Labrador Iron Ore Royalty (LIF) investor relations material

Executive summary

• First quarter 2026 results were negatively impacted by low concentrate for sale (CFS) and pellet sales volumes, with royalty revenue of $35.4 million, nearly flat year-over-year but down 9% sequentially.

• Net income per share was $0.21, a 36% decrease year-over-year and 40% lower sequentially; adjusted cash flow per share was $0.31, unchanged year-over-year but down 9% from Q4 2025.

• Iron ore prices improved modestly, but global steel production fell 2% year-over-year, with China down 5%.

Financial highlights

• Revenue for Q1 2026 was $35.9 million, nearly unchanged from $36.2 million in Q1 2025.

• Net income was $13.2 million, down from $21.4 million in Q1 2025.

• Cash flow from operations was $23.1 million ($0.36 per share), compared to $24.7 million ($0.39 per share) in Q1 2025.

• Adjusted cash flow per share remained at $0.31 year-over-year.

• Dividends declared per share were $0.30, down from $0.50 in Q1 2025.

Outlook and guidance

• 2026 IOC sales guidance remains 15–18 million tonnes, but actual sales are expected at the low end of the range, compared to 15.7 million tonnes in 2025.

• IOC will increase stripping in coming years, likely reducing iron ore production and cash flow available for future dividends.

• Iron ore prices and pellet premiums remained resilient into April 2026; global steel demand is expected to recover modestly in 2026 and accelerate in 2027.