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Labrador Iron Ore Royalty Corp T.LIF

Alternate Symbol(s):  LIFZF

Labrador Iron Ore Royalty Corporation is a Canada-based investment company. The Company holds interests in the Iron Ore Company of Canada (IOC), which is a North American producer and exporter of iron ore pellets and high-grade concentrate. The Company, through its wholly owned subsidiary, Hollinger Hanna Limited (Hollinger-Hanna), holds an approximately 15.10% equity interest in IOC. It holds an approximately 15.10% equity interest in IOC and receives approximately 7% gross overriding royalty and a 10% per ton commission on all iron ore products produced, sold, and shipped by IOC. IOC operates mine, concentrator and pellet plant at Labrador City, Newfoundland, and Labrador. The IOC mines and produces iron ore pellets and concentrates at its facilities in Labrador City, Newfoundland, and Labrador. The Company holds mining leases and mining licenses covering approximately 18,200 hectares of land near Labrador City.


TSX:LIF - Post by User

Comment by ElanS2on Jul 23, 2015 3:56pm
49 Views
Post# 23954011

RE:Scotia comes out with a $20 Target...

RE:Scotia comes out with a $20 Target...Its an iron ore stock not an oil stock if you hadn't noticed.
There is a similitude with oil however, the dynamic is the same.
They are both commodities suffering from the same situation:
too much offered and too few buyers.
The Saudis and the Aussis are doing the same thing; innundating the market with supply.
They both have the same objective to put small players out of business. Neither of them have hidden their objective, both have been forthright in stating what they are up to.

LIF has a lot of hidden value however with its three revenu streams: 7% royalty, 10% sales commission, and 15.1% ownership of IOC. 
The present stock price pays a dividend of 8% which isn't bad. As long as IOC production is maintained and increased, as is the plan, this stock will, IMHO, present a lot of hidden value. 
Is there a possibility for special dividends again ? It would not surprise me. If production goes to 20 million tons it may just happen IMHO.

The published price for iron ore does not reflect the true selling price of IOC product. IOC receives premiums for % iron, the absence of certain elements, the presence of others, as well as its ability to formulate the pellet composition to meet buyer's specifications. The dropping $Can also creates extra revenu. The expansion projects are largely completed so the is much reduced need for costs in $US is favourable.

If there is any problem at this time it is the elevated number of board members. There should be an effort to reduce costs and dump at least 4 members.
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