Champion Iron (ASX:CIA) is expected to deliver a softer March quarter than market expectations, with Euroz Hartleys citing operational headwinds including maintenance activity, rail disruptions, and pricing pressure, alongside progress on the Rana Gruber acquisition, according to a Monday note.

Euroz Hartley has trimmed its March quarter forecasts for the company, pointing to a softer-than-expected operating environment across the period, with revenue, earnings before interest, taxes, depreciation, and amortization, and net income now forecast to come in 5%, 12%, and 82% below consensus, respectively, while production remains broadly steady but margins are weaker.

The firm highlights the completed acquisition of Rana Gruber, noting a 92.5% acceptance rate, and estimates an initial net asset value contribution of AU$342 million under base assumptions, rising to AU$736 million at spot prices, based on a 15-year mine life at 5 million tonnes per annum throughput with improving concentrate grades.

Euroz Hartleys kept a buy rating on Champion Iron with a price target of AU$7.70.