Labrador Iron Ore Royalty Corporation · TSX:LIF
Labrador Iron Ore Royalty — Technical Presentation (September 2024)
13 slides from Labrador Iron Ore Royalty's technical presentation, September 2024
Slide 1: Iron Ore Company of Canada
Iron Ore Company of Canada Mike McCann President and Chief Executive Officer, Iron Ore Company of Canada
Slide 2: Highlights
Highlights High-grade (>65% Fe), high purity products for blast furnace and direct reduction Applying our Safe Production System to improve operational stability to deliver nameplate capacity of 23Mtpa1 Complementing our global iron ore portfolio, with high grade and high purity iron ore, which is o
Slide 3: IOC complements our global iron ore portfolio
IOC complements our global iron ore portfolio Rio Tinto Iron Ore global portfolio IOC Products Concentrate for sale (CFS) Top tier • High iron content (65.7%) quality • Very low phosphorus (0.007%) & low alumina (0.2%) • Low levels of all other undesirable steelmaking elements • Very consistent prod
Slide 4: IOC operational overview
IOC operational overview Labrador Iron Ore Royalty Corporation 15% Rio Tinto 59% Key statistics Mitsubishi Corporation 5 Operational pits 26% 13 Production drills Labrador City 37 Haul trucks Automated train ore delivery system Sept Iles 13 distance (km) Montreal Overland ore delivery conveyor syste
Slide 5: Diversified customer base for our high-grade products
Diversified customer base for our high-grade products Product mix Sales regions 2023 sales volumes % of 2023 sales volumes Europe China Including pellets Supplying concentrate and concentrate Europe for port side blending Pellets 37% Saleable Concentrate 50% production 50% for Sale (CFS) is our bigg
Slide 6: Our Strategy
Our Strategy Rio Tinto Best operator Social license Excel in development Impeccable ESG Minerals PG Employer and partner of choice Growth contributor Green economy leader IOC Fix the basics, Use our assets Transformative growth Decarbonise meet our safe production at designed capacity of the busines
Slide 7: Working closely with our key stakeholders
Working closely with our key stakeholders Governments • High-grade iron ore on federal and provincial critical minerals lists • QNS&L (railway) federally regulated Naskapi Nation of common carrier Matimekush–Lac John Kawawachikamach Communities Signing of fourth partnership agreement with Naskapi Na
Slide 8: IOC ores present a unique opportunity for Scope 3 reductions
IOC ores present a unique opportunity for Scope 3 reductions Scope 3 Target: 50% reduction from IOC by 2035 Current impact: ~1.9 CO2/t steel Reduction in Scope 3 emissions drives increase in margin due to: • Large share of CFS transitioning from BF customers in Asia to integrated DRI/EAF producers i
Slide 9: IOC is positioned well as a low carbon mine
IOC is positioned well as a low carbon mine A high quality and resilient, low carbon mine with optionality Taking action to decarbonise toward net zero, including low for the energy transition carbon pelletisation • 40MW electric boiler • Hydro powered plasma burner trials • R&D coke elimination tri
Slide 10: Focused on improving operational stability
Focused on improving operational stability Mine - Total Material Moved1 Concentrate production and pellet loss (Mt) (Mt) 18.7 19.1 17.9 17.7 86 83 0.9 1.5 76 77 1.3 1.3 8.1 6.6 8.0 43 44 8.2 41 8.6 43 39 0.4 3.5 23 9.6 10.0 9.6 43 39 36 8.3 33 16 4.7 2020 2021 2022 2023 2024 H1 2020 2021 2022 2023 2
Slide 11: A clear pathway has been identified to best operator
A clear pathway has been identified to best operator Setting the strategy: Initial scoping: Entire value chain: Fixing the basics to achieve safe, cost-effective, consistent production Concentrator 23Mtpa capacity Achieving concentrator nameplate Executing integrated roadmap to optimise the current
Slide 12: High margin business with track record of generating FCF
High margin business with track record of generating FCF1 18 Mt 48% Average concentrate production, 2019-2023 Average EBITDA margin, 2019-2023 $1,300 M 15% Average EBITDA, 2019-2023 Average ROCE2, 2019-2023 $390 M $320 M Average Free Cash Flow, 2019-2023 Average Capex, 2019-2023 1All figures provide
Slide 13: Operating costs and sustaining capital
Operating costs and sustaining capital Concentrate unit costs ($/wmt) H1 Spend by Category Production biggest cost lever 60 • Significant portion of cost base is fixed 8% 50 • Asset management and production 40 15% Employee pay & benefits stability key to driving down unit costs 35% Bulks and major
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