https://www.miningweekly.com

Champion Iron posts a profit during Bloom Lake ramp-up

13th August 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

TSX- and ASX-listed Champion Iron has reported net income of C$20.7-million for the June quarter, which chairperson CEO Michael O’Keeffe on Monday hailed as a major achievement, considering that the Bloom Lake iron-ore mine was in the ramp-up phase during the three months under review.

Bloom Lake, in Quebec, achieved commercial production on June 30.

During the quarter under review, which was the first quarter of Champion Iron’s financial year, Bloom Lake produced 1.54-million tonnes of iron-ore concentrate, taking total output since the mine’s restart to 2.17-million tonnes.

Bloom Lake earned Champion C$150.7-million in concentrate revenue, having realised an average price of C$86.61/t. Cash operating costs were lower than the ramp-up forecast at C$56.15/t.

At the end of the quarter, Bloom Lake had C$89-million in cash.

“The company delivered strong earnings this quarter, during the production ramp-up at Bloom Lake. Even though it is our first period with revenue, it resulted in a profit which is a major achievement for the company.

“Champion Iron demonstrated its ability to significantly improve operational performance at Bloom Lake while generating solid operating cash flows. Management and its team at the mine have achieved their targets set out in the Bloom Lake mine restart feasibility study announced on February 16, 2017 and published on March 17, 2017, which is an outstanding result,” said O’Keeffe.

With the mine now generating positive cash flow from operations, Champion would focus on strengthening its financial position and pursuing growth opportunities, he added.

Bloom Lake had been on care and maintenance since December 2014, when the mine could not compete with collapsed ore prices, which fell from a record high of $180/t to $50/t four years ago.

Edited by Creamer Media Reporter

Comments

Showroom

Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024
Resources Watch
Resources Watch
17th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.209 0.246s - 106pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: