Champion Iron breaks records at Bloom Lake
Champion Iron (TSX, ASX: CIA) announced today that the company posted strong operational and financial results for the first quarter ended June 30, breaking quarterly production records at the Bloom Lake mine in Québec and recording its highest ever operating cash flow.
During the quarter, Bloom Lake delivered almost 2 million wet metric tonnes of high-grade (66.2%) iron ore concentrate, compared to 1.54 million in the same period last year. The recovery rate reached 82% — another historical record dating back to 2010 when the mine was first commissioned.
Higher volumes and a premium over the benchmark iron ore price helped to boost the Quebec-based miner’s revenue by 50% to C$227.9 million in the first quarter, compared to C$150.7 million in the same period of the prior fiscal year.
Company cash flow after working capital totaled C$91.9 million, the highest ever recorded during a quarter. Net income increased substantially to C$74.2 million, compared with C$20.7 million in the prior-year period.
In May, Champion Iron secured C$185 million in financing and acquired the remaining 36.8% interest in the Bloom Lake project for C$211 million.
The Bloom Lake iron ore project is located approximately 13 km north of Fermont, Québec, and 10 km north of the Mont Wright iron ore mining complex owned by ArcelorMittal Mines Canada.
Champion Iron is currently working towards a phase 2 expansion of Bloom Lake, which would double output to 15 million tonnes of 66.2% iron concentrate annually.