Business
Labrador Iron Mines Reports Fiscal 2021 Year End Results
Labrador Iron Mines Reports Fiscal 2021 Year End Results.
About this update from Labrador Iron Mines Holdings Ltd.
[{"type":"text","content":"Toronto, Ontario--(Newsfile Corp. - June 30, 2021) - Labrador Iron Mines Holdings Limited (OTC Pink: LBRMF) (the \"Company\") reports its financial results for the fiscal year ended March 31, 2021.This News Release should be read in conjunction with the Company's audited consolidated financial statements and Management's Discussion and Analysis (\"MD&A\") for the year ended March 31, 2021, which are available on the Company's website at www.labradorironmines.ca or under the Company's profile on SEDAR (www.sedar.com).All currency references in this news release are expressed in Canadian dollars, unless otherwise indicated.OVERVIEWLabrador Iron Mines Holdings Limited (\"LIMH\"), through its majority owned subsidiaries Labrador Iron Mines Limited (\"LIM\") and Schefferville Mines Inc. (\"SMI\"), is engaged in the exploration and development of iron ore projects, situated in the Menihek area of western Newfoundland and Labrador and northeastern Quebec, near the town of Schefferville, in the central part of the Labrador Trough region of eastern Canada, one of the major iron ore producing regions in the world.The price of iron ore surged 80% in 2020 to a nine-year high of US$170 per tonne (62% Fe Fines CFR China), driven largely by sustained demand in China and supply constraints in Brazil. Iron ore demand in China has proven to be extremely strong, as infrastructure stimulus programs have been driving a robust economic recovery and continued strength in Chinese steel production. In the first half of 2021, the price of iron ore surged another 40%, to an all-time record US$235 per tonne in May, before settling in at US$215 per tonne by the end of June. Having regard to the strong price of iron ore, and following the completion of an updated, independent Preliminary Economic Assessment (\"PEA\") on the Houston Project in February 2021, the Company recorded an impairment reversal of $25,963,413 at March 31, 2021, as a restatement of the previous carrying value of the Houston Project, which was the main contributor to the Company reporting consolidated net income of $25,666,588 for the year ended March 31, 2021.Houston Project and PEA CompletionThe Company is currently focused on advancing Stage 2 of its planned direct shipping ore mining operations, which involves the development of the Houston Project, LIM's flagship property. ...