Canadian iron-ore miner Champion Iron has reported record sales of high-grade iron-ore in the first quarter of its 2026 financial year, while maintaining progress on its Direct Reduction Pellet Feed (DRPF) project and reinforcing its balance sheet through a $500-million debt refinancing.

The Montreal-headquartered miner sold 3.8-million dry metric tonnes (dmt) of concentrate in the quarter ended June 30, up 11% from the same period a year ago. Production fell 9% year-on-year to 3.4-million dry metric tonnes, impacted by harder ore and lower plant availability. Inventory at Bloom Lake dropped by 440 000 wet metric tonnes (wmt) to 2.1-million wet metric tonnes.

“Our agile workforce remains focused on optimising operations as we strategically position our company to capitalise on the anticipated growth in demand for high-purity iron-ore,” said CEO David Cataford.

“Improving transportation logistics enabled us to achieve record quarterly iron-ore concentrate sales volumes while further reducing stockpiled iron-ore inventories at Bloom Lake.”

The DRPF project remains on track for commissioning in December. It will upgrade half of Bloom Lake’s capacity to direct-reduction-grade iron-ore, with shipments expected to begin in the first half of calendar 2026. The company has invested C$387-million of a projected C$470.7-million on the project to date.

Champion posted revenue of C$390-million for the quarter, with earnings before interest, taxes, depreciation and amortisation of C$58-million and net income of C$23.8-million, translating to earnings of C$0.05 a share. This compares with net income of C$81.4-million and earnings of C$0.16 a share in the same quarter last year.

The gross average realised price was $105.50/dmt, while the net average fell to $73.40/dmt, down 26% year-on-year. Cash operating costs at port came in at C$81.90/dmt ($59.20/dmt), up 7% from a year ago.

Champion also bolstered its liquidity position through a $500-million senior unsecured notes issue in July. Proceeds were used to repay a $230-million term loan and $105-million drawn from a revolving facility. As of June 30, the company had C$176.1-million in cash and total liquidity of C$536.6-million.

“The DRPF project remains on track, and we recently achieved a significant milestone for the Kami project by entering into a framework agreement with Nippon Steel and Sojitz,” said Cataford. “The framework agreement and the partnership contemplated, will allow us to advance the Kami project without compromising our financial liquidity in the foreseeable future.”

Under the agreement signed on July 21, Champion’s Japanese partners will invest C$245-million for a 49% interest in the Kami Iron Mine Partnership, which will hold and potentially develop the project. A definitive feasibility study is expected by end-2026.

“Additionally, our successful $500-million senior unsecured notes offering in July replaced our previous credit facilities, reinforcing our balance sheet with greater flexibility and long-term stability,” said Cataford. “As we continue to de-risk our project portfolio, our commitment remains to maximize shareholder value while maintaining a disciplined capital management approach.”

No serious injuries or major environmental incidents were reported during the quarter.