Labrador Iron Ore Royalty Corporation - Cash Dividend for the Fourth Quarter of 2020 - $1.80 Per Common Share
TORONTO, Dec. 15, 2020 - The Directors of Labrador Iron Ore Royalty Corp. (the "Corporation") (TSX: LIF) declared today a quarterly cash dividend of $1.80 per Common Share. The dividend is payable to holders of record at the close of business on December 31, 2020 and is to be paid on January 26, 2021.
The Corporation has decided to end the practice of designating dividends as either regular or special dividends. Currently, many third-party investor information services do not include special dividends when calculating the Corporation's dividend yield, despite the fact that special dividends have been declared in 23 of the last 32 quarters and have represented over 48% of the total value of dividends declared over that time. By removing the special dividend designation, the Corporation believes that its dividend yield will be more accurately reported by these services in the future.
The Corporation normally pays cash dividends from its net income to the maximum extent possible, subject to the maintenance of appropriate levels of working capital. This change will not affect the total amount of quarterly dividends received by shareholders, which will continue to vary depending on the financial results of IOC. The total aggregate dividends declared in 2020 was $3.05 per Common Share.
About Labrador Iron Ore Royalty Corporation
The Corporation holds a 15.10% equity interest in IOC directly and through its wholly-owned subsidiary, Hollinger-Hanna Limited, and receives a 7% gross overriding royalty and a 10 cent per tonne commission on all iron ore products produced, sold and shipped by IOC.
This press release may contain ''forward-looking'' statements that involve risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Words such as ''may'', ''will'', ''expect'', ''believe'', ''plan'', ''intend'', ''should'', ''would'', ''anticipate'' and other similar terminology are intended to identify forward-looking statements. These statements reflect current assumptions and expectations regarding future events and operating performance as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly, including iron ore price and volume volatility, exchange rates, the performance of IOC, market conditions in the steel industry, mining risks and insurance, relationships with indigenous groups, natural disasters, severe weather conditions and public health epidemics, changes affecting IOC's customers, competition from other iron ore producers, estimates of reserves and resources and government regulation and taxation. A discussion of these factors is contained in LIORC's annual information form dated March 5, 2020 under the heading, ''Risk Factors''. Although the forward-looking statements contained in this press release are based upon what management of LIORC believes are reasonable assumptions, LIORC cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and LIORC assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances. This press release should be viewed in conjunction with LIORC's other publicly available filings, copies of which can be obtained electronically on SEDAR at www.sedar.com.
John F. Tuer, President & Chief Executive Officer, (416) 362-0066, E-mail- email@example.com