Bullboard - Stock Discussion Forum Labrador Iron Ore Royalty Corp T.LIF

Alternate Symbol(s): LIFZF

Steel Steel

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... see more

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Labrador Iron Ore Royalty Corp > The cat is out of the bag: Rio lowers the IOC 2021 guidance

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Post by ckwong on Oct 15, 2021 9:57am

The cat is out of the bag: Rio lowers the IOC 2021 guidance

Labrador Iron Ore Royalty Corporation (TSX:LIF) - Rio Tinto Releases IOC Production and Sales Information and Lowers 2021 Guidance

Rio Tinto has lowered its 2021 full year guidance for IOC's saleable production tonnage from 17.9 to 20.4 million tonnes to 16.2 to 17.9 million tonnes.

Without doing a detailed calculation, the following is my estimates for the next dividend:

- 50% lower commodity price
- 10% lower on output

Based on the last dividend of $2.10 and the reduction of 10% which will happens in next 2 quarters, the next dividend would be around:

$2.10 X 50% X 80% = $0.84

Using today's price of $35, the yield is 8-9%.

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