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Labrador Iron Ore Royalty Corporation - Results for the second quarter ended June 30, 2013
TORONTO , Aug. 7, 2013 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF) announced ...
About this update from Labrador Iron Ore Royalty Corporation
[{"type":"text","content":"\n\n\nTORONTO, Aug. 7, 2013 /CNW/ - Labrador Iron Ore Royalty Corporation\n (TSX: LIF) announced today its operation and cash flow results for the\n second quarter ended June 30, 2013.\n\n\nRoyalty income for the second quarter of 2013 amounted to $41.7 million\n as compared to $36.0 million for the second 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 quarter was $23.4 million or $0.37\n per share compared to last year's $22.3 million or $0.35 per unit. \n Equity earnings from Iron Ore Company of Canada (IOC) amounted to $19.3\n million or $0.30 per share as compared to $18.2 million or $0.28 per\n unit in 2012. Net income was $39.2 million or $0.61 per share compared\n to $36.8 million or $0.57 per unit for the same period in 2012.\n Earnings and cash flow for the quarter, although higher than last year\n were reduced due to higher income taxes, a result of the elimination of\n interest expense on the subordinated notes that were cancelled last\n September (see the reorganization referred to below).\n\n\nIncreased IOC production for the quarter as compared to last year\n reflected the successful completion and integration of the first phase\n of the expansion program into the operations with April and May\n production achieving annual rates of 19 and 20 million tonnes\n respectively. The annual maintenance shutdown was scheduled for early\n June and went well but upon resumption of operations some ore quality\n issues were encountered, which were further aggravated by the wildfires\n in the area.  Although all assets including the expansion facilities\n operated well, a number of factors caused June production to be below\n expected levels. The fires in the area did not directly affect IOC\n Labrador operations, but required the town of Wabush to be evacuated\n which impacted employee availability. Additionally, the resulting air\n quality in the area had an effect on productivity requiring stoppages\n in the mine and an evacuation of the processing plants for periods of\n time during June and July.  There were also storms that resulted in\n power outages which impacted operations in the same period. IOC reports\n that the ore quality issues are being managed a...