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Champion Iron
(Sydney:CIA)
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Rating:48Neutral
Price Target:
AU$2.00
▼(-44.29% Downside)
Action:Reiterated
Date:10/30/26
Overall score is held back primarily by weakened financial performance (earnings compression to near break-even, higher leverage, and thin/volatile free cash flow) and a very weak technical setup (downtrend with bearish momentum despite oversold readings). The earnings call provides a moderate offset via credible project execution and ramp-up guidance for DRPF and improving logistics, but valuation remains challenging given the extremely high P/E and dividend support that may be less reliable amid current profitability pressure.
Positive Factors
High-Grade DR Demand
Rising premiums and broad prospective demand for high-grade direct-reduction material support Champion’s strategic positioning beyond standard iron ore. If the company converts this interest into recurring sales, the product mix could improve realized pricing and strengthen long-term revenue quality.
Negative Factors
Profitability Compression
Falling revenue and sharply lower margins show that recent earnings power has weakened materially from prior periods. A small net loss reduces internal funding capacity and makes future results more dependent on iron ore prices, operating execution, and a recovery in realized margins.
Read all positive and negative factors
Positive Factors
Negative Factors
High-Grade DR Demand
Rising premiums and broad prospective demand for high-grade direct-reduction material support Champion’s strategic positioning beyond standard iron ore. If the company converts this interest into recurring sales, the product mix could improve realized pricing and strengthen long-term revenue quality.
Read all positive factors
Champion Iron (CIA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.07B
Dividend Yield6.81%
Average Volume (3M)2.56M
Price to Earnings (P/E)671.5
Beta (1Y)1.14
Revenue Growth-7.22%
EPS Growth-93.97%
CountryAU
Employees1,014
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)<0.01
Shares Outstanding560,046,940
10 Day Avg. Volume2,745,381
30 Day Avg. Volume2,555,831
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)1.75
Price to Sales (P/S)1.52
P/FCF Ratio121.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.66Price Target Upside29.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$1.77B
Champion Iron Business Overview & Revenue Model
Company Description
Champion Iron Limited is a Canadian enterprise focused on the entire lifecycle of iron ore operations, from the acquisition and exploration of new sites to the development and eventual extraction of deposits within the nation. The company's key as...
How the Company Makes Money
Champion Iron primarily makes money by producing and selling iron ore concentrate. Revenue is generated from sales volumes shipped to customers multiplied by realized selling prices, typically influenced by benchmark iron ore pricing and the quali...
Champion Iron Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was broadly optimistic despite a difficult operating and market environment. The company reported higher sales, a recovery at Rana Gruber, improving logistics, completion of the flotation plant within its CAD 500 million budget, progress toward full DRPF commercial production, and strong stated demand for high-grade material. These positives were offset by low adjusted EBITDA of CAD 23 million, elevated freight and fuel costs, Rana Gruber's recent losses and cash burn, pricing timing effects, and the need for covenant relief. Management nevertheless emphasized strong liquidity, supportive financial partners, improving freight conditions, and a positive long-term outlook for DR material and premiums.Positive Updates
Strong Quarterly Sales and Production
The company produced roughly 3.9 million tons and sold just shy of 4.5 million tons during the quarter. Sales increased 35% quarter-over-quarter, driven by both Bloom Lake and Rana Gruber, with inventory also reduced.
Negative Updates
Challenging Market Environment
Management described the current period as more challenging, citing low iron ore prices, elevated fuel costs, freight pressures, and broader market conditions.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Quarterly Sales and Production
The company produced roughly 3.9 million tons and sold just shy of 4.5 million tons during the quarter. Sales increased 35% quarter-over-quarter, driven by both Bloom Lake and Rana Gruber, with inventory also reduced.
Read all positive updates
Company Guidance
Champion still expects to be able to complete the DRPF ramp up to be in full commercial production at the end of 2027 fiscal year, with more and more sales in the coming months/quarters; Q3 and Q4 are typically quarters that have lower sustaining costs, and the company expects to see the impact on the reduction of costs in the coming future and in the coming quarters. The market expects that C3 will turn over the next year and the next two years, and Champion has already started to see the C3 index come down from the peaks that we saw in the recent weeks; if looking at 2027, the company said it could do contracts for C3 in the $20s, while C3 cost was something like $40-$50 a ton two months ago and is now in the $30s. The company said the price it receives for the product will gradually increase, and that if it were to sell this product tomorrow and fulfill all customer obligations, it is probably 130% sold.Champion Iron Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
55
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.65B | 1.77B | 1.61B | 1.52B | 1.40B | 1.46B |
| Gross Profit | 253.27M | 408.62M | 401.73M | 629.76M | 451.28M | 958.20M |
| EBITDA | 320.35M | 507.81M | 446.20M | 555.41M | 481.68M | 916.31M |
| Net Income | -1.59M | 168.74M | 142.04M | 234.19M | 200.71M | 522.59M |
Balance Sheet | ||||||
| Total Assets | 4.04B | 3.50B | 3.03B | 2.69B | 2.32B | 1.99B |
| Cash, Cash Equivalents and Short-Term Investments | 215.06M | 296.79M | 117.45M | 400.06M | 327.12M | 352.67M |
| Total Debt | 1.46B | 1.08B | 758.91M | 616.41M | 562.12M | 377.34M |
| Total Liabilities | 2.46B | 1.96B | 1.59B | 1.29B | 1.05B | 827.53M |
| Stockholders Equity | 1.58B | 1.53B | 1.44B | 1.40B | 1.26B | 1.16B |
Cash Flow | ||||||
| Free Cash Flow | 5.38M | 22.07M | -301.58M | 131.31M | -58.68M | -53.95M |
| Operating Cash Flow | 366.66M | 435.93M | 304.02M | 474.58M | 235.98M | 470.44M |
| Investing Cash Flow | -814.13M | -424.43M | -615.75M | -354.72M | -249.86M | -635.47M |
| Financing Cash Flow | 330.12M | 164.38M | 23.41M | -48.36M | 6.90M | -118.14M |
Champion Iron Technical Analysis
Negative
3.59
Price Trends
3.01
Negative
3.41
Negative
4.26
Negative
Market Momentum
-0.28
Positive
11.81
Positive
19.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CIA, the sentiment is Negative. The current price of 3.59 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 3.01, and below the 200-day MA of 4.26, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 11.81 is Positive, neither overbought nor oversold. The STOCH value of 19.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CIA.
Champion Iron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | AU$354.13M | -11.67 | -7.06% | 3.51% | -42.65% | 62.24% | |
48 Neutral | AU$1.07B | 671.45 | -0.10% | 6.81% | -7.22% | -93.97% | |
44 Neutral | AU$32.51M | -20.00 | -47.84% | ― | 12132.73% | 55.56% | |
43 Neutral | AU$5.88M | -0.06 | -248.65% | ― | ― | -2044.26% | |
41 Neutral | AU$145.57M | -0.80 | -250.52% | 269.23% | -16.03% | -1005.11% | |
41 Neutral | AU$13.80M | -14.38 | -10.87% | ― | ― | 77.40% |
* Basic Materials Sector Average
AU:CIA
Champion Iron
1.92
-3.48
-64.53%
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0.00
0.00%
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Champion Iron Corporate Events
Champion Iron Updates Australian Company Secretary
Oct 28, 2026
Champion Iron Limited announced a change in its Australian company secretary, reflecting an update in its corporate governance framework across its international operations. The move underscores the company’s continued attention to regulator...
Champion Iron Tables Detailed MD&A for September Quarter
Oct 28, 2026
Champion Iron has released its Management’s Discussion and Analysis for the three- and six-month periods ended September 30, 2026, dated October 29, 2026. The document outlines the company’s business description, recent acquisition of ...
Champion Iron Details Interim Reporting Framework and Use of Non-IFRS Metrics
Oct 28, 2026
Champion Iron released its Directors’ Report for the quarter and half-year ended September 30, 2026, prepared under AASB 134 and IAS 34 to supplement its interim consolidated financial statements. Management emphasizes responsibility for the...
Champion Iron Swings to Loss as Rana Gruber Acquisition Weighs on Half-Year Results
Oct 28, 2026
Champion Iron reported a sharp deterioration in results for the half-year ended September 30, 2026, with revenue falling 14% to C$760.8 million and a swing to a net loss of C$89.9 million from a profit of C$80.6 million a year earlier. The company...
Champion Iron Posts Loss But Delivers First DR-Grade Iron Ore Shipment
Oct 28, 2026
Champion Iron reported second-quarter fiscal 2027 production of 3.9 million wmt of high-purity iron ore concentrates and record consolidated sales of 4.5 million dmt, generating revenues of $404 million but only $23 million in adjusted EBITDA amid...
Champion Iron Sets Out Growth Plan Around High‑Purity Iron Ore for Green Steel
Aug 25, 2026
Champion Iron used its 2026 annual general meeting presentation to outline how its strategy and recent acquisition of Norway’s Rana Gruber position the group to benefit from rising demand for higher‑purity iron ore products. The compan...
Champion Iron Director Adjusts Equity Holdings Through PSU and RSU Settlement
Aug 20, 2026
Champion Iron has disclosed a change in the securities held by director David Cataford, in line with ASX listing rule requirements. The notice details adjustments to his direct and indirect holdings, reflecting routine management of equity-based c...
Champion Iron Reports Lapse and Cessation of Incentive Share Units
Aug 20, 2026
Champion Iron Limited has notified the ASX of the cessation of a significant number of performance share units and restricted share units, reflecting changes in its equity‑based incentive structures. The bulk of the securities ceased on Augu...
Vanguard Ceases to Be Substantial Shareholder in Champion Iron
Aug 13, 2026
Vanguard Group, through The Vanguard Group, Inc. and its controlled entities, has notified Champion Iron that it has ceased to be a substantial holder in the company. Following recent changes in its relevant interest, Vanguard’s voting power...
Champion Iron Updates Director Michelle Cormier’s Equity Holdings
Aug 7, 2026
Champion Iron has reported a change in the securities held by director Michelle Cormier, following the issuance of additional Deferred Share Units under the company’s 2018 Omnibus Incentive Plan. The transaction, dated 3 August 2026, increas...
Champion Iron Updates Director Deferred Share Unit Holdings
Aug 7, 2026
Champion Iron has disclosed a minor change in the share-based holdings of director Jessica McDonald, in line with ASX listing rule obligations. McDonald received 390 Deferred Share Units on 3 August 2026 under the company’s 2018 Omnibus Ince...
Champion Iron Updates Director David Cataford’s Equity Holdings
Aug 7, 2026
Champion Iron has disclosed a change in the interests of its director, David Cataford, following the issuance of additional equity-based incentives. Cataford received 9,091 performance share units and 5,377 restricted share units at a deemed price...
Champion Iron Director Boosts Stake via Deferred Share Unit Grant
Aug 7, 2026
Champion Iron Limited has reported a change in director Gary Lawler’s interests in the company’s securities, reflecting an increase in his deferred share units. Lawler’s holdings include ordinary shares held directly and through ...
Champion Iron Issues New Unquoted Equity Under Incentive Plan
Aug 7, 2026
Champion Iron Limited has issued a new tranche of unquoted equity securities under its employee incentive scheme, including performance share units, restricted share units and deferred share units. The grants, totaling 54,160 units across the thre...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.