TSXV: CAA
VANCOUVER, Nov. 28, 2013 /CNW/ - Callinan Royalties Corporation
('Callinan', the 'Company') (TSXV: CAA) announces its financial results
for the first fiscal quarter ended September 30, 2013. The unaudited
financial statements and Management Discussion and Analysis are
available on Callinan's website (www.callinan.com) and on SEDAR (www.sedar.com).
Net income for the 3 month period ended September 30, 2013 net of income
tax expense is $1,706,791 compared to $2,456,123 for the same period
last year. Income per share for both basic and fully diluted is $0.03
compared to $0.05 for the same period last year.
A summary of the financial information is included in the following
table:
|
|
3 months
September 30, 2013
|
3 months
September 30, 2012
|
|
Income
|
$3.04 million
|
$4.58 million
|
|
Net Income
|
$1.70 million
|
$2.45 million
|
Net Income /
Share Fully Diluted
|
$0.03
|
$0.05
|
|
Net Cash Flow from Operation
|
$6.74 million
|
$7.11 million
|
The following are key highlights for the quarter:
-
$981,848 was paid out in dividends to shareholders.
-
Cash on hand at September 30, 2013 was $27,155,571 (compared to
$30,234,769 at September 30, 2012).
-
Callinan announced it would recommence litigation and file an amended
statement of claim against Hudson Bay Mining & Smelting Co. Ltd., a
subsidiary of Hudbay Minerals Inc.
-
As previously announced on July 23, 2013, Callinan completed a staged
royalty investment with Excelsior Mining. Callinan has acquired a 0.5%
Gross Revenue Royalty on the Gunnison Copper Project in Arizona and
holds the right to increase its royalty following completion of key
milestones.
-
Following the quarter ended September 30, 2013, Callinan announced the
creation of two exploration alliances. As part of these alliances,
Callinan has agreed to fund a $150,000 exploration program on the
Alvito Project in Portugal in exchange for a 1.5% net smelter returns
("NSR") royalty. Callinan also agreed to fund a $150,000 exploration
program on the Golden Shears project in Nevada in exchange for a 1.5%
NSR royalty.
Roland Butler, CEO commented "The 777 mine encountered some challenges
earlier this year, yet there were production increases at the 777 mine
and contributions from the 777 North ramp. With weak metal markets, our
royalty revenue for the recent quarter was negatively impacted.
However, operational issues have been managed and Hudbay has reported
that mining of higher grade copper zones is planned for the future. We
successfully completed three agreements in recent months to create
royalties in geologically attractive and stable mining jurisdictions
alongside companies with capable management. Otherwise, we remain
cautious in the current investment environment even though many
opportunities have become available."
Quarterly Royalty Payments
Callinan Royalties Corporation received interim quarterly royalty
payments totaling $2,182,060.50 from HudBay Minerals Inc. for the
quarter ended September 30, 2013.
The royalty payments include a payment of $2,068,658.00 from the 6⅔% Net
Profits Interest Royalty and $113,402.50 from the production royalty of
$0.25 per ton of ore. This compares with interim quarterly royalty
payments totaling $3,359,471.50 for the same quarter last year.
The Net Profits Interest payment represents 75% of an estimate by HudBay
Minerals Inc. The remaining 25% is paid annually, in mid-July, 130
business days after the financial year end of HudBay Minerals Inc.as
per the agreement.
Quarterly Dividend
The board of directors of Callinan Royalties Corporation has declared a
quarterly cash dividend for the quarter ending December 31, 2013 on its
common shares of two cents per common share to all shareholders of
record at the close of business on December 31, 2013. The ex-dividend
date will be December 27, 2013 and it is expected that the dividend
will be paid on or about January 15, 2014.
It is anticipated that future quarterly dividends will be payable
approximately 15 days following each fiscal quarter. The declaration,
timing, and payment of future dividends will largely depend on the
Company's financial results as well as other factors. Dividends paid by
Callinan Royalties Corporation are eligible dividends for Canadian
income tax purposes unless otherwise stated.
On Behalf of the Board of Directors,
Roland Butler
Roland Butler, CEO
About Callinan Royalties
Callinan Royalties is a Canadian company that creates and acquires
mineral royalties. The company uses its royalty income to provide
alternative financing options to mineral exploration and development
companies with attractive projects. Callinan's strategy is to create
shareholder value over the long term by generating a portfolio of
profitable mineral royalties.
The Corporation currently has two producing royalties. Callinan holds a
6⅔% net profits interest royalty and a $0.25 per ton production royalty
on lands that include the 777 mine and 777 North mine owned by Hudbay
Minerals Inc. located in Flin Flon, Manitoba, Canada. Callinan also
holds the 777 Deeps (War Baby) property and an associated royalty
option on the property, which is located adjacent to the 777 mine.
Callinan is a dividend paying Tier 1 company listed on the TSX Venture
Exchange under the symbol CAA. The Corporation has a strong financial
position with no debt, approximately $27 million in cash and
approximately 49.2 million shares outstanding.
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. Certain of the information presented in this News Release may constitute
"forward-looking statements" or "forward-looking information" within
the meaning of Canadian securities legislation (together referred to as
"forward-looking statements"). The forward-looking statements are
subject to risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied by
such forward-looking statements, including any delays in the receipt of
consents or approvals. Although Callinan Royalties has attempted to
identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements contained in this News
Release and in any document referred to in this News Release.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date the statements are made and Callinan
Royalties undertakes no obligation to update forward-looking statements
if these beliefs, estimates and opinions or other circumstances should
change, except as required by applicable law.
SOURCE Callinan Royalties Corporation
