Azzet reports on two ASX stocks with notable trading updates today.
Champion Iron bounces higher on mixed update
Shares in Champion Iron (ASX: CIA) managed to stay higher at the open as the market tried to make sense of the Canada-focused ASX200 miner’s mixed earnings update.
With shutdowns at the company's two concentration plants weighing on production during the fourth quarter, Champion reported a 39% drop in net profit for the year ended 31 March.
The stock will pay shareholders a semi-annual dividend of C10 cents per share on 10 July in line with the previous period.
Scheduled shutdowns at both of the company's concentration plants led to a 13% drop in quarterly iron ore concentrate production.
Management told the market that the lower gross average selling price during the quarter was more than offset by pricing adjustments to sales in the prior quarter, lower freight and other costs plus a weaker Canadian dollar.
However, management attributed a 28% quarterly increase in revenue to an 18% increase in year-on-year sales volumes to a record 3.5 million dry metric tonnes.
Total FY25 production was 13.8 million tonnes.
Key figures
- Full-year revenue rose 5% to C$1.6 billion. Earnings fell 15% to C$471.3 million.
- All in sustaining costs for FY25 were C$94.90/dmt, up on the previous period’s C$90.9/dmt.
- Gross average realised selling price of US$111.8/dmt1, compared average of US$116.9/dmt previously.
- Cash balance totalled $117.5 million as at March 31, 2025, up $24.4 million since 31 December, 2024.
Outlook
The miner expects to continue destocking the significant iron ore concentrate inventories at Bloom Lake in the coming periods, which it expected to further enhance its financial liquidity.
The pace of future destocking is expected to vary due to scheduled semi-annual maintenance work at the mine and on the rail network, as well as seasonal transportation constraints.
The miner is also intensifying efforts to reduce operating costs, which were impacted this quarter by a near-term geological sequence.
Champion Iron has a market cap of $2.2 billion; the share price is down 38% in one year and down 24% year to date.
The stock’s return on capital employed (ROCE) of 11% is better than the the Metals and Mining industry average of 8.3%.
However, over the last five years, returns on capital have decreased to 11% from 53%.
The stock’s sentiment among investors has been weak, resulting in a bearish sloping 200-day moving average.
Consensus is Strong Buy.
EBOS Group falls after block trade
Shares in EBOS Group (ASX: EBO) were down around 5% at noon after the ASX-listed Kiwi medical product wholesaler and distributor - owner of the Terry White pharmacy chain - confirmed that a long-term shareholder wanted out.
Sybos Holdings, an entity controlled by the Zuellig family, offloaded 13.2% of EBOS shares for around $880 million.
26.74 million shares will be sold at NZ$35.50 each, an 8.9% discount to the stock's closing price on Wednesday.
The deal leaves Sybos with a 4.9% shareholding in EBOS.
Sybos has offloaded its EBOS holdings to redeploy capital into new growth opportunities.
It’s understood that Sybos has agreed to an escrow arrangement to retain its remaining stake for three months following the sale.
Yesterday’s block trade follows EBOS’ capital raise in April - via a placement of $200 million - to provide balance sheet capacity to continue funding its ongoing acquisition strategy.
Based on current ASX free-float and liquidity measures, the block trade increases the likelihood of EBOS being added to the ASX 200 in September.
It also puts EBOS on track to be one of the five largest companies in the NZX50.
EBOS has a market cap of $6.9 billion; prior to today, the top 20 shareholders owned 78.97% of issued capital.
The share price is up 4.5% over one year and up 1% year-to-date.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
