Labrador Iron Ore Royalty Corporation Posts 19% Q3 Net Income Drop

Labrador Iron Ore Royalty Corporation (LIORC) posted third-quarter net income of C$24.5 million, down 19% from C$30.4 million a year earlier. Earnings per share fell to C$0.38 from C$0.47.

Royalty revenue declined 8% to C$40.1 million from C$43.5 million. Lower iron ore prices and higher shipping costs reduced realized prices, while lower sales volumes also weighed on results. LIORC receives a 7% royalty on Iron Ore Company of Canada’s (IOC) iron ore sales.

IOC sales under the LIORC royalty reporting basis totaled 3.9 million metric tons, down 1% year over year. CFS sales tonnage fell 37%, while pellet sales rose 27%. The average realized price, net of freight, was about US$105 per metric ton, compared with US$114 a year earlier.

LIORC believes IOC’s 2026 sales will likely finish at or below the low end of Rio Tinto’s original guidance of 15 million to 18 million metric tons, based on results for the first nine months of the year. Rio Tinto did not comment on IOC-specific guidance in its third-quarter report.