1. Limited diversification: Labrador Iron Ore Royalty Corporation primarily operates in the iron ore industry, which can make it more vulnerable to fluctuations in commodity prices compared to companies with a more diversified portfolio.

2. Dependence on a single customer: The company's main customer is Iron Ore Company of Canada (IOC), which accounts for a significant portion of its revenue. This dependence on a single customer can expose Labrador Iron Ore Royalty Corporation to risks associated with changes in IOC's operations or demand for iron ore.

3. Exposure to geopolitical risks: Labrador Iron Ore Royalty Corporation's operations are primarily located in Labrador, Canada. Any geopolitical tensions or changes in government policies in the region can impact the company's operations and profitability.

4. Limited control over production: As a royalty company, Labrador Iron Ore Royalty Corporation does not have direct control over the production and operational decisions of its underlying assets. This lack of control can limit the company's ability to respond to market conditions or optimize production.

5. Environmental and regulatory risks: The mining industry, including iron ore mining, is subject to stringent environmental regulations. Any non-compliance or changes in regulations can result in increased costs or operational disruptions for Labrador Iron Ore Royalty Corporation.

6. Vulnerability to economic downturns: Labrador Iron Ore Royalty Corporation's financial performance is closely tied to the overall health of the global economy. During economic downturns, demand for iron ore may decrease, leading to lower revenues and profitability for the company.