TORONTO, April 27, 2021 /CNW/ - Iron Ore Company
of Canada ("IOC") has provided Labrador Iron Ore
Royalty Corporation (the "Corporation") with the following
update on the situation at IOC's Sept-Îles port
facilities following the fire at Reclaimer no. 2.
After initial assessment of the damages, IOC estimates that
repairs to Reclaimer no. 2 will be completed in Q4-2021.
Currently, Reclaimer no. 1 is in full operation and IOC is also
able to by-pass the damaged reclaimer and load ore
directly from the train dumper. In addition, IOC has deployed
mobile tele-stackers which enable IOC to load ore from its
stockyard on a conveyor belt. IOC advised that despite
the interim loading solutions IOC is operating at a reduced
rate compared to its nominal capacity and the force majeure
declarations remain in effect.
IOC has advised that the 2021 production guidance remains
unchanged at 17.9 to 20.4 million tonnes and IOC expects that,
while sales tonnages in the second quarter will be negatively
affected, most of the shortfall will be recovered during the
remainder of the year.
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 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 the timing and costs of
repairs to Reclaimer no. 2, the effectiveness of IOC's interim
loading solutions, 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 crises, changes affecting IOC's customers, competition from
other iron ore producers, estimates of reserves and resources,
government regulation and taxation and cybersecurity. A
discussion of these factors is contained in LIORC's annual
information form dated March 4, 2021
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.
SOURCE Labrador Iron Ore Royalty Corporation