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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 26, 2015 12:47pm
46 Views
Post# 23960962

RE:RE:Seeking Alpha: Report on LIF

RE:RE:Seeking Alpha: Report on LIFVery good point. The impact will be indirect through IOC.

In 2007 i had a conversation with an x-IOC finance guy about the negative effect of the rising $Can. on IOC revenus. I do not recall the details other than it was negative. The rising selling price masked the negative effect of the rising $Can so there was little comment about it.

The recent capital investments probably involved a lot of $US, but that is behind us now, and IOC probably managed the need for $US very well anyway as they are very used to that sort of thing. The major expense in $US is now back to fuel, diesel, heating oil, and bunker, as usual. Fortunately that is going down while the $Can is rising. 

IOC made it through the tough years in the 80s and 90s by good management, cooperation from the unions ( both forced and voluntary ), and superb product quality. 

I am confident that that can happen again.
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