Labrador Iron Ore Royalty (LIF) Q3 2026 earnings summary

Executive summary

• Q3 results remained pressured by lower sales volumes, weaker iron ore prices and higher shipping costs; higher pellet premiums and a richer pellet mix partly offset the impact.

• The multi-year operational reset continued to prioritize pit health and mining flexibility, constraining concentrate production and likely limiting IOC dividends for several years.

Financial highlights

• Royalty revenue was $40.1 million, down 8% YoY and up 19% QoQ; net income was $0.38 per share, down 18% YoY and up 123% QoQ.

• Equity earnings from IOC were $3.9 million, versus $8.6 million in Q3 2025 and a $7.6 million loss in Q2 2026.

• Operating cash flow was $20.4 million, or $0.32 per share, versus $32.7 million, or $0.51 per share, in Q3 2025.

• Adjusted cash flow was $0.35 per share, down 8% YoY and up 21% QoQ; this non-IFRS measure is intended to indicate cash available for distributions.

Outlook and guidance

• Original 2026 IOC sales guidance was 15–18 million tonnes; based on 9M results, sales are expected to be at or below the low end, versus 15.7 million tonnes in 2025.

• The multi-year strategic reset is expected to constrain concentrate production for several years and may limit cash available for IOC dividends.

• October 2026 pricing: 65% Fe index averaged US$106/tonne; BF and DR pellet premiums were US$37 and US$58/tonne, respectively.