Quebec iron-ore miner Champion Iron has reported a robust revenue and net income performance for the year ended March 31, 2024. Despite facing challenges owing to lower selling prices and logistical issues, the company achieved significant financial growth.

The ASX- and TSX-listed company announced a 9% increase in revenue, reaching C$1.5-billion in the 12 months through to March. Net income grew by 17% to C$200-million.

The growth was driven by higher sales volumes of iron-ore concentrate, a favourable exchange rate owing to a weaker Canadian dollar and reduced freight costs.

For the year, Champion sold 11.6-million tonnes of iron-ore concentrate, a 10% increase from 10.6-million tonnes sold in the prior year.  The boost in sales volumes was primarily driven by the Bloom Lake Phase 2 expansion that reached nameplate capacity for 30 consecutive days in the first quarter of the 2024 financial year.

However, the company faced some setbacks in the financial year. Sales volumes were negatively impacted by the forest fires in June and underperformance in haulage services, including rail disruptions.

During the fourth quarter, Champion produced 3.3-million wet metric tonnes (wmt) of high-grade 66.1% iron concentrate. This production was down 19% quarter-on-quarter, but up 6% year-on-year.

Quarterly iron-ore sales fell by 8% quarter-on-quarter to three-million wmt.   

In addition, the net realised selling price fell by 28% quarter-on-quarter and 25% year-on-year in the fourth quarter to $82.9/dry metric tonne.

As a result, net income for the final quarter of the year plunged by 80% quarter-on-quarter to C$25.8-million.

The company attributed the decline in the fourth-quarter shipments to lagging railway services, which have caused a growing concentrate stockpile at the mine. As of March 31, the iron-ore concentrate stockpile at the site totalled 2.7-million wmt.