roadshow presentation - champion iron · 2019. 8. 8. · roadshow presentation. disclaimer....

ROADSHOW PRESENTATION

DISCLAIMER

CORPORATE OVERVIEW

BLOOM LAKE

✓ Champion sells based on P65 premium benchmark

STRUCTURAL SHIFT IN IRON ORE

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CANADA 2ND LARGEST REGIONIN HIGH-GRADE

CANADA

BRAZIL

SOUTH AFRICA – 14,0

AUSTRALIA

INDIA

RUSSIA

UKRAINE17

SWEDEN – 16,1

52 18,1

2,5

31,7

385,4

GLOBAL COST CURVE (CFR CHINA – ADJUSTED FOR VIU)

BLOOM LAKE

COMPETING ON COST CURVE

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POSITIONED FOR PROFITABILITY

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MARKET STATISTICS (C$M) SHAREHOLDERS

CORPORATE SNAPSHOT(CIA-TSX; CIA-ASX)

INSIDERS9.8%

INSTITUTIONAL12.2%

WYNNCHURCH CAPITAL

15.5%

RESSOURCES QUEBEC8.7%

FAMILY OFFICES24.3%

CORPORATE1.5%

RETAIL12.7%

UNDISCLOSED15.4%

HISTORY OF BLOOM LAKEVS IRON ORE PRICE (C$/T)

Cliffs AcquiresCLM for C4.9B

Cliffs seeks creditorprotection

QIO AcquiresBloom Lake

QIO ReleasesFeasibility Study

Bloom LakeRecommissioned

1st Shipment

VALE Events

LABRADOR TROUGH =WORLD-CLASS OPPORTUNITY

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Mont-Wright (AMMC)

COST STRUCTURE IMPROVEMENT(2014 VS TODAY)

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BLOOM LAKE TODAY

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DIVERSIFIED CUSTOMER BASE

Product sold to 16 differentcustomers since 1st shipment

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CHINA

46.9%

INDIA – 1.7%

EUROPE – 5.2%

JAPAN – 20.7%

SOUTH KOREA – 3.4%

MIDDLE EAST – 20.7%

REALIZED PRICING (FQ1/20)

OPERATIONAL RESULTS

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FINANCIAL RESULTS

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SIMPLIFIED CORPORATE STRUCTUREFULL UPSIDE TO GROWTH INITIATIVES

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→→→→

RAPIDLY IMPROVINGBALANCE SHEET

STRONG LEVERAGETO COMMODITY PRICE

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BLOOM LAKE PHASE 17.4MTPA

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Q2 2019 Q3 2019 Q4 2019 Q1 2020 Target

BLOOM LAKE PHASE 2ROBUST ECONOMICS

BLOOM LAKE PHASE 2POSITIONING AS A GLOBAL LEADER

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BLOOM LAKE PHASE 2RAPID TIMELINE TO PRODUCTION

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REGIONAL OPPORTUNITIES PHASE 3

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HEALTH & SAFETY

ENVIRONMENTAL FOCUSED

EXPERIENCEDMANAGEMENT TEAM

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TRACK-RECORDOF SUCCESS

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$5

$10

$15

$20

Sep-04 May-06 Jan-08 Oct-09 Jun-11

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CORPORATE STRUCTURE

IRON ORE VALUE CHAIN

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SLINTER PELLETS

TAILING MANAGEMENT

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Centerline/Downstream Upstream

INFRASTRUCTURE AND LOGISTICS

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BLOOM LAKEUPDATED RECOVERY FLOWSHEET

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UPDATED FEASIBILITY ECONOMICSCOMBINED PHASE 1 & 2 (JUNE 2019)

BLOOM LAKE - RESERVES & RESOURCES

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VALUABLE AND SOUGHT-AFTER PRODUCT

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BLOOM LAKE MINE COMPLEX

PHASE 1 PLANT

PHASE 2 PLANT

MULTI-USER PORT

FIRST VESSEL