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Labrador Iron Ore Royalty Corporation - Results for the First Quarter Ended March 31, 2012
TORONTO, May 3, 2012 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF.UN) announced ...
About this update from Labrador Iron Ore Royalty Corporation
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 3, 2012 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX:\n LIF.UN) announced today its operation and cash flow results for the\n first quarter ended March 31, 2012.\n\n\nRoyalty income for the first quarter of 2012 amounted to $22.0 million\n as compared to $30.3 million for the first quarter of 2011. The\n unitholders' cash flow from operating activities after adjustments for\n changes in amounts receivable, accounts payable and income taxes\n payable (adjusted cash flow) for the first quarter was $14.4 million or\n $0.23 per unit as compared to $48.0 million or $0.75 per unit for the\n same period in 2011.  Net income was $23.0 million or $0.36 per unit\n compared to $38.9 million or $0.61 per unit for the same period in\n 2011. Equity earnings from IOC amounted to $11.2 million or $0.18 per\n unit as compared to $19.2 million or $0.30 per unit in 2010. Cash flow\n for the quarter was lower than last year as a result of lower royalty\n revenue but mainly because IOC did not pay a dividend this year (2011\n first quarter $29 million). IOC deferred the payment of a dividend due\n to ongoing labour negotiations and substantial capital expenditures.\n This will be reviewed during the third quarter. IOC has now reached\n agreement with its unionized employees on a new six year labour\n agreement.\n\n\nAll net income, adjusted cash flow and per unit figures referred to in\n this report use the totals according to the financial statements plus\n (where applicable) the $7,488,000 ($0.234 per stapled unit) interest on\n the subordinated notes.\n\n\nProduction during the quarter was adversely affected by winter weather\n conditions and somewhat by the start-up of the new ore delivery system\n and the additional grinding mill. The integration of the new system and\n mill has commenced, and ongoing commissioning continues with\n operational handover and full production planned for mid-year which\n should result in increased production and sales for the balance of the\n year. Sales for the quarter were affected by the lower production and\n the timing of shipments. Royalty income for the quarter was lower than\n last year's first quarter due to the lower sales volume and pricing\n that was lower than last year's first quarter (although higher than the\n last quarter). It was also adversely affected by a red...