Canada based iron ore producer Champion Iron Limited announced second quarter results with a mixed outcome. Reported net losses were attributed to lower iron ore indices, higher ocean freight rates, and elevated fuel prices. And while start up costs for its Direct Reduction Pellet Feed (DRPF) project also contributed to the losses, the company was able to report its first DRPF shipments were made with additional new contracts secured.
In the report, Champion announced a net loss of C$48.4 million for its fiscal second quarter ended September 30, 2026, compared to a net loss of C$41.5 million in the previous quarter and net income of C$56.8 million in the same quarter of the previous fiscal year.
Revenues totaled C$403.9 million in the quarter, up 13.2 percent from C$356.9 million in the previous quarter and down 18 percent from C$492.9 million in the same quarter last year. Rana Gruber, the Norwegian producer Champion acquired in April, contributed C$54.3 million. Rana Gruber's results for the previous quarter cover only part of that period, and the year-ago quarter does not include the company.
Consolidated sales reached a record 4.49 million dry metric tons (dmt) in the quarter, up 35 percent quarter over quarter and 17 percent year over year, with Bloom Lake contributing 3.91 million dmt and Rana Gruber 587,000 dmt. Production totaled 3.87 million wet metric tons (wmt), down two percent quarter over quarter and up nine percent year over year, as Bloom Lake output of 3.32 million wmt was affected by inefficiencies from DRPF commissioning. Iron ore concentrate inventories at Bloom Lake and the Port of Sept-Iles fell to 1.0 million wmt from 1.7 million wmt at the end of June.
C1 cash cost, the direct cost of producing and delivering iron ore concentrate onto vessels, was C$82.9 per dmt, down one percent quarter over quarter from C$83.7 and up nine percent year over year from C$76.2. All-in sustaining cost was C$97.9 per dmt, compared to C$111.3 in the first quarter of FY2027 and C$96.9 in the second quarter of FY2026.
During the quarter, Champion completed the inaugural commercial shipment of DRPF product and secured additional test cargoes and commercial agreements for shipments scheduled for the third quarter of FY2027. Cumulative DRPF investment totaled C$497.0 million as of September 30, 2026. The company did not issue numerical guidance for the next quarter, but said elevated freight rates are expected to continue impacting net revenues in future months.
Chief executive officer, David Cataford, said, “The completion of an initial sale of DRPF material marks an important milestone for us, with additional commercial shipments scheduled for the coming quarter reflecting growing market interest in this product and the potential to expand our reach to customers across shorter freight routes. Having completed a significant multi-year investment cycle at Bloom Lake, our priority is now to optimize our assets, strengthen our balance sheet, and pursue cost-reduction initiatives.”
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