Labrador Iron Ore Royalty Corporation - Results for the Second Quarter Ended June 30, 2017
TORONTO, Aug. 2, 2017 /CNW/ - Labrador Iron Ore Royalty Corp. ("LIORC", TSX: LIF) announced today its operation and cash flow results for the second quarter ended June 30, 2017.
Royalty revenue for the second quarter of 2017 amounted to $33.8 million as compared to $25.3 million for the second quarter of 2016. The shareholders' cash flow from operations for the second quarter was $45.6 million or $0.71 per share as compared to $7.6 million or $0.12 per share for the same period in 2016. LIORC received a dividend from Iron Ore Company of Canada ("IOC") in the second quarter of 2017 in the amount of $15.3 million or $0.24 per share. Equity earnings/(losses) from IOC amounted to $14.3 million or $0.22 per share as compared to ($0.5) million or ($0.01) per share in 2016. Net income was $32.3 million or $0.50 per share compared to $8.3 million or $0.13 per share for the same period in 2016.
The cash flow from operations, equity earnings and net income for the second quarter of 2017 were higher than the second quarter of 2016, mainly due to improved prices for concentrate and pellets. As reported by Bloomberg, the benchmark iron ore price of 62% Fe CFR China averaged US$63 per tonne in the second quarter of 2017 and reached a high of US$82 in April. The comparable average price in the second quarter of 2016 was US$55 per tonne. Total sales tonnage of concentrate for sale ("CFS") was 26% lower in the second quarter of 2017 compared to the same period in 2016. In the second quarter of 2017 concentrate was preferentially directed to the pellet plant due to the strong pellet demand and premiums. Pellet sales tonnages were consistent in the second quarter of 2017 compared to the same period in 2016.
LIORC's results for the three months and six months ended June 30 are summarized below:
(in millions except per share information) | 3 Months | 3 Months | 6 Months | 6 Months | |||
(Unaudited) | |||||||
Revenue | $34.2 | $25.8 | $77.6 | $48.1 | |||
Cash flow from operations | $45.6 | $7.6 | $73.8 | $20.1 | |||
Operating cash flow per share | $0.71 | $0.12 | $1.15 | $0.31 | |||
Net income | $32.3 | $8.3 | $75.2 | $19.3 | |||
Net income per share | $0.50 | $0.13 | $1.17 | $0.30 |
Iron Ore Company of Canada Operations
Production
Total concentrate production in the second quarter of 2017 of 4.9 million tonnes was 4% higher than the second quarter of 2016 and was 2% higher than the first quarter of 2017. Concentrate production in April and May 2017 was lower than planned due to availability of the ore delivery system, ore hardness and ball mill maintenance in the concentrator, offset somewhat by better weight yield than planned. Concentrate production in June 2017 set a new record for the month.
Pellet production in the second quarter of 2017 was 1% higher than the second quarter of 2016 and 6% lower than the first quarter of 2017. All six pellet lines operated in the first quarter of 2017 as planned. In the second quarter of 2017, the No. 2 pellet line was down for the scheduled refurbishment of the induration machine. With the refurbishment of the No. 2 pellet line, CFS production was 8% higher in the second quarter of 2017 than in the second quarter of 2016 and 17% higher than the first quarter of 2017.
Sales
Second quarter 2017 total iron ore tonnage sold by IOC (CFS plus pellets) was 9% below the total sales tonnage in the second quarter 2016. Sales were affected by the concentrate production issues in April and May 2017 referred to above. In the second quarter of 2017, the pellet sales tonnage was 5% higher and CFS sales tonnage was 21% lower than the first quarter of 2017. The lower CFS sales were largely due to timing, since CFS production was strong in the second quarter of 2017.
CFS sales are expected to catch up in the third quarter. Strong pellet demand and premiums supported maximizing pellet production and sales.
The benchmark price for 62% Fe CFR China was 14% higher in the second quarter of 2017 as compared to the second quarter of 2016 and pellet premiums were also much improved. The Canadian dollar was 4% weaker in the second quarter of 2017 as compared to the second quarter of 2016. As a result of the stronger CFR prices and pellet premiums, and the weaker Canadian dollar, the royalty revenue for LIORC in the second quarter of 2017 was 33% higher than the revenue in last year's second quarter.
A summary of IOC's sales for calculating the royalty to LIORC in millions of tonnes is as follows:
3 Months | 3 Months | 6 Months | 6 Months | Year | ||||
Pellets | 2.44 | 2.43 | 4.92 | 4.54 | 10.06 | |||
Concentrates(1) | 1.60 | 2.15 | 3.79 | 4.20 | 8.17 | |||
Total | 4.04 | 4.58 | 8.71 | 8.74 | 18.23 |
(1) Excludes third party ore sales |
Outlook
IOC is expecting good production and sales tonnages in the third and fourth quarters of 2017. The induration machine for the No. 5 pellet line is scheduled to be refurbished starting in late September 2017 for approximately nine weeks.
Rio Tinto has maintained the IOC production guidance for 2017 of 11.4 to 12.4 million tonnes of iron ore pellets and concentrates for their 58.72% interest in IOC, which is total saleable production of 19.4 to 21.1 million tonnes on a 100% basis. Achieving the low end of the guidance would be a 6% improvement over the saleable production in 2016 of 18.2 million tonnes.
The 62% Fe CFR China benchmark iron ore price continued to fall in the second quarter of 2017, averaging US$63 per tonne. However, in mid-June, the decline down to US$53 per tonne reversed and the price has improved recently to above US$70 per tonne, supported by improved margins for Chinese steel mills. Many iron ore price forecasts for the seaborne market expect the benchmark price to average below US$60 per tonne for the year 2017, largely driven by the potential increased supply, notably from Brazil. Reduced prices will likely reduce the domestic Chinese supply, which increased with the higher prices achieved in the last few months of 2016 and into March 2017.
In recent weeks the Canadian dollar has strengthened, reflecting weakness in the U.S. dollar, and iron ore prices have also strengthened. These factors are offsetting but could affect LIORC's results.
The IOC employees and management continue their efforts to increase production and reduce unit operating costs. We are encouraged by their progress with the strong first quarter and June 2017 production performance.
The LIORC cash balance at June 30, 2017 stood at $49.7 million with LIORC dividends payable on July 25, 2017 of $38.4 million. The net royalty from IOC was paid on the same date, maintaining the Corporation's cash balance at more than $30 million. With a strong cash balance, iron ore prices at about US$60 per tonne, the exchange rate at present, and the expected increased production at IOC, LIORC is in a good position to maintain the regular dividend.
Respectfully submitted on behalf of the Directors of Labrador Iron Ore Royalty Corp.,
William H. McNeil
President and Chief Executive Officer
August 2, 2017
Management's Discussion and Analysis
The following discussion and analysis should be read in conjunction with the Management's Discussion and Analysis section of the Corporation's 2016 Annual Report and the financial statements and notes contained therein. 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 closing of the St. Lawrence Seaway and 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.
Royalty revenue for the second quarter of 2017 amounted to $33.8 million as compared to $25.3 million for the second quarter of 2016. The shareholders' cash flow from operations for the second quarter was $45.6 million or $0.71 per share as compared to $7.6 million or $0.12 per share for the same period in 2016. LIORC received a dividend from IOC in the second quarter of 2017 in the amount of $15.3 million or $0.24 per share. Equity earnings/(losses) from IOC amounted to $14.3 million or $0.22 per share as compared to ($0.5) million or ($0.01) per share in 2016. Net income was $32.3 million or $0.50 per share compared to $8.3 million or $0.13 per share for the same period in 2016.
The cash flow from operations, equity earnings and net income for the second quarter of 2017 were higher than the second quarter of 2016, mainly due to improved prices for concentrate and pellets. As reported by Bloomberg, the benchmark iron ore price of 62% Fe CFR China averaged US$63 per tonne in the second quarter of 2017 and reached a high of US$82 in April. The comparable average price in the second quarter of 2016 was US$55 per tonne. Total sales tonnage of CFS was 26% lower in the second quarter of 2017 compared to the same period in 2016. In the second quarter of 2017 concentrate was preferentially directed to the pellet plant due to the strong pellet demand and premiums. Pellet sales tonnages were consistent in the second quarter of 2017 compared to the same period in 2016.
Total concentrate production in the second quarter of 2017 of 4.9 million tonnes was 4% higher than the second quarter of 2016 and was 2% higher than the first quarter of 2017. Concentrate production in April and May 2017 was lower than planned due to availability of the ore delivery system, ore hardness and ball mill maintenance in the concentrator, offset somewhat by better weight yield than planned. Concentrate production in June 2017 set a new record for the month.
Pellet production in the second quarter of 2017 was 1% higher than the second quarter of 2016 and 6% lower than the first quarter of 2017. All six pellet lines operated in the first quarter of 2017 as planned. In the second quarter of 2017, the No. 2 pellet line was down for the scheduled refurbishment of the induration machine. With the refurbishment of the No. 2 pellet line, CFS production was 8% higher in the second quarter of 2017 than in the second quarter of 2016 and 17% higher than in the first quarter of 2017.
Second quarter 2017 total iron ore tonnage sold by IOC (CFS plus pellets) was 9% below the total sales tonnage in the second quarter 2016. Sales were affected by the concentrate production issues in April and May 2017 referred to above. In the second quarter of 2017, the pellet sales tonnage was 5% higher and CFS sales tonnage was 21% lower than the first quarter of 2017. The lower CFS sales were largely due to timing, since CFS production was strong in the second quarter of 2017. CFS sales are expected to catch up in the third quarter. Strong pellet demand and premiums supported maximizing pellet production and sales.
The benchmark price for 62% Fe CFR China was 14% higher in the second quarter of 2017 as compared to the second quarter of 2016 and pellet premiums were also much improved. The Canadian dollar was 4% weaker in the second quarter of 2017 as compared to the second quarter of 2016. As a result of the stronger CFR prices and pellet premiums, and the weaker Canadian dollar, the royalty revenue for LIORC in the second quarter of 2017 was 33% higher than the revenue in last year's second quarter.
Results for the six months were affected by the same factors as affected the three month period. Administrative expenses for the six months include a non-cash foreign exchange loss of $0.3 million on the conversion of the dividend received from IOC in December 2016 and the 2016 bonuses awarded by the Compensation Committee to the executive officers totaling $0.1 million. Royalty and commission interests amortization expense increased $0.6 million for the six months due to an increased amortization rate reflecting lower estimated total mineral resources over the prior year.
The following table sets out quarterly revenue, net income and cash flow data for 2017, 2016 and 2015.
Revenue | Net | Net | Cash Flow | Cash Flow | Adjusted | Dividends | |
(in millions except per share information) | |||||||
2017 | |||||||
First Quarter | $43.4 | $42.9 | $0.67 | $28.2(2) | $0.44(2) | $0.53(2) | $0.50 |
Second Quarter | $34.2 | $32.3 | $0.50 | $45.6(3) | $0.71(3) | $0.53(3) | $0.60 |
2016 | |||||||
First Quarter | $22.3 | $11.0 | $0.17 | $12.5 | $0.19 | $0.19 | $0.25 |
Second Quarter | $25.8 | $8.3 | $0.13 | $7.6 | $0.12 | $0.22 | $0.25 |
Third Quarter | $28.4 | $21.2 | $0.33 | $15.2 | $0.24 | $0.24 | $0.25 |
Fourth Quarter | $38.6 | $37.7 | $0.59 | $28.3(4) | $0.44(4) | $0.57(4) | $0.25 |
2015 | |||||||
First Quarter | $23.7 | $10.0 | $0.16 | $15.2 | $0.24 | $0.20 | $0.25 |
Second Quarter | $24.0 | $15.4 | $0.24 | $12.5 | $0.20 | $0.21 | $0.25 |
Third Quarter | $32.0 | $19.0 | $0.30 | $12.2 | $0.19 | $0.28 | $0.25 |
Fourth Quarter | $22.0 | $10.3 | $0.15 | $20.0 | $0.31 | $0.19 | $0.25 |
(1) "Adjusted cash flow" (see below) |
(2) Includes $10.0 million IOC dividend. |
(3) Includes $15.3 million IOC dividend. |
(4) Includes $15.1 million IOC dividend. |
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 $0.71 for the quarter (2016 - $0.12). Cumulative standardized cash flow from inception of the Corporation is $23.69 per share and total cash distributions since inception is $23.04 per share, for a payout ratio of 97%.
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 '000's).
3 Months | 3 Months | 6 Months | 6 Months | ||
Standardized cash flow from operating activities | $45,576 | $7,562 | $73,758 | $20,052 | |
Excluding: changes in amounts receivable, | |||||
accounts payable and income taxes payable | (11,515) | 6,328 | (6,074) | 6,101 | |
Adjusted cash flow | $34,061 | $13,890 | $67,684 | $26,153 | |
Adjusted cash flow per share | $0.53 | $0.22 | $1.06 | $0.41 |
Liquidity and Capital Resources
The Corporation had $49.7 million in cash as at June 30, 2017 (December 31, 2016 - $23.9 million) with total current assets of $84.3 million (December 31, 2016 - $62.9 million). The Corporation had working capital of $36.1 million as at June 30, 2017 (December 31, 2016 - $38.8 million). The Corporation's operating cash flow for the quarter was $45.6 million and the dividend paid during the quarter was $32.0 million, resulting in cash balances increasing $13.6 million during the second quarter of 2017.
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 intends to pay cash dividends of the net income derived from IOC to the maximum extent possible, subject to the maintenance of appropriate levels of working capital.
The Corporation has a $50 million revolving credit facility with a term ending September 18, 2019 with provision for annual one-year extensions. No amount is currently drawn under this facility (2016 – nil) leaving $50.0 million available to provide for any capital required by IOC or requirements of the Corporation.
Outlook
IOC is expecting good production and sales tonnages in the third and fourth quarters of 2017. The induration machine for the No. 5 pellet line is scheduled to be refurbished starting in late September 2017 for approximately nine weeks.
Rio Tinto has maintained the IOC production guidance for 2017 of 11.4 to 12.4 million tonnes of iron ore pellets and concentrates for their 58.72% interest in IOC, which is total saleable production of 21.1 to 19.4 million tonnes on a 100% basis. Achieving the low end of the guidance would be a 6% improvement over the saleable production in 2016 of 18.2 million tonnes.
The 62% Fe CFR China benchmark iron ore price continued to fall in the second quarter of 2017, averaging US$63 per tonne. However, in mid-June, the decline down to US$53 per tonne reversed and the price has improved recently to above US$70 per tonne, supported by improved margins for Chinese steel mills. Many iron ore price forecasts for the seaborne market expect the benchmark price to average below US$60 per tonne for the year 2017, largely driven by the potential increased supply, notably from Brazil. Reduced prices will likely reduce the domestic Chinese supply, which increased with the higher prices achieved in the last few months of 2016 and into March 2017.
In recent weeks the Canadian dollar has strengthened, reflecting weakness in the U.S. dollar, and iron ore prices have also strengthened. These factors are offsetting but could affect LIORC's results.
The IOC employees and management continue their efforts to increase production and reduce unit operating costs. We are encouraged by their progress with the strong first quarter and June 2017 production performance.
The LIORC cash balance at June 30, 2017 stood at $49.7 million with LIORC dividends payable on July 25, 2017 of $38.4 million. The net royalty from IOC was paid on the same date, maintaining the Corporation's cash balance at more than $30 million. With a strong cash balance, iron ore prices at about US$60 per tonne, the exchange rate at present, and the expected increased production at IOC, LIORC is in a good position to maintain the regular dividend.
William H. McNeil
President and Chief Executive Officer
Toronto, Ontario
August 2, 2017
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 aboriginal groups, changes affecting IOC's customers, competition from other iron ore producers, estimates of reserves and resources and government regulation and taxation. A discussion of these factors is contained in LIORC's annual information form dated March 2, 2017 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 BALANCE SHEETS | |||||||
As at | |||||||
June 30, | December 31, | ||||||
(in thousands of Canadian dollars) | 2017 | 2016 | |||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash | $ | 49,695 | $ | 23,937 | |||
Amounts receivable | 34,563 | 38,487 | |||||
Income taxes recoverable | - | 490 | |||||
Total Current Assets | 84,258 | 62,914 | |||||
Non-Current Assets | |||||||
Iron Ore Company of Canada ("IOC"), | |||||||
royalty and commission interests | 262,413 | 265,384 | |||||
Investment in IOC | 419,744 | 408,680 | |||||
Total Non-Current Assets | 682,157 | 674,064 | |||||
Total Assets | $ | 766,415 | $ | 736,978 | |||
Liabilities and Shareholders' Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 7,083 | $ | 8,073 | |||
Dividend payable | 38,400 | 16,000 | |||||
Taxes Payable | 2,650 | - | |||||
Total Current Liabilities | 48,133 | 24,073 | |||||
Non-Current Liabilities | |||||||
Deferred income taxes | 129,860 | 129,060 | |||||
Total Liabilities | 177,993 | 153,133 | |||||
Shareholders' Equity | |||||||
Share capital | 317,708 | 317,708 | |||||
Retained earnings | 281,357 | 276,588 | |||||
Accumulated other comprehensive loss | (10,643) | (10,451) | |||||
588,422 | 583,845 | ||||||
Total Liabilities and Shareholders' Equity | $ | 766,415 | $ | 736,978 |
Approved by the Directors, | ||||
William H. McNeil | Patricia M. Volker | |||
Director | Director |
LABRADOR IRON ORE ROYALTY CORPORATION | |||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
For the Three Months Ended | |||||||
June 30, | |||||||
(in thousands of Canadian dollars) | 2017 | 2016 | |||||
(Unaudited) | |||||||
Revenue | |||||||
IOC royalties | $ | 33,753 | $ | 25,292 | |||
IOC commissions | 397 | 450 | |||||
Interest and other income | 83 | 33 | |||||
34,233 | 25,775 | ||||||
Expenses | |||||||
Newfoundland royalty taxes | 6,751 | 5,058 | |||||
Amortization of royalty and commission interests | 1,428 | 1,220 | |||||
Administrative expenses | 646 | 660 | |||||
8,824 | 6,938 | ||||||
Income before equity earnings and income taxes | 25,409 | 18,836 | |||||
Equity earnings (losses) in IOC | 14,326 | (513) | |||||
Income before income taxes | 39,736 | 18,323 | |||||
Provision for income taxes | |||||||
Current | 8,034 | 6,165 | |||||
Deferred | (553) | 3,900 | |||||
7,481 | 10,065 | ||||||
Net income for the period | 32,255 | 8,258 | |||||
Other comprehensive loss | |||||||
Share of other comprehensive loss of IOC that will not be | |||||||
reclassified subsequently to profit or loss | |||||||
(net of income taxes of 2017 - $17; 2016 - $120) | (96) | (240) | |||||
Comprehensive income for the period | $ | 32,159 | $ | 8,018 | |||
Net income per share | $ | 0.50 | $ | 0.13 |
LABRADOR IRON ORE ROYALTY CORPORATION | ||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||
For the Six Months Ended | ||||||
June 30, | ||||||
(in thousands of Canadian dollars) | 2017 | 2016 | ||||
(Unaudited) | ||||||
Revenue | ||||||
IOC royalties | $ | 76,590 | $ | 47,128 | ||
IOC commissions | 857 | 860 | ||||
Interest and other income | 142 | 80 | ||||
77,589 | 48,068 | |||||
Expenses | ||||||
Newfoundland royalty taxes | 15,318 | 9,426 | ||||
Amortization of royalty and commission interests | 2,971 | 2,409 | ||||
Administrative expenses | 1,694 | 1,336 | ||||
19,983 | 13,171 | |||||
Income before equity earnings and income taxes | 57,606 | 34,897 | ||||
Equity earnings (losses) in IOC | 36,563 | (977) | ||||
Income before income taxes | 94,169 | 33,920 | ||||
Provision for income taxes | ||||||
Current | 18,166 | 11,154 | ||||
Deferred | 834 | 3,512 | ||||
19,000 | 14,666 | |||||
Net income for the period | 75,169 | 19,254 | ||||
Other comprehensive loss | ||||||
Share of other comprehensive loss of IOC that will not be | ||||||
reclassified subsequently to profit or loss (net of income taxes | ||||||
of 2017 - $34; 2016 - $152) | (192) | (428) | ||||
Comprehensive income for the period | $ | 74,977 | $ | 18,826 | ||
Net income per share | $ | 1.17 | $ | 0.30 |
LABRADOR IRON ORE ROYALTY CORPORATION | |||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
For the Six Months Ended | |||||||||
June 30, | |||||||||
(in thousands of Canadian dollars) | 2017 | 2016 | |||||||
(Unaudited) | |||||||||
Net inflow (outflow) of cash related | |||||||||
to the following activities | |||||||||
Operating | |||||||||
Net income for the period | $ | 75,169 | $ | 19,255 | |||||
Items not affecting cash: | |||||||||
Equity (earnings) losses in IOC | (36,563) | 976 | |||||||
Current income taxes | 18,166 | 11,154 | |||||||
Deferred income taxes | 834 | 3,512 | |||||||
Amortization of royalty and commission interests | 2,971 | 2,409 | |||||||
Common share dividend from IOC | 25,273 | - | |||||||
Change in amounts receivable | 3,924 | (8,538) | |||||||
Change in accounts payable | (990) | 1,555 | |||||||
Income taxes paid | (15,026) | (10,271) | |||||||
Cash flow from operating activities | 73,758 | 20,052 | |||||||
Financing | |||||||||
Dividends paid to shareholders | (48,000) | (32,000) | |||||||
Cash flow used in financing activities | (48,000) | (32,000) | |||||||
Increase (decrease) in cash, during the period | 25,758 | (11,948) | |||||||
Cash, beginning of period | 23,937 | 24,464 | |||||||
Cash, end of period | $ | 49,695 | $ | 12,516 |
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 | |||||
Balance as at December 31, 2015 | $ | 317,708 | $ | 262,416 | $ | (11,150) | $ | 568,974 | |
Net income for the period | - | 19,255 | - | 19,255 | |||||
Dividends declared to shareholders | - | (32,000) | - | (32,000) | |||||
Share of other comprehensive loss from | |||||||||
investment in IOC (net of taxes) | - | - | (428) | (428) | |||||
Balance as at June 30, 2016 | $ | 317,708 | $ | 249,671 | $ | (11,578) | $ | 555,801 | |
Balance as at December 31, 2016 | $ | 317,708 | $ | 276,588 | $ | (10,451) | $ | 583,845 | |
Net income for the period | - | 75,169 | - | 75,169 | |||||
Dividends declared to shareholders | - | (70,400) | - | (70,400) | |||||
Share of other comprehensive loss from | |||||||||
investment in IOC (net of taxes) | - | - | (192) | (192) | |||||
Balance as at June 30, 2017 | $ | 317,708 | $ | 281,357 | $ | (10,643) | $ | 588,422 |
The complete consolidated financial statements for the second quarter ended June 30, 2017, including the notes thereto, are posted on sedar.com and labradorironore.com.
Contact
William H. McNeil, President & Chief Executive Officer, (416) 863-7133