Labrador Iron Ore Royalty (LIF) Investor presentation summary

Ownership and asset overview

• Holds 15.1% equity in IOC, a 7% top-line royalty, and a $0.10/tonne commission on all IOC sales.

• IOC operates a large, high-quality iron ore resource with 966 million tonnes of reserves and 1.49 billion tonnes of additional resources, supporting about 20 years of production.

• IOC features significant infrastructure, including a concentrator, pellet plant, and a 418 km railway and port.

• Operated by Rio Tinto, recognized for competitive costs and operational stability.

Production and operational performance

• 2025 saleable production was 15.9M tonnes, down from 16.1M tonnes in 2024, below the nameplate capacity.

• Production shortfall attributed to pit health and equipment reliability issues.

• 2026 production guidance is 15–18M tonnes.

• Rio Tinto has implemented operational changes, including leadership restructuring and integration with global operations, aiming for multi-year improvements.

Market environment and pricing

• 2025 Platts 65% iron ore index averaged US$115/tonne, down from US$123 in 2024, reflecting lower steel demand.

• Pellet premiums also declined to US$30/tonne in 2025.

• Global steel production growth has slowed, with China’s output declining since 2021; a modest rebound is forecast for 2026, led by India and emerging markets.