First off, Labrador Iron Ore is a royalty company that simply has an interest in the Iron Ore Company of Canada. So much like our Bull List Stock A&W Royalty, it simply takes top line royalties from IOCC and pays out a set distribution.
So, when prices of iron ore are high, LIF will pay out more as it will inevitably get more royalty payments from IOCC. This is why you see a very high, and likely unsustainable yield. Once supply chain issues subside, the price of iron ore will likely dip and LIF's distribution will go down.
Now, over the short term, as you've highlighted, there are some short term tailwinds for iron ore and LIF is sure to benefit. It is not a company I would hold long term. But, it's one an investor could profit off holding during high prices. The difficulty in this however is timing your exit. Which is why most investors fail to generate long term outperformance when investing in cyclicals.