Post by
Gr8brt10 on May 26, 2022 10:03am
Brief notes from the YE conference call
Our company, Champion has
- delivered 500KT over nameplate capacity in 2022
- received 32% increase in iron ore price over the previous quarter
- see significant upside in the iron ore price over the short to medium term
- see the transition from blast to electric furnaces picking up a pace
- delivered eps of 23 through controlling costs in challenging times
- achieved a cash position of approx. $400M after funding phase 2 and after a $60M hit to settlement a late deliver
- refinanced the loan facility helping to reduce cost of capital by 2%
- delivered Phase 2 ahead of schedule and on budget
- have tested Phase 2 at design levels - all good - and are confident of achieving nameplate capacity by year end
- FS for FE 69% to be completed by end of summer; with a 2 year build timeline
- FS for Kami by year end; with a partner
- FS for DP Pellet in 2023; to be delivered in all likelihood via a joint venture with CIA as the operator
(NB: The current premium of DR pellet is approx. $70 command over 65% Fe product)
Comment by
OuijaFund on May 26, 2022 10:23am
Good synopsis. There is one additional thing mentioned at the 30:00 minute mark, when David Cataford speaks about a Bloom Lake Phase 3 to bring BL to the Cliffs original plan of 25-30 million tonnes, 100% owned by Champion, no JV partner. That's big! Hope to hear more about that.