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Labrador Iron Ore Royalty Income Fund - 2008 Results of Operations
TORONTO, Feb. 27 /CNW/ - Labrador Iron Ore Royalty Income Fund announced the results of its opera...
About this update from Labrador Iron Ore Royalty Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Feb. 27 /CNW/ - Labrador Iron Ore Royalty Income Fund announced\nthe results of its operations for the year ended December 31, 2008. Following\nare some of the financial highlights of the Fund's 2008 results with\ncomparison to the 2007 results:\n\n\n-------------------------------------------------------------------------\nYears Ended December 31 2008 2007\n($ in millions except per unit information)\n\nRevenue 163.4 67.6\n\nExpenses (including royalty taxes) 38.8 22.6\n\nNet Income 176.5 80.9\n\nAdjusted Cash Flow(1)(2) 174.9 60.5\n\nNet Income per Unit $ 5.52 $ 2.53\n\nAdjusted Cash Flow per Unit(1)(2) $ 5.46 $ 1.89\n\nCash Distributions per Unit $ 4.85 $ 1.95\n-------------------------------------------------------------------------\n\n(1) See Management's Discussion & Analysis for definition\n(2) Includes IOC dividends totaling $77.9 million or $2.44 per Unit\n (2007 - $18.8 million or $0.59 per Unit)\n\n\nFinancial Performance\n\n\nThe Fund's adjusted cash flow (see Management's Discussion & Analysis for\ndefinition and calculation) for the year ended December 31, 2008 was $174.9\nmillion or $5.46 per unit as compared to $60.5 million or $1.89 per unit for\n2007.\n\n\nIron ore sales of the Iron Ore Company of Canada ("IOC") amounted to 15.1\nmillion tonnes compared to 13.4 million tonnes in 2007. 2008 sales, although\nhigher than 2007, were disappointing as we had expected sales to exceed 16\nmillion tonnes, but the iron ore markets deteriorated very suddenly in the\nlast two months of the year resulting in reduced sales. Sales in 2007 had been\nrestricted due to the lost production caused by the strike of IOC's unionized\nwork force which shut down all production facilities from March 9 to April 27,\n2007. Iron ore markets remained very strong during the first three quarters of\nthe year and benchmark prices increased 86.67% for pellets and 68.75% for\nconcentrate. The decline during the year of the Canadian dollar against its US\ncounterpart from $0.9913 to $1.2180 positively affected results for the year.\nThe Fund's adjusted cash flow includes a dividend from IOC of $77.9 million\n(2007 - $18.8 million).\n\n\nThe Fund's consolidated net income for the year ended December 31, 2008\nwas $176.5 million or $5.52 per unit compared to $80.9 million or $2.53 per\nunit in 2007. The Fund's sha...