Champion Iron (TSX: CIA) announced Thursday that the company produced 1,936,000 wet metric tonnes (wmt) of 66.3% Fe high-grade iron ore concentrate during the three-month period ended June 30, 2021 at its Bloom Lake project in Quebec, Canada, which is an increase of 8% compared to 1,798,800 wmt of 66.5% Fe for the same period in 2020.
For the three-month period ended June 30, 2021, the company said it generated a record net income of $224,339,000 (EPS of $0.44), a 197% increase compared to $75,556,000 (EPS of $0.16) for the same period in 2020. The company attributed the increase in net income to higher gross profit and improved production resulting in more iron ore concentrate sold, partially offset by higher income and mining taxes from increased taxable income.
For the three-month period ended June 30, 2021, the company generated record EBITDA of $405,739,000, including non-cash share-based payments, representing an EBITDA margin of 74%, a 212% increase compared to $130,162,000, representing an EBITDA margin of 53% for the same period in 2020. The company explained that variation in EBITDA period over period was primarily due to the greater revenue from higher net average realized selling price.
CEO David Cataford commented, "We owe another strong quarterly financial result to our workforce dedicated to the success of our company. Through their efforts and with an increased focus on reducing global emissions in the steelmaking industry, Champion is benefiting from the rising demand and premium pricing for Bloom Lake's high-grade iron ore. I am also pleased to report that our Phase II expansion project, which is expected to double our nameplate capacity, remains on target for completion by mid-2022."
Champion Iron is an iron ore exploration and development company with major projects in the southern Labrador Trough, Canada’s largest iron ore producing region. On April 11, 2016, Champion Iron officially became the new owner of the Bloom Lake mine facilities, acquired from Cliffs Natural Resources for $10.5 million.
