Champion Iron (ASX:CIA) Full Year 2024 Results

Key Financial Results

• Revenue: CA$1.52b (up 9.3% from FY 2023).

• Net income: CA$234.2m (up 17% from FY 2023).

• Profit margin: 15% (up from 14% in FY 2023). The increase in margin was driven by higher revenue.

• EPS: CA$0.45 (up from CA$0.39 in FY 2023).

CIA Production and Reserves

Iron

• Production: 14.16 Mt (11.19 Mt in FY 2023)

• Proved and probable reserves (ore): 1,798 Mt (1,695 Mt in FY 2023)

• Number of mines: 1 (1 in FY 2023)

All figures shown in the chart above are for the trailing 12 month (TTM) period

Champion Iron EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 1.5%.

In the last 12 months, the only revenue segment was Iron Ore Concentrate contributing CA$1.52b. Notably, cost of sales worth CA$894.5m amounted to 59% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling CA$193.7m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CIA's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.7% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to remain flat.

Performance of the Australian Metals and Mining industry.

The company's shares are down 7.0% from a week ago.

Valuation

Our analysis of these results suggests Champion Iron may be undervalued based on 6 important criteria we look at. Click here to view our comprehensive analysis and gain insights into the stock's investment prospects.

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