Labrador Iron Ore Royalty

LIF-T

TSE:LIF

15.53
1.28 (7.61%)
Labrador Iron Ore Royalty Corp through its subsidiaries holds equity interest in Iron ore company of Canada. It earns royalty on all iron ore products produced, sold and shipped.
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Analysis and Opinions about LIF-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
January 15, 2016

A tough one because volumes are declining with price, and of course there is a global glut of iron ore. Until that turns around, investors are not going to pay up for this company. Wouldn’t be overly concerned about the dividend, it is more a valuation on how you are going to make any money with other investors bidding the price up. Not any need to own this right now.

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A tough one because volumes are declining with price, and of course there is a global glut of iron ore. Until that turns around, investors are not going to pay up for this company. Wouldn’t be overly concerned about the dividend, it is more a valuation on how you are going to make any money with other investors bidding the price up. Not any need to own this right now.

HOLD
HOLD
January 6, 2016

The story is very simple. They produce pellets which is a premium product. Not the lowest cost producer, but their production rates are in the middle. It’s a royalty, so there is no cost regarding operating exposure. However, you have to watch the price of iron ore. If iron ore turned up, this would be a screaming buy. They’re earning around $0.20 a quarter, but are paying $1, and have always paid specials out as they have earned premiums. The difficulty is if the iron price doesn’t start to move up a bit, the ability to pay special dividends is going to disappear, and then there is the question on how much they can pay on their quarterly dividends. Be patient on having this as a Buy.

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The story is very simple. They produce pellets which is a premium product. Not the lowest cost producer, but their production rates are in the middle. It’s a royalty, so there is no cost regarding operating exposure. However, you have to watch the price of iron ore. If iron ore turned up, this would be a screaming buy. They’re earning around $0.20 a quarter, but are paying $1, and have always paid specials out as they have earned premiums. The difficulty is if the iron price doesn’t start to move up a bit, the ability to pay special dividends is going to disappear, and then there is the question on how much they can pay on their quarterly dividends. Be patient on having this as a Buy.

COMMENT
COMMENT
January 6, 2016

Wouldn’t want to put his neck out on where iron ore prices are going to be in the next year or 2. He likes the business. They pay a dividend off the ore that they mine in Canada. Costs have been coming down. They sell a higher quality iron ore. However, with prices going against them, it is very, very difficult for them to keep on making more and more money to increase their dividend. There is a chance they could have to cut their dividend in future quarters. Sold his holdings when iron ore prices turned around.

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Wouldn’t want to put his neck out on where iron ore prices are going to be in the next year or 2. He likes the business. They pay a dividend off the ore that they mine in Canada. Costs have been coming down. They sell a higher quality iron ore. However, with prices going against them, it is very, very difficult for them to keep on making more and more money to increase their dividend. There is a chance they could have to cut their dividend in future quarters. Sold his holdings when iron ore prices turned around.

COMMENT
COMMENT
December 18, 2015

Had a trading band that lasted for a number of years. It broke down, and now even the recent support seems to be breaking. It may be possibly driven by the overreaction by the market, and it may bounce off, but it doesn’t appear to be looking like much more than a short-term trade at this point.

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Had a trading band that lasted for a number of years. It broke down, and now even the recent support seems to be breaking. It may be possibly driven by the overreaction by the market, and it may bounce off, but it doesn’t appear to be looking like much more than a short-term trade at this point.

COMMENT
COMMENT
November 4, 2015

The most important question on this company is the price of iron. The price of iron ore has collapsed. The predominance of this company’s production is iron ore pellets. The bad news is that we just have so much capacity and this is a smaller company. The good news is that the dividend looks pretty good. What concerns him about smaller cyclical companies is their ability to support the infrastructure around it. You have to start questioning how long a cyclical company can keep paying a dividend when commodity prices are low. That is his only concern.

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The most important question on this company is the price of iron. The price of iron ore has collapsed. The predominance of this company’s production is iron ore pellets. The bad news is that we just have so much capacity and this is a smaller company. The good news is that the dividend looks pretty good. What concerns him about smaller cyclical companies is their ability to support the infrastructure around it. You have to start questioning how long a cyclical company can keep paying a dividend when commodity prices are low. That is his only concern.

TOP PICK
TOP PICK
July 28, 2015

China is making 800 million tons of steel a year, over 50% of the world’s production, but making it to sell to us. Nobody needs that much steel and they are trying to put our steel out of business. Iron ore has really come off and 30% of the world’s production is underwater, so production needs to be turned off. The commodity is now below the cost curve. The Cdn$ fixed costs knocks him onside. This company has no debt. They provide a high-quality product that has to go into steel mills in Europe. Dividend yield of 7.86%.

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China is making 800 million tons of steel a year, over 50% of the world’s production, but making it to sell to us. Nobody needs that much steel and they are trying to put our steel out of business. Iron ore has really come off and 30% of the world’s production is underwater, so production needs to be turned off. The commodity is now below the cost curve. The Cdn$ fixed costs knocks him onside. This company has no debt. They provide a high-quality product that has to go into steel mills in Europe. Dividend yield of 7.86%.

PAST TOP PICK
PAST TOP PICK
June 22, 2015

(Top Pick May 23/14, Down 38.13%) Iron ore prices went lower than anyone anticipated this year. We have seen the bottom now. The majority of its dividend is supported by royalty. The dividend is sustainable. 5.9%.

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(Top Pick May 23/14, Down 38.13%) Iron ore prices went lower than anyone anticipated this year. We have seen the bottom now. The majority of its dividend is supported by royalty. The dividend is sustainable. 5.9%.

COMMENT
COMMENT
April 22, 2015

Because he is not a direct investor in resources, he asks that you take his comments with a grain of salt. Rio Tinto (RIO-N) is thinking about putting Labrador Iron Ore up for sale, as a consequence you might actually get a better lift on this royalty. He would be a little bit nervous about the dividends because the steel industry and steel suppliers are having a pretty rough time.

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Because he is not a direct investor in resources, he asks that you take his comments with a grain of salt. Rio Tinto (RIO-N) is thinking about putting Labrador Iron Ore up for sale, as a consequence you might actually get a better lift on this royalty. He would be a little bit nervous about the dividends because the steel industry and steel suppliers are having a pretty rough time.

COMMENT
COMMENT
April 17, 2015

Actually doesn’t own anything. It has a royalty on iron ore produced and sold by the Iron Ore Company of Canada. Iron ore prices have been under siege and volumes have not been as good as they could be. This has a nice 8.5% dividend yield and eventually will come back. The Company has recently sent out a proxy wanting to change the status of the company. He would suggest that you vote against that.

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Actually doesn’t own anything. It has a royalty on iron ore produced and sold by the Iron Ore Company of Canada. Iron ore prices have been under siege and volumes have not been as good as they could be. This has a nice 8.5% dividend yield and eventually will come back. The Company has recently sent out a proxy wanting to change the status of the company. He would suggest that you vote against that.

SELL
SELL
April 10, 2015

Times are hard and probably going to get worse. Chinese just won’t pay for iron ore and there is lots of it. Australians are producing it in huge quantities. Also, feels the 8.5% dividend is in jeopardy.

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Times are hard and probably going to get worse. Chinese just won’t pay for iron ore and there is lots of it. Australians are producing it in huge quantities. Also, feels the 8.5% dividend is in jeopardy.

COMMENT
COMMENT
December 2, 2014

Iron ore prices have been at 5-year lows lately. They have been getting hit. Very much tied to Chinese GDP outlook, more than a lot of things. Chinese are trying to stimulate, which shows you how soft things really are. If this stays here for any length of time, they’ll probably have to cut the dividend. Yield of 6%.

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Iron ore prices have been at 5-year lows lately. They have been getting hit. Very much tied to Chinese GDP outlook, more than a lot of things. Chinese are trying to stimulate, which shows you how soft things really are. If this stays here for any length of time, they’ll probably have to cut the dividend. Yield of 6%.

COMMENT
COMMENT
November 4, 2014

Iron ore has been wallowing in 5 year lows. Iron is used for steel and, like almost every other commodity; China is the largest buyer of steel. When the Chinese economy is not doing as well as it was, steel prices dropped but iron ore prices dropped even more. Coal sector is suffering badly. There is a good chance that China's economy slows down even more.

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Iron ore has been wallowing in 5 year lows. Iron is used for steel and, like almost every other commodity; China is the largest buyer of steel. When the Chinese economy is not doing as well as it was, steel prices dropped but iron ore prices dropped even more. Coal sector is suffering badly. There is a good chance that China's economy slows down even more.

COMMENT
COMMENT
October 29, 2014

There isn't much of a catalyst for this name and for iron ore prices specifically. The reality is that China is growing less strongly than it was before. Growth was in the 7.5% range. Ultimately, they are trying to increase consumption, and consumption spending is part of the economy. It is going to be a long haul. Thinks this will be years. If you have another investment that looks better, consider lightening up.

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There isn't much of a catalyst for this name and for iron ore prices specifically. The reality is that China is growing less strongly than it was before. Growth was in the 7.5% range. Ultimately, they are trying to increase consumption, and consumption spending is part of the economy. It is going to be a long haul. Thinks this will be years. If you have another investment that looks better, consider lightening up.

WATCH
WATCH
October 23, 2014

As China slows they won’t have to construct everything. They will still need iron and steel, but not in the same quantity. Competitors in the industry will drive prices down. It would be a great long term investment if Iron Ore bottoms out.

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As China slows they won’t have to construct everything. They will still need iron and steel, but not in the same quantity. Competitors in the industry will drive prices down. It would be a great long term investment if Iron Ore bottoms out.

DON'T BUY
DON'T BUY
October 9, 2014

A wonderful business model. It doesn`t matter what the price is. China iron ore prices are hitting lows.

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A wonderful business model. It doesn`t matter what the price is. China iron ore prices are hitting lows.

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