LABRADOR IRON ORE ROYALTY CORPORATION - RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2025

Executive Summary

• LIORC reported Q2 2025 royalty revenue of $46.2 M, a 12% decline YoY and a 30% increase QoQ, with net income of $26.5 M ($0.42 per share).
• Iron ore prices fell sharply (65% Fe index $108/t, ‑14% YoY) while sales tonnage rose 10% YoY, driven by higher CFS volumes (+28%).
• No dividend was received from IOC in Q2 2025; the corporation paid a $0.30 per share cash dividend to shareholders.

Key Details

• Royalty Revenue: $46.2 M (‑12% YoY, +30% QoQ).
• Equity Earnings from IOC: $2.3 M (down from $18.5 M YoY).
• Net Income: $26.5 M; Net income per share $0.42 (‑46% YoY, +27% QoQ).
• Adjusted Cash Flow: $25.8 M; Adjusted cash flow per share $0.40 (‑64% YoY, +30% QoQ).
• Dividend Paid to Shareholders: $0.30 per share (total $32.0 M).

Iron Ore Pricing & Volumes

• 65% Fe Platts index averaged US$108/t (‑14% YoY, ‑7% QoQ).
• Pellet premium averaged US$35/t (‑18% YoY).
• IOC total sales tonnage: 4.6 M t (↑10% YoY, ↑43% QoQ).
• CFS sales tonnage: 2.0 M t (↑28% YoY, ↑98% QoQ).
• Pellet sales tonnage: 2.2 M t (‑2% YoY, ↑15% QoQ).

Operational Highlights (IOC)

• Concentrate production: 4.5 M t (↑16% YoY).
• Total mine material moved: +24% YoY.
• Saleable production (CFS + pellets): 4.2 M t (↑14% YoY).

Outlook & Guidance

• IOC 2025 saleable production guidance unchanged at 16.5–19.4 M t.
• IOC capital expenditures revised to US$299 M (down from US$342 M).
• Forward‑looking iron ore price outlook: 65% Fe index projected to average US$97/t in 2025, declining to US$80/t by 2029, then rising to US$95/t by 2035.

Liquidity & Capital Resources

• Cash balance at June 30 2025: C$4.8 M (down from C$42.3 M year‑end).
• Working capital: C$29 M.
• Revolving credit facility: US$30 M available, none drawn.

Governance & Controls

• No material changes to internal controls over financial reporting reported.

Notable Quotes

“While lower iron ore prices and pellet premiums pressured our revenue, higher sales volumes helped mitigate the impact,” – John F. Tuer, President & CEO.