For those of you who would like to take advantage of our Luck O' the Irish SALE but prefer not to make payments online, you are welcome to send us a check or money order in the amount of $114.12 for a 3-year AD-FREE Premium Service Bundle or $190.20 for a 5-year Bundle. Make checks or money orders payable in US funds to "Investor Village" and send to: Investor Village, P.O. Box 2958, Marrero, LA 70073.
As many of you know, we operate on the honor system around here. So, in closing out our Luck O' the Irish SALE, we wanted to advise those of you who plan to pay by check or money order that you can send a PM to Admin informing us of your intention. We will then upgrade your account for 7 days, allowing you to enjoy our ad-free premium service now and giving you a reasonable amount of time to get your payment in.
This is a semi-private group. You are free to browse messages, but you must be a member of this group to post messages. Join This Group
Champion Iron Ltd. (CIA-T) C$6.96 Solid End to F2022; Focus Turns to DR Potential and Kami Upside Craig Hutchison, P. Eng Nicholas Clarke, CFA (Associate) Event Champion reported its Q4/F22 and full-year financial results yesterday. Management will host a conference call today at 8:30 a.m. ET (1-888-390-0546). Impact: SLIGHTLY POSITIVE ■ The company reported Q4/F22 EBITDA of $198mm vs. our estimate of $184mm and consensus of $181mm. The earnings beat relative to our estimate was driven by higher revenues from better-than-expected provisional pricing adjustments. As a reminder, production, sales, and C1 cash costs were previously reported in late-April. ■ The company declared a $0.10/share dividend following the fiscal year-end results, payable on June 28, consistent with its policy to review its dividend with semi-annual and annual results. ■ Strong FCF and solid balance sheet. We calculate the company generated positive FCF of $96mm before working capital changes and Phase II expenditures of $83.7mm. FCF after total capex was $12mm in the quarter, and the company ended the fiscal year with cash and restricted cash of $366mm. On May 24, Champion signed a US$400mm revolving credit facility, which refinanced the previous Phase II credit facility enabling the company to lift the restricted cash covenant of $43.7mm, and reduce its cost of capital. ■ The company reiterated that it expects Phase II to ramp up towards commercial production by the end of C2022. As on March 31, Phase II investments totalled $625mm, including deposits, compared with an original budget of $634mm. ■ Upcoming catalysts/milestones. The company plans to release a feasibility study (FS) on the conversion of half of Bloom Lake's post-Phase II capacity to direct reduction (DR) pellet feed. The company also plans to release an FS on its Kami project in H2 to produce DR-grade material, which could represent the company's third phase of expansion. We expect a key focus for today's call to be centered on the company's recent announcement regarding the purchase and potential recommissioning of the pellet plant at Pointe-Noire (see note). This could represent a significant opportunity to add value and differentiate Champion as one of very few producers of DR pellets globally, which is a growing segment of the steel industry as the industry looks to decarbonize its emissions.