BUZZ-Citi cuts PT for Australia's Champion Iron on lower earnings forecast

Reuters
01-31
BUZZ-Citi cuts PT for Australia's Champion Iron on lower earnings forecast

** Citi cuts PT for Champion Iron CIA.AX to A$7.1 from A$7.4 citing lower FY26 earnings estimate for the iron ore miner

** Company's Q3 EBITDA of C$88.2 mln ($61.21 mln) and revenue of C$363.2 mln were 13% and 3%, respectively, below Citi estimates

** "Note that earnings were impacted by a net unrealised foreign exchange loss of C$21m in Q3" - Citi

** Company's quarterly production of 3.6 million wet metric tonnes (wmt) down 10% from last year, but 3% higher than Citi estimate

** Brokerage says company had a good production quarter but sales impacted by the train load-out issues

** Brokerage cuts company's FY25 & FY26 EBITDA forecasts; FY25 estimate cut 10% to C$502 mln, while FY26 forecast reduced by 2% to C$756 mln

** Citi says company now needs to string together some stronger quarters to lift investor confidence around delivery on shipments/cashflow

** Stock down 3.5%, YTD

($1 = 1.4410 Canadian dollars)

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com;))

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