Canadian iron ore producer Champion Iron Limited has announced its operational results for its financial third quarter ending March 31, 2026.
The company reported quarterly production of 3.4 million wet metric tonnes (wmt) of high-purity 66.2 percent Fe concentrate in the given period, up by eight percent increase year on year. Sales for the quarter reached 3.5 million dry metric tonnes (dmt), comparable to the same prior-year period despite a railway interruption caused by a third-party train derailment early in the period and severe winter conditions.
C1 cash cost, the direct cost of producing and delivering iron ore concentrate onto vessels at the Port of Sept-Îles, including mining, processing, transportation, and port handling, totaled approximately $60.5 per dmt, an increase of 12 percent quarter over quarter, primarily attributable to scheduled semi-annual maintenance at both concentration plants, and an increase of three percent year over year. Higher land transportation and port handling costs, driven by lower volumes transported to port due to the train derailment and winter disruptions, along with a sharp rise in fuel prices in March linked to the conflict in the Middle East, negatively impacted cash costs during the quarter.
Strong mining performance was recorded at Bloom Lake, with 20.9 million wmt of material mined and hauled during the quarter, an increase of three percent year over year, driven by additional loading equipment and improved utilization of haul trucks. The Fe recovery rate improved to 80.6 percent, an increase of three percent year over year from 78.3 percent in the same prior-year period.
Iron ore concentrate inventories stockpiled at Bloom Lake and at the port decreased to 1.3 million wmt, a decrease of 13 percent quarter over quarter from 1.5 million wmt, as sales exceeded production for the fifth consecutive quarter.
On the company's Direct Reduction Pellet Feed (DRPF) project, designed to upgrade up to half of Bloom Lake's capacity to DR quality pellet feed iron ore grading up to 69 percent Fe, Champion said commissioning activities advanced concurrently with construction work, with initial production tests successfully completed in March 2026. First sellable commercial production is expected by the end of the second quarter of 2026, with production volumes gradually increasing thereafter. Cumulative investment in the DRPF project totaled approximately $351 million as at March 31, 2026, against an estimated total of approximately $366 million.
Champion also confirmed the closing of its acquisition of Norwegian high-purity iron ore producer Rana Gruber ASA in April, as SteelOrbis previously reported. The transaction was finalized at a total purchase price of approximately $300 million, funded through a new $150 million secured term loan, a $100 million equity private placement from Caisse de dépôt et placement du Québec, and cash on hand. Rana Gruber produces approximately 1.8 million dmt per year of hematite and magnetite iron ore concentrates.
David Cataford, Champion's CEO, said, "Our team remains focused on efficiency and disciplined execution as we advance initiatives to optimize operations, strengthen sales performance and progress our growth projects. Concurrently, our DRPF project remains on schedule, with first sellable commercial production expected in the second quarter of the calendar year. In parallel, the recent closing of the Rana Gruber transaction marks a significant milestone for Champion. It reinforces our leadership as a low carbon producer of high-purity iron ore while expanding our cash flows, positioning us to capitalize on opportunities to maximize long-term value for our shareholders and the communities in which we operate."
US$1 = C$1.37