Labrador Iron Ore Royalty Corporation · TSX:LIF
Labrador Iron Ore Royalty — Investor Presentation (January 2024)
9 slides from Labrador Iron Ore Royalty's investor presentation, Jan 25, 2024
Slide 1: Labrador Iron Ore Royalty Corporation Investor Presentation
The image part with relationship ID rId3 was not found in the file. LABRADOR IRON ORE ROYALTY CORPORATION INVESTOR PRESENTATION January 25, 2024
Slide 2: Notice to Reader
All dollar figures are stated in Canadian (“CDN”) dollars unless noted otherwise. This presentation 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 r
Slide 3: LIF Overview
LIF OVERVIEW • LIF has a unique ownership interest in Iron Ore Company of Canada (IOC) • 15.1% equity in IOC • 7% top line royalty in IOC • 10¢ per tonne commission on all IOC sales • IOC is a leading producer of premium iron ore pellets and high-grade concentrate • Large, high-quality resource with
Slide 4: IOC Production and Sales Tonnages
IOC PRODUCTION AND SALES TONNAGES • Total IOC saleable production for * 2023 was 16.5M tonnes, down * * * * * from 17.6M tonnes a year ago * * * * * • IOC operations were disrupted by the forest fires in Northern Quebec in the second quarter and unforeseen operational issues, including with its conv
Slide 5: Global Steel Markets
GLOBAL STEEL MARKETS • Over the last 10 years, global steel production has grown at a rate of 1.2% per year • China steel production, which has grown at a rate of 2.3% per year, accounts for all of this growth. China now represents 55% of global steel production (up from 50% 10 years ago) and over 7
Slide 6: Iron Ore Prices
IRON ORE PRICES • In 2023, iron ore prices declined by 5%. The Platts 65% Index averaged US$132 per tonne, as compared to US$139 per tonne in 2022 • Relevantly, pellet premiums dropped as steel producers, faced with tightening profit margins, substituted high quality pellets with cheaper, lower qual
Slide 7: LIF Dividends and Cash Flow
LIF DIVIDENDS AND CASH FLOW • LIF has traditionally paid out all the free cash flow it generates to its shareholders in the form of quarterly dividends * • Average of $2.68/share per year over the last 10 years • The royalty has historically * provided stable after-tax cash flow per share throughout
Slide 8: LIF Shareholder Returns
LIF SHAREHOLDER RETURNS • Dividend yield mitigates share price volatility, which has produced strong total returns for shareholders over time • In 2023, LIF declared $2.55 per share of dividends - $3.10 per share in 2022 • LIF has outperformed both the S&P/TSX Global Mining Index and the S&P/TSX Com
Slide 9: LIF Investment Rationale
LIF INVESTMENT RATIONALE • High quality asset that supports attractive dividend yield • Royalty structure limits operational and capex risk, while benefiting from any production growth • Upside potential from increased production • Supported by significant capital expenditures over the last 3 years
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