Champion Iron (ASX: CIA) Eyes Expansion in Green Steel Market with DRPF and Kami Projects

 Highlights

• CIA aims to enhance mining efficiency and output at Bloom Lake.
• DRPF project is expected to be commissioned by December 2025.
• In nine months ended 31 December 2024, the company recorded revenues of CAD 1.18 billion and EBITDA of CAD 343.9 million.

Champion Iron Limited (ASX:CIA) is an iron ore exploration and mining company focused on advancing key projects that align with the industry's shift towards green steel production. The company expects that the DRPF (Direct Reduction Pellet Feed)  and Kami projects will increase the organisation's long-term growth prospects.

CIA's DRPF project remains on schedule for commissioning by December 2025. This initiative is designed to upgrade Bloom Lake’s production to Direct Reduction (DR) quality pellet feed, an essential component for environmentally friendly steel manufacturing.

Meanwhile, the Kami Project, in collaboration with Nippon Steel and Sojitz Corporation, is progressing towards a definitive feasibility study expected to conclude by mid-2026. The financial contributions from CIA’s partners in this project not only reduce capital risks but also enhance the probability of a successful development.

Financial Performance

For the nine months ended 31 December 2024, CIA reported revenues of CAD 1.18 billion, a slight decline of 1% compared to the previous year. EBITDA, however, saw a more significant drop of 26% YoY to CAD 343.9 million.

Financial performance during the reported period was mainly underpinned by lower realised selling prices, increased costs, and higher depreciation expenses. Despite these challenges, iron ore concentrate sales increased by 15% YoY.

Recent Business Updates

State Street Corporation and its subsidiaries increased its voting power in the company to 6.01% as announced in early March 2025. Additionally, CIA director Michael O’Keeffe reinforced confidence in the company’s prospects by acquiring 100,000 ordinary shares.

Market Outlook

CIA anticipates steady growth in production at Bloom Lake, driven by operational improvements and new equipment. The company’s strategic DRPF project is set to enhance its ability to supply premium iron ore to green steel producers, while the Kami Project’s feasibility study continues to pave the way for future investments.

Share performance of CIA

CIA shares closed 0.57% lower at AUD 5.23 per share on 27 March 2025. Over the past year, CIA’s share price has dropped by approximately 28.06% and in the last three months, it has declined by 9.52%.

52-week high of CIA is AUD 7.96, recorded on 22 May 2024 and 52-week low is AUD 4.69, recorded on 11 March 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 27 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Disclaimer

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