Champion Iron Ltd. (AU:CIA)
ASX:CIA
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Champion Iron
(Sydney:CIA)
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Rating:59Neutral
Price Target:
AU$5.50
▲(3.38% Upside)
Action:ReiteratedDate:01/31/26
The score is held back primarily by softened financial quality versus peak years (margin compression, higher leverage, and near-zero free cash flow) and weak near-term technical momentum (below key moving averages with low RSI/Stoch). Offsetting factors include a constructive earnings-call outlook with strong operations, project progress and robust liquidity, plus a reasonable valuation supported by a ~3.8% dividend yield.
Positive Factors
Production & Sales Scale
Sustained quarterly production and near-equal sales volumes indicate durable operational scale at Bloom Lake. High throughput spreads fixed costs, supports contractual fulfillment and commercial credibility with customers, and underpins predictable revenue and margin capture over the next several quarters.
Negative Factors
Elevated Leverage
Higher leverage materially reduces balance-sheet flexibility compared with prior years. With debt-to-equity near 0.76, the company is more exposed to commodity or cash-flow shocks, limiting its ability to self-fund growth, accelerate deleveraging, or absorb cost overruns during project ramp-up.
Read all positive and negative factors
Positive Factors
Negative Factors
Production & Sales Scale
Sustained quarterly production and near-equal sales volumes indicate durable operational scale at Bloom Lake. High throughput spreads fixed costs, supports contractual fulfillment and commercial credibility with customers, and underpins predictable revenue and margin capture over the next several quarters.
Read all positive factors
Champion Iron (CIA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.84B
Dividend Yield3.66%
Average Volume (3M)1.90M
Price to Earnings (P/E)11.4
Beta (1Y)1.59
Revenue Growth0.40%
EPS Growth-53.09%
CountryAU
Employees1,014
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.13
Shares Outstanding533,251,000
10 Day Avg. Volume1,878,628
30 Day Avg. Volume1,903,879
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)2.49
Price to Sales (P/S)2.28
P/FCF Ratio26.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$7.14Price Target Upside34.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.53
Revenue Forecast (FY)AU$2.10B
Champion Iron Business Overview & Revenue Model
Company Description
Champion 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 pro...
How the Company Makes Money
Champion Iron makes money primarily by selling iron ore concentrate produced from its operations (notably Bloom Lake). Revenue is recognized based on shipped and/or delivered volumes (per the applicable sales terms) multiplied by the realized sale...
Champion Iron Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call presents predominantly positive operational and strategic progress: production and sales volumes were strong, cash costs declined to below $74/tonne, financials (revenues $470M, EBITDA $150M, net income $65M) are solid, liquidity is robust (~$1.1B including working capital), the DRPF project is near commissioning with first tonnes expected H1 and ramp to nameplate over ~12 months, and a fully financed acquisition (Rana Gruber) strengthens European access and adds ~2Mt. Near-term headwinds are manageable: a short ship-loader outage, elevated port inventories that will take ~2 quarters to destage, rail/winter logistics constraints, provisional price adjustments causing a slight QoQ EBITDA dip, and trial discounts expected on initial DRPF cargoes. Overall, the positives (operational improvements, project progress, financing/strategic M&A and liquidity) outweigh the contained near-term challenges.Positive Updates
Strong Production and Sales Volumes
Quarterly concentrate production ~3.7 million tonnes and sales just shy of 3.9 million tonnes, with ~2.5 million tonnes in transit at period end.
Negative Updates
Quarterly EBITDA Slightly Lower QoQ
EBITDA was a little less than the previous quarter, primarily driven by provisional price adjustments and some realized discounts on spot sales.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Production and Sales Volumes
Quarterly concentrate production ~3.7 million tonnes and sales just shy of 3.9 million tonnes, with ~2.5 million tonnes in transit at period end.
Read all positive updates
Company Guidance
On the Q3 FY2026 call Champion guided that operations remain on track: quarterly concentrate production was ~3.7 Mt and sales were just under 3.9 Mt (with ~2.5 Mt in transit, provisionally valued at ~US$117/t), inventories were rebalanced with a 1.1 Mt drawdown at Bloom Lake to ~0.6 Mt and ~0.9 Mt at the port (vessels ≈200 kt each), P65 averaged ~US$118/t (+1%) while C3 freight rose ~2%, provisional price adjustments were ~US$3.3M (≈$0.80/t on sold tonnes), realized net price was ~CAD121/t, cash cost delivered in-ship was just under CAD74/t, and Q3 financials were revenues ≈$470M, EBITDA ≈$150M, net income ≈$65M with cash ≈$245M (and total cash, cash equivalents and working capital including available facilities of ~$1.1B). Major project guidance: the DRPF remains on a ~CAD$500M capex target, first tonnes and first vessel expected in H1 (commercial ramp to nameplate over ~12 months, with ~20 days of Phase‑2 tie‑in interruption), Bloom Lake debottlenecking target remains ~17–18 Mtpa long‑term, and the Rana Gruber acquisition is fully financed (≈US$39M cash, US$100M support from La Caisse, US$150M underwritten Scotiabank term loan).Champion Iron Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2021 | Mar 2020 | Mar 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.79B | 1.61B | 1.40B | 1.46B | 1.28B | 655.13M |
| Gross Profit | 431.27M | 401.73M | 451.28M | 958.20M | 817.76M | 288.63M |
| EBITDA | 536.88M | 446.20M | 481.68M | 916.31M | 803.79M | 263.00M |
| Net Income | 186.01M | 142.04M | 200.71M | 522.59M | 464.43M | 83.05M |
Balance Sheet | ||||||
| Total Assets | 3.43B | 3.03B | 2.32B | 1.99B | 1.50B | 672.02M |
| Cash, Cash Equivalents and Short-Term Investments | 245.46M | 117.45M | 327.12M | 352.67M | 636.52M | 153.33M |
| Total Debt | 1.14B | 758.91M | 562.12M | 377.34M | 216.85M | 240.96M |
| Total Liabilities | 1.92B | 1.59B | 1.05B | 827.53M | 643.89M | 456.30M |
| Stockholders Equity | 1.51B | 1.44B | 1.26B | 1.16B | 853.02M | 150.35M |
Cash Flow | ||||||
| Free Cash Flow | 3.06M | -301.58M | -58.68M | -53.95M | 446.54M | 104.38M |
| Operating Cash Flow | 431.01M | 304.02M | 235.98M | 470.44M | 623.48M | 176.70M |
| Investing Cash Flow | -446.57M | -615.75M | -249.86M | -635.47M | -244.14M | -72.93M |
| Financing Cash Flow | 169.22M | 23.41M | 6.90M | -118.14M | -26.30M | 20.50M |
Champion Iron Technical Analysis
Positive
5.32
Price Trends
5.31
Positive
5.62
Negative
5.07
Positive
Market Momentum
0.03
Negative
54.66
Neutral
83.65
Negative
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 5.32 is above the 20-day moving average (MA) of 4.98, above the 50-day MA of 5.31, and above the 200-day MA of 5.07, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CIA.
Champion Iron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | AU$2.84B | 11.40 | 12.63% | 3.66% | 0.40% | -53.09% | |
57 Neutral | AU$14.15M | -0.05 | -111.00% | ― | ― | ― | |
52 Neutral | AU$472.17M | -6.44 | -7.08% | ― | -48.05% | -1394.34% | |
41 Neutral | AU$29.74M | -4.50 | -123.74% | ― | ― | 66.67% | |
| ― | AU$24.97M | -1.49 | -77.53% | ― | ― | -141.04% |
* Basic Materials Sector Average
AU:CIA
Champion Iron
5.32
1.16
27.73%
AU:IRD
Iron Road Ltd
0.02
-0.03
-62.22%
AU:MGX
Mount Gibson Iron Limited
0.40
0.10
31.15%
AU:M4M
Kogi Iron Ltd.
0.01
0.00
0.00%
AU:AEU
Tombador Iron Ltd.
0.49
0.14
38.57%
AU:EQX
Equatorial Resources Limited
0.19
0.09
90.00%
Champion Iron Corporate Events
Champion Iron Sets Out Green Steel Strategy and Details Risks Around Rana Gruber Bid
Feb 22, 2026
Champion Iron, listed in Canada, Australia and on the OTCQX, operates in iron ore mining and processing with a focus on high-grade concentrate. The company is increasingly targeting low-carbon steelmaking markets, aiming to supply direct reduction...
Champion Iron Director Reduces Shareholding in On-Market Sales
Feb 10, 2026
Champion Iron has disclosed a change in director Gary Lawler’s interests in the company’s securities, following on-market sales conducted on 5, 6 and 9 February 2026. Lawler disposed of a total of 350,000 ordinary fully paid shares at ...
Champion Iron Issues 26.8 Million Unquoted Convertible Subscription Receipts
Feb 4, 2026
Champion Iron Limited has notified the market of the issuance of 26,795,921 unquoted subscription receipts, classified as convertible non-debt securities, effective 5 February 2026. These securities, which are not intended to be quoted on the ASX,...
Champion Iron Raises US$100 Million from La Caisse to Back Rana Gruber Bid
Feb 4, 2026
Champion Iron Limited has closed a US$100 million private placement of 26.8 million subscription receipts with Caisse de dépôt et placement du Québec at US$3.7319 per receipt, implying about 5% dilution on a non-diluted basis and br...
Champion Iron Files MD&A Highlighting Interim Results and Non-IFRS Metrics
Jan 29, 2026
Champion Iron Limited has released its Management’s Discussion and Analysis for the three- and nine-month periods ended December 31, 2025, prepared in accordance with international and Australian interim financial reporting standards to acco...
Champion Iron Outlines Green Steel Growth Strategy and Risk Factors in Q3 FY2026 Presentation
Jan 29, 2026
Champion Iron has released a presentation for its third quarter of the 2026 financial year that outlines its strategic direction, risk framework and technical underpinnings rather than offering an investment solicitation. The document emphasizes t...
Champion Iron Bolsters Asset Base and Leverage Amid Continued Growth Investments
Jan 29, 2026
Champion Iron Limited reported a stronger balance sheet as of December 31, 2025, with total assets rising to C$3.43 billion from C$3.03 billion at March 31, 2025, driven by higher cash, increased receivables and substantial investment in property,...
Champion Iron Posts Record Sales as DRPF Project Nears First Shipments
Jan 29, 2026
Champion Iron reported solid third-quarter FY2026 results, with production of 3.7 million wet metric tonnes of 66.5% Fe concentrate, record sales of 3.9 million dry metric tonnes and revenue of $472 million, translating into net income of $65 mill...
Champion Iron Sets Date for Q3 FY2026 Results and Investor Call
Jan 14, 2026
Champion Iron Limited announced it will release its financial statements and management’s discussion and analysis for the third quarter ended December 31, 2025, of its 2026 financial year ahead of a conference call and webcast scheduled for ...
Champion Iron Restores Key Rail Link After Third-Party Derailment
Jan 8, 2026
Champion Iron Limited said rail service has resumed on the Quebec North Shore and Labrador Railway following a third-party train derailment in late December that temporarily disrupted the route used to transport high-purity iron ore concentrate fr...
Champion Iron Reports Lapse of Performance and Restricted Share Units
Jan 6, 2026
Champion Iron Limited has notified the market of the cessation of certain equity-based incentive securities, including 16,164 performance share units and 8,613 restricted share units, after the conditional rights attached to these instruments laps...
Champion Iron Updates Director Michelle Cormier’s Equity Holdings After DSU Grant
Dec 31, 2025
Champion Iron Limited reported a change in director Michelle Cormier’s interests following the issuance of 2,695 Deferred Share Units (DSUs) on 29 December 2025 under the company’s 2018 Omnibus Incentive Plan, at a price of CAD4.93 per...
Champion Iron Reports Increase in Director’s Deferred Share Units Holding
Dec 31, 2025
Champion Iron Limited has disclosed a change in director Louise Grondin’s interests following the automatic issue of 2,455 Deferred Share Units (DSUs) under the company’s 2018 Omnibus Incentive Plan. The issuance, valued at CAD4.93 per...
Champion Iron Updates Director Gary Lawler’s Equity Holdings After DSU Grant
Dec 31, 2025
Champion Iron Limited has reported a change in director Gary Lawler’s interests in the company’s securities, following the issue of 3,134 deferred share units (DSUs) on 29 December 2025 under the company’s 2018 Omnibus Incentive ...
Champion Iron Updates Market on Director Jessica McDonald’s Increased DSU Holding
Dec 31, 2025
Champion Iron Limited has disclosed a change in director Jessica McDonald’s interests, with the issuance of 984 Deferred Share Units (DSUs) on 29 December 2025 under the company’s 2018 Omnibus Incentive Plan, increasing her total holdi...
Champion Iron Director Ronald Beevor Increases Stake via Deferred Share Units
Dec 31, 2025
Champion Iron Limited reported a change in director Ronald Hugh Beevor’s interests following the issuance of 984 deferred share units (DSUs) at A$5.40 each under the company’s 2018 Omnibus Incentive Plan. The transaction, which did not...
Champion Iron CEO Increases Equity Holdings Through Incentive Plan Awards
Dec 31, 2025
Champion Iron Limited has disclosed a change in the securities holdings of Chief Executive Officer and director David Cataford, following the issue of additional equity incentives under the company’s 2018 Omnibus Incentive Plan. On 29 Decemb...
Champion Iron Issues New Tranche of Unquoted Equity Under Incentive Plans
Dec 31, 2025
Champion Iron Limited has notified the market of the issuance of a total of 145,281 unquoted securities under its employee incentive schemes, comprising 80,976 performance share units, 54,053 restricted share units and 10,252 deferred share units,...
Champion Iron Sees Limited Impact From Quebec Rail Derailment
Dec 30, 2025
Champion Iron has reported that a third‑party train derailment on the Quebec North Shore and Labrador Railway, which carries high‑purity iron ore concentrate from its Bloom Lake mine to the port of Sept‑Îles, is expected to ...
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.
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