Action Note

Equity Research January 27, 2022

Metals & Minerals

Champion Iron Ltd. Craig Hutchison, P. Eng

(CIA-T) C$5.10 Nicholas Clarke, CFA (Associate)

Solid Q3/F22; Phase 2 on Track; Inaugural Dividend Announced

Event Recommendation: BUY

Champion reported its Q3/F22 (December quarter) results yesterday evening. Risk: HIGH

Impact: POSITIVE 12-Month Target Price: C$7.00

12-Month Dividend (Est.): C$0.30
■ Champion reported quarterly production of 2.01Mt of 66% iron ore
concentrate, above our estimate of 1.85Mt. Production was a record for a 12-Month Total Return: 43.1%
quarter with scheduled maintenance (typically FQ1 and FQ3), driven by higher
Market Data (C$)
head grades and stable mill performance.
Current Price C$5.10
52-Week Range $3.71 - $7.25
■ The company reported EBITDA of $122mm versus our estimate of $112mm Mkt Cap (f.d.) ($mm) $2,740.7
and consensus of $103mm. The beat relative to our forecast was driven by Current Dividend $0.30
higher revenues of $253mm (TD: $235mm) on slightly better realized prices. C1 Dividend Yield 5.9%
Avg. Daily Trading Vol. 1,334,747
cash costs in the quarter were C$59.5/t (FOB, Sept-Iles), in line with our estimate
of $59.27/t. Financial Data (C$)
Fiscal Y-E March
Shares O/S (f.d)(mm) 537.4
■ Phase 2 on budget and on track for commissioning in April 2022 — Capital Float Shares (mm) 358.6
investment on Phase 2 to-date totals $534mm, with an estimated $105mm still NAVPS $5.46
remaining. The company expects to achieve commercial production by the end of Working Cap ($mm) $332.7
calendar 2022, but did not define the level of production required to be deemed Estimates (C$)
commercial. We are forecasting 11.9Mt of saleable production in FY2023 (April Year 2020A 2021A 2022E 2023E
2022-March 2023). EBITDA ($mm) 287.0 819.0 855.0 716.0
EBITDA ($mm) (old) – – 845.0 733.0
■ Inaugural dividend announced — The Board has declared an inaugural CFPS (f.d) 0.60 1.23 1.01 0.86
dividend of $0.10/share payable on March 1 to shareholders of record on February CFPS (f.d) (old) – – 0.84 0.89
EPS (f.d.) 0.27 0.93 0.89 0.72
8. The Board will evaluate any potential future dividends with the release of its EPS (f.d.) (old) – – 0.88 0.74
semi-annual and annual results. Given the company's off-calendar year-end (i.e.
EPS (f.d.) Quarterly Estimates (C$)
March 31), we now assume that the company will pay three $0.10/share dividends
Year 2020A 2021A 2022E 2023E
this year, payable in March, May, and November. Next year, we would expect only Q1 0.16 0.15 0.43 0.16
two dividends, paid semi-annually. Q2 0.09 0.24 0.22 0.20
Q3 0.06 0.24 0.13 0.22
TD Investment Conclusion Q4 0.04 0.30 0.13 0.14
Valuations
We are maintaining our BUY rating and $7.00 target price. In our view, the Year 2020A 2021A 2022E 2023E
Board's declaration of the company's inaugural dividend several months ahead of the EV/EBITDA 8.5x 3.0x 2.8x 3.4x
completion of Phase 2 speaks to Champion's confidence in Bloom Lake's timeline, P/E (f.d.) 18.9x 5.5x 5.7x 7.1x
budget, and FCF potential, along with the continued strength and outlook for iron ore. P/CFPS (f.d) 8.5x 4.1x 5.0x 5.9x
Supplemental Data
Year 2020A 2021A 2022E 2023E
65% Fe Iron Ore (US$/t) 106 144 170 124
Fe Prod (mmt) 8 8 8 12
All figures in C$, unless otherwise specified

8
CIA-T: Price
8
Company Profile
Champion Iron is an iron-ore-producing company
7 7
based in Montreal, Quebec. The company's
6 6 flagship asset is its wholly owned Bloom Lake
mine, located in the Labrador Trough region of
5 5
northern Quebec.
4 4

3 3
Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22

Please see the final pages of this document for important disclosure information. Page 1 of 10
 January 27, 2022

Details
Phase 1 operations generated $71mm in FCF in the quarter, defined as operating
cash flows before working capital changes less sustaining capex. FCF after total capex
before working capital was negative $45mm.

A total of $87mm was spent on the Phase 2 expansion and a further $29mm was
committed for advances, mill improvements, and capitalized interest. The company
ended the quarter in a very strong financial position, with working capital of $333mm,
including cash of $512mm.
Exhibit 1. Q3/FY22 Results (December 31, 2021 Quarter)
Actual TDS Est.
Fiscal Period Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q3/22 Var. q/q y/y
Calendar Period End Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-21 % % %

Ore Mined, Mt 5.2 5.6 5.6 5.7 5.5 5.0 11% -3% 6%
Strip Ratio 1.0 0.7 0.8 0.9 1.0 0.9 16% 6% 3%
Waste Mined, Mt 5.0 3.8 4.7 5.3 5.4 4.2 28% 3% 10%
Mill Feed, Mt 5.2 5.2 5.2 5.7 5.2 4.9 5% -9% -1%
Head Grade, % 29.7% 30.7% 29.6% 29.1% 30.6% 30.0% 2% 5% 3%
Fe Recovery, % 83.6% 82.6% 82.9% 83.3% 83.9% 83.3% 1% 1% 0%
Fe Concentrate Grade, % 66.4% 66.5% 66.3% 66.3% 66.2% 66.2% 0% 0% 0%

Total Iron Ore Production, Mt 1.92 2.01 1.94 2.09 2.01 1.85 9% -4% 5%
Total Iron Ore Sales, Mt 1.89 1.97 1.97 1.95 1.83 1.83 0% -6% -3%
Average Realized Price, 66% Fe, C$/t, FOB $174 $201 $276 $169 $138 $128 8% -18% -21%
Total Cash Costs, 66% Fe, C$/t, FOB $56 $54 $61 $56 $60 $59 0% 6% 6%
Average Realized Margin, 66% Fe, C$/t, FOB $109 $136 $204 $96 $62 $54 15% -35% -43%
Total AISC, 66% Fe, FOB, C$/t $65 $65 $73 $74 $76 $74 3% 3% 17%
Financials, C$mm
Revenues $330 $397 $545 $331 $253 $235 8% -24% -23%
Operating Costs $70 $65 $79 $71 $70 $71 -1% -1% 0%
Transportation Costs $36 $42 $42 $40 $40 $38 7% 1% 11%
Operating Earnings $212 $277 $415 $211 $133 $117 13% -37% -38%
Cash Flow From Operating Activities b/f WC $142 $169 $248 $129 93 $69 35% -28% -34%
Cash Flow From Operating Activities $185 $235 ($13) $374 $106 $9 1051% -72% -43%
Capital Expenditures $50 $73 $110 $154 $138 $120 15% -10% 177%
Cash Flow from Investing Activities ($95) ($97) ($164) ($169) ($169) ($120) nm nm nm
Cash Flow from Financing Activities $4 ($15) ($35) ($109) $41 $0 nm nm 1058%
Free Cash Flow before W/C changes $92 $96 $98 ($25) ($45) ($51) nm nm nm
Balance Sheet, C$mm
Cash & Restricted Cash $534 $653 $437 $536 $512 $425 21% -4% -4%
Working Capital $446 $514 $535 $385 $333 $329 1% -14% -25%
Long Term Debt $242 $215 $226 $232 $248 $227 9% 7% 2%
Net Debt ($265) ($422) ($226) ($303) ($241) ($192) nm nm nm
Key Metrics
EPS Reported (C$/sh.) $0.25 $0.32 $0.44 $0.23 $0.13 $0.12 15% -41% -47%
EPS (ADJUSTED, Fully Diluted) (C$/sh.) $0.24 $0.30 $0.43 $0.22 $0.13 $0.11 19% -40% -46%
Attributable EBITDA, C$mm $212 $276 $406 $200 $122 $112 9% -39% -42%
CFPS, Before WC Changes (100% basis) $0.30 $0.34 $0.49 $0.25 $0.18 $0.14 35% -28% -38%
Source: Company, TD Securities Inc.

Outlook
Iron ore markets start the year on a strong footing — Iron ore prices (65%-Fe, CFR
China) are up 20% YTD, averaging US$158/t through January 26, which is trending
above our calendar Q1 quarterly forecast of US$130/t. The better-than-expected pricing
has been driven by solid demand from China, where steel producer margins remain
positive, combined with some restocking ahead of the Chinese New Year and Beijing

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 January 27, 2022

Olympics. On the supply side, production from the ‘big-four’ (Rio Tinto, Vale, BHP, and
Fortescue) remains subdued, with Vale reporting supply disruptions due to weather-
related events in mid-January.

We are forecasting a modest 1% increase in Chinese steel demand in 2022, with the
rest-of-the-world up 3% y/y. On the supply side, we are forecasting only 1% growth in
seaborne trade, resulting in slight deficits for iron ore again this year.

We are modelling calendar 2022 and 2023 high-grade iron-ore prices of US$130/t and
US$105/t, respectively. We are maintaining our long-term high-grade iron-ore price
forecast of US$90/t starting in 2024.

C2022 Potential Catalysts & Milestones

▪ Q2/22: Commissioning of Bloom Lake Phase 2 Expansion
▪ Mid-2022: Release of a Bloom Lake feasibility study to investigate the potential to
produce up to 8Mtpa (not incremental tonnage) of DR grade (69%-Fe) material in an
effort to capture an anticipated increase in demand for the product, supported by an
expected shift to greater usage of electric arc furnaces as the steel industry grapples
with emission-reduction targets globally
▪ Late-2022: Updated Kami feasibility study

Exhibit 2. Historical Iron Ore Pricing

$300

$250

$200
US$/t

$150

$100

$50

$0
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22

65% Fines 62% Fines

Source: Bloomberg, TD Securities Inc.

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 January 27, 2022

Exhibit 3. Steel Mill Profitability (Left), Steel Prices (Right)

China Hot Rolled Steel China Steel Rebar (25mm) China Cold Rolled Steel
$300 $45
$1,200
$40
$250
$1,100
China Steel Profitability Index (US$/mt)

$35

62% Fe - 58% Fe Spread (US$/mt)

$200 $1,000

Steel Prices (US$/mt)

$30
$900
$150
$25
$800

$100 $20 $700

$15 $600
$50

$10 $500
$0
$400
$5

-$50 $300
$0
$200

Nov-15

Nov-16

Nov-17

Nov-18

Nov-19

Nov-20

Nov-21
Jul-16

Jul-17

Jul-19

Jul-20

Jul-21
Jan-16

Jan-17

Jan-18

Jul-18
Sep-18

Jan-19

Jan-20

Jan-21

Jan-22
Sep-16

Sep-17

Sep-19

Sep-20

Sep-21
Mar-16
May-16

Mar-17
May-17

Mar-18
May-18

Mar-19
May-19

Mar-20
May-20

Mar-21
May-21
-$100 -$5
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
China Steel Profitability Index (US$/mt) 62% Fe - 58% Fe Spread (US$/mt)

Source: Bloomberg, TD Securities Inc.

Exhibit 4. Brazil-China Shipping Rates (US$/t) (Left); Iron Ore Stockpiles (Right)
Australia Brazil India Other Total Chinese Stockpiles

$50 18,000

$45 16,000

$40 14,000
Iron Ore Stockpiles (x 10,000st)

$35
12,000

$30
10,000

$25
8,000

$20
6,000

$15
4,000

$10
2,000
Córrego do Feijão
$5 Samarco Dam Dam Disaster COVID-19
Disaster 0
Outbreak
$0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22

Source: Bloomberg, TD Securities Inc.

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 January 27, 2022

Exhibit 5. Sensitivity Analysis

Phase 2 Ramp-up* (FY2023 Apr1/22 - March 31/23)
FY2023 EBITDA (C$mm) at Spot 65% Fe Fines, CFR, US$/t FY2023 EV/EBITDA at Spot 65% Fe Fines, CFR. US$/t
###### $80 $100 $120 $140 $160 $180 $80 $100 $120 $140 $160 $180
CAD/USD Forex

CAD/USD Forex
0.74 $110 $432 $753 $1,075 $1,397 $1,719 0.74 22.2x 5.6x 3.2x 2.3x 1.7x 1.4x
0.76 $88 $401 $715 $1,028 $1,341 $1,655 0.76 27.6x 6.1x 3.4x 2.4x 1.8x 1.5x
0.78 $67 $373 $678 $983 $1,289 $1,594 0.78 36.1x 6.5x 3.6x 2.5x 1.9x 1.5x
0.80 $48 $346 $643 $941 $1,239 $1,536 0.80 50.8x 7.0x 3.8x 2.6x 2.0x 1.6x
0.82 $29 $320 $610 $901 $1,191 $1,481 0.82 83.2x 7.6x 4.0x 2.7x 2.0x 1.6x
0.84 $12 $295 $579 $862 $1,146 $1,429 0.84 210.9x 8.2x 4.2x 2.8x 2.1x 1.7x
Post Phase 2 Expansion to 15Mtpa (FY2024 Apr1/23 - March 31/24)
FY2024 EBITDA (C$mm) at Spot 65% Fe Fines, CFR, US$/t FY2024 EV/EBITDA at Spot 65% Fe Fines, CFR. US$/t
###### $80 $100 $120 $140 $160 $180 $80 $100 $120 $140 $160 $180
CAD/USD Forex

CAD/USD Forex
0.74 $286 $701 $1,117 $1,533 $1,949 $2,365 0.74 8.5x 3.5x 2.2x 1.6x 1.2x 1.0x
0.76 $255 $660 $1,065 $1,470 $1,875 $2,280 0.76 9.5x 3.7x 2.3x 1.7x 1.3x 1.1x
0.78 $227 $621 $1,016 $1,410 $1,805 $2,199 0.78 10.7x 3.9x 2.4x 1.7x 1.3x 1.1x
0.80 $200 $584 $969 $1,354 $1,738 $2,123 0.80 12.2x 4.2x 2.5x 1.8x 1.4x 1.1x
0.82 $174 $549 $924 $1,300 $1,675 $2,050 0.82 14.0x 4.4x 2.6x 1.9x 1.5x 1.2x
0.84 $149 $516 $882 $1,248 $1,615 $1,981 0.84 16.3x 4.7x 2.8x 1.9x 1.5x 1.2x
* We assume Phase 2 begins in May 2022. We are modeling 11.9Mt of sales in FY2023
Source: Company, TD Securities Inc.

Exhibit 6. Bloom Lake Production and Cost Profile

18.0 $180

16.0 $160

14.0 $140

66% Fe CFR China (US$/t)

Concentrate Mt, Fe 66%

12.0 $120

10.0 $100

8.0 $80

6.0 $60

4.0 $40

2.0 $20

0.0 $0
FY2019A FY2020A FY2021A FY2022E FY2023E FY2024E FY2025E
Bloom Lake Phase (100%) Total AISC, 66% Fe CFR China (US$/t) Price of 66% Fe CFR China (US$/t)

Source: TD Securities Inc.

Valuation
Champion is trading at 0.94x our base-case 8%NAVPS estimate of $5.46/share
(previously $5.50/share), which represents a premium to our mid-cap coverage universe
trading at 0.75x, but a discount to our large-cap coverage universe trading at 1.05x.

Justification of Target Price

Our $7.00 target price (unchanged) is based on 1.0x our NAVPS-8% estimate (weighted
40%) and a 6.0x EV/FY2024E EBITDA multiple (weighted 60%).

Page 5 of 10
 January 27, 2022

Exhibit 7. Target Price Calculation and Net Asset Value

Target Price Calculator Net Asset Value
FD Share Count, mm: 537.4 8% 10%
NAV Estimates C$mm C$/sh C$mm C$/sh
Target Price Calculator Bloom Lake Phase I & II (100%) $2,477 $4.61 $2,117 $3.94
NAV-8% Weighting 40% Other $0 $0.00 $0 $0.00
1.00x C$/sh. 2.18 Total Mining Assets $2,477 $4.61 $2,117 $3.94

2024 EV/EBITDA Weighting 60% Other Assets

6.00x C$/sh. 4.65 Kami & Fire Lake North Projects $300 $0.56 $300 $0.56
Calculated Target Price 6.84
Rounded Target Price (CAD) 7.00 Corporate Adjustments: Q3/22A / Calendar: Dec-31-21
Working Capital $333 $0.62 $333 $0.62
Risk Profile: HIGH Long Term Debt ($248) ($0.46) ($248) ($0.46)
Stock Rating: BUY In the Money Options and Warrants $73 $0.14 $73 $0.14
Preferred Shares $0 $0.00 $0 $0.00
Target Price: C$7.00 Total Corporate Adjustments $158 $0.29 $158 $0.29
Total NAV (C$) 2,935 $5.46 2,575 $4.79
Source: Company, TD Securities Inc.

Key Risks to Target Price

The key risks to our target price include: iron ore price risks (including premiums for high-
quality ores); steel demand, financial risks, including risks to the cost and availability of
financing; foreign exchange rate risks; forecast risks, including capital and operating cost
risks, risks related to deposit size, grade, and mineability, and risks relating to production
levels, metallurgical recoveries, and smelter terms; market risks; technical risks, including
risks to the process flowsheet that we envision; infrastructure risks, including the
availability of power and its reliability; transportation risk; political risks, including
permitting risk; community social relations risks; labour relations risk; and risk related to
indigenous people; risks related to the cost and availability of equipment and
consumables; environmental risk; title risk; climate risks; surface rights risk; access risk;
and key personnel retention risk. Champion’s operating and development assets could
be negatively affected by the ongoing restrictions to travel, social-distancing measures,
and other challenges related to the COVID-19 pandemic.

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 January 27, 2022

Exhibit 8. Company Snapshot

Fiscal Period 2020 2021 Q1/22A Q2/22A Q3/22A Q4/22E 2022E 2023E 2024E
Calendar Period End 31-Mar-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 31-Mar-22 31-Mar-23 31-Mar-24
Price Forecasts
Benchmark, 62% Conc., CFR China, US$/t $95 $127 $198 $163 $110 $110 $145 $105 $86
65% Concentrate Fines, CFR China, US$/t $106 $144 $232 $190 $129 $130 $170 $124 $101
Shipping Costs Sept-Iles, US$/tonne $26 $20 $28 $35 $42 $26 $33 $29 $25
Forex CAD/USD 0.75 0.76 0.81 0.79 0.79 0.79 0.80 0.80 0.81
Iron Ore Production and Sales 66% Fe, (100% basis), Mt
Total Iron Ore Production, Mt 7.90 8.00 1.94 2.09 2.01 1.96 8.00 12.28 15.78
Total Iron Ore Sales, Mt 7.58 7.68 1.97 1.95 1.83 1.89 7.65 11.91 15.39
Realized Prices and Margins
Average Realized Price, 66% Fe, C$/t, FOB $104 $167 $276 $169 $138 $130 $178 $120 $97
Total Cash Costs, 66% Fe, C$/t, FOB $53 $54 $61 $56 $60 $56 $59 $56 $54
Average Realized Margin, 66% Fe, C$/t, FOB $51 $113 $215 $113 $79 $74 $119 $64 $43
Total AISC, 66% Fe, FOB, C$/t $63 $63 $73 $74 $76 $68 $73 $64 $61
Total AISC 66% Fe, CFR, US$/t $73 $68 $87 $93 $102 $80 $91 $80 $74
Income Statement, C$mm
Revenues $785 $1,282 $545 $331 $253 $246 $1,375 $1,431 $1,487
Operating Costs $254 $260 $79 $71 $70 $67 $287 $432 $522
Transportation Costs $146 $156 $42 $40 $40 $39 $161 $238 $308
Operating Earnings $364 $818 $415 $211 $133 $131 $889 $689 $560
Depreciation $22 $35 $10 $9 $10 $9 $39 $71 $97
General and Administrative $21 $24 $8 $8 $8 $7 $31 $31 $31
Other Expenses (Income) $79 ($3) $5 $4 $5 $2 $17 ($38) ($83)
Pre-tax Earnings $241 $762 $391 $190 $109 $114 $803 $624 $516
Taxes $120 $297 $167 $75 $41 $45 $328 $237 $196
Reported Net Earnings $121 $464 $224 $115 $68 $68 $475 $387 $320
Cash Flow from Operations, C$mm
Cash Flows Before Working Capital Changes $220 $519 $248 $129 $93 $78 $548 $463 $417
Non Cash Working Capital Changes $89 $104 ($261) $245 $12 $0 ($3) $0 $0
Cash Flow From Operating Activities $310 $623 ($13) $374 $106 $78 $545 $463 $417
Cash Flow from Investing, C$mm
Capital Expenditures ($153) ($175) ($110) ($154) ($138) ($95) ($497) ($125) ($91)
Other ($0) ($69) ($54) ($15) ($32) $0 ($101) $0 $0
Cash Flow from Investing Activities ($153) ($244) ($164) ($169) ($169) ($95) ($597) ($125) ($91)
Cash Flow from Financing, C$mm
Proceeds / Payment of Debt $1 ($26) $30 $20 $43 $0 $93 ($51) ($91)
Proceeds of Equity $21 $36 $1 $0 $0 $0 $1 $0 $0
Other ($37) ($36) ($65) ($129) ($3) ($52) ($249) ($104) ($104)
Cash Flow from Financing Activities ($15) ($26) ($35) ($109) $41 ($52) ($155) ($155) ($196)
Key Metrics
Weighted Average Shares Outstanding, (mm) 441.6 478.6 506.3 506.5 506.5 506.5 506.4 506.5 506.5
Shares Fully Diluted, (mm) 512.5 506.3 537.3 523.9 521.2 537.4 537.4 537.4 537.4
EPS Reported (C$/sh.) $0.20 $0.97 $0.44 $0.23 $0.13 $0.13 $0.94 $0.76 $0.63
EPS (ADJUSTED, Fully Diluted) (C$/sh.) $0.27 $0.93 $0.43 $0.22 $0.13 $0.13 $0.89 $0.72 $0.60
Attributable EBITDA, C$mm $287 $819 $406 $200 $122 $127 $855 $716 $627
CFPS, After WC Changes (100% basis) $0.60 $1.23 ($0.02) $0.71 $0.20 $0.15 $1.01 $0.86 $0.78
Free Cash Flow before W/C Changes $68 $344 $98 ($25) ($45) ($17) $52 $338 $326
Free Cash Flow After Working Capital, C$mm $157 $449 ($123) $220 ($32) ($17) $49 $338 $326
Free Cash Flow Per Share (100% basis) $0.13 $0.68 $0.18 ($0.05) ($0.09) ($0.03) $0.10 $0.63 $0.61
Balance Sheet, C$mm
Cash & Equivalents $299 $637 $467 $568 $543 $474 $474 $657 $788
Receivables $31 $99 $283 $96 $65 $65 $65 $65 $65
Other $72 $72 $37 $43 $57 $57 $57 $57 $57
Current Assets $402 $808 $787 $707 $665 $596 $596 $779 $910
Property Plant and Equipment $447 $581 $712 $901 $1,068 $1,154 $1,154 $1,208 $1,202
Total Assets $883 $1,497 $1,658 $1,774 $1,924 $1,941 $1,941 $2,177 $2,301
Payables $55 $102 $142 $194 $229 $229 $229 $229 $229
Current Debt $26 $0 $15 $33 $55 $51 $51 $91 $61
Other $58 $192 $96 $95 $49 $49 $49 $49 $49
Current Liabilities $139 $294 $252 $322 $332 $328 $328 $369 $339
Long Term Debt $250 $215 $226 $232 $248 $252 $252 $161 $99
Other Long Term Liabilities $256 $429 $395 $515 $580 $576 $576 $616 $586
Total Liabilities $506 $644 $621 $747 $828 $828 $828 $777 $686
Non Controlling Interest $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities and Shareholder Equity $883 $1,497 $1,658 $1,774 $1,924 $1,941 $1,941 $2,177 $2,301
Source: Company, TD Securities Inc.

Page 7 of 10
Action Note
Equity Research January 27, 2022

TD Securities Equity Research Disclosures

 Company Ticker Disclosures
Champion Iron Ltd. CIA-T n/a

1. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has managed or co-managed a public offering of securities within the last 12 months with respect to the subject
company.
2. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has received compensation for investment banking services within the last 12 months with respect to the
subject company.
3. TD Securities Inc., TD Securities (USA) LLC or an affiliated company expects to receive compensation for investment banking services within the next three months with respect to
the subject company.
4. TD Securities Inc. or TD Securities (USA) LLC has provided investment banking services within the last 12 months with respect to the subject company.
5. A long position in the securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which the research
analyst has discretion or control.
6. A short position in the securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which the research
analyst has discretion or control.
7. A long position in the derivative securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which the
research analyst has discretion or control.
8. A short position in the derivative securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which
the research analyst has discretion or control.
9. TD Securities Inc. and/or an affiliated company is a market maker, or is associated with the specialist that makes a market, in the securities of the subject company.
10. TD Securities Inc. and/or affiliated companies own 1% or more of the equity securities of the subject company.
11. A partner, director or officer of TD Securities Inc. or TD Securities (USA) LLC, or a research analyst involved in the preparation of this report has, during the preceding 12 months,
provided services to the subject company for remuneration.
12. This security has Subordinate voting shares.
13. This security has Restricted voting shares.
14. This security has Non-voting shares.
15. This security has Variable voting shares.
16. This security has Limited voting shares.

Additional Important Disclosures

Price Graphs
Full disclosures for all companies covered by TD Securities can be viewed at https://www.tdsresearch.com/equities/welcome.important.disclosure.action by TD Securities' institutional
equity clients.

Distribution of Research Ratings^ Investment Services Provided*

100%
81.66%
REDUCE - 0.9%
75%
NOT RATED - 0.3%

HOLD - 22.3% 50%

BUY - 76.5%
25% 17.16%

0.59% 0.59%
0%
BUY HOLD NOT REDUCE
RATED

Current as of: January 27, 2022

^ Percentage of subject companies under each rating category: BUY (covering ACTION LIST BUY,
BUY and SPECULATIVE BUY ratings), HOLD, and REDUCE (covering TENDER and REDUCE
ratings) and NOT RATED (covering UNDER REVIEW, SUSPENDED, and NOT RATED).
* Percentage of subject companies within each of the four categories (BUY, HOLD, REDUCE, and
NOT RATED) for which TD Securities Inc. has provided investment banking services within the last
12 months.

Definition of Research Ratings

ACTION LIST BUY: The stock's total return is expected to exceed a minimum of 15% (with higher thresholds for less liquid, more risky securities) over the next 12 months and it is a
top pick in the Analyst's sector.
BUY: The stock's total return is expected to exceed a minimum of 10% (with higher thresholds for less liquid, more risky securities) over the next 12 months.
SPECULATIVE BUY: The stock's total return is expected to exceed a minimum of 30% over the next 12 months (with higher thresholds for less liquid securities); however, there is material
event risk associated with the investment that could result in a significant loss.

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Equity Research January 27, 2022

HOLD: The stock's total return is expected to be between 0% and 10%, (with higher thresholds for less liquid, more risky securities) over the next 12 months.
TENDER: Investors are advised to tender their shares to a specific offer for the company's securities or to support a proposed combination reflecting our view that a superior offer
is not forthcoming.
REDUCE: The stock's total return is expected to be negative over the next 12 months.
SUSPENDED: Due to evolving circumstances, we can no longer generate what we consider a defensible target price and rating at the current time.
UNDER REVIEW: Our rating is under review pending additional information and/or analysis. The prior rating should not be relied on.
NOT RATED: We do not currently produce a recommendation and a target price on this security.
Risk ratings are relative to other companies in the TD Securities Equity Research coverage universe. In order of increasing risk, our risk ratings are LOW, MEDIUM, HIGH, and
SPECULATIVE. These risk ratings are not meant to be compared to ratings on other securities and asset classes outside our Equity Research coverage universe.
Overall Risk Rating in order of increasing risk: Low (6.6% of coverage universe), Medium (42.3%), High (43.2%), Speculative (7.8%)

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Each analyst of TD Securities Inc. whose name appears on page 1 of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report
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China, India, and South Korea

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Action Note
Equity Research January 27, 2022

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