Labrador Iron Ore Royalty (LIF) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 results impacted by lower iron ore prices and pellet premiums, partially offset by higher concentrate sales volumes.

• Royalty revenue fell 12% year-over-year but rose 30% sequentially; net income per share dropped 46% year-over-year but increased 27% from Q1 2025.

• No dividend received from IOC in Q2 2025, compared to $41.5 million in Q2 2024.

Financial highlights

• Q2 2025 revenue: $46.8M (down from $53.1M in Q2 2024); net income: $26.5M (down from $50.2M); EPS: $0.42 (down from $0.78).

• Adjusted cash flow per share: $0.40 (down 64% year-over-year, up 30% sequentially).

• Cash flow from operations: $17.7M in Q2 2025 vs $82.1M in Q2 2024.

• Dividends declared per share: $0.30 in Q2 2025 vs $1.10 in Q2 2024.

Outlook and guidance

• IOC's 2025 saleable production guidance remains 16.5–19.4M tonnes, up from 16.1M in 2024.

• 2025 IOC capital expenditure forecast reduced to US$299M from US$342M; spending on track.

• Iron ore prices expected to remain challenged long-term due to increased supply and muted Chinese demand.

• Premium for high-grade iron ore expected to rise as steel industry seeks lower emissions.