Labrador Iron Ore Royalty Corp
TSX:LIF
Gross Margin
Labrador Iron Ore Royalty Corp
Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.
Gross Margin Across Competitors
| Country | Company | Market Cap |
Gross Margin |
||
|---|---|---|---|---|---|
| CA |
|
Labrador Iron Ore Royalty Corp
TSX:LIF
|
1.8B CAD |
80%
|
|
| ZA |
K
|
Kumba Iron Ore Ltd
JSE:KIO
|
99.5B Zac |
85%
|
|
| BR |
|
Vale SA
BOVESPA:VALE3
|
239.1B BRL |
35%
|
|
| AU |
|
Fortescue Metals Group Ltd
ASX:FMG
|
52.1B AUD |
44%
|
|
| AU |
F
|
Fortescue Ltd
XMUN:FVJ
|
28.9B EUR |
44%
|
|
| US |
|
Nucor Corp
NYSE:NUE
|
33.2B USD |
10%
|
|
| IN |
|
JSW Steel Ltd
NSE:JSWSTEEL
|
2.5T INR |
32%
|
|
| LU |
|
ArcelorMittal SA
AEX:MT
|
25.1B EUR |
0%
|
|
| IN |
|
Tata Steel Ltd
NSE:TATASTEEL
|
2T INR |
57%
|
|
| CN |
|
Baoshan Iron & Steel Co Ltd
SSE:600019
|
154.1B CNY |
6%
|
|
| JP |
|
Nippon Steel Corp
TSE:5401
|
3T JPY |
16%
|
Labrador Iron Ore Royalty Corp
Glance View
In the rugged landscapes of northeastern Canada, where iron-rich earth meets the chill of the Atlantic, Labrador Iron Ore Royalty Corp (LIORC) sits at the crossroads of simplicity and industrial might. Established in the mid-1990s, LIORC's business model is elegantly straightforward yet remarkably effective—capitalizing on its tri-fold revenue stream derived from iron ore operations. At its core, the company holds a unique 15.1% stake in the Iron Ore Company of Canada (IOC), which undertakes the actual mining and processing in Labrador’s rich deposits. This position offers LIORC significant dividends tied directly to the financial performance and output of the IOC. Moreover, the corporation benefits from a 7% gross overriding royalty on all sales of iron ore products produced from the specified Iopex land, generating income that grows with production volumes rather than just profits. These structural stakes embed LIORC deeply within the fabric of one of Canada's premier mining operations, assuring a steady income flow with a direct connection to global iron ore market dynamics. The lifeblood of LIORC’s operations hinges on global demand for iron ore, predominantly driven by the steel manufacturing industries. As economic powers like China continue their infrastructural growth and renewal, the demand for steel influences iron ore prices, which in turn impacts the royalties and dividends flowing into LIORC's coffers. Despite having no operational control, the company remains agile by maintaining a lean structure void of mining costs, allowing it to distribute a significant portion of its earnings back to shareholders as dividends. This setup echoes a classic Buffett-Munger focus on investments that continually produce cash flow while needing minimal capital reinvestment. Through its strategic, almost passive involvement in the mining sector, LIORC stands as a testament to the potential of achieving robust returns from natural resource expertise, anchored in a philosophy of prudence and calculated foresight.
See Also
Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.
Based on Labrador Iron Ore Royalty Corp's most recent financial statements, the company has Gross Margin of 80.3%.
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