Champion Iron Q2 earnings fall 50% on lower selling prices
Make us a preferred source
Make us a preferred source on Google
The news: Iron ore miner Champion Iron reported a decline in earnings for the second quarter, as its average selling price fell year on year.
The numbers: Champion Iron reported EBITDA of $74.5 million in the September quarter, down 52% year over year and 59% quarter over quarter.
Quarterly revenue of $351 million was down 9% year on year and 25% compared to the previous quarter.
Net income of $19.8 million, representing earnings per share (EPS) of 4 cents, compared to $65.3 million and EPS 13 cents for the same period in 2023. The June quarter saw net income of $81.4 million and EPS of 16 cents.
During the September quarter, the P65 index — widely used as a reference price for iron ore — averaged USD114.2 ($173.9), a decline of 9% both quarter over quarter and year over year.
The context: The miner said that iron ore prices were negatively impacted during the quarter by a global weakening in steel demand, primarily driven by reduced construction activity in China, as well as elevated iron ore supply from Brazil in Australia, resulting in increasing iron ore port inventories in China.
Champion Iron noted that prices improved late in the quarter following the announcement of economic stimulus programs in China.
The source: ASX announcement
