Labrador Iron Ore Royalty Corp
TSX:LIF
Operating Margin
Labrador Iron Ore Royalty Corp
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Operating Margin Across Competitors
| Country | Company | Market Cap |
Operating Margin |
||
|---|---|---|---|---|---|
| CA |
|
Labrador Iron Ore Royalty Corp
TSX:LIF
|
1.8B CAD |
75%
|
|
| ZA |
K
|
Kumba Iron Ore Ltd
JSE:KIO
|
87.9B Zac |
32%
|
|
| BR |
|
Vale SA
BOVESPA:VALE3
|
218.7B BRL |
28%
|
|
| AU |
F
|
Fortescue Ltd
XMUN:FVJ
|
25.5B EUR |
37%
|
|
| US |
|
Nucor Corp
NYSE:NUE
|
29.4B USD |
7%
|
|
| AU |
|
Fortescue Metals Group Ltd
ASX:FMG
|
45.3B AUD |
37%
|
|
| IN |
|
JSW Steel Ltd
NSE:JSWSTEEL
|
2.5T INR |
8%
|
|
| LU |
|
ArcelorMittal SA
AEX:MT
|
22.5B EUR |
6%
|
|
| IN |
|
Tata Steel Ltd
NSE:TATASTEEL
|
1.9T INR |
7%
|
|
| JP |
|
Nippon Steel Corp
TSE:5401
|
2.9T JPY |
6%
|
|
| CN |
|
Baoshan Iron & Steel Co Ltd
SSE:600019
|
142.7B CNY |
3%
|
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
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Based on Labrador Iron Ore Royalty Corp's most recent financial statements, the company has Operating Margin of 75.4%.
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