Labrador Iron Ore Royalty Corporation · TSX:LIF
Labrador Iron Ore Royalty — Shareholder Meeting (May 2020)
8 slides from Labrador Iron Ore Royalty's shareholder meeting presentation, May 14, 2020
Slide 1: Labrador Iron Ore Royalty Corporation Annual General Meeting
LABRADOR IRON ORE ROYALTY CORPORATION ANNUAL GENERAL MEETING MAY 14, 2020
Slide 2: Notice to Reader
NOTICE TO READER All dollar figures are stated in Canadian (“CDN”) dollars unless noted otherwise. The information contained in this presentation is derived from publicly available sources, such as annual and quarterly financial reports and the annual information form filed by Labrador Iron Ore Roya
Slide 3: LIORC Financial Highlights
LIORC FINANCIAL HIGHLIGHTS First Quarter Fiscal Year 2020 2019 2019 2018 ($ in millions except per share information) Revenue 48.3 39.2 178.3 130.9 Net Income 46.7 39.3 205.3 128.5 Adjusted Cash Flow from 26.8 21.5 208.1(2) 155.2(3) Operations(1) Net Income per Share $0.73 $0.61 $3.21 $2.01 Adjusted
Slide 4: IOC Production
IOC PRODUCTION IOC Quarterly Production 6 ▪ IOC produced 17.9 million tonnes of CFS and pellets in 2019 5 ▪ 2020 guidance for saleable production is 17.9 to 20.4 million tonnes 4 ▪ Q1 2020 production was 4.4 Millions of tonnes million tonnes, up 3% from Q1 3 2019 ▪ Given the relatively stronger dema
Slide 5: Iron Ore Prices
IRON ORE PRICES ▪ CFS prices remain strong on Iron Ore Prices Chinese demand $140 $100 ▪ Platts 65% Fe Index averaged $90 US$104 in Q1 2020 consistent $120 with the 2019 annual average $80 $100 Pellet Premium USD/tonne ▪ Average spread between 65% $70 65% USD/tonne Fe and 62% Fe rose to $15 in $80 Q
Slide 6: Record LIORC Cashflow
RECORD LIORC CASHFLOW 3.50 200 180 ▪ Strong iron ore prices in 2019 3.00 160 resulted in record adjusted cash flow from royalty and 2.50 140 IOC dividends of $3.25 per share 120 2.00 CAD$ / Share CAD$ / dmt ▪ As compared to an 100 average of $1.79 per 1.50 share over prior 8 years 80 ▪ Q1, 2020 Adju
Slide 7: Outlook
OUTLOOK ▪ The COVID-19 pandemic has resulted in reduced global output and significant economic uncertainty ▪ In the short-term, there is potential for increased variability of earnings and volatility of the trading price of shares ▪ Despite this increased uncertainty and decrease in global output, L
Slide 8: Questions
QUESTIONS 8
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