Labrador Iron Ore Royalty Corporation (LIORC) is a Canadian investment company that holds interests in Iron Ore Company of Canada (IOC), a leading North American producer and exporter of premium iron ore pellets and high-grade concentrate. The company has been producing and processing iron ore since 1954 and is among the top five producers of seaborne iron ore pellets in the world.
LIORC holds a 15.1% equity interest in IOC 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. Generally, LIORC pays cash dividends from its net income to the maximum extent possible, subject to the maintenance of appropriate levels of working capital. Since inception, the company has paid out 99% of standardized cash flow.
LIORC does not control or operate IOC. However, LIORC is indirectly exposed to environmental, social, and other risks arising from IOC’s operations.