indicating increased cost pressures or price constraints. The EBIT and EBITDA margins have also decreased, suggesting challenges in maintaining operational efficiency.
Balance Sheet
70
Positive
The company maintains a reasonable debt-to-equity ratio, reflecting a balanced capital structure, although it has increased over the past years. Return on Equity has declined, affected by decreasing net income. The equity ratio remains stable, showcasing a solid equity base relative to total assets.
Cash Flow
60
Neutral
Free cash flow has shown volatility, turning negative in the latest year due to higher capital expenditures. The operating cash flow to net income ratio indicates a strong cash generation ability relative to reported earnings. However, the negative free cash flow to net income ratio highlights potential concerns in long-term cash sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.53B1.61B1.52B1.40B1.46B1.28B
Gross Profit264.39M401.73M629.76M451.28M958.20M817.76M
EBITDA342.98M446.20M555.41M481.68M916.31M803.79M
Net Income84.47M142.04M234.19M200.71M522.59M464.43M
Balance Sheet
Total Assets3.06B3.03B2.69B2.32B1.99B1.50B
Cash, Cash Equivalents and Short-Term Investments176.05M117.45M400.06M327.12M352.67M636.52M
Total Debt794.19M758.91M616.41M562.12M377.34M216.85M
Total Liabilities1.62B1.59B1.29B1.05B827.53M643.89M
Stockholders Equity1.44B1.44B1.40B1.26B1.16B853.02M
Cash Flow
Free Cash Flow-248.51M-301.58M131.31M-58.68M-53.95M446.54M
Operating Cash Flow353.76M304.02M474.58M235.98M470.44M623.48M
Investing Cash Flow-611.32M-615.75M-354.72M-249.86M-635.47M-244.14M
Financing Cash Flow172.80M23.41M-48.36M6.90M-118.14M-26.30M

Champion Iron Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.20
Price Trends
50DMA
4.40
Negative
100DMA
4.45
Negative
200DMA
5.00
Negative
Market Momentum
MACD
-0.08
Positive
RSI
40.65
Neutral
STOCH
10.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CIA, the sentiment is Negative. The current price of 4.2 is below the 20-day moving average (MA) of 4.60, below the 50-day MA of 4.40, and below the 200-day MA of 5.00, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 10.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CIA.

Champion Iron Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
C$2.24B23.245.89%5.29%-11.16%-72.19%
44
Neutral
C$920.61M-8.58-0.23%2.70%20.10%-40.92%
$16.26M5.334.26%
$296.46M65.86-35.86%
47
Neutral
AU$33.98M1.6717.20%
34
Underperform
AU$27.85M-277.03%-540.00%
AU$30.22M
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CIA
Champion Iron
4.20
-1.54
-26.79%
IRNRF
Iron Road Ltd
0.02
-0.03
-60.00%
MTGRF
Mount Gibson Iron Limited
0.23
0.01
4.55%
AU:GWR
GWR Group Limited
0.10
0.02
25.00%
AU:M4M
Kogi Iron Ltd.
0.01
-0.02
-66.67%
AU:TI1
Tombador Iron Ltd.
0.35
0.00
0.00%

Champion Iron Corporate Events

Champion Iron Schedules Annual General Meeting for Shareholders
Jul 28, 2025

Champion Iron Limited has announced its Annual General Meeting for shareholders, scheduled to take place on August 28, 2025, in Sydney, Australia. The meeting is a crucial event for shareholders to exercise their voting rights and engage with the company’s management, highlighting the importance of shareholder participation in corporate governance.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Limited Announces 2025 AGM and Key Resolutions
Jul 28, 2025

Champion Iron Limited has announced its Annual General Meeting (AGM) scheduled for August 28, 2025, in Montréal, Canada. The meeting will address key agenda items including the consideration of the company’s financial reports and the re-election of directors. Shareholders are encouraged to participate either in person or by proxy, with a livestream available for those unable to attend physically. This AGM is significant for stakeholders as it will discuss the adoption of the remuneration report and the re-election of directors, which are pivotal for the company’s governance and future strategic direction.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Partners with Nippon Steel and Sojitz for Kami Project Development
Jul 21, 2025

Champion Iron Limited has entered into a definitive agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership for the development of the Kami Project. The agreement involves an initial contribution of $245 million by the partners for a 49% interest in the project, with Champion retaining a 51% stake. This partnership aims to advance the Kami Project without affecting Champion’s financial liquidity, focusing on enhancing project economics and engaging with local stakeholders. The agreement outlines a two-step transaction process, with the initial closing expected in the second half of 2025 and the second closing following the completion of a definitive feasibility study by the end of 2026. The partnership will also explore opportunities for government support, given the inclusion of high-purity iron ore in Canada’s critical minerals list.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Limited Announces Cessation of Certain Securities
Jul 10, 2025

Champion Iron Limited has announced the cessation of certain securities, specifically performance and restricted share units, due to unmet conditions. This development may impact the company’s capital structure and investor relations, as it reflects adjustments in the company’s financial instruments and potential implications for stakeholders.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Confirms AUD Equivalent of CAD Dividend
Jul 3, 2025

Champion Iron Limited has updated its previous announcement to confirm the Australian Dollar equivalent of the Canadian Dollar declared dividend. This update pertains to a dividend distribution for the six-month period ending March 31, 2025, with a record date of June 13, 2025. The confirmation of the dividend’s currency equivalence is crucial for shareholders and investors, ensuring clarity and transparency in financial reporting.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Reports Change in Director’s Interest
Jun 13, 2025

Champion Iron Limited announced a change in the director’s interest, specifically involving David Cataford. The notice details the disposal of 195,539 performance share units and 130,360 restricted share units, settled for cash at CAD 3.84 each. This change reflects a reduction in Cataford’s holdings, potentially impacting his influence within the company and signaling strategic financial decisions by the director.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Announces Cessation of Securities
Jun 13, 2025

Champion Iron Limited announced the cessation of certain securities, specifically 482,650 performance share units and 326,252 restricted share units, effective June 12, 2025. This announcement may impact the company’s capital structure and could have implications for its shareholders and market positioning.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Director Increases Shareholdings
Jun 13, 2025

Champion Iron Limited announced a change in the securities interests of its director, David Cataford. On June 9, 2025, Cataford acquired additional performance and restricted share units under the company’s 2018 Omnibus Incentive Plan, increasing his holdings in these categories. This move reflects the company’s ongoing efforts to align executive incentives with shareholder interests, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Issues Unquoted Equity Securities
Jun 13, 2025

Champion Iron Limited announced the issuance of unquoted equity securities, specifically 1,959,281 performance share units and 1,306,194 restricted share units, as part of an employee incentive scheme. This move is likely aimed at aligning employee interests with company performance, potentially enhancing operational efficiency and reinforcing its market position.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Issues 15 Million Shares, Ensures Regulatory Compliance
Jun 6, 2025

Champion Iron Limited announced the issuance of 15,000,000 fully paid ordinary shares following the exercise of a warrant. The company has confirmed compliance with relevant provisions of the Corporations Act, ensuring transparency and adherence to regulatory standards, which may positively impact its credibility and stakeholder trust.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Limited Issues 15 Million New Shares
Jun 6, 2025

Champion Iron Limited has announced the issuance of 15 million fully paid ordinary shares, which are set to be quoted on the Australian Securities Exchange (ASX) under the code CIA. This move is part of the company’s strategic efforts to enhance its capital structure and potentially expand its market presence, which could have significant implications for its stakeholders and industry positioning.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Declares CAD 0.10 Dividend for Shareholders
May 28, 2025

Champion Iron Limited has announced a dividend distribution of CAD 0.10 per share for its ordinary fully paid securities. This dividend relates to the six-month period ending March 31, 2025, with an ex-date of June 12, 2025, and a payment date set for July 10, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by demonstrating financial stability and shareholder confidence.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Limited Releases 2025 Annual Information Form
May 28, 2025

Champion Iron Limited has released its annual information form for the year ended March 31, 2025, detailing various aspects of its business operations, risk factors, and corporate structure. The document highlights the company’s focus on the Bloom Lake property, which plays a crucial role in its business strategy and market positioning. This release provides stakeholders with insights into the company’s operational strategies, financial health, and potential risks, reinforcing its commitment to transparency and informed decision-making.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Enhances Production Capabilities at Bloom Lake
May 28, 2025

Champion Iron Limited has released its Management’s Discussion and Analysis for the fiscal year ending March 31, 2025, highlighting the company’s financial performance and operational strategies. The report underscores the company’s focus on enhancing production capabilities at the Bloom Lake Mining Complex, including investments in new mining equipment and railcars to boost production and shipment flexibility. These strategic initiatives are expected to strengthen Champion Iron’s market position and operational efficiency, potentially benefiting stakeholders by increasing production capacity and economic returns.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Reaffirms Commitment to Corporate Governance and Diversity
May 28, 2025

Champion Iron Limited has reaffirmed its commitment to high standards of corporate governance by adhering to the Australian Securities Exchange Corporate Governance Principles and Recommendations. The company’s board of directors is actively involved in setting strategic aims, managing risks, and ensuring the integrity of senior management. Champion Iron also emphasizes transparency in communication with shareholders and has implemented a diversity policy to promote an inclusive workplace, reflecting its dedication to sustainable and ethical business practices.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Updates Corporate Governance Statement
May 28, 2025

Champion Iron Limited has released its updated corporate governance statement, which adheres to the ASX Corporate Governance Council’s principles and recommendations. The statement, approved by the board, outlines the company’s compliance with governance practices, including the roles and responsibilities of its board and management, and is available on their website. This update reflects the company’s commitment to transparency and accountability, potentially strengthening its position in the market and reassuring stakeholders of its governance standards.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Reports Strong Q4 FY2025 Results and Advances Key Projects
May 28, 2025

Champion Iron reported strong financial results for its fourth quarter of FY2025, with record sales and significant revenue and EBITDA growth. The company is progressing with its DRPF project, aiming for commissioning by December 2025, and has declared a semi-annual dividend, reflecting its robust financial performance and liquidity. The company is also working on a partnership for the Kami Project, indicating strategic growth initiatives.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Reports Revenue Growth Despite Profit Decline
May 28, 2025

Champion Iron Limited reported a 5% increase in revenue from ordinary activities for the year ended March 31, 2025, reaching C$1.6 billion. However, the company’s net profit attributable to members decreased by 39% to C$142 million. Despite the decline in profit, the company declared unfranked dividends of C$0.10 per share, reflecting its commitment to returning value to shareholders.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Schedules Conference Call for 2025 Financial Results
May 14, 2025

Champion Iron Limited announced a conference call and webcast scheduled for May 29, 2025, to discuss its fourth quarter and full-year financial results for 2025. The company will release its financial statements and management’s discussion prior to the event. This announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic direction, potentially impacting its market position and investor relations.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2025