Labrador Iron Ore Royalty Corporation - Results for the First Quarter Ended March 31, 2013

About this update from Labrador Iron Ore Royalty Corporation

[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 2, 2013 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX:\n LIF) announced today its operation and cash flow results for the first\n quarter ended March 31, 2013.\n\n\nRoyalty income for the first quarter of 2013 amounted to $26.1 million\n as compared to $22.0 million for the first quarter of 2012. The\n shareholders' 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 $14.3 million or\n $0.22 per share as compared to $14.4 million or $0.23 per unit for the\n same period in 2012.  Net income was $21.7 million or $0.34 per share\n compared to $23.0 million or $0.36 per unit for the same period in\n 2012. Equity earnings from Iron Ore Company of Canada (\"IOC\") amounted\n to $9.4 million or $0.15 per share as compared to $11.2 million or\n $0.18 per unit in 2012. Although royalty revenue for the quarter was\n higher than the same period last year, cash flow was slightly lower due\n to higher income taxes, a result of the elimination of interest expense\n on the subordinated notes that were cancelled last September (see the\n reorganization referred to below).\n\n\nIOC production in the quarter, while higher than the same period last\n year, was negatively affected by winter weather conditions and the\n continued integration of the expansion into the operations. By the end\n of the quarter, production was approaching an annual rate in excess of\n 20 million tonnes, reflecting the successful integration of the first\n phase of the expansion program. Sales for the quarter were negatively\n affected by the availability of product and by the timing of shipments.\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 Labrador Iron Ore Royalty Corporation (\"LIORC\") and a\n consolidation of common shares. The $248 million subordinated notes\n were cancelled and each holder of common shares  ended up holding the\n same number of common shares as before the transactions, and LIORC\n continued to have 64 million common shares outstanding. Interest on the\n subordinated notes ceased to accrue after September 30, 2012. For the\n purposes of this report, all references to shar...

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