Earnings
LABRADOR IRON ORE ROYALTY CORPORATION - RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2025
LIF · Price
Executive Summary
- Royalty revenue rose 5% YoY to $43.4 M, but net income fell 10% YoY to $30.4 M and earnings per share declined to $0.47.
- No dividend was received from Iron Ore Company of Canada (IOC) in Q3 2025, ending a $20.3 M dividend paid in the same quarter of 2024; LIORC paid a $0.40/share dividend to shareholders on Oct. 29 2025.
- IOC’s capital‑expenditure budget was cut to US$288 M (down from US$342 M), and a management restructuring placed IOC under the leadership of Elias Scafidas.
Key Details
- Royalty Revenue: $43.4 M (↑5% YoY, ↓6% QoQ).
- Equity Earnings from IOC: $8.6 M (↓11% YoY, ↑13% QoQ).
- Net Income: $30.4 M (↓10% YoY).
- Net Income per Share: $0.47 (‑11% YoY, +12% QoQ).
- Adjusted Cash Flow per Share: $0.38 (‑44% YoY, ‑5% QoQ); driven by zero IOC dividend.
- Dividend Paid to LIORC Shareholders: $0.40 /share (Oct 29 2025).
Operational Metrics – IOC (Royalty Source)
| Metric | Q3 2025 | Q3 2024 | Δ YoY |
|---|---|---|---|
| Concentrate for Sale (CFS) production | 1.59 Mt | 1.43 Mt | +11% |
| Pellet production | 2.40 Mt | 2.17 Mt | +11% |
| Total saleable production | 4.00 Mt | 3.60 Mt | +11% |
| CFS sales tonnage | 1.72 Mt | 1.99 Mt | ‑13% |
| Pellet sales tonnage | 2.19 Mt | 2.03 Mt | +8% |
| Total iron‑ore sales (CFS+pellets) | 3.91 Mt | 4.02 Mt | ‑3% |
Pricing
- 65 % Fe Platts Index: US$117/tonne (↑3% YoY, ↑8% QoQ).
- Pellet Premium (Atlantic BF): US$27/tonne (↓32% YoY).
- Average realized price (CFS + pellets, FOB Sept‑Îles): ≈US$114/tonne vs. US$109/tonne in Q3 2024.
Outlook & Guidance
- IOC now expects 2025 saleable production at the low end of its original guidance (16.5–19.4 Mt).
- Capital expenditures revised to US$288 M for 2025 (down from US$342 M).
- Management restructuring announced Oct 29 2025; Elias Scafidas assumes leadership of IOC and Simandou operations.
Liquidity & Capital Resources
- Cash balance: C$18.3 M (↓ from C$42.3 M at year‑end 2024).
- Working capital: C$27.1 M.
- Revolving credit facility: US$30 M available, none drawn.
Financial Statements Highlights (Unaudited)
- Revenue: C$43.986 M (royalties + commissions + interest).
- Expenses: C$10.907 M (royalty taxes, amortization, admin).
- Net Income: C$30.445 M; Basic EPS: $0.47.
Notable Quotes
“The higher revenue achieved in the third quarter of 2025 was primarily driven by higher iron‑ore prices and an improved product mix, partially offset by lower sales tonnages and declining pellet premiums.” – John F. Tuer, President & CEO
Materiality Assessment: Material – Negative (significant decline in net income and cash flow, loss of dividend income, and revised capital‑expenditure guidance).
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May 04, 2026 · 19:08