Labrador Iron Ore Royalty Corporation (TSX:LIF)Financial
Labrador Iron Ore Royalty Corporation (LIORC), a publicly listed investment company, focuses on iron ore production through its interests in other companies.
It holds a 15.10 per cent equity stake in the Iron Ore Company of Canada (ICO).
The corporation receives 10 cents per ton commission and 7 per cent gross overriding royalty on all iron products manufactured, sold and delivered by IOC.
The company claims to have significant expertise in the iron ore market and provides potential exposure to its investors in the Canadian market.
The present company, earlier an income fund, was converted to a corporation according to a plan of arrangement in July 2010.
IOC is a leading producer of high-grade iron ore concentrates and seaborne iron ore pellets.
LIORC claimed to have paid 99 per cent of standardized cash flow since its establishment. The investment company earns entire income from its interest in IOC and its operations.
Iron Ore Company of Canada operates a mining facility near Labrador city, consisting of mining licenses and leases covered in approximately 18,200 hectares of land.
IOC pays 7 per cent gross overriding royalty on all iron products manufactured and sold to LIORC. In addition, it reportedly pays 20 per cent tax on royalty to the Government of Labrador and Newfoundland.
Iron Ore Company of Canada has been processing and producing the base metal from its facilities in Labrador and Newfoundland since 1962, reportedly.
Rio Tinto Plc, a global leader in iron ore mining, is the majority stakeholder in IOC with 58.7 per cent interest.
The company supplies finished products via rail line to a port facility in Quebec, from where it is further shipped to world markets.
The iron deposits in the province consist of magnetite and hematite iron oxide in a 65:35 ratio.
The company says its mining operations include hauling waste rock and ore, blasting and drilling, open-pit techniques, etc. The ore is then loaded by electric shovels to be transported to concentrators.
LIORC claims to generate revenue through various investment attributes such as:
• Integrated operations: IOC wholly owns the mining facility and develops pellets and high-grade concentrate for various smelters across the globe.
• High-quality resource: IOC has significant mineral reserves and a mine life of approximately 24 years.
Labrador Iron Ore Royalty Corporation says stable jurisdiction, expansion programs and competitive cost contributes to the overall growth strategy.
PO Box 957 Toronto, Ontario, Canada, M5C 2K3