Labrador Iron Ore Royalty Corporation - 2012 Results of Operations

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, March 1, 2013 /CNW/ - Labrador Iron Ore Royalty Corporation\n (\"LIORC\") (TSX: LIF) announced the results of its operations for the\n year ended December 31, 2012.\n\n\nTo the Holders of Common Shares of Labrador Iron Ore Royalty\n Corporation  \n\n\nAt a special meeting held on September 28, 2012, the holders of stapled\n units approved an exchange of their subordinated notes for common\n shares of LIORC and a consolidation of common shares.  Approximately\n 99.9% of the votes cast at the meeting were in favour of the exchange.\n The transactions were completed on October 3, 2012. The $248 million\n subordinated notes were cancelled and each holder of common shares\n ended up holding the same number of common shares as before the\n transactions, and LIORC continued to have 64 million common shares\n outstanding. Interest on the subordinated notes ceased to accrue after\n September 30, 2012. For the purposes of this report, all references to\n shareholders and per share figures may refer to holders of stapled\n units and per stapled units, respectively, as applicable.\n\n\nPrior to the transactions, the net income attributed to the holders of\n stapled units consisted of the net income of LIORC plus the interest\n paid on the subordinated notes.  Thus all net income, adjusted cash\n flow and per share figures referred to in this report use the total\n according to the financial statements plus (where applicable) the\n $7,488,000 ($0.117 per share) interest on the subordinated notes for\n each quarter resulting in increases of $22,464,000 ($0.351 per share)\n and $29,952,000 ($0.468 per share) for the years ended December 31,\n 2012 and December 31, 2011, respectively.\n\n\nFinancial Performance\n\n\nThe Shareholders' adjusted cash flow (see Management's Discussion &\n Analysis for definition and calculation) for the year ended December\n 31, 2012 was $75.1 million or $1.17 per share as compared to $158.1\n million or $2.47 per share for 2011.\n\n\nIron ore sales of IOC amounted to 14.1 million tonnes compared to 13.2\n million tonnes in 2011. Although this reflects an improvement over the\n previous year, we had expected sales to be higher. However, sales were\n constrained by production, which was impacted by difficult operating\n conditions during the first part of the year and a number...

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