Labrador Iron Ore Royalty (LIF) AGM 2025 Presentation summary

Financial performance highlights

• 2024 revenue was $209.0 million, up from $201.3 million in 2023; Q1 2025 revenue was $36.2 million, down from $56.7 million in Q1 2024.

• 2024 net income was $175.0 million, down from $186.3 million in 2023; Q1 2025 net income was $21.4 million, down from $59.3 million in Q1 2024.

• Adjusted cash flow from operations in 2024 was $198.9 million, up from $161.5 million in 2023; Q1 2025 was $19.8 million, down from $31.3 million in Q1 2024.

• Adjusted cash flow per share in 2024 was $3.11, up from $2.52 in 2023; Q1 2025 was $0.31, down from $0.49 in Q1 2024.

• IOC dividends contributed $83.6 million ($1.31/share) in 2024 and $50.4 million ($0.79/share) in 2023.

Operational performance and initiatives

• IOC produced 16.1 million tonnes of pellets and CFS in 2024, a 2% decrease from 2023 due to operational issues and a site-wide shutdown.

• Q1 2025 production was 3.9 million tonnes, down 11% year-over-year, despite a 30% increase in material moved.

• Strategy focuses on stabilizing operations, optimizing the operational footprint, and advancing growth for green steel transition.

• Improvement programs target asset integrity, mine plan optimization, and increased haul truck utilization.

• Full value chain upgrades are underway, including capacity increases in concentrator, pellet plant, and shipping logistics.

Market environment and pricing

• Global steel production growth has stalled, with 2024 output down 1% and Q1 2025 flat year-over-year.

• In 2024, Platts 65% Index averaged US$123/tonne, down from US$132/tonne in 2023; pellet premiums also declined.

• IOC's average realized price for pellets and CFS in 2024 was US$125/tonne, a 4% decrease from 2023.

• Q1 2025 realized price was US$110/tonne, reflecting further price pressure.