Labrador Iron Ore Royalty (“LIORC”, TSX: LIF) announced today its operation and cash flow results for the second quarter ended June 30, 2017.
Royalty revenue for the second quarter of 2017 amounted to $33.8 million as compared to $25.3 million for the second quarter of 2016. The shareholders’ cash flow from operations for the second quarter was $45.6 million or $0.71 per share as compared to $7.6 million or $0.12 per share for the same period in 2016.
LIORC received a dividend from Iron Ore Company of Canada (“IOC”) in the second quarter of 2017 in the amount of $15.3 million or $0.24 per share. Equity earnings/(losses) from IOC amounted to $14.3 million or $0.22 per share as compared to ($0.5) million or ($0.01) per share in 2016. Net income was $32.3 million or $0.50 per share compared to $8.3 million or $0.13 per share for the same period in 2016.
IOC is expecting good production and sales tonnages in the third and fourth quarters of 2017. The induration machine for the No. 5 pellet line is scheduled to be refurbished starting in late September 2017 for approximately nine weeks.
Rio Tinto has maintained the IOC production guidance for 2017 of 11.4 to 12.4 million tonnes of iron ore pellets and concentrates for their 58.72% interest in IOC, which is total saleable production of 19.4 to 21.1 million tonnes on a 100% basis. Achieving the low end of the guidance would be a 6% improvement over the saleable production in 2016 of 18.2 million tonnes.