Canada's Labrador Iron Ore Royalty Q2 revenue falls on lower iron ore sales

Labrador Iron Ore Royalty

06/08/2026 24:47

Overview
Canada royalty trust's Q2 revenue fell 27% yr/yr due to lower iron ore sales volumes
Net income per share dropped 58% yr/yr as fixed costs spread over fewer tonnes produced
Adjusted cash flow per share declined 28% yr/yr, reflecting lower profitability

Outlook
LIORC expects 2026 IOC sales at or below low end of 15-18 mln tonnes guidance
Company anticipates IOC concentrate production will remain constrained for several years
Iron ore prices seen well supported, pellet premiums expected to strengthen in H2 2026

Result Drivers
LOWER SALES VOLUMES - Co said Q2 revenue and net income were negatively affected by a 33% yr/yr drop in iron ore sales volumes, with CFS sales down 49% and pellet sales down 19%
OPERATIONAL RESET - Reduced production at IOC was driven by a strategic operational reset to catch up on deferred waste removal and advance pit health, as well as haul truck availability and longer cycle times
PORT CONSTRAINTS - Inventory availability and a port ore dumper replacement project reduced train unloading capacity, further limiting sales tonnages

Company press release: ID:nCNW2xQGXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$34.10 mln
 
Q2 EPS
 
C$0.16
 
Q2 Net Income
 
C$11.20 mln
 
Q2 Adjusted Cash Flow Per Share
 
C$0.29
 
Q2 Cash Flow from Operations 
 
C$17.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy."
Wall Street's median 12-month price target for Labrador Iron Ore Royalty Corporation is C$29.50, about 8% above its August 5 closing price of C$27.32
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)