2025 Results of Operations
LABRADOR IRON ORE ROYALTY CORPORATION
P R E S S R E L E A S E
Toronto, March 11, 2026
2025 RESULTS OF OPERATIONS
Labrador Iron Ore Royalty Corporation (TSX: LIF) announced the results of its operations for the year ended December 31, 2025.
To the Holders of Common Shares of Labrador Iron Ore Royalty Corporation
The Directors of Labrador Iron Ore Royalty Corporation ("LIORC" or the "Corporation") present the Annual Report for the year ended December 31, 2025.
88 Years in Labrador West
Labrador Iron Ore Royalty Corporation has been involved in Labrador West for 88 years. Under a Statutory Agreement with Newfoundland made in 1938, a predecessor company, Labrador Mining and Exploration Limited (“LM&E”), was granted extensive exploration and mining rights in Labrador West. LM&E found the iron ore bodies that now constitute the mine operated by Iron Ore Company of Canada. LM&E received grants of leases and licences under the Statutory Agreement. It also received a grant of surface rights to establish the town site that became Labrador City. LM&E sublets the leases to IOC and IOC, with major steel companies as original shareholders, built the infrastructure, mine, railway and port. Under the sublease, LIORC receives a 7% gross overriding royalty on iron ore products produced, sold and shipped by IOC.
Financial Performance
In 2025, LIORC’s revenue for the year ended December 31, 2025 was $166.5 million, which was a 20% decrease over 2024, as royalty revenue was lower due to a decrease in sales volume at IOC and lower iron ore prices and pellet premiums Net income per share for 2025 was $1.57 per share, which was a 42% decrease over 2024, due to the lower royalty revenue and a 74% decrease in equity earnings in IOC ($15.9 million in 2025 compared to $60.6 million 2024). The decrease in earnings at IOC was due to a decrease in operating margins as IOC’s fixed cost base was unable to adjust to lower realized prices and sales volumes. LIORC’s cash flow from operations per share for 2025 was $1.52 per share, which was 52% lower than in 2024, mainly due to lower royalty revenues and IOC’s decision to not pay a dividend in 2025 due to the decrease in earnings at IOC. In 2024, IOC paid dividends to its shareholders totalling US$400 million. In 2025, IOC had a year-end net working capital balance of US$245.4 million, compared to US$172.8 million in 2024.
Iron ore prices weakened in 2025 as global steel demand contracted and seaborne iron ore supply remained robust. According to the World Steel Association, in 2025 global production of crude steel was down 2.0% from 2024. Steel production in China, which accounts for 53% of global production, was down 4.2%, as China’s issues with its property sector persisted. Steel production in the rest of the world was up 0.6%. On the iron ore supply side, according to Rio Tinto, total seaborne iron ore shipments rose approximately 2% year over year, driven by the non-major producers, whose shipments rose approximately 10%, while supply from the major producers (Rio Tinto, BHP, Vale and Fortesque) was flat in 2025 compared to 2024. With respect to the supply of pellets, Vale ended the year 6.9 million tonnes below its 2024 total, predominantly as a result of its decision to idle its Sao Luis plant in July. Conversely, Samarco and LKAB both increased output month-over-month, ending the year with a combined 7.7 million tonnes above their 2024 totals.
IOC sells concentrate for sale (“CFS”) based on the the Platts index for 65% Fe, CFR China (the “65% Fe index”). All references to tonnes and per tonne prices in this report refer to wet metric tonnes, other than references to Platts quoted pricing, which refer to dry metric tonnes. Historically, IOC’s wet ore contains approximately 3% less ore per equivalent volume than dry ore. In 2025, the average price for
the 65% Fe index was US$115 per tonne, a decrease of 7% year over year. In addition to the reduction in iron ore prices, pellet premiums were lower as steel producers, faced with continuing low profit margins, substituted high quality pellets with cheaper, lower quality iron feed. The monthly Atlantic Blast Furnace 65% Fe pellet premium index as quoted by Platts (the “pellet premium”) averaged US$30 per tonne in 2025, a decrease of 24% from 2024.
Rio Tinto disclosed that IOC achieved an average realised price for pellets, FOB Sept-Îles of approximately US$126 per tonne, a decrease of 13% year over year. Based on sales as reported for the LIORC Royalty, the overall average price realized by IOC for CFS and pellets, FOB Sept-Îles was approximately US$109 per tonne in 2025, a decrease of 13% year over year. The decrease in the average realized price FOB Sept-Îles in 2025 was a result of lower CFS and pellet prices.
Iron Ore Company of Canada Operations
Operations
Total concentrate production in 2025 was 16.9 million tonnes, 2% lower than in 2024. While total mine material moved increased modestly compared to 2024, concentrate production continued to be negatively impacted by several operational challenges related to pit health and mine equipment reliability. The stripping ratio (total waste: total ore) in 2025 was 1.13, compared to 1.00 in 2024. IOC made progress in the first three quarters of 2025 in improving pit health, with total mine material moved increasing 19% over the same period in 2024, driven by higher truck payloads and increased contractor material movement. However, in the fourth quarter of 2025, total mine material moved decreased by 34%, as performance was negatively impacted by reduced haul truck availability due to multiple truck chassis failures and subsequent inspection and repair work. In the fourth quarter, concentrate production was 3.8 million tonnes, 22% lower than in the fourth quarter of 2024, primarily due to constrained ore availability and lower ore feed to the concentrator.
The IOC saleable production (CFS plus pellets) of 15.9 million tonnes in 2025 was 1% lower than 2024 and was 4% lower than the low end of the range of Rio Tinto’s original annual guidance of 16.5 to 19.4 million tonnes, due to the decrease in concentrate production referred to above. Saleable production in the fourth quarter of 3.7 million tonnes was 14% lower than the fourth quarter of 2024, as production was constrained by ore shortages and failures caused by asset reliability issues. In 2025, CFS production of 6.6 million tonnes was 3% lower than 2024, and pellet production in 2025 of 9.4 million tonnes was consistent with the level recorded in 2024.
Third party iron ore haulage by the Québec North Shore and Labrador Railway Company, Inc. (“QNS&L”) of 21.9 million tonnes in 2025 was 13% higher than in 2024, despite a train derailment that temporarily stopped haulage during the last 3 days of December. The increase in haulage was driven by continued operational improvements to meet increasing third-party demand.
Sales as Reported for the LIORC Royalty
Total iron ore sales tonnage by IOC (CFS plus pellets) of 15.7 million tonnes in 2025 was 7% lower than the total sales tonnage in 2024, as a result of lower saleable production in 2025 and an increase in sales in 2024 from IOC drawing down inventory at Labrador City.
Capital Expenditures
Capital expenditures for IOC were US$303 million in 2025, or 19% lower than in 2024. Capital expenditures in 2025 were 11% lower than the US$342 million that IOC had originally forecasted, mainly
due to project timing, including planned track and culvert replacements and the deferment of locomotive purchases.
Outlook
Rio Tinto’s 2026 guidance for IOC’s saleable production tonnage is 15.0 million to 18.0 million tonnes. This compares to 15.9 million tonnes of saleable production in 2025. It is expected that IOC will continue to focus on maximizing pellet production in 2026.
The capital expenditures for 2026 at IOC are forecasted by IOC to be approximately US$290 million. The 2026 forecast includes approximately US$210 of sustaining capital projects, US$53 million of growth and development projects and US$27 million of deferred stripping. Significant sustaining capital expenditure projects includes the QNS&L track and culvert replacement programs. Significant development capital expenditure projects include the purchase of diesel production drills, and the replacement of the dumper cages at Sept-Îles, which is expected to occur in the second quarter of 2026.
Rio Tinto, as operator, recognizes that IOC is currently facing significant challenges related to pit health and asset reliability. In 2025, Rio Tinto announced a series of changes aimed at strengthening operational performance across its global portfolio. Within iron ore, Rio Tinto simplified its product group structure by integrating IOC with its Western Australian Iron Ore operations and the Simandou project in Guinea. Previously, IOC operated as part of Rio Tinto’s minerals division and was managed separately from the company’s other iron ore assets. Under the new structure, IOC’s senior leadership has greater access to Rio Tinto’s iron ore safety best practices, technical expertise, operational experience, and advanced technologies from across the broader portfolio.
Significant changes have also been made to IOC’s senior operating team. There has been a meaningful change in senior operational roles filled by experienced Rio Tinto leaders with Western Australian iron ore backgrounds, strengthening operational capability and alignment with Rio Tinto’s iron ore standards. The IOC senior leadership team recognizes that multi-year improvements are required before achieving nameplate capacity of approximately 23 million tonnes becomes a realistic objective. As a result, Rio Tinto has identified a more reasonable mid-term production capacity target of approximately 20 million tonnes, reflecting the time and investment needed to sustainably improve performance.
The outlook for iron ore pricing, while uncertain, continues to demonstrate notable resilience. While ongoing economic challenges in China continue to weigh on steel demand, the World Steel Association is forecasting a modest 1.3% rebound in global steel demand for 2026, driven by growth from India and other emerging economies. On the supply side, the steep fourth-quartile cost curve provides structural price support, and while the ramp-up of Simandou is expected to place near-term pressure on prices, depletion at several existing operations over the medium term is anticipated to more than offset this incremental supply.
Thus far in 2026 (January and February), the average price of the 65% Fe index has been approximately US$119 per tonne, compared to an annual average of US$115 per tonne in 2025. Pellet demand has also remained challenging, as steel producer margins continue to be compressed. In the first two months of 2026, the average pellet premium has been approximately US$24 per tonne, compared to an annual average of US$30 per tonne in 2025 and US$40 per tonne in 2024.
I would like to take this opportunity to thank our Shareholders for their interest and support and my fellow Directors for their guidance.
Respectfully submitted on behalf of the Directors of the Corporation,
John F. Tuer President and Chief Executive Officer March 11, 2026
Corporate Structure
LIORC is a Canadian corporation formed to give effect to the conversion of the Labrador Iron Ore Royalty Income Fund (the “Fund”) into a corporation under a plan of arrangement completed on July 1, 2010. LIORC is also the successor by amalgamation of a predecessor of LIORC with Labrador Mining Company Limited, formerly a wholly-owned subsidiary of the Fund, that occurred pursuant to the plan of arrangement.
LIORC, directly and through its wholly-owned subsidiary Hollinger-Hanna, holds a 15.10% equity interest in IOC and receives a 7% gross overriding royalty on all iron ore products produced, sold and shipped by IOC and a 10 cent per tonne commission on all iron ore products produced and sold by IOC. Generally, LIORC pays cash dividends from the free cash flow generated from IOC to the maximum extent possible, subject to the maintenance of appropriate levels of working capital. Quarterly dividends are payable to all shareholders of record on the last business day of each calendar quarter and are paid on or after the 26th day of the following month.
Seven Directors are responsible for the governance of the Corporation and also serve as directors of Hollinger-Hanna. The Directors, in addition to managing the affairs of the Corporation and Hollinger- Hanna, oversee the Corporation’s interests in IOC. The Audit and Governance and Human Resources Committees are composed of four independent Directors.
Taxation
The Corporation is a taxable corporation. Dividend income received from IOC and Hollinger-Hanna is received tax free while royalty income is subject to income tax and Newfoundland and Labrador royalty tax. Expenses of the Corporation include administrative expenses. Hollinger-Hanna is a taxable corporation.
Income Taxes
Dividends to a shareholder that are paid within a particular year are to be included in the calculation of the shareholder’s taxable income for that year. All dividends paid in 2025 were “eligible dividends” under the Income Tax Act.
Review of Operations
Iron Ore Company of Canada
The income of the Corporation is entirely dependent on IOC as the only assets of the Corporation and its subsidiary are related to IOC and its operations. IOC is one of Canada’s largest iron ore producers, operating a mine, concentrator and pellet plant at Labrador City, Newfoundland and Labrador, and is among the top five producers of seaborne iron ore pellets in the world. It has been producing and processing iron ore concentrate and pellets since 1954. IOC is strategically situated to serve markets throughout the world from its year-round port facilities at Sept-Îles, Québec.
As at December 31, 2025 the IOC estimated Proven and Probable Reserves, using the London Stock Exchange resource and reserve standards, totalled 923 million tonnes which, at the planned processing rates, is equivalent to approximately 19 years production. In addition, IOC has an estimated Measured and Indicated Resources of 829 million tonnes and a further 662 million tonnes of Inferred Resources. It currently has the nominal capacity to extract around 55 million tonnes of crude ore annually. The crude ore is processed into iron ore concentrate and then either sold or converted into different qualities of iron ore pellets to meet its customers’ needs. The iron ore concentrate and pellets are transported to IOC’s port facilities at Sept-Îles, Québec via its wholly-owned QNS&L, a 418 kilometer rail line which links the mine and the port. From there, the products are shipped to markets throughout North America, Europe, the Middle East and the Asia-Pacific region.
IOC’s 2025 sales tonnages totaled 15.7 million tonnes, comprised of 9.5 million tonnes of iron ore pellets and 6.2 million tonnes of CFS. Saleable production in 2025 was 9.4 million tonnes of pellets and 6.5 million tonnes of CFS. IOC generated ore sales revenues (excluding third party ore sales) of $2,357 million in 2024 (2024 - $2,751 million).
Selected IOC Financial Information
2025 2024 2023 2022 2021 ($ in millions)
Operating Revenues(1) 2,672 3,061 3,122 3,426 4,147 Cash Flow from Operating
| Activities | 483 | 808 | 788 | 1,021 | 1,955 |
| Net Income | 112 409 568 1,028 | 1,551 | |||
| Capital Expenditures(2) | 303 | 376 | 366 | 460 | 498 |
(1)
Ore sales revenue is presented on a net basis (net of related freight costs) to align with IFRS financial statements presentation.
(2)
Reported in USD on an incurred basis.
IOC Royalty
The Corporation holds certain leases and licenses covering approximately 18,200 hectares of land near Labrador City. IOC has subleased certain portions of these lands from which it currently mines iron ore. In return, IOC pays the Corporation a 7% gross overriding royalty on all sales of iron ore products produced from these lands. A 20% tax on the royalty is payable to the Government of Newfoundland and Labrador. The average royalty net of the 20% tax had been $178.1 million for the years 2020 to 2024 and in 2025 the net royalty was $131.5 million (2024 - $164.7 million).
Because the royalty is “off-the-top”, it is not dependent on the profitability of IOC. However, it is affected by changes in sales volumes, iron ore prices and, because iron ore prices are denominated in US dollars, the United States - Canadian dollar exchange rate.
IOC Equity
In addition to the royalty interest, the Corporation directly and through its wholly owned subsidiary, Hollinger-Hanna, owns a 15.10% equity interest in IOC. The other shareholders of IOC are Rio Tinto Limited with 58.72% and Mitsubishi Corporation with 26.18%.
IOC Commissions
Hollinger-Hanna has the right to receive a payment of 10 cents per tonne on the products produced and sold by IOC. Pursuant to an agreement, IOC is obligated to make the payment to Hollinger-Hanna so long
as Hollinger-Hanna is in existence and solvent. In 2025, Hollinger-Hanna received a total of $1.5 million in commissions from IOC (2024 - $1.7 million).
Quarterly Dividends
Dividends of $1.55 per share were declared in 2025 (2024 - dividends of $3.00 per share). These dividends were allocated as follows:
Total
| Period | Record | Payment | Dividend | Dividend | ||
|---|---|---|---|---|---|---|
| Ended | Date | Date | per Share | ($ millions) | ||
| Mar. 31, 2025 | Mar. 31, 2025 Apr. 30, 2025 | $0.50 | $32.0 | |||
| Jun. 30, 2025 | Jun. 30, 2025 | Jul. 30, 2025 | 0.30 | 19.2 | ||
| Sep. 30, 2025 | Sep. 29, 2025 | Oct. 29, 2025 | 0.40 | 25.6 | ||
| Dec. 31, 2025 | Dec. 31, 2025 | Jan. 28, 2026 | 0.35 | 22.4 |
Dividend to Shareholders - 2025 $1.55 $99.2
| Mar. 31, 2024 | Mar. 28, 2024 Apr. 26, 2024 | $0.45 | $28.8 | |
| Jun. 30, 2024 | Jun. 28, 2024 | Jul. 26, 2024 | 1.10 | 70.4 |
| Sep. 30, 2024 | Sep. 27, 2024 | Oct. 28, 2024 | 0.70 | 44.8 |
| Dec. 31, 2024 | Dec. 31, 2024 | Jan. 29, 2025 | 0.75 | 48.0 |
Dividend to Shareholders - 2024 $3.00 $192.0
The quarterly dividends are payable to all shareholders of record on the last business day of each calendar quarter and are paid on or after the 26th day of the following month.
Management’s Discussion and Analysis
The following is a discussion of the consolidated financial condition and results of operations of the Corporation for the years ended December 31, 2025 and 2024. This discussion should be read in conjunction with the consolidated financial statements of the Corporation and notes thereto for the years ended December 31, 2025 and 2024 which are prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and all amounts are shown in Canadian dollars unless otherwise indicated.
Overview of the Business
The Corporation is a Canadian corporation resulting from the conversion of the Fund into a corporation under a plan of arrangement completed on July 1, 2010. LIORC is also the successor by amalgamation of a predecessor of LIORC with Labrador Mining Company Limited, formerly a wholly-owned subsidiary of the Fund, that occurred pursuant to the plan of arrangement.
The Corporation is economically dependent on the operations of IOC. IOC’s earnings and cash flows are affected by the volume and mix of iron ore products produced and sold, costs of production and the prices received. Iron ore demand and prices fluctuate and are affected by numerous factors which include demand for steel and steel products, the relative exchange rate of the US dollar, global and regional demand and production, political and economic conditions and production costs in major producing areas.
Financial Highlights
Financial and Operating Highlights
Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 ($ in millions except per share information)
| Revenue | 39.5 | 56.9 | 166.5 | 209.0 |
| Equity earnings from IOC | 1.7 | (1.9) | 15.9 | 60.6 |
| Net income | 22.3 | 31.9 | 100.6 | 175.0 |
| Net income per share | $ 0.35 | $ 0.51 | $ 1.57 | $ 2.73 |
| Dividend from IOC | - | 21.8 | - | 83.6 |
| Cash flow from operations | 22.0 | 46.8 | 97.1 | 201.9 |
| Cash flow from operations per share(1) | $ 0.34 | $ 0.73 | $ 1.52 | $ 3.15 |
| Adjusted cash flow(1) | 21.7 | 53.1 | 91.5 | 199.0 |
| Adjusted cash flow per share(1) | $ 0.34 | $ 0.83 | $ 1.43 | $ 3.11 |
| Dividends declared per share | $ 0.35 | $ 0.75 | $ 1.55 | $ 3.00 |
(1) This is a non-IFRS financial measure and does not have a standard meaning under IFRS.
Please refer to Standardized Cash Flow and Adjusted Cash Flow section in the MD&A.
The lower revenue achieved in 2025 as compared to 2024 was mainly due to a decrease in sales volume at IOC and lower iron ore prices and pellet premiums The IOC saleable production in 2025 was 2% lower than 2024 due to several operational challenges related to pit health and mine equipment reliability that constrained ore availability and reduced ore feed to the concentrator. Total sales tonnage (pellets and CFS) at IOC was 7% lower in 2025 than 2024, predominantly as a result of lower saleable production and timing differences resulting from transportation and shipping schedules. Iron ore prices were lower as global demand for steel decreased and total seaborne iron ore shipments increased. Pellet premiums were lower as low profit margins caused steel producers to favour cheaper, low quality iron ore over high quality iron ore products.
Net income per share for 2025 was 42% lower than 2024, as equity earnings in IOC were 74% lower than in 2024 due to lower profitability at IOC. Cash flow from operations for 2025 was 52% lower than in 2024, mainly due to lower royalty revenues and IOC’s decision not to pay a dividend in 2025 due to the decrease in earnings at IOC.
Fourth quarter 2025 sales tonnage (pellets and CFS) was lower year-over-year by 9% due to lower saleable production resulting in lower inventory availability. Royalty revenue was $39.1 million for the quarter as compared to $56.1 million for the same period in 2024. Fourth quarter 2025 cash flow from operations was $22.0 million or $0.34 per share compared to fourth quarter 2024 cash flow from operations of $46.8 million or $0.73 per share. LIORC received no IOC dividend in the fourth quarter of 2025 (2024 - $21.7 million or $0.34 per share). Equity earnings from IOC amounted to $1.7 million or $0.03 per share in the fourth quarter of 2025 compared to equity losses of $1.9 million or $0.03 per share for the same period in 2024.
Operating Highlights
Three Months Ended Year Ended December 31, December 31,
IOC Operations 2025 2024 2025 2024
(in millions of tonnes)
Sales(1)
| Pellets | 2.65 | 2.31 | 9.46 | 9.32 |
| Concentrate for sale ("CFS")(2) | 1.24 | 1.94 | 6.23 | 7.55 |
| Total(3) | 3.89 | 4.25 | 15.69 | 16.86 |
Production
Concentrate produced 3.81 4.87 16.94 17.32
Saleable production
| Pellets | 2.39 | 2.50 | 9.35 | 9.34 |
| CFS | 1.34 | 1.81 | 6.55 | 6.75 |
| Total(3) | 3.72 | 4.31 | 15.91 | 16.09 |
Average index prices per tonne (US$)
| 65% Fe index(4) | $ 119 | $ 118 | $ 115 | $ 123 |
| 62% Fe index(5) | $ 106 | $ 103 | $ 102 | $ 109 |
| Pellet premium(6) | $ 24 | $ 38 | $ 30 | $ 40 |
(1) For calculating the royalty to LIORC.
(2) Excludes third party ore sales.
(3) Totals may not add up due to rounding.
(4) The Platts index for 65% Fe, CFR China.
(5) The Platts index for 62% Fe, CFR China.
(6) The Platts Atlantic Blast Furnace 65% Fe pellet premium index.
IOC’s total concentrate production in 2025 of 16.9 million tonnes was 2% lower than 2024. While total mine material moved increased modestly compared to 2024, concentrate production continued to be negatively impacted by several operational challenges related to pit health and mine equipment reliability. The stripping ratio (total waste: total ore) in 2025 was 1.13, compared to 1.00 in 2024. In the fourth quarter of 2025, concentrate production was 26% lower compared to the fourth quarter of 2024 as total mine material moved decreased by 34% due to reduced haul truck availability caused by multiple truck chassis failures and subsequent inspection and repair work, that resulted in constrained ore availability and lower ore feed to the concentrator. IOC’s total saleable production of 15.9 million tonnes in 2025 was 1% lower than 2024, due to the issues affecting concentrate production referred to above. In 2025, CFS production of 6.6 million tonnes was 3% lower than 2024, mainly due to lower concentrate production and a higher percentage of concentrate being diverted to make pellets. Pellet production in 2025 of 9.4 million tonnes was consistent with the 2024 production.
IOC sells CFS based on the 65% Fe index. In 2025, the average price for the 65% Fe index was US$115 per tonne, a decrease of 7% year over year, as global demand for steel decreased and total seaborne iron ore shipments increased. In addition to the reduction in iron ore prices, pellet premiums dropped as steel producers, faced with lower profit margins, continued to substitute high quality pellets with cheaper, lower quality iron feed. The monthly pellet premium averaged US$30 per tonne in 2025, a decrease of 24% from 2024. Based on sales as reported for the LIORC Royalty, the overall average price realized by IOC for CFS and pellets, FOB Sept-Îles was approximately US$109 per tonne in 2025, a decrease of 13% year over year. The decrease in the average realized price FOB Sept-Îles in 2025 was a result of lower CFS and pellet prices.
Capital expenditures for IOC were US$303 million in 2025, or 19% lower than in 2024. Capital expenditures in 2025 were 11% lower than the US$342 million that IOC had originally forecasted, mainly due to project timing, including planned track and culvert replacements and the deferment of locomotive purchases.
Liquidity and Capital Resources
The Corporation had $14.6 million (2024 - $42.3 million) in cash as at December 31, 2025 with total current assets of $57.7 million (2024 - $95.1 million). The Corporation had working capital of $26.4 million (2024 - $34.1 million). The Corporation’s operating cash flow was $97.1 million (2024 - $201.9 million) and dividends paid during the year were $124.8 million, resulting in cash balances decreasing by $27.7 million during 2025.
Cash balances consist of deposits in Canadian dollars and US dollars with a Canadian chartered bank. Accounts receivable primarily consist of royalty payments from IOC. Royalty payments are received in U.S. dollars and converted to Canadian dollars on receipt, usually 25 days after the quarter end. The Corporation does not normally attempt to hedge this short-term foreign currency exposure.
Operating cash flow of the Corporation is sourced entirely from IOC through the Corporation’s 7% royalty, 10 cents commission per tonne and dividends from its 15.10% equity interest in IOC. The Corporation normally pays cash dividends from the free cash flow generated from IOC to the maximum extent possible, subject to the maintenance of appropriate levels of working capital.
The Corporation has a $30 million revolving credit facility with a term ending September 18, 2027 with provision for annual one-year extensions. No amount is currently drawn under this facility (2024 - nil) leaving $30 million available to provide for any capital required by IOC or requirements of the Corporation.
Contractual Obligations and Commitments
The following table summarizes our contractual obligations and commitments as at December 31, 2025:
Less than Total 12 months
(in millions)
Accounts payable and accrued liabilities $
Related Party Transactions
Related party transactions consist of transactions with key management personnel. The Corporation considers members of its Board and senior officers to be key management personnel.
Transactions with key management personnel are disclosed in note 14 to the Financial Statements. In connection with related party transactions, no significant changes occurred in the year ended December 31, 2025.
Critical Accounting Policies and Estimates
Critical accounting policies and estimates are disclosed in Note 3 of the financial statements.
Selected Consolidated Financial Information
The following table sets out financial data from a Shareholder’s perspective for the three years ended December 31, 2025, 2024 and 2023.
Years Ended December 31
Description 2025 2024 2023
($ in millions except per share information)
| Revenue | 166.5 | 209.0 | 201.3 |
| Net Income | 100.6 | 175.0 | 186.3 |
| Net Income per Share | $1.57 | $2.73 | $2.91 |
| Cash Flow from Operations | 97.1 | 201.9(1) | 152.5(2) |
| Cash Flow from Operations per Share | $1.52 | $3.15(1) | $2.38(2) |
| Total Assets | 809.4 | 836.1 | 837.0 |
| Dividends Declared per Share | $1.55 | $3.00 | $2.55 |
| Number of Common Shares outstanding | 64.0 | 64.0 | 64.0 |
(1) Includes IOC dividends totaling $83.6 million or $1.31 per Share.
(2) Includes IOC dividends totaling $50.4 million or $0.79 per Share.
The following table sets out quarterly revenue, net income, cash flow and dividend data for 2025 and 2024. Due to seasonal weather patterns the first and fourth quarters generally have lower production and sales. Royalty revenues and equity earnings in IOC track iron ore spot prices, which can be very volatile. Dividends, included in cash flow, are declared and paid by IOC irregularly according to the availability of cash.
Net Cash Flow Cash Flow Adjusted Dividends Net Income from from Cash Declared Reven Income per Operations Operations Flow per per Share ue Share per Share Share(1)
($ in millions except per share information)
2025
| First Quarter | 36.2 | 21.4 | $0.33 | 24.7 | $0.39 | $0.31 | $0.50 |
| Second Quarter | 46.8 | 26.5 | $0.42 | 17.7 | $0.28 | $0.40 | $0.30 |
| Third Quarter | 44.0 | 30.4 | $0.47 | 32.7 | $0.51 | $0.38 | $0.40 |
| Fourth Quarter | 39.5 | 22.3 | $0.35 | 22.0 | $0.34 | $0.34 | $0.35 |
2024
| First Quarter | 56.7 | 59.3 | $0.93 | 30.0 | $0.47 | $0.49 | $0.45 |
| Second Quarter | 53.1 | 50.2 | $0.78 | 82.1(2) | $1.28(2) | $1.11(2) | $1.10 |
| Third Quarter | 42.3 | 33.6 | $0.53 | 43.0(3) | $0.67(3) | $0.68(3) | $0.70 |
| Fourth Quarter | 56.9 | 31.9 | $0.50 | 46.8(4) | $0.73(4) | $0.83(4) | $0.75 |
(1) “Adjusted cash flow” (see below).
(2) Includes $41.5 million IOC dividend.
(3) Includes $20.3 million IOC dividend.
(4) Includes $21.8 million IOC dividend.
Standardized Cash Flow and Adjusted Cash Flow
For the Corporation, standardized cash flow is the same as cash flow from operating activities as recorded in the Corporation’s cash flow statements as the Corporation does not incur capital expenditures or have any restrictions on dividends. Standardized cash flow per share was $1.52 for 2025 (2024 - $3.15).
The Corporation also reports “Adjusted cash flow” which is defined as cash flow from operating activities after adjustments for changes in amounts receivable, accounts payable and income