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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 JayBankson Mar 12, 2022 12:44am
233 Views
Post# 34508524

RE:RE:RE:RE:CASH DIVIDEND FOR THE FIRST QUARTER OF 2022 - $0.50 PER COMM

RE:RE:RE:RE:CASH DIVIDEND FOR THE FIRST QUARTER OF 2022 - $0.50 PER COMM

Are they shipping significantly more ore now than pre 2021?

50% higher commodity price for 50% more payout makes sense and technically the payout should be higher than following the commodity because there is not really extra costs other than general inflation factors on producing $75 iron than $150 iron, so you should get a better profit margin better than a double. So this 50 cent announcement feels more inline which what I understand.

The 2021 payouts seem kinda crazy, which good job on those that got them, but I don't fully understand why it happened, nor feel comfortable as everything seems to be moving in an unpredictable way.

From an outside observer there seems like a massive disconnect somewhere here and it seems a position here is pretty much gambling. I admit I'm grossly uninformed, but I haven't really found info to correlate the past 12-15 months on why things have gone wild here. Seeing the payout jump 3-4 times what has happened in the past raises questions and this seems more inline as 25 cent regular + the specials were around the 35-50 cent marks with a few outliers.

I like royalties, but usually they have a line you can follow and make fairly accurate assumptions off.

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