Scully Royalty Ltd.'s most valuable asset is its royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. The royalty rate under this interest is 7.0% on iron ore shipped from the mine and 4.2% on iron ore shipped from tailings and other disposed materials, with a minimum payment of C$3.25 million per annum. The Scully mine has a capacity of six million tonnes per annum and produces a premium iron ore product, with Fe content in excess of 65%.

The Company is determined to focus its efforts on enhancing shareholder value and maximizing earnings and dividends to its shareholders based upon its iron ore royalty interest.

Subject to board approval, applicable law and dependent on the Company’s results, financial position and other factors, the Company currently expects that the first dividend payment under its cash dividend policy to be made after receipt in the first quarter of 2022 of our royalty payments for the fourth quarter of 2021.

We Have two other operating segments besides the Royalty, which includes (i) Industrial, which includes multiple projects in resources and services; and (ii) Merchant Banking, which comprises regulated merchant banking.

Management is committed to a plan to rationalize these interests, and substantial progress has been made on both projects. These two segments have not produced returns commensurate to that of our royalty interest, and our Board of Directors believes that these actions provide compelling benefits to our shareholders and to all aspects and business segments of the Company. It simplifies the Company's corporate structure by separating its non-strategic assets and allows the independent business lines to focus on pursuing and operating their respective businesses.