China’s demand for iron ore remains robust despite the pandemic, Labrador Iron Mines (LIM) stated while reporting its annual earnings.
The Toronto-based miner also noted that Chinese steel production, along with iron ore supply from Australia, remains stable. However, Brazilian production has substantially declined since the pandemic began, a reversal of which will occur in due time and cause iron ore prices to rise.
LIM owns large iron ore resources in its Schefferville Projects, comprised of company ferrous mines in Newfoundland, Labrador, and Quebec. This project’s total assets total 55mn mt of 56.8pc Fe and an additional 5mn mt of 55.6pc Fe.
The holding company also owns the Elizabeth Taconite Project in Labrador with indicated reserves of 620mn mt of 31.8pc Fe, and Houston, which is indicated to hold 40.6mn mt of 57.6pc Fe. Elizabeth and Houston are capable of producing 5mn mt and 2mn mt, respectively, of saleable ore per year.
For the fiscal year ended March 31, 2020, the company posted a net loss of $440,000 compared to a net loss of $560,000 during its previous fiscal year.