Which ASX 200 iron ore share has gained 45% in 2021?

2021 has seen Champion Iron Ltd (ASX: CIA) benefiting from record iron prices as well as a record high for the S&P/ASX 200 Index (ASX: XJO).

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Capex business spending Surging ASX share price represented by the word BOOM written on bright yellow background

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This year has seen record-high iron prices as well as a record high for the S&P/ASX 200 Index (ASX: XJO), and one share is positively booming in the excitement.

The Champion Iron Ltd (ASX: CIA) share price has gained 45.6% since the start of 2021, making it one of the best performing ASX 200 shares of 2021 so far.

After hitting an intraday high of $7.31, the Champion Iron share price has since retreated and was trading at $7.02, up 0.29% at the market close today.

Its year-to-date performance has beaten ASX 200 iron ore peers including Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP). These iron ore giants have gained 8.73% and 15.12% respectively.

So, what’s been driving the Champion Iron share price to perform better than other ASX 200 iron miners?

A quick introduction

Champion Iron is an iron ore exploration and development company with a number of projects in Canada’s Québec region.

As well as gaining 45% since the start of this year, the Champion share price has lifted 220% over the last 12 months.

It has a market capitalisation of around $3.5 billion, with approximately 493 million shares outstanding.

ASX 200 Champion in more than name

The Champion share price got off to a great start for 2021 on the ASX.

In late January, it released its third-quarter results for the 2021 financial year. Within the results were record-high revenues, earnings before interest, tax, depreciation, and amortisation (EBITDA), net income, and net cash flow.

Despite the positive results, the Champion Iron share price closed the day 9% lower than the previous session.

On 22 March, Champion Iron officially entered the ASX 200.

Then, on 6 April, the Champion Iron share price gained 5% after the company announced it has completed its acquisition of the Kamistiatusset iron ore project (Kami Project).

In addition to the project, the acquisition saw the company secure another 8 million annual tonnes of port capacity in Sept-Isles, Que, where it was already sending iron concentrate from its Bloom Lake Project.  

Finally, it released its fourth-quarter activities report on 29 April. Within the update was plenty of good news, including the announcement of a new annual production record of 8,001,200 wet metric tonnes from Bloom Lake.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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