TORONTO, April 2, 2020 /CNW/ - Labrador Iron Ore
Royalty Corporation ("LIORC") (TSX: LIF) announced today that it
has been advised that Iron Ore Company of Canada ("IOC") is adjusting its production to
focus on meeting the demand for iron ore concentrate. The COVID-19
pandemic situation caused a slowdown in demand for pellets in
various markets and industries across Europe and North
America. LIORC understands that IOC is temporarily halting
production of two pellet machines in Labrador City to respond to market demand for
additional concentrate for sale. Currently, the demand for
concentrate remains strong. IOC is in a unique position to be able
to adjust its supply of product to align with changing market
conditions.
IOC has advised LIORC that no IOC employees will be laid off as
a result of this decision. IOC advises that it is focused on
keeping its employees, contractors and local communities healthy
and safe while protecting its business and continuing to support
the local economies.
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.
Forward-Looking Statements
This news release contains "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 news 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 aboriginal groups, changes
affecting IOC's customers, natural disasters, severe weather
conditions and public health epidemics, 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 news
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
news release and LIORC assumes no obligation, except as required by
law, to update any forward-looking statements to reflect new events
or circumstances. This news 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.
SOURCE Labrador Iron Ore Royalty Corporation