2024 Results of Operations
2024 RESULTS OF OPERATIONS
TORONTO
,
March 11, 2025
/CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF) announced
the results of its operations for the year ended
December 31, 2024
.
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, 2024
.
87 Years in Labrador West
Labrador Iron Ore Royalty Corporation has been involved in Labrador West for 87 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 and sold by IOC.
Financial Performance
In 2024, LIORC's revenue for the year ended
December 31, 2024
was
$209.0 million
, which was a
4% increase over 2023, as an increase in sales volume and a more advantageous product mix
(higher volumes of pellet sales and lower volumes of concentrate for sale ("CFS") sales) were offset
by lower iron ore prices and lower pellet premiums. Net income per share for 2024 was
$2.73
per
share, which was a 6% decrease over 2023, as equity earnings in IOC of
$60.6 million
were 28%
lower than in 2023, partially as a result of a non-cash write down of prior capital expenditures
associated with the replacement of the dumper car facility that did not proceed. However, LIORC's
cash flow from operations per share for 2024 was
$3.15
per share, which was 32% higher than in
2023, mainly due to IOC's decision to reduce its cash balance and increase the amount of dividends
paid to its shareholders. In 2024, IOC paid dividends to its shareholders totalling
US$400 million
and
had a year-end net working capital balance of
US$172.8 million
, compared to dividends of
US$250
million
and a year-end net working capital balance of
US$364.9
million in 2023.
Iron ore prices weakened in 2024 as global steel demand contracted and seaborne iron ore supply
remained robust. According to the World Steel Association, in 2024 global production of crude steel
was down 1% from 2023. Steel production in
China
, which accounts for 53% of global production,
was down 2%, as
China's
issues with its property sector persisted. Steel production in the rest of
the world was flat. On the iron ore supply side, three producers, Rio Tinto, BHP and Vale, account
for over half the world's volume of seaborne iron ore. The combined production of iron ore in
calendar 2024 by these producers was 933 million tonnes, an increase of 1% over calendar 2023.
IOC sells 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 2024, the average price
for the 65% Fe index was
US$123
per tonne, a decrease of 6% 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$40
per tonne in 2024, a decrease of 10% from 2023.
Rio Tinto disclosed that IOC achieved an average realised price for pellets, FOB Sept-Îles of
approximately
US$144
per tonne, a decrease of 7% 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$125
per tonne in 2024, a decrease of 4% year over year. The decrease in
the average realized price FOB Sept-Îles in 2024 was a result of lower CFS and pellet prices.
Iron Ore Company of Canada Operations
Operations
Total concentrate production in 2024 was 17.3 million tonnes. This was 2% lower than 2023.
Concentrate production was negatively impacted by a number of operational challenges throughout
the year, including maintenance over-runs, and lower feed from the mine (as a result of lower haul
truck availability and ore delivery system reliability issues), as well as an 11-day site-wide shutdown
caused by area forest fires in mid-July. In addition, IOC experienced lower weight yields in 2024, as
a result of changes to the mine sequencing and lower quality iron ore being fed into the concentrator
as a result of challenges with ore availability at the mine.
The IOC saleable production (CFS plus pellets) of 16.1 million tonnes in 2024 was 2% lower than
2023 and was 4% lower than the low end of the range of Rio Tinto's original annual guidance of 16.7
to 19.6 million tonnes, due to extended plant downtime as a result of the operational issues and the
11-day site-wide shutdown referred to above. Saleable production in the fourth quarter of 4.3 million
tonnes was 6% lower than the fourth quarter of 2023, as a result of lower weight yields referred to
above. In 2024, CFS production of 6.8 million tonnes was 17% lower than 2023, mainly due to lower
concentrate production and higher amounts of concentrate being diverted to make pellets. Pellet
production in 2024 of 9.3 million tonnes was 12% higher than 2023, as a result of a deferral of the
induration machine 2 rebuild to 2025 and various operational issues that lowered pellet production in
2023.
Third party iron ore haulage by the Québec North Shore and Labrador Railway Company, Inc.
("QNS&L") of 19.4 million tonnes in 2024 was 9% higher than in 2023, 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 16.9 million tonnes in 2024 was 3% higher
than the total sales tonnage in 2023, as a result of timing differences and IOC drawing down
inventory at
Labrador City
.
Capital Expenditures
Capital expenditures for IOC were
US$376 million
in 2024, or 4% higher than in 2023. Capital
expenditures in 2024 were 13% lower than the
US$431 million
that IOC had originally forecasted,
mainly due to the decision by IOC to defer certain capital projects, including the rebuild of induration
machine #2 and the explosives plant upgrade.
Outlook
Rio Tinto's 2025 guidance for IOC's saleable production tonnage is 16.5 million to 19.4 million
tonnes. This compares to 16.1 million tonnes of saleable production in 2024. Despite ongoing lower
pellet premiums, it is expected that IOC will continue to focus on maximizing pellet production in
2025.
The capital expenditures for 2025 at IOC are forecasted by IOC to be approximately
US$342
million
. The 2025 forecast includes approximately
US$51 million
of growth and development
projects. Significant development capital expenditure projects include the replacement of the
dumper cages at Sept-Îles and the installation of a pilot plant to evaluate the replacement of spirals
with reflux classifiers on Mills 12-14 as a result of the successful weight yield improvement from the
installation of reflux classifiers on Mill 11. Significant sustaining capital expenditure projects include
the QNS&L track and culvert replacement programs and the purchase of 7 new locomotives for
increased third party and IOC capacity on the QNS&L, as well as the deferred rebuild of induration
machine #2 and the explosives plant upgrade referred to above.
IOC's operator, Rio Tinto, remains committed to reaching net zero emissions by 2050 and is
targeting a 15% reduction in Scope 1 & 2 emissions by 2025 and a 50% reduction by 2030
(1)
(from
a 2018 equity baseline). Approximately 70% of IOC's current total greenhouse gas ("GHG")
emissions come from pelletizing. IOC is taking a number of initiatives to decarbonise its pellet
production, including installing a 40MW electric boiler to displace emissions from the use of heavy
fuel oil boilers, conducting hydro-powered plasma burner trials, and conducting research and
development trials to reduce the use of coking coal, including through the use of biocarbon.
Rio Tinto is targeting a 50% reduction in Scope 3 emissions from IOC by 2035 relative to 2022.
Steel production currently accounts for approximately 9% of global GHG emissions. IOC is seeking
to reduce steel production GHG emissions by optimizing the use of IOC's higher-grade iron ore in
traditional blast furnaces, and more importantly increasing the use of its high-grade direct reduction
iron ore ("DRI") pellets to make low carbon DRI and hot briquetted iron ("HBI") for use as direct feed
in electric arc furnaces. In
June 2024
, the government of
Canada
formally recognized the
importance of high-grade low impurity iron ore, such as that produced by IOC, for the green steel
transition by including it in its list of critical minerals. In
November 2024
, IOC agreed to supply high-
grade DRI pellets to GravitHy, an early-stage industrial company, which is proposing to build a
hydrogen-based HBI plant that has the potential to reduce ironmaking-related CO
2
emissions by
more than 90%.
The outlook for iron ore pricing remains uncertain. Ongoing economic issues in
China
continue to
negatively affect the demand for steel. In addition, threats of broad tariffs by the US and
corresponding retaliatory tariffs by affected countries may cause a further decrease in economic
investment and a further decrease in the global demand for steel. The negative impact on IOC may
be partially mitigated to the extent that such actions cause a devaluation of the Canadian dollar,
relative to the US dollar, which would effectively lower IOC's costs in US dollar terms. Thus far in
2025 (January and February), the average price of the 65% Fe index has been
US$118
per tonne,
down from an average of
US$123
per tonne in 2024. The demand for pellets has also remained
challenging as steel producer profit margins remain low and thus far in 2025 (January and February)
the average pellet premium has averaged
US$36
per tonne compared to an annual average of
US$40
per tonne in 2024 and an annual average of
US$45
per tonne in 2023.
I would like to take this opportunity to thank our Shareholders for their interest and support and my
fellow Directors for their guidance.
(1) Source: Rio Tinto Climate Action Plan 2025.
Respectfully submitted on behalf of the Directors of the Corporation,
John F. Tuer
President and Chief Executive Officer
March 11, 2025
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 2024 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.
IOC has Proven and Probable Reserves of 966 million tonnes which, at the planned processing
rates, is equivalent to approximately 20 years production. In addition, IOC has Measured and
Indicated Resources of 820 million tonnes and a further 665 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 many
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 2024 sales tonnages totaled 16.9 million tonnes, comprised of 9.3 million tonnes of iron ore
pellets and 7.6 million tonnes of iron ore concentrate. Saleable production in 2024 was 9.3 million
tonnes of pellets and 6.8 million tonnes of CFS. IOC generated ore sales revenues (excluding third
party ore sales) of
$2,751 million
in 2024 (2023 -
$2,830 million
).
Selected IOC Financial Information
2024
2023
2022
2021
2020
($ in millions)
Operating Revenues
(1)
3,061
3,122
3,426
4,147
3,099
Cash Flow from Operating
Activities
808
788
1,021
1,955
837
Net Income
409
568
1,028
1,551
842
Capital Expenditures
(2)
376
494
460
498
288
(1)
2024, 2023, 2022 and 2021 Ore sales revenue is presented on a net basis (net of related freight costs) to align with IFRS financial statements presentation.
(2)
Reported 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
$173.2 million
for the
years 2019 to 2023 and in 2024 the net royalty was
$164.7 million
(2023 -
$158.8 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 2024, Hollinger-Hanna received a
total of
$1.7 million
in commissions from IOC (2023 -
$1.6 million
).
Quarterly Dividends
Dividends of
$3.00
per share were declared in 2024 (2023 – dividends of
$2.55
per share). These
dividends were allocated as follows:
Period
Record
Payment
Dividend
Income
Total
Dividend
Ended
Date
Date
per Share
($ million)
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
Mar. 31, 2023
Mar. 31, 2023
Apr. 26, 2023
$0.50
$32.0
Jun. 30, 2023
Jun. 30, 2023
Jul. 26, 2023
0.65
41.6
Sep. 30, 2023
Sep. 29, 2023
Oct. 26, 2023
0.95
60.8
Dec. 31, 2023
Dec. 29, 2023
Jan. 26, 2024
0.45
28.8
Dividend to Shareholders – 2023
$2.55
$163.2
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, 2024
and 2023. This discussion should be read in
conjunction with the consolidated financial statements of the Corporation and notes thereto for the
years ended
December 31, 2024
and 2023 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
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
(in millions except per share information)
Revenue
$ 56.9
$ 54.9
$ 209.0
$ 201.3
Equity earnings from IOC
$ (1.93)
$ 26.2
$ 60.6
$ 84.7
Net income
$ 31.9
$ 51.4
$ 175.0
$ 186.3
Net income per share
$ 0.51
$ 0.80
$ 2.73
$ 2.91
Dividend from IOC
$ 21.8
-
$ 83.6
$ 50.4
Cash flow from operations
$ 46.8
$ 26.4
$ 201.9
$ 152.5
Cash flow from operations per share
(1)
$ 0.73
$ 0.41
$ 3.15
$ 2.38
Adjusted cash flow
(1)
$ 53.1
$ 30.2
$ 199.0
$ 161.5
Adjusted cash flow per share
(1)
$ 0.83
$ 0.47
$ 3.11
$ 2.52
Dividends declared per share
$ 0.75
$ 0.45
$ 3.00
$ 2.55
(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 higher revenue achieved in 2024 as compared to 2023 was mainly due to an increase in sales
and a more advantageous product mix (higher volumes of pellet sales and lower volumes of CFS
sales), partially offset by lower iron ore prices and lower pellet premiums. The IOC saleable
production in 2024 was 2% lower than 2023 due to a number of operational issues and an 11-day
site-wide shutdown caused by area forest fires. However, total sales tonnage (pellets and CFS) at
IOC was 3% higher in 2024 than 2023, predominantly as a result of timing differences and IOC
drawing down inventory at Labrador City. Iron ore prices and pellet premiums were lower as a result
of lower demand for steel and low margins causing steel producers to favour cheaper, low quality
iron ore over high quality iron ore products.
Net income per share for 2024 was 6% lower than 2023, as equity earnings in IOC of were 28%
lower than in 2023 due to lower profitability at IOC. Cash flow from operations for 2024 was 32%
higher than in 2023, mainly due to IOC's decision to reduce its cash balance and increase the
amount of dividends paid to its shareholders.
Fourth quarter 2024 sales tonnage (pellets and CFS) was lower year-over-year by 2% due to lower
saleable production resulting in lower inventory availability. Royalty revenue was
$56.1 million
for the
quarter as compared to
$54.1 million
for the same period in 2023. Fourth quarter 2024 cash flow
from operations was
$46.8 million
or
$0.73
per share compared to fourth quarter 2023 cash flow
from operations of
$26.4 million
or
$0.41
per share. LIORC received an IOC dividend of
$21.7
million
or
$0.34
per share in the fourth quarter of 2024 (2023 - nil). Equity losses from IOC
amounted to
$1.9 million
or
$0.03
per share in the fourth quarter of 2024 compared to equity
earnings of
$26.2 million
or
$0.41
per share for the same period in 2023.
Operating Highlights
Three Months Ended
Year Ended
December 31,
December 31,
IOC Operations
2024
2023
2024
2023
(in millions of tonnes)
Sales
(1)
Pellets
2.31
2.29
9.32
8.37
Concentrate for sale ("CFS")
(2)
1.94
2.04
7.55
7.92
Total
(3)
4.25
4.33
16.86
16.29
Production
Concentrate produced
4.87
5.01
17.32
17.73
Saleable production
Pellets
2.50
2.39
9.34
8.31
CFS
1.81
2.21
6.75
8.17
Total
(3)
4.31
4.60
16.09
16.48
Average index prices per tonne
(US$)
65% Fe index
(4)
$ 118
$ 139
$ 123
$ 132
62% Fe index
(5)
$ 103
$ 128
$ 109
$ 120
Pellet premium
(6)
$ 38
$ 37
$ 40
$ 45
(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 2024 of 17.3 million tonnes was 2% lower than 2023. In the
fourth quarter of 2024, concentrate production was 3% lower compared to the fourth quarter of
2023. Concentrate production was negatively impacted by a number of operational challenges
throughout the year, including maintenance over-runs, and lower feed from the mine (as a result of
lower haul truck availability and ore delivery system reliability issues), as well as an 11-day site-wide
shutdown caused by area forest fires in mid-July. In addition, IOC experienced lower weight yields in
2024, as a result of changes to the mine sequencing and lower quality iron ore being fed into the
concentrator as a result of challenges with ore availability at the mine. IOC's total saleable
production of 16.1 million tonnes in 2024 was 2% lower than 2023, due to the issues affecting
concentration production referred to above. In 2024, CFS production of 6.8 million tonnes was 17%
lower than 2023, mainly due to lower concentrate production and higher amounts of concentrate
being diverted to make pellets. Pellet production in 2024 of 9.3 million tonnes was 12% higher than
2023, as a result of a deferral of the induration machine 2 rebuild to 2025 and various operational
issues that lowered pellet production in 2023.
IOC sells CFS based on the 65% Fe index. In 2024, the average price for the 65% Fe index was
US$123
per tonne, a decrease of 6% year over year, as global steel demand contracted and
seaborne iron ore supply remained robust. 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$40
per tonne in 2024, a decrease of 10% from 2023. 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$125
per tonne in 2024, a decrease of 4% year over year. The decrease in the
average realized price FOB Sept-Îles in 2024 was a result of lower CFS and pellet prices.
Capital expenditures for IOC were
US$376 million
in 2024, or 4% higher than in 2023. Capital
expenditures in 2024 were 13% lower than the
US$431 million
that IOC had originally forecasted,
mainly due to the decision by IOC to defer certain capital projects, including the rebuild of induration
machine #2 and the explosives plant upgrade.
Liquidity and Capital Resources
The Corporation had
$42.3 million
(2023 -
$13.2 million
) in cash as at
December 31, 2024
with total
current assets of
$95.1 million
(2023 -
$67.5 million
). The Corporation had working capital of
$34.1
million
(2023 -
$27.2 million
). The Corporation's operating cash flow was
$201.9 million
(2023 -
$152.5 million
) and dividends paid during the year were
$172.8 million
, resulting in cash balances
increasing by
$29.1 million
during 2024.
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, 2026
with provision for annual one-year extensions. No amount is currently drawn under this facility (2023
—nil) leaving
$30 million
available to provide for any capital required by IOC or requirements of the
Corporation.
Selected Consolidated Financial I
nformation
The following table sets out financial data from a Shareholder's perspective for the three years
ended
December 31, 2024
, 2023 and 2022.
Years Ended December 31
Description
2024
2023
2022
(in millions except per share information)
Revenue
$209.0
$201.3
$232.9
Net Income
$175.0
$186.3
$265.4
Net Income per Share
$2.73
$2.91
$4.15
Cash Flow from Operations
$201.9
(1)
$152.5
(2)
$184.2
(3)
Cash Flow from Operations per Share
$3.15
(1)
$2.38
(2)
$2.88
(3)
Total Assets
$836.1
$837.0
$825.8
Dividends Declared per Share
$3.00
$2.55
$3.10
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.
(3) Includes IOC dividends totaling $69.1 million or $1.08 per Share.
The following table sets out quarterly revenue, net income, cash flow and dividend data for 2024 and
2023. Due to seasonal weather patterns the first and fourth quarters generally have lower