Announces Results for the Second Quarter
Labrador Iron Ore Royalty Corporation
Announces Results for the Second Quarter
Ended June 30, 2018
TORONTO
,
Aug. 7, 2018
/CNW/ - Labrador Iron Ore Royalty Corporation ("LIORC", TSX: LIF)
announced today its operation and cash flow results for the second quarter ended
June 30, 2018
.
Royalty revenue for the second quarter of 2018 amounted to
$5.1 million
as compared to
$33.8
million
for the second quarter of 2017. Equity (losses) earnings from the Iron Ore Company of
Canada
("IOC") amounted to
($6.1) million
or
($0.09)
per share as compared to
$14.3 million
or
$0.22
per share in 2017. Net (loss) income was
($3.3) million
or
($0.05)
per share compared to
$32.3 million
or
$0.50
per share for the same period in 2017. The shareholders' cash flow from
operations for the second quarter was
$15.5 million
or
$0.24
per share as compared to
$45.6 million
or
$0.71
per share for the same period in 2017.
The cash flow from operations, equity earnings and net income for the second quarter of 2018 were
lower than the second quarter of 2017, due to the work stoppage at IOC during which operations
were suspended until a new labour agreement was reached. The strike closed down the IOC
production facilities on
March 27, 2018
. The workforce returned to work on
May 28
, 2018. A new
five-year collective agreement is now in place and the ramp up to normal production rates was
achieved by the end of June. IOC is making every effort to maximize production for the remainder of
the year. Sales for the second quarter of 2018 were restricted by the availability of product as port
inventories had to be rebuilt.
The average index price for 62% fines increased 3% to
US$65
per tonne CFR China in the second
quarter of 2018 compared to the average price in the second quarter of 2017 of
US$63
per tonne.
Total IOC sales for calculating the royalty to LIORC – pellets plus concentrate for sale ("CFS") – of
0.53 million tonnes was 87% lower in the second quarter of 2018 compared to the same period in
2017. In the second quarter of 2018 concentrate production continued to be preferentially directed
to the pellet plant due to the strong pellet demand and premiums. LIORC received an IOC dividend
in the second quarter of 2017 in the amount of
$15.3 million
or
$0.24
per share, whereas LIORC
received no dividend in the second quarter of 2018.
LIORC's results for the three months and six months ended
June 30
are summarized below:
(in millions except per share information)
3 Months
Ended
June 30,
2018
3 Months
Ended
June 30,
2017
6 Months
Ended
June 30,
2018
6 Months
Ended
June 30,
2017
(Unaudited)
Revenue
$5.2
$34.2
$39.5
$77.6
Cash flow from operations
$15.5
$45.6
$35.8
$73.8
Operating cash flow per share
$0.24
$0.71
$0.56
$1.15
Net (loss) income
($3.2)
$32.3
$27.1
$75.2
Net (loss) income per share
($0.05)
$0.50
$0.42
$1.17
Iron Ore Company of Canada Operations
Production
Total concentrate production in the second quarter of 2018 of 1.5 million tonnes was 69% lower than
the second quarter of 2017 and was 64% lower than the first quarter of 2018. Similarly, pellet
production in the second quarter of 2018 was 78% lower than the second quarter of 2017 and 81%
lower than the first quarter of 2017. As noted above, IOC production was negatively affected by the
labour strike.
Sales as Reported for the LIORC Royalty
Second quarter 2018 total iron ore tonnage sold by IOC (pellets plus CFS) of 0.53 million tonnes
was 87% below the total sales tonnage in the second quarter 2017. Again, sales of CFS and pellets
were negatively impacted by the labour strike.
Largely as a result of the strike, the royalty revenue for LIORC in the second quarter of 2018 was
85% lower than the revenue in last year's second quarter.
A summary of IOC sales for calculating the royalty to LIORC in millions of tonnes is as follows:
3 Months
Ended
June 30,
2018
3 Months
Ended
June 30,
2017
6 Months
Ended
June 30,
2018
6 Months
Ended
June 30,
2017
Year
Ended
Dec. 31,
2017
Pellets
0.48
2.44
3.02
4.92
10.48
Concentrates
(1)
0.05
1.60
1.40
3.79
8.67
Total
(2)
0.53
4.04
4.43
8.71
19.15
(1)
Excludes third party ore sales
(2)
Totals may not add up due to rounding
Outlook
IOC is expecting good production and sales tonnages in the third and fourth quarters of 2018. Rio
Tinto has reduced the IOC production guidance for 2018 to 9.0 to 10.0 million tonnes of iron ore
pellets and concentrates for its 58.72% interest in IOC, which is total saleable production of 15.3 to
17.0 million tonnes on a 100% basis. Achieving the low end of the guidance would result in
approximately 2% less total saleable tonnes produced in the second half of 2018 over the saleable
production of 10.06 million tonnes in the second half of 2017. Achieving the high end of the guidance
would result in approximately 15% more total saleable tonnes produced in the second half of 2018
over the saleable production in the second half of 2017.
In the second quarter of 2018 the Platts 62% Fe CFR China benchmark iron ore price averaged
US$65
per tonne, but was largely range bound with a high price of
US$68
per tonne, and a low of
US$63
per tonne. IOC sells its CFS product based on the 65% Fe index, and the Platts index price
for 65% Fe concentrate averaged
US$86
per tonne in the second quarter of 2018, 13% higher than
the price in the second quarter of 2017, but 5% lower than the average price in the first quarter of
2018. Atlantic Basin blast furnace pellet premiums, as reported by Platts, improved by 29% from
US$45
per tonne in the second quarter of 2017 to
US$58
per tonne against the comparable 2018
quarter.
In the second quarter of 2018, prices for iron ore products with higher value-in-use characteristics
have remained firm, supported by the environmental policies of the Chinese governments, and by
China's
strong steel demand and margins. The differential between the Platts indexes for 65% Fe
CFS and 62% Fe CFS has widened to
US$27
per tonne at the time of writing, the highest spread in
recent years. In the second quarter of 2018 the Canadian dollar weakened, reflecting concerns
regarding international trade. Benchmark iron ore prices have also been somewhat negatively
impacted by trade concerns but have been more resilient than other base metals, notably copper
and zinc.
The IOC employees and management continue their efforts to increase production and reduce unit
operating costs. Based on LIORC management's July site visit, they are optimistic regarding the
production and unit costs in the third and fourth quarter of 2018. Consistent ore production from the
Wabush
3 pit is expected in September. The No. 4 pellet line is scheduled to be refurbished over
approximately nine weeks, starting in late September. The usual maintenance of the rail and port
facilities is scheduled for the summer. Third-party rail haulage volumes are considerably improved
over 2017. Capital expenditures are still forecast at
C$220 million
for 2018.
The LIORC cash balance at
June 30, 2018
stood at
$18.7 million
with LIORC dividends payable on
July 25, 2018
of
$16.0 million
. As at
June 30, 2018
the current assets exceeded the current liabilities
by
$15.7 million
. With our expectation of strong production, sales and premiums for the high value-in-
use iron ore products from IOC over the balance of 2018, LIORC is in a good position to maintain
the regular dividend. In order to maintain the dividend policy of a regular dividend of
$0.25
per share
per quarter, LIORC will plan to rebuild the cash balance back to approximately
$30 million
, the pre-
strike level, as sales and prices permit.
Our shareholders will be aware from its
June 18, 2018
press release that the LIORC Directors
approved a special meeting of shareholders to seek approval of changes to the Articles. LIORC is
working on the details for the special meeting, including the preparation of the management
information circular and negotiating debt financing options. The Directors will determine the date of
the special meeting, likely to be in the fall of 2018. The LIORC Directors are aware of an investment
opportunity that they believe should result in the Corporation being stronger by adding a third
revenue stream to the royalty and equity investment in IOC. Shareholders are advised that the board
will only proceed with the proposed acquisition if it is accretive to shareholder value and is consistent
with our existing distribution and balance sheet objectives. Changes to the Articles are required to
make the proposed investment. Upon the amendment of the Articles, shareholders will enjoy the
rights and protections afforded to shareholders of a TSX-listed Canada Business Corporation Act
(CBCA) corporation (including with respect to corporate law duties on directors and officers and the
requirement to obtain shareholder approval of fundamental changes and certain dilutive share
issuances), ensuring that their interests continue to be adequately protected. The Board of Directors
believes these measures, which are consistent with those enjoyed by shareholders of other TSX-
listed CBCA corporations, are appropriate to protect the interests of LIORC's shareholders. We
understand shareholder concerns regarding dilution and maintaining its on-going dividends, and we
plan to manage both in a manner consistent with the past. Some shareholders have expressed
concern regarding the lack of diversification and growth. The Directors believe the most prudent plan
forward is to balance all these objectives in a very conservative manner by periodically pursuing
acquisitions only in circumstances where the acquisition will increase shareholder value and will be
consistent with our existing distribution and balance sheet objectives. We do not expect such
opportunities to present themselves often, but when they do – such as the one before us now – the
Directors need the authority to fully consider it on the merits. It is not our intention to use the
proposed amendments to materially change LIORC, as the Board expects to exercise its discretion
in the same conservative manner as it has managed the Corporation since its inception.
Respectfully submitted on behalf of the Directors of Labrador Iron Ore Royalty Corporation,
William H. McNeil
President and Chief Executive Officer
August 7, 2018
Management's Discussion and Analysis
The following discussion and analysis should be read in conjunction with the Management's
Discussion and Analysis section of the Corporation's 2017 Annual Report, the financial statements
and notes contained therein and the
June 30, 2018
interim condensed consolidated financial
statements. The Corporation's revenues are entirely dependent on the operations of IOC as its
principal assets relate to the operations of IOC and its principal source of revenue is the 7% royalty
it receives on all sales of iron ore products by IOC. In addition to the volume of iron ore sold, the
Corporation's royalty revenue is affected by the price of iron ore and the Canadian – U.S. dollar
exchange rate.
The strike closed down the IOC production facilities on
March 27, 2018
. The workforce returned to
work on
May 28, 2018
. A new five-year collective agreement is now in place and the ramp up to
normal production rates was achieved by the end of June. IOC is making every effort to maximize
production for the remainder of the year. Sales for the second quarter of 2018 were restricted by
the availability of product as port inventories had to be rebuilt.
The first quarter sales of IOC are traditionally adversely affected by the general winter operating
conditions and are usually 15% – 20% of the annual volume, with the balance spread fairly evenly
throughout the other three quarters. Because of the size of individual shipments, some quarters may
be affected by the timing of the loading of ships that can be delayed from one quarter to the next.
Royalty revenue for the second quarter of 2018 amounted to
$5.1 million
as compared to
$33.8
million
for the second quarter of 2017. Equity (losses) earnings from IOC amounted to
($6.1) million
or
($0.09)
per share as compared to
$14.3 million
or
$0.22
per share in 2017. Net (loss) income
was (
$3.3 million
or
($0.05)
per share compared to
$32.3 million
or
$0.50
per share for the same
period in 2017. The shareholders' cash flow from operations for the second quarter was
$15.5
million
or
$0.24
per share as compared to
$45.6 million
or
$0.71
per share for the same period in
2017.
The cash flow from operations, equity earnings and net income for the second quarter of 2018 were
lower than the second quarter of 2017, due to the work stoppage at IOC during which operations
were suspended until a new labour agreement was reached.
The average index price for 62% fines increased 3% to
US$65
per tonne CFR China in the second
quarter of 2018 compared to the average price in the second quarter of 2017 of
US$63
per tonne.
Total IOC sales for calculating the royalty to LIORC – pellets plus CFS – of 0.53 million tonnes was
87% lower in the second quarter of 2018 compared to the same period in 2017. In the second
quarter of 2018 concentrate production continued to be preferentially directed to the pellet plant due
to the strong pellet demand and premiums. LIORC received an IOC dividend in the second quarter
of 2017 in the amount of
$15.3 million
or
$0.24
per share, whereas LIORC received no dividend in
the second quarter of 2018.
Total concentrate production in the second quarter of 2018 of 1.5 million tonnes was 69% lower than
the second quarter of 2017 and was 64% lower than the first quarter of 2018. Similarly, pellet
production in the second quarter of 2018 was 78% lower than the second quarter of 2017 and 81%
lower than the first quarter of 2017. As noted above, IOC production was negatively affected by the
labour strike.
Second quarter 2018 total IOC sales for calculating the royalty to LIORC (pellets plus CFS) of 0.53
million tonnes was 87% below the total sales tonnage in the second quarter 2017. Again, sales of
CFS and pellets were negatively impacted by the labour strike.
Largely as a result of the strike, the royalty revenue for LIORC in the second quarter of 2018 was
85% lower than the revenue in last year's second quarter.
Results for the six months were affected by the same factors as affected the three month period.
Royalty and commission interests amortization expense decreased by
$1.2 million
for the six months
due to the decrease in production as a result of the labour strike.
The following table sets out quarterly revenue, net income, cash flow and dividend data for 2018,
2017 and 2016.
Revenue
Net
Income
Net
Income
per Share
Cash Flow
Cash Flow
from
Operations
per Share
Adjusted
Cash Flow
per Share
(1)
Dividends
Declared per
Share
(in millions except per share information)
2018
First Quarter
$34.3
$30.3
$0.47
$20.3
$0.32
$0.29
$0.35
Second Quarter
$5.2
($3.3)
($0.05)
$15.5
$0.24
$0.04
$0.25
2017
First Quarter
$43.4
$42.9
$0.67
$28.2
(2)
$0.44
(2)
$0.53
(2)
$0.50
Second Quarter
$34.2
$32.3
$0.50
$45.6
(3)
$0.71
(3)
$0.53
(3)
$0.60
Third Quarter
$40.4
$43.8
$0.69
$53.6
(4)
$0.84
(4)
$0.85
(4)
$1.00
Fourth Quarter
$40.6
$38.3
$0.60
$39.6
(5)
$0.62
(5)
$0.65
(5)
$0.55
2016
First Quarter
$22.3
$11.0
$0.17
$12.5
$0.19
$0.19
$0.25
Second Quarter
$25.8
$8.3
$0.13
$7.6
$0.12
$0.22
$0.25
Third Quarter
$28.4
$21.2
$0.33
$15.2
$0.24
$0.24
$0.25
Fourth Quarter
$38.6
$37.7
$0.59
$28.3
(6)
$0.44
(6)
$0.57
(6)
$0.25
(1)
"Adjusted cash flow" (see below)
(2)
Includes $10.0 million IOC dividend.
(3)
Includes $15.3 million IOC dividend.
(4)
Includes $32.2 million IOC dividend.
(5)
Includes $19.3 million IOC dividend.
(6)
Includes$15.1million 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
$0.24
for
the quarter (2017 -
$0.71
). Cumulative standardized cash flow from inception of the Corporation is
$25.71
per share and total cash distributions since inception is
$25.19
per share, for a payout ratio
of 98%.
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 taxes
recoverable and payable are excluded. It is not a recognized measure under International Financial
Reporting Standards ('IFRS"). The Directors believe that adjusted cash flow is a useful analytical
measure as it better reflects cash available for dividends to shareholders.
The following reconciles standardized cash flow from operating activities to adjusted cash flow (in
'000's).
3 Months
Ended
June 30, 2018
3 Months
Ended
June 30, 2017
6 Months
Ended
June 30, 2018
6 Months
Ended
June 30, 2017
Standardized cash flow from operating activities
$15,496
$45,576
$35,773
$73,758
Excluding: changes in amounts receivable, accounts payable and income taxes payable
(13,210)
(11,515)
(14,801)
(6,074)
Adjusted cash flow
$2,286
$34,061
$20,972
$67,684
Adjusted cash flow per share
$0.04
$0.53
$0.33
$1.06
Liquidity and Capital Resources
The Corporation had
$18.7 million
in cash as at
June 30, 2018
(
December 31, 2017
-
$40.5 million
)
with total current assets of
$33.0 million
(
December 31, 2017
-
$82.6 million
). The Corporation had
working capital of
$15.7 million
as at
June 30, 2018
(
December 31, 2017
-
$33.1 million
). The
Corporation's operating cash flow for the quarter was
$15.5 million
and the dividend paid during the
quarter was
$22.4 million
, resulting in cash balances decreasing by
$6.9 million
during the second
quarter of 2018.
Cash balances consist of deposits in Canadian dollars with Canadian chartered banks. Amounts
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 intends to pay cash dividends of the net income derived from IOC to the maximum
extent possible, subject to the maintenance of appropriate levels of working capital.
The Corporation has a
$50 million
revolving credit facility with a term ending
September 18, 2020
with provision for annual one-year extensions. No amount is currently drawn under this facility (2017
– nil) leaving
$50.0 million
available to provide for any capital required by IOC or requirements of the
Corporation.
Outlook
IOC is expecting good production and sales tonnages in the third and fourth quarters of 2018. Rio
Tinto has reduced the IOC production guidance for 2018 to 9.0 to 10.0 million tonnes of iron ore
pellets and concentrates for its 58.72% interest in IOC, which is total saleable production of 15.3 to
17.0 million tonnes on a 100% basis. Achieving the low end of the guidance would result in
approximately 2% less total saleable tonnes produced in the second half of 2018 over the saleable
production of 10.06 million tonnes in the second half of 2017. Achieving the high end of the guidance
would result in approximately 15% more total saleable tonnes produced in the second half of 2018
over the saleable production in the second half of 2017.
In the second quarter of 2018 the Platts 62% Fe CFR China benchmark iron ore price averaged
US$65
per tonne, but was largely range bound with a high price of
US$68
per tonne, and a low of
US$63
per tonne. IOC sells its CFS product based on the 65% Fe index, and the Platts index price
for 65% Fe concentrate averaged
US$86
per tonne in the second quarter of 2018, 13% higher than
the price in the second quarter of 2017, but 5% lower than the average price in the first quarter of
2018.
Atlantic Basin blast furnace pellet premiums, as reported by Platts, improved by 29% from
US$45
per tonne in the second quarter of 2017 to
US$58
per tonne against the comparable 2018 quarter.
In the second quarter of 2018, prices for iron ore products with higher value-in-use characteristics
have remained firm, supported by the environmental policies of the Chinese governments, and by
China's
strong steel demand and margins. The differential between the Platts indexes for 65% Fe
CFS and 62% Fe CFS has widened to
US$27
per tonne at the time of writing, the highest spread in
recent years. In the second quarter of 2018 the Canadian dollar weakened, reflecting concerns
regarding international trade. Benchmark iron ore prices have also been somewhat negatively
impacted by trade concerns but have been more resilient than other base metals, notably copper
and zinc.
The IOC employees and management continue their efforts to increase production and reduce unit
operating costs. Based on LIORC management's July site visit, they are optimistic regarding the
production and unit costs in the third and fourth quarter of 2018. Consistent ore production from the
Wabush
3 pit is expected in September. The No. 4 pellet line is scheduled to be refurbished over
approximately nine weeks, starting in late September. The usual maintenance of the rail and port
facilities is scheduled for the summer. Third-party rail haulage volumes are considerably improved
over 2017. Capital expenditures are still forecast at
C$220 million
for 2018.
The LIORC cash balance at
June 30, 2018
stood at
$18.7 million
with LIORC dividends payable on
July 25, 2018
of
$16.0 million
. As at
June 30, 2018
the current assets exceeded the current liabilities
by
$15.7 million
. With our expectation of strong production, sales and premiums for the high value-in-
use iron ore products from IOC over the balance of 2018, LIORC is in a good position to maintain
the regular dividend. In order to maintain the dividend policy of a regular dividend of
$0.25
per share
per quarter, LIORC will plan to rebuild the cash balance back to approximately
$30 million
, the pre-
strike level, as sales and prices permit.
Our shareholders will be aware from its
June 18, 2018
press release that the LIORC Directors
approved a special meeting of shareholders to seek approval of changes to the Articles. LIORC is
working on the details for the special meeting, including the preparation of the management
information circular and negotiating debt financing options. The Directors will determine the date of
the special meeting, likely to be in the fall of 2018. The LIORC Directors are aware of an investment
opportunity that they believe should result in the Corporation being stronger by adding a third
revenue stream to the royalty and equity investment in IOC. Shareholders are advised that the board
will only proceed with the proposed acquisition if it is accretive to shareholder value and is consistent
with our existing distribution and balance sheet objectives. Changes to the Articles are required to
make the proposed investment. Upon the amendment of the Articles, shareholders will enjoy the
rights and protections afforded to shareholders of a TSX-listed CBCA corporation (including with
respect to corporate law duties on directors and officers and the requirement to obtain shareholder
approval of fundamental changes and certain dilutive share issuances), ensuring that their interests
continue to be adequately protected. The Board of Directors believes these measures, which are
consistent with those enjoyed by shareholders of other TSX-listed CBCA corporations, are
appropriate to protect the interests of LIORC's shareholders. We understand shareholder concerns
regarding dilution and maintaining its on-going dividends, and we plan to manage both in a manner
consistent with the past. Some shareholders have expressed concern regarding the lack of
diversification and growth. The Directors believe the most prudent plan forward is to balance all
these objectives in a very conservative manner by periodically pursuing acquisitions only in
circumstances where the acquisition will increase shareholder value and will be consistent with our
existing distribution and balance sheet objectives. We do not expect such opportunities to present
themselves often, but when they do – such as the one before us now – the Directors need the
authority to fully consider it on the merits. It is not our intention to use the proposed amendments to
materially change LIORC, as the Board expects to exercise its discretion in the same conservative
manner as it has managed the Corporation since its inception.
William H. McNeil
President and Chief Executive Officer
Toronto, Ontario
August 7, 2018
Forward-Looking Statements
This report may contain "forward-looking" statements that involve risks, uncertainties and other
factors that may cause the actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking
statements. Words such as "may", "will", "expect", "believe", "plan", "intend", "should", "would",
"anticipate" and other similar terminology are intended to identify forward-looking statements. These
statements reflect current assumptions and expectations regarding future events and operating
performance as of the date of this report. Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results will be achieved. A number of
factors could cause actual results to vary significantly, including iron ore price and volume volatility,
exchange rates, the performance of IOC, market conditions in the steel industry, mining risks and
insurance, relationships with aboriginal groups, changes affecting IOC's customers, competition from
other iron ore producers, estimates of reserves and resources and government regulation and
taxation. A discussion of these factors is contained in LIORC's annual information form dated
March
8, 2018
under the heading, "Risk Factors". Although the forward-looking statements contained in this
report are based upon what management of LIORC believes are reasonable assumptions, LIORC
cannot assure investors that actual results will be consistent with these forward-looking statements.
These forward-looking statements are made as of the date of this report and LIORC assumes no
obligation, except as required by law, to update any forward-looking statements to reflect new
events or circumstances. This report should be viewed in conjunction with LIORC's other publicly
available filings, copies of which can be obtained electronically on SEDAR at
www.sedar.com
.
Notice:
The following unaudited interim condensed consolidated financial statements of the Corporation have
been prepared by and are the responsibility of the Corporation's management. The Corporation's
independent auditor has not reviewed these interim financial statements.
LABRADOR IRON ORE ROYALTY CORPORATION
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at
June 30,
December 31,
(in thousands of Canadian dollars)
2018
2017
(Unaudited)
Assets
Current Assets
Cash
$
18,671
$
40,498
Amounts receivable
5,596
42,092
Income taxes recoverable
8,729
-
Total Current Assets
32,996
82,590
Non-Current Assets
Iron Ore Company of Canada ("IOC")
royalty and commission interests
257,242
259,032
Investment in IOC
417,215
408,691
Total Non-Current Assets
674,457
667,723
Total Assets
$
707,453
$
750,313
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable
$
1,338
$
8,601
Dividend payable
16,000
35,200
Taxes payable
-
5,703
Total Current Liabilities
17,338
49,504
Non-Current Liabilities
Deferred income taxes
127,930
127,220
Total Liabilities
145,268
176,724
Shareholders' Equity
Share capital
317,708
317,708
Retained earnings
252,923
264,272
Accumulated other comprehensive loss
(8,446)
(8,391)
562,185
573,589
Total Liabilities and Shareholders' Equity
$
707,453
$
750,313
LABRADOR IRON ORE ROYALTY CORPORATION
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
AND COMPREHENSIVE INCOME (LOSS)