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The cash flow from operations, equity earnings and net income for the second quarter of 2018 were lower than the second quarter of 2017.
Labrador Iron Ore Royalty (TSX:LIF) announced today (August 7) its operation and cash flow results for the second quarter ended June 30, 2018.
The cash flow from operations, equity earnings and net income for the second quarter of 2018 were lower than the second quarter of 2017, due to the work stoppage at IOC during which operations were suspended until a new labour agreement was reached. The strike closed down the IOC production facilities on March 27, 2018. The workforce returned to work on May 28, 2018. A new five-year collective agreement is now in place and the ramp up to normal production rates was achieved by the end of June. IOC is making every effort to maximize production for the remainder of the year. Sales for the second quarter of 2018 were restricted by the availability of product as port inventories had to be rebuilt.
As quoted in the press release:
Total concentrate production in the second quarter of 2018 of 1.5 million tonnes was 69 percent lower than the second quarter of 2017 and was 64 percent lower than the first quarter of 2018. Similarly, pellet production in the second quarter of 2018 was 78 percent lower than the second quarter of 2017 and 81 percent lower than the first quarter of 2017. As noted above, IOC production was negatively affected by the labour strike.
Click here to read the full Labrador Iron Ore Royalty (TSX:LIF) press release.