Champion Iron (ASX:CIA) March quarter unit costs were marginally higher than expected due to maintenance and stripping activities; however, the net realised selling price exceeded estimates, said Euroz Hartley in a Monday note.

The company reported Friday that its earnings per diluted share in the fiscal year fell to CA$0.27, from CA$0.44 per diluted share a year earlier, and revenue for the fiscal year ended March 31 was CA$1.61 billion, up from CA$1.52 billion in the same period last year.

The research firm noted that the company's direct reduction pellet feed commissioning remains scheduled for December.

The company sees the product quality and cost targets as achievable, but the realization of premium pricing may lag due to customer testing and ramp-up delays.

The research firm has maintained its buy rating with a price target of AU$7.90, up from AU$7.80.