Champion Iron posts a profit during Bloom Lake ramp-up
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.
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