TSX:CIA - Post Discussion
Post by
retiredcf on Apr 27, 2023 10:21am
RBC
More positive than TD. GLTA
April 26, 2023
Champion Iron Limited
Solid FQ4 operating results with sales above expectations
TSX: CIA | CAD 5.88 | Outperform | Price Target CAD 9.00
Sentiment: Neutral
Our view: We expect a neutral reaction from Champion Iron shares to FQ4 production results with sales above estimates offset by higher cash costs. Production for FQ4 came in at 3,084kwmt which was in line with estimates while sales of 3,093kdmt was both above both our estimate of 2,804kdmt (+10%) and consensus of 2,982kdmt (+4%). Cash costs of $79/t were also above our estimates and consensus driven by higher fixed costs related to the ramp-up of Phase II, inflationary pressures, and a longer-than- expected crusher maintenance shutdown. The company noted the Phase II expansion reached nameplate capacity briefly during FQ4, but seasonal challenges along with equipment and commissioning delays limited consistent output. The focus remains on bringing Bloom Lake to 15Mtpa in the near term with further optionality in the direct reduction pellet feed project (expected to come online in H2/2025 with initial capex of $471M).
Champion is expected to report FQ4 and FY2023 financial results on May 31st with a conference call at 8:30AM ET. Dial-in: 1-888-390-0546.
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