Canada-based Champion Iron Limited has announced a net loss of CAD$41.5 million for its financial first quarter ended June 30, 2026, compared to net income of CAD$23.2 million in the fourth quarter of FY2026 and net income of CAD$23.8 million in the first quarter of FY2026. Revenues for the quarter were CAD$356.9 million, a decrease of 14 percent quarter over quarter from CAD$414.5 million and a decrease of eight percent year over year from CAD$390.0 million. The company's EBITDA for the quarter was CAD$32.8 million, compared to CAD$114.3 million in the fourth quarter of FY2026 and CAD$57.8 million in the first quarter of FY2026.
The net loss was primarily driven by an unrealized foreign exchange loss of CAD$17.2 million on net monetary liabilities denominated in foreign currencies and unfavorable fair value adjustments of CAD$17.6 million on derivative instruments. Results were further affected by the timing of iron ore shipments associated with Direct Reduction Pellet Feed (DRPF) commissioning activities, which deferred a portion of revenues to future periods, along with higher freight and fuel costs and lower fixed cost absorption.
Quarterly production totaled 3.9 million wet metric tons (wmt) of high-purity iron ore concentrates, an increase of 12 percent year over year, primarily attributable to the acquisition of Rana Gruber, which contributed 0.4 million wmt, while Bloom Lake produced 3.5 million wmt. Sales totaled 3.3 million dry metric tons (dmt), a decrease of 13 percent year over year, reflecting the planned transition and shipment sequencing associated with the DRPF ramp-up at Bloom Lake. Iron ore concentrate inventories at Bloom Lake and at the port rose to 1.7 million wmt as at June 30, 2026, from 1.3 million wmt as at March 31, 2026, as production exceeded sales.
C1 cash cost, the direct cost of producing and delivering iron ore concentrates onto vessels, totaled CAD$83.7 per dmt (US$60.5/dmt), up from CAD$82.7 per dmt in the fourth quarter of FY2026 and CAD$81.9 per dmt in the first quarter of FY2026, reflecting fixed cost absorption over lower sales volumes and a significant rise in fuel prices attributable to the conflict in the Middle East.
All-in sustaining cost rose to CAD$111.3 per dmt from CAD$96.9 per dmt in the prior quarter. The net average realized selling price was CAD$106.9 per dmt (US$77.5/dmt), a decrease of 11 percent quarter over quarter and an increase of five percent year over year. Freight and other costs increased 35 percent year over year to US$36.4 per dmt, mainly reflecting a 63 percent rise in the average C3 index.
The company completed its DRPF project within its estimated CAD$500 million budget, with cumulative investments totaling CAD$493.7 million as at June 30, 2026. Champion produced its first DR quality iron ore during the quarter, with an inaugural commercial shipment expected in the third calendar quarter of 2026, and has secured a commercial agreement for a portion of near-term production capacity. The company also completed its acquisition of Rana Gruber on April 10, 2026, which contributed revenues of CAD$23.9 million and a gross loss of CAD$6.0 million for the partial quarter. Available liquidity stood at CAD$653.1 million as at June 30, 2026, compared to CAD$812.4 million as at March 31, 2026.
David Cataford, Champion's chief executive officer, said, "In an environment marked by economic uncertainty and market volatility, our dedicated team remains focused on executing our strategic priorities and optimizing operations to enhance our competitive positioning and financial resilience. The completion of the DRPF project once again demonstrates our ability to successfully deliver large-scale projects, enabling us to engage with new customers, further participate in decarbonizing the steel industry and improve our realized prices. As we complete the integration of Rana Gruber, our focus shifts towards unlocking opportunities across our businesses, including cost management initiatives, while continuing to implement our long-term vision and strengthen Champion's position as a leading global supplier of high-purity iron ore."
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