Latest news with #ChampionIron
Yahoo
6 days ago
- Business
- Yahoo
Can Mixed Fundamentals Have A Negative Impact on Champion Iron Limited (ASX:CIA) Current Share Price Momentum?
Champion Iron's (ASX:CIA) stock is up by a considerable 9.3% over the past month. However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health. Specifically, we decided to study Champion Iron's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Champion Iron is: 9.9% = CA$142m ÷ CA$1.4b (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. That means that for every A$1 worth of shareholders' equity, the company generated A$0.10 in profit. See our latest analysis for Champion Iron We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. When you first look at it, Champion Iron's ROE doesn't look that attractive. However, its ROE is similar to the industry average of 11%, so we won't completely dismiss the company. Having said that, Champion Iron's five year net income decline rate was 10%. Bear in mind, the company does have a slightly low ROE. So that's what might be causing earnings growth to shrink. However, when we compared Champion Iron's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 19% in the same period. This is quite worrisome. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is CIA worth today? The intrinsic value infographic in our free research report helps visualize whether CIA is currently mispriced by the market. Despite having a normal three-year median payout ratio of 44% (where it is retaining 56% of its profits), Champion Iron has seen a decline in earnings as we saw above. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds. Additionally, Champion Iron has paid dividends over a period of three years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 38%. Accordingly, forecasts suggest that Champion Iron's future ROE will be 12% which is again, similar to the current ROE. Overall, we have mixed feelings about Champion Iron. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
08-07-2025
- Business
- Globe and Mail
CHAMPION IRON PROVIDES NOTICE OF FIRST QUARTER FY2026 RESULTS, CONFERENCE CALL AND WEBCAST DETAILS, AND DATE OF ANNUAL SHAREHOLDERS` MEETING
MONTRÉAL , July 8, 2025 /CNW/ - SYDNEY , July 9, 2025 - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the "Company") announces that it will be hosting a conference call and webcast on July 30, 2025 , at 9:00 AM (Montréal time) / 11:00 PM ( Sydney time) with its senior management, during which they will review the Company's operational and financial results for the first quarter ended June 30, 2025 , of the financial year ending March 31, 2026 . Champion's financial statements and management's discussion and analysis for the quarter ended June 30, 2025, will be released prior to the conference call and webcast, and will be available in the "Financial & Regulatory Reports" section of the Company's website at under the Company's profile on SEDAR+ at and on the ASX at A live audio webcast of the conference call will be accessible for a period of 90 days through Champion's website at Access to the Conference Call: Champion also confirms that its annual meeting of shareholders will be held on August 27, 2025 , at 5:00 PM (Montréal time) / August 28, 2025, 7:00 AM ( Sydney time), and that the last date for director nominations will be July 16, 2025 , by 3:00 AM (Montréal time) / 5:00 PM ( Sydney time). Additional information regarding the annual meeting of shareholders will be announced prior to the event. About Champion Iron Limited Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont , Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce lower contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate. Benefiting from one of the highest purity resources globally, Champion is investing to upgrade half of Bloom Lake's mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake's high-grade and lower contaminant iron ore products have attracted a premium to the Platts IODEX 62% Fe iron ore benchmark. Champion ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, and has delivered its iron ore concentrate globally, including in China , Japan , the Middle East , Europe , South Korea , India and Canada . In addition to Bloom Lake, Champion owns the Kamistiatusset mining properties, a project with an expected annual production of 9M wmt per year of direct reduction quality iron grading above 67.5% Fe, located near available infrastructure and only 21 kilometres southeast of Bloom Lake. In December 2024 , Champion entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership to evaluate the potential development of the Kami project, including the completion of a definitive feasibility study. Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 kilometres south of Bloom Lake. For additional information on Champion Iron Limited, please visit our website at: David Cataford .
Sky News AU
08-07-2025
- Business
- Sky News AU
ASX 200 zig-zags after US President Donald Trump reveals 25 to 40 per cent tariffs on 14 different countries from August 1
The ASX 200 has zig-zagged on Tuesday after Donald Trump brought down the hammer in the latest move in his mammoth trade war rocking global markets. The index plummeted before slowly climbing and sits up about 0.1 per cent after the first hour of trading. Mineral Resources shed 3.1 per cent after revealing its beleaguered boss Chris Ellison was considering leaving, while Champion Iron has fallen 2.6 per cent and manufacturing company Ansell has sank 2.8 per cent. Top performing stocks on Tuesday include Vault Minerals (up 7.8 per cent), Westgold Resources (up 4.7 per cent) and Bellevue Gold (up 4.5 per cent). It comes as Trump threatened 25 per cent tariffs on Japan and South Korea alongside a litany of other countries from August 1 and vowed to hike the levies if the impacted nations retaliate. 'If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge,' Trump said on Truth Social. The tariffs will not add to existing tariffs, meaning Japanese exports targeted by Trump's sweeping 25 per cent levies on steel or automotive parts will only face this tariff rather than jumping to 50 per cent. Trump also plans to impose tariffs of 40 per cent on Laos and Myanmar, 36 per cent on Cambodia and Thailand, 35 per cent of Serbia and Bangladesh, 30 per cent on South Africa, Bosnia and Herzegovina and 25 per cent on Malaysia, Tunisia and Kazakhstan. Wall Street sank on Monday with the Dow Jones and Nasdaq both falling 0.9 per cent and the S&P 500 dropping 0.8 per cent. London's FSTE 250 Index finished down 0.1 per cent, Germany's DAX Index rose 1.2 per cent and the STOXX Europe 600 jumped 0.4 per cent. New Zealand's NZX 50 Index has sank 0.5 per cent while Japan's Nikkei 225 is up 0.2 per cent.
Yahoo
27-06-2025
- Business
- Yahoo
There Are Reasons To Feel Uneasy About Champion Iron's (ASX:CIA) Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Although, when we looked at Champion Iron (ASX:CIA), it didn't seem to tick all of these boxes. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Champion Iron: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = CA$321m ÷ (CA$3.0b - CA$359m) (Based on the trailing twelve months to March 2025). Therefore, Champion Iron has an ROCE of 12%. In absolute terms, that's a satisfactory return, but compared to the Metals and Mining industry average of 8.2% it's much better. Check out our latest analysis for Champion Iron In the above chart we have measured Champion Iron's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Champion Iron . On the surface, the trend of ROCE at Champion Iron doesn't inspire confidence. Over the last five years, returns on capital have decreased to 12% from 42% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. In summary, Champion Iron is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Although the market must be expecting these trends to improve because the stock has gained 78% over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward. If you want to know some of the risks facing Champion Iron we've found 4 warning signs (1 shouldn't be ignored!) that you should be aware of before investing here. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
25-06-2025
- Business
- Wall Street Journal
Australia Shares Set to Pause Rally at the Open
2239 GMT – Australia's S&P/ASX 200 looks set to slip at the start of Thursday's session following a mixed lead from U.S. equities. ASX futures are down by 0.4% ahead of the open, suggesting that the benchmark index might pause its recent rally. Last week, the ASX 200 snapped a run of five straight weekly gains, but is up 0.6% so far this week after back-to-back advances. Ahead of the open, dual-listed miner Champion Iron announced a US$450 million refinancing and Westgold said it awarded an underground mining contract to Perenti. In the U.S., tech stocks led the Nasdaq Composite 0.3% higher. The S&P 500 was flat and the DJIA fell 0.25%. (
