TORONTO, Aug. 5, 2021 /CNW/ - Labrador Iron Ore Royalty
Corporation ("LIORC") (TSX: LIF) announced today its operation and
cash flow results for the quarter ended June
30, 2021.
Financial Performance
In the second quarter of 2021, LIORC's financial results
benefited from higher iron ore prices and pellet premiums,
partially offset by lower volumes of concentrate for sale ("CFS")
sales. Royalty revenue for the second quarter of 2021 amounted to
$78.8 million compared to
$46.2 million for the second quarter
of 2020. Equity earnings from Iron Ore Company of Canada ("IOC") were $66.2 million in the second quarter of 2021
compared to $28.7 million in the
second quarter of 2020. Net income per share for the second quarter
of 2021 was $1.72 per share, which
was a 126% increase over the same period in 2020. The adjusted cash
flow per share for the second quarter of 2021 was $1.85 per share, which was 363% higher than in
the same period in 2020, as a result of higher royalty revenues and
the decision by IOC to pay a dividend. In the second quarter of
2021, LIORC received a dividend in the amount of $74.4 million from IOC.
In the second quarter of 2021, iron ore prices reached record
levels as global steel production increased and seaborne iron ore
supply growth was limited. According to the World Steel
Association, global crude steel production in the first half of
2021 increased 14% over the first half of 2020. Strong increases in
crude steel production were seen in China, which accounts for over 70% of all
seaborne iron ore demand, as well as all other regions and major
steel producing countries, as these nations continued to recover
from the global downturn in 2020. While, in aggregate, the
supply of seaborne iron ore from the major producers was generally
in line with the prior annual production guidance, it wasn't enough
to lessen the tight supply dynamics in the market.
IOC sells CFS based on the Platts index for 65% Fe, CFR China
("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 the second quarter of 2021, the
65% Fe index averaged US$233 per
tonne, a 115% increase over the average of US$108 per tonne in the second quarter of 2020,
and a 22% increase over the average of US$191 in the first quarter of 2021. The monthly
Atlantic Blast Furnace 65% Fe pellet premium index as quoted by
Platts (the "pellet premium") averaged US$65 per tonne in the second quarter of 2021, up
substantially from an average of US$30 in the same quarter of 2020, which had been
negatively impacted by a reduction in demand from European steel
producers due to COVID-19.
Rio Tinto has disclosed that the average realised price achieved
for IOC pellets, FOB Sept-Îles, in the second quarter of 2021 was
US$247 per tonne, compared to
US$118 per tonne in the same quarter
of 2020. 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 C$275
per tonne in the second quarter of 2021, compared to approximately
C$143 per tonne in the second quarter
of 2020 and C$226 per tonne in the
first quarter of 2021.
Iron Ore Company of Canada Operations
Operations
IOC continues to take measures in order to protect IOC's people
and to prevent COVID-19 outbreaks within IOC's operations which
could affect IOC's capacity to operate. As a result, IOC has been
able to continue to safely operate throughout 2021. The IOC
saleable production (CFS plus pellets) of 4.6 million tonnes in the
second quarter of 2021 was 2% lower than the same period in 2020,
due to labour and equipment availability which reduced the feed
rate from the mine. The IOC saleable production in the second
quarter of 2021 was 16% higher than the first quarter of 2021,
predominantly due to the impacts of weather, loading unit
availability on mine feed and reduced concentrator mill
availability in the first quarter.
In the second quarter of 2021, CFS production of 2.0 million
tonnes was 24% lower than the same quarter last year due to an
increased focus on the production of pellets since the end of 2020,
resulting in a corresponding reduction in CFS. CFS production
in the second quarter of 2021 was 32% higher than the first quarter
of 2021, due to lower concentrate production in the first
quarter. Pellet production in the second quarter of 2021 of
2.7 million tonnes was 26% higher than the corresponding
quarter in 2020 due to the increased focus on the production of
pellets, and 6% higher than the first quarter of 2021, as issues
related to regrinding reliability and lack of feed from the
concentrator were greater in the first quarter.
Sales as Reported for the LIORC Royalty
Total iron ore sales tonnage by IOC (CFS plus pellets) of 4.1
million tonnes in the second quarter of 2021 was 11% lower than the
total sales tonnage for the same period in 2020 and consistent with
the first quarter of 2021. Sales tonnage in the second quarter of
2021 was negatively impacted by the lack of availability of
reclaimers during the quarter, as reclaimer #1 was unavailable for
part of April due to unplanned maintenance and reclaimer #2 was the
subject of a fire in late March and is not expected to be
operational until mid-December. Sales tonnage in the first quarter
of 2021 was negatively impacted by lower product availability.
Pellet sales tonnage in the second quarter of 2021 was consistent
with the same quarter last year and 8% lower than the first quarter
of 2021. CFS sales tonnage was 23% lower than the same
quarter last year and 9% higher than the first quarter of 2021.
Outlook
Rio Tinto's 2021 guidance for IOC's saleable production (CFS
plus pellets) remains at 17.9 million to 20.4 million tonnes. This
compares to 17.7 million tonnes of saleable production in 2020 and
8.6 million tonnes in the first half of 2021. The force
majeure declared in April following the fire at the port facility
in Sept-Îles has been lifted. Reclaimer #2 is scheduled to return
to operation in mid-December with mobile tele-stackers being used
in the interim to mitigate future impacts. As a result, the
sales tonnage shortfalls experienced in the second quarter of 2021
are expected to be made up over the remainder of the year.
IOC is in an excellent financial position. In the first
half of 2021, IOC generated net after tax cash from operating
activities of US$659 million, had
capital expenditures of US$123
million, and paid shareholder dividends of US$500 million. As at June 30, 2021, IOC had no debt, total current
assets of US$831 million, and total
current liabilities of US$493
million
The price outlook for seaborne iron ore remains robust.
Despite China's recently stated aims to curb steel production, iron
ore prices have remained firm. Since the end of the second quarter
(July 1, 2021 to July 26, 2021), the average price of the 65% Fe
index has been US$248 per tonne, or
7% higher than the average of the 65% Fe index for the second
quarter of 2021. As well, the outlook for pellet premiums remains
positive, as the rest of the world continues to recover from the
2020 economic downturn. The pellet premium for July was
US$78 per tonne compared to the
average of US$65 per tonne in the
second quarter of 2021.
The current record pricing environment continues to generate
strong cash flows for LIORC. However, it is unlikely that these
iron ore prices will persist in the long run. That said, LIORC is
well positioned to profit throughout the pricing cycle given its
unique assets. LIORC's equity interest in IOC generates
substantial dividends, particularly during strong iron ore pricing
environments. Whereas LIORC's royalty provides more consistency and
downside protection as it has historically produced cash flow under
all iron ore pricing environments.
LIORC has no debt and at June 30,
2021 had positive net working capital (current assets less
current liabilities) of $28.7
million. After the end of the second quarter LIORC
paid a dividend on July 26, 2021 of
$1.75 per share or $112.0 million. The net royalty from IOC was
received by LIORC on the same date, maintaining the Corporation's
strong cash balance.
Respectfully submitted on behalf of the Directors of the
Corporation,
John F. Tuer
President and Chief Executive Officer
August 5, 2021
Management's Discussion and Analysis
The following discussion and analysis should be read in
conjunction with the Management's Discussion and Analysis section
of Labrador Iron Ore Royalty Corporation's ("LIORC" or the
"Corporation") 2020 Annual Report, and the financial statements and
notes contained therein and the June 30,
2021 interim condensed consolidated financial
statements.
Overview of the Business
The Corporation's revenues are entirely dependent on the
operations of IOC as its principal assets relate to the operations
of IOC and its principal source of revenue is the 7% royalty it
receives on all sales of iron ore products by IOC. In addition to
the volume of iron ore sold, the Corporation's royalty revenue is
affected by the price of iron ore and the Canadian – U.S. dollar
exchange rate. The first quarter sales of IOC are traditionally
adversely affected by the general winter operating conditions and
are usually 15% – 20% of the annual volume, with the balance spread
fairly evenly throughout the other three quarters. Because of the
size of individual shipments, some quarters may be affected by the
timing of the loading of ships that can be delayed from one quarter
to the next.
Financial Highlights
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
(unaudited)
|
|
($ in
millions except per share information)
|
|
|
|
|
|
|
Revenue
|
79.2
|
46.7
|
|
144.9
|
95.0
|
Equity earnings from
IOC
|
66.2
|
28.7
|
|
123.2
|
53.4
|
Net
income
|
110.2
|
48.9
|
|
196.8
|
95.5
|
Net income per
share
|
$ 1.72
|
$ 0.76
|
|
$ 3.08
|
$ 1.49
|
Dividend(s) from
IOC
|
74.4
|
-
|
|
93.4
|
-
|
Cash flow from
operations
|
115.9
|
37.6
|
|
158.6
|
48.3
|
Cash flow from
operations per share
|
$ 1.81
|
$ 0.58
|
|
$ 2.48
|
$ 0.75
|
Adjusted cash
flow1
|
118.3
|
25.6
|
|
173.7
|
52.5
|
Adjusted cash flow
per share
|
$ 1.85
|
$ 0.40
|
|
$ 2.71
|
$ 0.82
|
Dividends declared
per share
|
$ 1.75
|
$ 0.45
|
|
$ 2.75
|
$ 0.80
|
|
|
|
|
|
|
|
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, net income and equity earnings achieved in
the second quarter of 2021 as compared to 2020 were mainly due
to higher iron ore prices, partly offset by lower sales of CFS. The
second quarter of 2021 sales tonnage (pellets and CFS) were lower
by 11% predominantly due to the lack of availability of reclaimers
during the quarter, which limited the loading rate at the port
facility in Sept-Îles. CFS sales tonnage was 23% lower and
pellet sales tonnage was consistent with the same quarter last
year. CFS sales tonnage was lower mainly due to lower CFS
production as a result of IOC's refocus on pellet production this
year, and despite a 26% increase in pellet production, pellet sales
tonnage was constrained due to the loading restrictions caused by
the lack of reclaimer availability at the port.
However, the lower sales tonnage was more than offset by an
increase in the realized sales price of pellets and CFS, resulting
in royalty income of $78.8 million
for the quarter as compared to $46.2
million for the same period in 2020. Second quarter 2021
cash flow from operations was $115.9
million or $1.81 per share
compared to $37.6 million or
$0.58 per share for the same period
in 2020. LIORC received an IOC dividend in the second quarter of
2021 in the amount of $74.4 million
or $1.16 per share. Equity earnings
from IOC amounted to $66.2 million or
$1.03 per share in the second quarter
of 2021 compared to $28.7 million or
$0.45 per share for the same period
in 2020.
Operating Highlights
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
IOC
Operations
|
2021
|
2020
|
|
2021
|
2020
|
|
(in millions
of tonnes)
|
Sales1
|
|
|
|
|
|
Pellets
|
2.26
|
2.25
|
|
4.70
|
5.27
|
Concentrate for sale
("CFS")2
|
1.83
|
2.36
|
|
3.51
|
4.04
|
Total3
|
4.09
|
4.61
|
|
8.21
|
9.31
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
Concentrate
produced
|
4.79
|
4.84
|
|
9.20
|
9.53
|
|
|
|
|
|
|
Saleable
production
|
|
|
|
|
|
Pellets
|
2.67
|
2.11
|
|
5.18
|
4.90
|
CFS
|
1.97
|
2.59
|
|
3.45
|
4.16
|
Total
|
4.63
|
4.70
|
|
8.63
|
9.06
|
|
|
|
|
|
|
Average index prices
per tonne (US$)
|
|
|
|
|
|
65% Fe
index4
|
$ 233
|
$ 108
|
|
$ 212
|
$ 106
|
62% Fe
index5
|
$ 200
|
$ 93
|
|
$ 184
|
$ 91
|
Pellet
premium6
|
$ 65
|
$ 30
|
|
$ 54
|
$ 30
|
|
|
|
|
|
|
(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 sells CFS based on the 65% Fe index. In the second
quarter of 2021, the 65% Fe index averaged US$233 per tonne, a 115% increase over the
average of US$108 per tonne in the
second quarter of 2020. Iron ore prices increased, as iron ore
supply growth failed to match the record growth in global steel
production as part of the economic recovery from the downturn in
2020. The monthly pellet premium averaged US$65 per tonne in the second quarter of 2021, up
substantially from an average of US$30 in the same quarter of 2020, which had been
negatively impacted by a reduction in demand from European steel
producers due to COVID-19.
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 C$275 per tonne in
the second quarter of 2021, compared to approximately C$143 per tonne in the second quarter of 2020 and
C$226 per tonne in the first quarter
of 2021. The increase in the average realized price FOB Sept-Îles
in 2021 was a result of higher CFS prices and higher pellet
premiums.
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 $1.81 for the quarter (2020 - $0.58).
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. 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 millions).
|
3 Months
Ended
Jun. 30,
2021
|
3 Months
Ended
Jun. 30,
2020
|
6 Months
Ended
Jun. 30,
2021
|
6 Months
Ended
Jun. 30,
2020
|
|
Standardized cash
flow from operating activities
|
$115,866
|
$37,614
|
$158,552
|
$48,267
|
|
|
Changes in amounts
receivable, accounts
payable and income taxes payable
|
2,402
|
(11,975)
|
15,126
|
4,198
|
|
Adjusted cash
flow
|
$118,268
|
$25,639
|
$173,678
|
$52,465
|
|
Adjusted cash flow
per share
|
$1.85
|
$0.40
|
$2.71
|
$0.82
|
|
Liquidity and Capital Resources
The Corporation had $85.4 million
in cash as at June 30, 2021
(December 31, 2020 - $106.1 million) with total current assets of
$168.4 million (December 31, 2020 - $164.4
million). The Corporation had working capital of
$28.7 million as at June 30, 2021 (December
31, 2020 - $31.0 million). The
Corporation's operating cash flow was $115.9
million and the dividend paid during the quarter was
$64 million, resulting in cash
balances increasing by $51.9 million
during the second quarter of 2021. In June the Directors of the
Corporation declared the second quarter dividend of $112 million that was paid on July 26, 2021.
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 normally pays cash
dividends from its net income 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, 2022 with provision for annual
one-year extensions. No amount is currently drawn under this
facility (2020 – nil) leaving $30.0
million available to provide for any capital required by IOC
or requirements of the Corporation.
John F. Tuer
President and Chief Executive Officer
Toronto, Ontario
August 5, 2021
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
indigenous groups, natural disasters, severe weather conditions and
public health crises, changes affecting IOC's customers,
competition from other iron ore producers, estimates of reserves
and resources, government regulation and taxation and
cybersecurity. A discussion of these factors is contained in
LIORC's annual information form dated March
4, 2021 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)
|
2021
|
|
2020
|
|
|
(Unaudited)
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and short-term
investments
|
$
|
85,443
|
|
$
|
106,091
|
|
Amounts
receivable
|
82,963
|
|
58,336
|
Total Current
Assets
|
168,406
|
|
164,427
|
|
|
|
|
|
Non-Current
Assets
|
|
|
|
|
Iron Ore Company of
Canada ("IOC")
|
|
|
|
|
royalty
and commission interests
|
238,454
|
|
241,511
|
|
Investment in
IOC
|
450,750
|
|
417,284
|
Total Non-Current
Assets
|
689,204
|
|
658,795
|
|
|
|
|
|
Total
Assets
|
$
|
857,610
|
|
$
|
823,222
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
$
|
17,119
|
|
$
|
12,533
|
|
Dividend
payable
|
112,000
|
|
115,200
|
|
Taxes
payable
|
10,606
|
|
5,691
|
Total Current
Liabilities
|
139,725
|
|
133,424
|
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
Deferred income
taxes
|
127,550
|
|
123,430
|
Total
Liabilities
|
267,275
|
|
256,854
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Share
capital
|
317,708
|
|
317,708
|
|
Retained
earnings
|
282,811
|
|
262,000
|
|
Accumulated other
comprehensive loss
|
(10,184)
|
|
(13,340)
|
|
|
590,335
|
|
566,368
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
|
857,610
|
|
$
|
823,222
|
Approved by the
Directors,
|
|
|
|
|
|
|
|
John F.
Tuer
|
Patricia M.
Volker
|
Director
|
Director
|
LABRADOR IRON ORE
ROYALTY CORPORATION
|
|
|
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
June
30,
|
(in thousands of
Canadian dollars except for per share information)
|
2021
|
|
2020
|
|
|
|
Revenue
|
|
|
|
|
IOC
royalties
|
$
|
78,793
|
|
$
|
46,213
|
|
IOC
commissions
|
402
|
|
454
|
|
Interest and other
income
|
35
|
|
45
|
|
|
79,230
|
|
46,712
|
Expenses
|
|
|
|
|
Newfoundland royalty
taxes
|
15,758
|
|
9,243
|
|
Amortization of
royalty and commission interests
|
1,591
|
|
1,642
|
|
Administrative
expenses
|
773
|
|
816
|
|
|
18,122
|
|
11,701
|
|
|
|
|
|
Income before
equity earnings and income taxes
|
61,108
|
|
35,011
|
Equity earnings in
IOC
|
66,215
|
|
28,691
|
|
|
|
|
|
Income before
income taxes
|
127,323
|
|
63,702
|
|
|
|
|
|
Provision for
income taxes
|
|
|
|
|
Current
|
18,857
|
|
11,014
|
|
Deferred
|
(1,697)
|
|
3,830
|
|
|
17,160
|
|
14,844
|
|
|
|
|
|
Net income for the
period
|
110,163
|
|
48,858
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
Share of other
comprehensive income (loss) of IOC that will not
be
|
|
|
|
|
reclassified
subsequently to profit or loss (net of income
taxes
|
|
|
|
|
of 2021 - $557; 2020
- $40)
|
3,156
|
|
(226)
|
|
|
|
|
|
Comprehensive
income for the period
|
$
|
113,319
|
|
$
|
48,632
|
|
|
|
|
|
Net income per
share
|
$
|
1.72
|
|
$
|
0.76
|
LABRADOR IRON ORE
ROYALTY CORPORATION
|
|
|
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
June
30,
|
(in thousands of
Canadian dollars except for per share information)
|
2021
|
|
2020
|
|
|
(Unaudited)
|
Revenue
|
|
|
|
|
IOC
royalties
|
$
|
144,041
|
|
$
|
93,828
|
|
IOC
commissions
|
808
|
|
916
|
|
Interest and other
income
|
100
|
|
267
|
|
|
144,949
|
|
95,011
|
Expenses
|
|
|
|
|
Newfoundland royalty
taxes
|
28,808
|
|
18,766
|
|
Amortization of
royalty and commission interests
|
3,057
|
|
3,267
|
|
Administrative
expenses
|
1,544
|
|
1,373
|
|
|
33,409
|
|
23,406
|
|
|
|
|
|
Income before
equity earnings and income taxes
|
111,540
|
|
71,605
|
Equity earnings in
IOC
|
123,192
|
|
53,360
|
|
|
|
|
|
Income before
income taxes
|
234,732
|
|
124,965
|
|
|
|
|
|
Provision for
income taxes
|
|
|
|
|
Current
|
34,358
|
|
22,407
|
|
Deferred
|
3,563
|
|
7,050
|
|
|
37,921
|
|
29,457
|
|
|
|
|
|
Net income for the
period
|
196,811
|
|
95,508
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
Share of other
comprehensive income (loss) of IOC that will not
be
|
|
|
|
|
reclassified
subsequently to profit or loss (net of income taxes
|
|
|
|
|
of 2021 - $557; 2020
- $80)
|
3,156
|
|
(452)
|
|
|
|
|
|
Comprehensive
income for the period
|
$
|
199,967
|
|
$
|
95,056
|
|
|
|
|
|
Net income per
share
|
$
|
3.08
|
|
$
|
1.49
|
LABRADOR IRON ORE
ROYALTY CORPORATION
|
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
June
30,
|
(in thousands of
Canadian dollars)
|
2021
|
|
2020
|
|
(Unaudited)
|
Net inflow
(outflow) of cash related
|
|
|
|
|
to the following
activities
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
Net income for the
year
|
$
|
196,811
|
|
$
|
95,508
|
|
Items not affecting
cash:
|
|
|
|
|
|
Equity earnings in
IOC
|
(123,192)
|
|
(53,360)
|
|
|
Current income
taxes
|
34,358
|
|
22,407
|
|
|
Deferred income
taxes
|
3,563
|
|
7,050
|
|
|
Amortization of
royalty and commission interests
|
3,057
|
|
3,267
|
|
Common share dividend
from IOC
|
93,439
|
|
-
|
|
Change in amounts
receivable
|
(24,627)
|
|
(10,982)
|
|
Change in accounts
payable
|
4,586
|
|
2,093
|
|
Income taxes
paid
|
(29,443)
|
|
(17,716)
|
|
Cash flow from
operating activities
|
158,552
|
|
48,267
|
|
|
|
|
Financing
|
|
|
|
|
Dividend paid to
shareholders
|
(179,200)
|
|
(89,600)
|
|
Cash flow used in
financing activities
|
(179,200)
|
|
(89,600)
|
|
|
|
|
Decrease in cash,
during the period
|
(20,648)
|
|
(41,333)
|
|
|
|
|
Cash, beginning of
period
|
106,091
|
|
77,859
|
|
|
|
|
Cash, end of
period
|
$
|
85,443
|
|
$
|
36,526
|
LABRADOR IRON ORE
ROYALTY CORPORATION
|
|
|
|
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
other
|
|
|
Share
|
Retained
|
comprehensive
|
|
(in thousands of
Canadian dollars)
|
capital
|
earnings
|
loss
|
Total
|
|
(Unaudited)
|
|
|
|
|
|
Balance as at
December 31, 2019
|
$
|
317,708
|
$
|
230,005
|
$
|
(10,376)
|
$
|
537,337
|
Net income for the
period
|
-
|
95,508
|
-
|
95,508
|
Dividends declared to
shareholders
|
-
|
(51,200)
|
-
|
(51,200)
|
Share of other
comprehensive loss from investment in IOC (net of taxes)
|
-
|
-
|
(452)
|
(452)
|
Balance as at June
30, 2020
|
$
|
317,708
|
$
|
274,313
|
$
|
(10,828)
|
$
|
581,193
|
|
|
|
|
|
Balance as at
December 31, 2020
|
$
|
317,708
|
$
|
262,000
|
$
|
(13,340)
|
$
|
566,368
|
Net income for the
period
|
-
|
196,811
|
-
|
196,811
|
Dividends declared to
shareholders
|
-
|
(176,000)
|
-
|
(176,000)
|
Share of other
comprehensive income from investment in IOC (net of
taxes)
|
-
|
-
|
3,156
|
3,156
|
Balance as at June
30, 2021
|
$
|
317,708
|
$
|
282,811
|
$
|
(10,184)
|
$
|
590,335
|
The complete consolidated financial statements for the second
quarter ended June 30, 2021,
including the notes thereto, are posted on sedar.com and
labradorironore.com.
SOURCE Labrador Iron Ore Royalty Corporation