Canadian mining company Labrador Iron Ore Royalty Corporation (LIORC) has announced its financial results for the second quarter ended June 30, 2011, stating that it posted lower revenues due to the lower production levels of Iron Ore Company of Canada (IOC).
LIORC's revenues for the second quarter stand at $38.1 million as compared to $52.1 million in the second quarter of 2010. Net income of the company decreased to $48.2 million in the second quarter of this year, down 30.4 percent compared to $69.3 million in the same period in 2010. LIORC's revenues entirely depend on the operations of IOC in which it holds a 15.10 percent stake.
The company stated that the second quarter saleable iron ore production of IOC was 14 percent lower compared to the same quarter of 2010, but 31 percent higher than the first quarter of 2011. While the decrease is caused by truck and labor availability issues, the increase is seen due to the progress made in stabilization and improving the production capability.
For the outlook of the second half of the year, iron ore markets and pricing remain strong, while IOC is expected to sell its entire pellet and concentrate output. It is anticipated that production will go back to normal levels in the second half of the year.