in domestic and global economic and political conditions; changes in government regulation and taxation; national, provincial and international laws, regulations and policies regarding climate change that further limit the emissions of greenhouse gases or increase the costs of operations for IOC or its customers; changes affecting IOC's customers; competition from other iron ore producers; renewal of mining licenses and leases; relationships with indigenous groups; litigation; and uncertainty in the estimates of reserves and resources. A discussion of these factors is contained in LIORC's annual information form dated March 12, 2024 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.sedarplus.ca.
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
September 30, December 31,
(in thousands of Canadian dollars) 2024 2023
(Unaudited)
Assets
Current Assets
Cash $ 40,282 $ 13,192
Amounts receivable 42,655 53,872
Income taxes recoverable - 465
Total Current Assets 82,937 67,529
Non-Current Assets
Iron Ore Company of Canada ("IOC")
royalty and commission interests 218,180 222,901
Investment in IOC 548,279 546,614
Total Non-Current Assets 766,459 769,515
Total Assets $ 849,396 $ 837,044
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued
liabilities $ 8,875 $ 11,542
Dividend payable 44,800 28,800
Taxes payable 264 -
Total Current Liabilities 53,939 40,342
Non-Current Liabilities
Deferred income taxes 136,230 137,370
Total Liabilities 190,169 177,712
Shareholders' Equity
Share capital 317,708 317,708
Retained earnings 347,037 347,927
Accumulated other comprehensive loss (5,518) (6,303)
659,227 659,332
Total Liabilities and Shareholders'
Equity $ 849,396 $ 837,044
-
Approved by the Directors,
John F. Tuer Patricia M. Volker
Director Director
LABRADOR IRON ORE ROYALTY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
For the Three Months Ended
September 30,
(in thousands of Canadian dollars except for 2024 2023
per share
information)
(Unaudited)
Revenue
IOC royalties $ 41,485 $ 46,986
IOC commissions 395 385
Interest and other income 461 314
42,341 47,685
Expenses
Newfoundland royalty taxes 8,297 9,397
Amortization of royalty and commission
interests 1,452 1,522
Administrative expenses 726 730
10,475 11,649
Income before equity earnings and income
taxes 31,866 36,036
Equity earnings in IOC 9,747 23,118
Income before income taxes 41,613 59,154
Provision for income taxes
Current 10,014 11,289
Deferred (2,010) (1,560)
8,004 9,729
Net income for the period 33,609 49,425
Comprehensive income for the period $ 33,609 $ 49,425
Net income per share $ 0.53 $ 0.77
LABRADOR IRON ORE ROYALTY CORPORATION
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
For the Nine months Ended
September 30,
(in thousands of Canadian dollars except for 2024 2023
per share
information)
(Unaudited)
Revenue
IOC royalties $ 149,754 $ 144,470
IOC commissions 1,241 1,177
Interest and other income 1,130 789
152,125 146,436
Expenses
Newfoundland royalty taxes 29,951 28,894
Amortization of royalty and commission
interests 4,721 4,568
Administrative expenses 2,241 2,159
36,913 35,621
Income before equity earnings and income
taxes 115,212 110,815
Equity earnings in IOC 62,566 58,478
Income before income taxes 177,778 169,293
Provision for income taxes
Current 35,947 34,573
Deferred (1,279) (134)
34,668 34,439
Net income for the period 143,110 134,854
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 2024 - $139; 2023 - $56) 785 (315)
Comprehensive income for the period $ 143,895 $ 134,539
Basic and diluted income per share $ 2.24 $ 2.11
LABRADOR IRON ORE ROYALTY CORPORATION
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the Nine months Ended
September 30,
(in thousands of Canadian dollars) 2024 2023
(Unaudited)
Net inflow (outflow) of cash related
to the following activities
Operating
Net income for the period $ 143,110 $ 134,854
Items not affecting cash:
Equity earnings in IOC (62,566) (58,478)
Current income taxes 35,947 34,573
Deferred income taxes (1,279) (134)
Amortization of royalty and commission
interests 4,721 4,568
Common share dividends from IOC 61,825 50,447
Change in amounts receivable 11,217 (948)
Change in accounts payable (2,667) (145)
Income taxes paid (35,218) (38,597)
Cash flow from operating activities 155,090 126,140
Financing
Dividends paid to shareholders (128,000) (118,400)
Cash flow used in financing activities (128,000) (118,400)
Increase in cash, during the period 27,090 7,740
Cash, beginning of period 13,192 39,904
Cash, end of period $ 40,282 $ 47,644
LABRADOR IRON ORE
ROYALTY
CORPORATION
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES
IN EQUITY
Accumulated
other
Common Share Retained comprehensive
(in thousands of shares capital earnings loss Total
Canadian dollars
except share
amounts)
(Unaudited)
Balance as at
December 31, 2022 64,000,000 $ 317,708 $ 324,821 $ (5,070) $ 637,459
Net income for the
period - - 134,854 - 134,854
Dividends declared
to shareholders - - (134,400) - (134,400)
Share of other
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