Callinan Royalties Releases Q4 and Year End Financial Statements & Announces Quarterly Dividend Payment Date

TSXV: CAA

VANCOUVER, Sept. 27, 2012 /CNW/ - Callinan Royalties Corporation ("Callinan" or "the Company") reports strong financial performance in the fourth fiscal quarter and for the fiscal year ended June 30, 2012.

The Company's Net income after taxes for the year is $20,108,190 or $0.40 per share compared to net income of $18,977,388 for fiscal 2011.  Net income for the current year includes a recovery of deferred income taxes attributable to the spin out of the exploration properties to Callinex Mines as approved by the shareholders during fiscal 2011, while revenues for fiscal 2011 included a one-time payment of $6,264,000 from Hudbay Minerals Inc. for an error in the calculation of Callinan's Net Profits Interest in the 777 Mine.

A summary of the financial results is shown below:

  Three Months Ended Twelve Months Ended
    June 2012 June 2011 June 2012 June 2011
Operating summary   $ $ $ $
           
Revenue   5,157,144 6,173,749 23,825,134 29,839,219
           
Net earnings   2,696,080 2,750,935 20,108,190 18,977,388
           
Diluted earnings per share   0.06 0.05 0.40 0.39
           
Net cash flow from operating activities   1,623,325 1,197,051 (805,131) 16,786,276
           

 

During the fiscal year,

  • $2,941,313 was paid out in dividends to the shareholders.
  • $8,000,000 in cash was transferred to Callinex Mines Inc. pursuant to the spin out, and
  • $6,667,772 was paid to purchase 2,487,900 if its common shares which was subsequently cancelled.
  • Cash balance at fiscal year-end was $29 million.

Additional information on the Company's financial performance are included in the Company's MD&A and Financial Statements which have been filed on SEDAR and are also available on the Company's website.

The Company currently has over $32 million in cash, no debt and just over 42 million shares outstanding.

The independent audit by Grant Thornton of the NPI calculations continues towards completion.  Once this phase of work has been completed Grant Thornton will report to the Board of Directors of Callinan and the next steps will be determined.

Additionally, the board of directors of Callinan Royalties Corporation has declared a quarterly cash dividend for the quarter ending September 30, 2012 on its common shares of two cents per common share to all shareholders of record at the close of business on September 28, 2012. The ex-dividend date will be September 26, 2012 and it is expected that the dividend will be paid on or about October 15, 2012.

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.

Callinan will hold its annual general meeting on November 30, 2012. The place and time of the meeting will be announced at a later date.

On Behalf of the Board of Directors,

Roland Butler

Roland Butler, CEO

About Callinan

Callinan Royalties Corporation is a mineral royalty company based in Canada.  Its principal business activities centre on creating mineral royalties through financing and royalty acquisition while diligently managing its royalty interests and investments.

The Corporation currently has two producing royalties. Callinan holds a 6⅔% net profits interest royalty and another $0.25 per ton royalty on lands that include the 777 Mine owned by HudBay Minerals Inc. located at Flin Flon, Manitoba, Canada as well as the adjacent 777 North Mine scheduled for production in 2012.   Callinan also holds the 777 Deeps (War Baby) property and an associated royalty option located on that property, which is located adjacent to the 777 Mine.

Callinan is a dividend paying Tier 1 company listed on the TSXV under the symbol CAA.  The Corporation has a strong financial position with no debt, approximately $32 million in cash and approximately 48.2 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

For further information:

For more information, please visit www.callinan.com or contact:

Roland Butler, CEO
Callinan Royalties Corporation
+1 709 535 3433
shareholder@callinan.com

Tamara Edwards, CFO
Callinan Royalties Corporation
+1 604 605 0885
shareholder@callinan.com