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)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
AU$6.00
▲(14.07% Upside)
Champion Iron's overall stock score is driven by strong technical momentum and positive earnings call sentiment, highlighting operational efficiency and strategic project advancements. However, financial performance challenges, particularly in revenue growth and cash flow, along with a high P/E ratio, temper the overall outlook.
Positive Factors
Negative Factors

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 generates revenue primarily through the sale of iron ore concentrate produced at its Bloom Lake Iron Mine. The company operates on a business model that involves extracting iron ore, processing it to create high-quality iron ore concentrate, and selling it to various customers, including steel mills and traders worldwide. Key revenue streams include direct sales of iron ore concentrate under long-term contracts and spot market sales. Additionally, the company benefits from partnerships with other mining and steel production companies, as well as favorable market conditions for iron ore, which influence pricing and demand. Factors such as global steel production levels, changes in mining regulations, and fluctuations in commodity prices also significantly impact Champion Iron's earnings.

Champion Iron Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong operational and financial performance, strategic advancements in projects, and effective cost management, despite some challenges in shipping costs and ore quality.
Q2-2026 Updates
Positive Updates
Record Concentrate Sales Despite Challenges
Achieved a record level of concentrate sold despite a 12-day rail maintenance shutdown, demonstrating operational efficiency improvements.
Financial Performance
Reported $175 million of EBITDA and over $56 million in net income, declaring a semiannual dividend of $0.10 per share.
Cash and Liquidity Position
Increased cash from $176 million to $325 million during the quarter, with over $1 billion in available liquidity.
Iron Ore Price and Provisional Impact
Benefited from an 8.3% increase in iron ore prices, achieving a provisional price impact of about USD 30 million for the quarter.
DRPF Project Progress
DRPF project is on track to deliver by the end of the calendar year, with expected costs aligning with inflation-adjusted estimates.
Community and Sustainability Efforts
Positive engagement with Canadian officials and community leaders, promoting investment in high-purity iron ore infrastructure.
Partnership with Nippon Steel and Sojitz
Secured a $68 million payment, indicating strong partnership and confidence in the project from major Japanese companies.
Negative Updates
Increased Sea Freight Costs
Faced a 12% increase in sea freight costs, impacting overall cost structure.
Harder Ore Challenges
Encountered challenges with harder ore, requiring adjustments in mining and blending strategies.
Company Guidance
During the conference call, Champion Iron Limited provided several key metrics for the second quarter of fiscal year 2026. Despite a 12-day rail maintenance, the company achieved a record in concentrate sold, leading to a reduction in cash costs to about $76 per tonne. Financial highlights included $175 million in EBITDA and a net income of over $56 million, supporting a semiannual dividend declaration of $0.10 per share. The company reported a quarterly revenue just shy of $500 million and an EPS of $0.11 per share, with cash reserves growing from $176 million to $325 million. Additionally, a provisional pricing impact of approximately USD 30 million was achieved by settling tonnes at $112 per tonne, higher than the previously forecasted $100. The DRPF project remains on track, with completion anticipated by year-end and a total expected cost of about $500 million. The company also noted a stockpile reduction of approximately 477,000 tonnes, bringing it down to 1.7 million tonnes.

Champion Iron Financial Statement Overview

Summary
Champion Iron faces challenges with declining revenue growth and profitability margins, impacting its income statement. The balance sheet remains stable with moderate leverage, but cash flow issues could pose risks to liquidity and future growth. The company needs to address revenue and cash flow challenges to improve its financial health.
Income Statement
65
Positive
Champion Iron's income statement shows a decline in revenue growth with a negative rate of -4.8% in the TTM period, indicating potential challenges in maintaining sales momentum. Gross profit margin has decreased significantly from previous years, reflecting increased cost pressures. The net profit margin has also declined, suggesting reduced profitability. However, the company maintains positive EBIT and EBITDA margins, indicating operational efficiency despite the revenue decline.
Balance Sheet
75
Positive
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.55 in the TTM period, indicating manageable leverage. Return on equity has decreased but remains positive, suggesting the company is generating returns for shareholders. The equity ratio is healthy, indicating a strong capital structure with a significant portion of assets financed by equity.
Cash Flow
55
Neutral
Cash flow analysis reveals challenges, with negative free cash flow growth and a negative free cash flow to net income ratio, indicating potential liquidity issues. The operating cash flow to net income ratio is close to 1, suggesting that operating cash flows are just covering net income, which could limit reinvestment opportunities.
BreakdownTTMDec 2024Dec 2024Dec 2023Dec 2021Dec 2020
Income Statement
Total Revenue1.53B1.52B1.61B1.40B1.46B785.09M
Gross Profit264.39M629.76M401.73M451.28M958.20M363.72M
EBITDA342.98M555.41M446.20M481.68M916.31M348.54M
Net Income84.47M234.19M142.04M200.71M522.59M89.43M
Balance Sheet
Total Assets3.06B2.69B3.03B2.32B1.99B882.60M
Cash, Cash Equivalents and Short-Term Investments176.05M400.06M117.45M327.12M352.67M298.65M
Total Debt794.19M616.41M758.91M562.12M377.34M278.86M
Total Liabilities1.62B1.29B1.59B1.05B827.53M505.98M
Stockholders Equity1.44B1.40B1.44B1.26B1.16B376.62M
Cash Flow
Free Cash Flow-248.51M131.31M-301.58M-58.68M-53.95M156.06M
Operating Cash Flow353.76M474.58M304.02M235.98M470.44M309.57M
Investing Cash Flow-611.32M-354.72M-615.75M-249.86M-635.47M-152.89M
Financing Cash Flow172.80M-48.36M23.41M6.90M-118.14M-14.89M

Champion Iron Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.26
Price Trends
50DMA
4.81
Positive
100DMA
4.59
Positive
200DMA
4.61
Positive
Market Momentum
MACD
0.18
Positive
RSI
56.47
Neutral
STOCH
27.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CIA, the sentiment is Positive. The current price of 5.26 is above the 20-day moving average (MA) of 5.13, above the 50-day MA of 4.81, and above the 200-day MA of 4.61, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 27.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CIA.

Champion Iron Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$2.95B21.528.25%4.12%0.40%-53.09%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
47
Neutral
AU$33.98M4.0419.09%
46
Neutral
AU$424.95M-16.34%-48.05%-1394.34%
45
Neutral
AU$38.28M7.543.77%
34
Underperform
AU$30.24M-5.56-92.18%66.67%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CIA
Champion Iron
5.26
-0.02
-0.44%
AU:IRD
Iron Road Ltd
0.05
-0.02
-24.59%
AU:MGX
Mount Gibson Iron Limited
0.36
0.05
18.03%
AU:GWR
GWR Group Limited
0.10
0.02
25.00%
AU:M4M
Kogi Iron Ltd.
0.01
0.00
0.00%
AU:TI1
Tombador Iron Ltd.
0.35
0.00
0.00%

Champion Iron Corporate Events

Champion Iron Limited Announces Dividend Distribution for Shareholders
Oct 30, 2025

Champion Iron Limited has announced a dividend distribution of CAD 0.10 per share for its ordinary fully paid securities, covering the six-month period ending September 30, 2025. This distribution reflects the company’s ongoing commitment to returning value to shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Releases Financial Analysis for Q3 2025
Oct 30, 2025

Champion Iron Limited has released its Management’s Discussion and Analysis for the three and six-month periods ending September 30, 2025. The report, prepared in accordance with Australian and International Accounting Standards, provides insights into the company’s financial performance, highlighting non-IFRS financial measures used to evaluate results. The company emphasizes the importance of these measures for providing additional information beyond standard IFRS metrics. The release also includes cautionary notes regarding forward-looking statements, indicating potential risks and uncertainties affecting future operations.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$5.90 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 Q2 Results and Advances Key Projects
Oct 29, 2025

Champion Iron reported strong financial results for its FY2026 second quarter, with record sales of 3.9 million dmt and a revenue of $493 million. The company declared a semi-annual dividend and is advancing its DRPF project, which aims to upgrade Bloom Lake’s capacity to produce DR quality iron ore. The company also formalized a strategic partnership with Nippon Steel and Sojitz for the Kami Project, enhancing its market positioning and growth prospects.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Releases Directors’ Report Highlighting Financial and Operational Insights
Oct 29, 2025

Champion Iron Limited has released its Directors’ Report for the period ending September 30, 2025, detailing the company’s financial performance and operational review. The report highlights the management’s responsibility for financial statement integrity and the use of non-IFRS financial measures to provide additional insights into the company’s performance. This release is significant as it provides stakeholders with a comprehensive overview of the company’s financial health and operational strategies, which are crucial for assessing its market positioning and future growth potential.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$5.90 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
Oct 29, 2025

Champion Iron Limited reported an 8% increase in revenue for the half-year ended September 30, 2025, compared to the same period in 2024, reaching C$882.9 million. However, the company’s net profit decreased by 20% to C$80.6 million. The company declared an interim dividend of C$0.10 per share, maintaining its dividend policy. Additionally, Champion Iron transferred its assets related to the Kamistiatusset properties into Kami Iron Mine Partnership, retaining a 51% interest while 49% was acquired by third parties, indicating a strategic move to potentially develop the project further.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Champion Iron Ceases Certain Securities Due to Unmet Conditions
Oct 23, 2025

Champion Iron Limited announced the cessation of certain securities, specifically 322,746 performance share units and 215,164 restricted share units, due to unmet conditions. This development may impact the company’s capital structure and reflects the challenges in meeting performance or market conditions, potentially affecting stakeholder confidence.

The most recent analyst rating on (AU:CIA) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Champion Iron stock, see the AU:CIA Stock Forecast page.

Financial Disclosures
Champion Iron to Host Q2 FY2026 Results Conference Call
Neutral
Oct 15, 2025

Champion Iron Limited announced it will host a conference call and webcast on October 30, 2025, to discuss its second-quarter financial results for FY2026. The company is expected to release its financial statements and management’s analysis prior to the event, which will be accessible online. This announcement highlights Champion Iron’s commitment to transparency and provides stakeholders with insights into its operational and financial performance.

Champion Iron Advances in High-Grade Iron Ore Production
Oct 6, 2025

Champion Iron Limited has announced plans to upgrade its Bloom Lake iron ore concentrate to produce a higher-grade, Direct Reduction quality pellet feed. This strategic move aligns with the industry’s shift towards Electric Arc Furnaces and the rising demand for higher-grade iron ore, positioning Champion Iron to capitalize on market trends and enhance its operational efficiency. The company is also progressing with the Kami Project, which has the potential to produce a Direct Reduction grade product, further solidifying its presence in the evolving steelmaking sector.

The most recent analyst rating on (AU:CIA) stock is a Hold with a A$5.00 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
Sep 29, 2025

Champion Iron has formed a partnership with Nippon Steel and Sojitz for the development of the Kami Project, an iron ore initiative in Newfoundland. The partners have made an initial contribution of $68.6 million, with Champion holding a 51% stake. The project’s feasibility study is expected by the end of 2026, with further investment contingent on its results. The Kami Project, acquired in 2021, is set to produce high-grade iron ore with a 25-year mine life and significant economic potential, enhancing Champion’s 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.

Business Operations and StrategyShareholder Meetings
Champion Iron’s AGM Results and Governance Implications
Negative
Aug 28, 2025

Champion Iron Limited announced the results of its FY2025 Annual General Meeting, where all resolutions received the necessary majorities. However, the vote on the Remuneration Report resulted in a ‘first strike’ under Australian law. The meeting saw a significant representation of shareholders, with 77.86% of the company’s ordinary shares represented. This outcome may have implications for the company’s governance and stakeholder relations, particularly concerning executive remuneration policies.

Business Operations and StrategyExecutive/Board Changes
Champion Iron’s CFO Departure Amidst Strategic Developments
Neutral
Aug 26, 2025

Champion Iron Limited announced the departure of its Chief Financial Officer, Donald Tremblay, ahead of the release of its second quarter results for the 2026 financial year. The company is conducting a global search for a successor while interim responsibilities are managed by existing executives. Tremblay’s tenure included significant achievements such as the completion of the Phase II project and strengthening the finance team, which have been pivotal in enhancing the company’s operational efficiency and market positioning.

Champion Iron Announces 2025 Annual General Meeting
Aug 13, 2025

Champion Iron Limited has announced its Annual General Meeting of Shareholders, scheduled for August 27, 2025, in Montréal and August 28, 2025, in Sydney. The meeting will be accessible via a live audio webcast, with details available on the company’s website. This announcement underscores Champion Iron’s commitment to transparency and stakeholder engagement, potentially impacting its market perception and investor relations.

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 Updates Director’s Interest Holdings
Aug 8, 2025

Champion Iron Limited announced a change in the director’s interest, specifically regarding David Cataford’s holdings. The update includes the acquisition of performance and restricted share units, as well as a transfer of ordinary shares to an indirect holding. This change reflects the company’s adherence to transparency and regulatory compliance, potentially impacting investor perceptions 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 Announces Director’s Interest Change
Aug 8, 2025

Champion Iron Limited has announced a change in the director’s interest, with Ronald Hugh Beevor acquiring 1,212 deferred share units (DSUs) under the 2018 Omnibus Incentive Plan. This acquisition reflects the company’s ongoing efforts to align management interests with shareholder value, potentially impacting the company’s governance and stakeholder confidence positively.

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 Director’s Interest Change
Aug 8, 2025

Champion Iron Limited has announced a change in the director’s interest, specifically involving Gary Lawler, who has acquired an additional 3,871 Deferred Share Units (DSUs) under the company’s 2018 Omnibus Incentive Plan. This change reflects the company’s ongoing commitment to aligning the interests of its directors with the company’s performance, potentially impacting its governance and stakeholder confidence positively.

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 Director’s Interest Change
Aug 8, 2025

Champion Iron Limited has announced a change in the director’s interest, with Jessica McDonald acquiring an additional 1,195 Deferred Share Units (DSUs) at CAD3.95 each under the 2018 Omnibus Incentive Plan. This change reflects the company’s ongoing commitment to aligning the interests of its directors with those of its shareholders, potentially impacting the company’s governance 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 Announces Director’s Interest Change
Aug 8, 2025

Champion Iron Limited has announced a change in the director’s interest, with Louise Grondin acquiring 2,991 Deferred Share Units (DSUs) valued at CAD 3.95 each, under the 2018 Omnibus Incentive Plan. This change reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting investor confidence and market perception positively.

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 Director’s Interest Change
Aug 8, 2025

Champion Iron Limited announced a change in the director’s interest, specifically involving Michelle Cormier. On August 4, 2025, Cormier acquired 3,281 Deferred Share Units (DSUs) under the company’s 2018 Omnibus Incentive Plan, increasing her total DSUs to 132,902. This change reflects the company’s ongoing commitment to aligning its leadership’s interests with its long-term strategic goals, potentially impacting stakeholders by reinforcing confidence in the company’s governance and incentive structures.

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 to Boost Employee Engagement
Aug 8, 2025

Champion Iron Limited has announced the issuance of unquoted equity securities, including performance share units, restricted share units, and deferred share units, as part of an employee incentive scheme. This move is likely to enhance employee engagement and align their interests with the company’s growth objectives, potentially strengthening its operational performance and 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 Ltd. Earnings Call: Strengths and Challenges
Aug 1, 2025

Champion Iron Ltd.’s recent earnings call painted a mixed picture of its current business landscape. While the company showcased its logistical prowess and financial fortitude, significant production challenges and external disruptions cast a shadow over these achievements. The sentiment was a blend of optimism for strategic partnerships and concern over increased costs and operational hurdles.

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: Oct 31, 2025