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.
Source:
Mining
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