1. HIGHLIGHTS

Operations

• Record quarterly production of 2,189,700 wet metric tonnes ("wmt") of high-grade 66.3% Fe iron ore concentrate or 10.1% higher than previous quarterly record;
• Record quarterly recovery rate of 83.9%; and
• Total cash cost1 of $48.3/dry metric tonne ("dmt") (US$36.6/dmt), 11% lower than previous quarter results.

Financial

• Revenues of $160.4M for the second quarter, net of a provisional sales adjustment of $34.7M;
• Record quarterly cash flow from operations of $104.9M, representing cash flow per share of $0.24;
• EBITDA1 totalling $62.6M or 39% EBITDA1 margin;
• Net loss of $1.7M for the second quarter and $0.00 of earnings per share;
• Adjusted net income1 of $50M for the second quarter and $0.11 of adjusted earning per share1; and
• Generated $75M in cash during the quarter, resulting in cash on hand2 of $211.0M as at September 30, 2019.

Growth

• Successfully completed the previously announced transaction with CDP Investissements Inc., a subsidiary of Caisse de dépôt et placement du Québec for a preferred share offering of $185M in addition to a US$200M credit facility with The Bank of Nova Scotia and Société Générale as lead arrangers;
• Now the 100% owner of the Bloom Lake mine further to the completion of the previously announced transaction with the government of Québec, through its agent Ressources Québec Inc. ("RQ"), to acquire RQ's 36.8% equity interest in Québec Iron Ore ("QIO") for a total cash consideration of $211M;
• Previously approved work program of $68M on Phase II to secure the timetable detailed by the feasibility study filed on SEDAR on August 2, 2019, progressing on schedule and on budget; and
• The Company conducted a drilling campaign at its Bloom Lake property to improve ore characterization and a geophysical survey on the Roach Hill property.

"This quarter represents an important milestone for our Company. We now have 100% ownership of our flagship asset and have repositioned our capital structure, which significantly reduces our debt carrying costs", commented David Cataford, Champion's CEO. "While our team continues to demonstrate their operational excellence, our high-quality product remains in strong demand globally. With access to decades of resources, we are well positioned to leverage the support of our financial and regional partners as our Company implements its growth initiatives."

https://ceo.ca/@newswire/champion-iron-reports-solid-fy2020-second-quarter-results