DISCLAIMER - Champion Iron
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Transcript of DISCLAIMER - Champion Iron
DISCLAIMER
CORPORATE OVERVIEW
BLOOM LAKE
COVID-19 RESPONSE
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TSX: CIA ⎪ ASX: CIA
FY2020 HEALTH & SAFETY
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ENVIRONMENTALLY FOCUSED
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NewOld
STEEL INDUSTRY GOING GREENDR PELLET FEED IN RISING DEMAND
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Source: Champion Iron Limited, Wood Mackenzie data
✓ Champion sells based on Platts 65% Fe premium benchmark
STRUCTURAL SHIFT IN IRON ORE
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Source: Champion Iron Limited, Platts, Bloomberg; P62: Platts TSI IODEX 62% Fe CFR China; P65: Platts IO Fines 65% Fe CFR China
Pre
miu
m/D
isco
un
t to
P6
2 In
dex
(%
)
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MARKET STATISTICS AS OF Q2/FY21(C$M) SHAREHOLDERS (CIA-TSX; CIA-ASX)
CORPORATE SNAPSHOT
INVESTMENT HISTORY
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TIMELINE &
CUMULATIVE
TOTAL
INVESTMENT
BLOOM LAKE TODAY
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$
$
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P62: Platts TSI IODEX 62% Fe CFR China
COMPETING ON COST CURVE
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DIVERSIFIED CUSTOMER BASE
Product sold to 22 different customers since 1st shipment
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CHINA – 52.5%
EUROPE – 4%
INDIA – 1.5%
MIDDLE EAST – 12.5%
KOREA – 4.5%
JAPAN – 25%
OPERATIONAL RESULTS
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BLOOM LAKE PHASE I (7.4 MTPA)
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FINANCIAL RESULTS
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PREMIUM PRICING
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Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Net
Ave
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FOB
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A$
/dm
t))
CA
$ p
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mt
Total Cash Cost Total All-in Sustaining Cost
Cash Operating Margin Net Average Selling Price (FOB)
LABRADOR TROUGH =WORLD-CLASS OPPORTUNITY
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GROWTH OPPORTUNITIES
BLOOM LAKE PHASE II PROJECTROBUST ECONOMICS
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PHASE II – ADVANCED PROJECT
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BLOOM LAKE AREAPOTENTIAL OPPORTUNITIES
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ACQUISITION OF KAMI PROJECT
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REGIONAL OPPORTUNITIES
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STRONG FINANCIAL POSITION
STRONG LEVERAGETO COMMODITY PRICE
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EXPERIENCED TEAM◼
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INFRASTRUCTURE AND LOGISTICS
Mining Crushing Concentrating Rail PortCo
Asset Snapshot
Description / Commentary
◼ Typical blast and shovel mining operations
◼ Trucked to near-pit crusher
◼ 3 distinct mining areas
◼ Crushed in near-pit crusher and conveyed 3.45km to the processing facility
◼ Upgrading the ~30% Fe to 66% Fe
◼ Grinding, screening, gravity circuit and magnetic recovery
◼ Transported by rail from loading station at Bloom Lake to Port of Pointe-Noire Sept-Îles
◼ Rail agreement with Quebec North Shore and Labrador Railway Company (QNS&L)
— Cost is variable based on wet tonnage
◼ Agreement with Government of Quebec for unloading and stocking area and service agreement with Port of Sept-Îles for ship loading
◼ Access to state of the artbrand new deep seaberth
◼ One of North America’s largest ore-handling ports with year roundaccess
Key Equipment
◼ 10 CAT Trucks
◼ 3 Shovels
◼ 3 Loaders
◼ 3 Drills
◼ 3.45km conveyor system
◼ 2 fully operational crushers with spare capacity
◼ 2 concentrators
— Phase I concentrator is operational
— Phase II concentrator is approximately 70% complete
◼ “On-site” privately owned 32km railway linking Bloom Lake Mine site to QNS&L
◼ 835 specialized iron ore rail cars
◼ Arnaud rail
◼ Rotary car dumper
◼ Stacker / Reclaimer
◼ 36km of government owned railway
Current Phase I and Potential Phase II
Annual Throughput Capacity
Phase I capacity: 7.4 Mtpa
Phase II capacity: 7.6Mtpa
Total Capacity: 15Mtpa
Phase I capacity: 7.4 Mtpa
Phase II capacity: 7.6Mtpa
Total Capacity: 15Mtpa
Phase I capacity: 7.4 Mtpa
Phase II capacity: 7.6Mtpa
Total Capacity: 15Mtpa
Available excess capacity at QNS&L
Multi-user Port with total capacity of 50M tpa
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TAILINGS MANAGEMENT
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Centerline/Downstream Upstream
Water basin required for finer
particles to deposit
UPDATED FEASIBILITY ECONOMICSCOMBINED PHASE I & II (JUNE 2019)
BLOOM LAKERESERVES & RESOURCES
BLOOM LAKE PHASE IIPOSITIONING AS A GLOBAL LEADER
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BLOOM LAKEUPDATED RECOVERY FLOWSHEET
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IRON ORE VALUE CHAIN
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SINTER PELLETS
BLOOM LAKE MINE COMPLEX
MULTI-USER PORT
STRUCTURAL IMPROVEMENTS2018 RECOMMISSIONING
