Callinan Royalties Releases Q2 Financial Statements, Announces Quarterly Royalty Payments & Dividend Payment Date

TSXV: CAA

VANCOUVER, March 3, 2014 /CNW/ - Callinan Royalties Corporation ('Callinan', the 'Company') (TSXV: CAA) announces its financial results for the three and six month periods ended December 31, 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). All dollar figures are in Canadian (CAD) currency.

Net income for the six month period ended December 31, 2013 net of income tax expense is $3,157,534 and $1,450,743 for the quarter ended December 31, 2013, compared to $5,348,827 and $2,892,704 for the same periods last year. Income per share for six months is $0.07 for basic and $0.06 for fully diluted compared to $0.11 for both basic and fully diluted for the same period last year.

A summary of the financial information is included in the following table:

  3 months
December 31, 2013
3 months
December 31, 2012
6 months
December 31, 2013
6 months
December 31, 2012
Royalty Income $3.06 million $5.22 million $5.93 million $9.65 million
Net Income $1.45 million $2.89 million $3.16 million $5.35 million
Net Income /
Share Fully Diluted
$0.03 $0.06 $0.06 $0.11
Cash Flow from
Operation
$1.11 million $1.78 million $7.85 million $8.88 million

The following are key highlights for the second quarter:

  • $987,720 was paid out in dividends to shareholders.
  • Cash on hand at December 31, 2013 was $26,092,977 (compared to $26,429,691 at December 31, 2012).
  • Two alliance agreements were announced.  Subsequently, two royalty interests were created under the alliance agreements. Callinan agreed to fund a $150,000 exploration program on Avrupa's 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 of Renaissance Gold in Nevada in exchange for a 1.5% NSR royalty.

Quarterly Royalty Payments

Callinan received interim quarterly royalty payments totaling $2,325,043 from Hudbay Minerals Inc. for the quarter ended December 31, 2013. The royalty payments include a payment of $2,212,459 from the 6⅔% Net Profits Interest Royalty and $112,584 from the production royalty of $0.25 per ton of ore milled. This compares with interim quarterly royalty payments totaling $3,939,810 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 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 has declared a quarterly cash dividend for the quarter ending March 31, 2014 on its common shares of two cents per common share to all shareholders of record at the close of business on March 31, 2014. The ex-dividend date will be March 27, 2014 and it is expected that the dividend will be paid on or about April 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 are eligible dividends for Canadian income tax purposes unless otherwise stated.

Summary

Despite a difficult year in 2013 for the global mining industry, Callinan continues to be a profitable royalty company with a sustained dividend policy. Our quarterly royalty income from the 777 mines is lower than last year for the same period but we note some improvement compared to the payment received last quarter. We see this as a positive development given metal prices and challenges experienced at the 777 mine in 2013. We are also pleased to see progress in some of the companies in which we have invested. We look forward to 2014 under the governance of a new board of directors as we continue to focus on building a stronger company and adding quality royalty assets to our portfolio.

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 production royalty CAD $0.25 per ton of ore milled 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 $26 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

For further 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
+1 604 424 8639
shareholder@callinan.com

Corporate Office:
770 - 475 West Georgia Street
Vancouver, BC
Canada, V6B 4M9