Callinan Royalties Releases Q3 Financial Statements, Announces Quarterly Royalty Payments & Dividend Payment Date and Announces Participation in Direct Registration System (DRS)

TSXV: CAA

VANCOUVER, May 29, 2014 /CNW/ - Callinan Royalties Corporation ('Callinan', the 'Company') (TSXV: CAA) announces its financial results for the three and nine months ended March 31, 2014. 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 nine month period ended March 31, 2014 net of income tax expense is $4,193,026 and $1,035,492 for the quarter ended March 31, 2014, compared to $7,229,874 and $1,881,047 respectively, for the same period last year.  Income per share for nine months is $0.09 for both basic and fully diluted compared to $0.15 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

March 31, 2014

3 months

March 31, 2013

9 months

March 31, 2014

9 months

March 31, 2013

Income

$2.22 million

$3.22 million

$8.59 million

$13.29 million

Net Income

$1.03 million

$1.88 million

$4.19 million

$7.23 million

Net Income /

Share Fully Diluted

$0.02

$0.04

$0.09

$0.15

Cash Flow from

Operation

$1.52 million

$(0.65) million

$9.38 million

$8.23 million

 

The following are key highlights for the third quarter:

  • $999,811 was paid out in dividends to shareholders.
  • Cash on hand at March 31, 2014 was $25,188,909 (compared to $24,584,446 at March 31, 2013).

Quarterly Royalty Payments

Callinan received interim quarterly royalty payments totaling $1,396,246 from Hudbay Minerals Inc. for the quarter ended March 31, 2014. The royalty payments include a payment of $1,288,914 from the 6⅔% Net Profits Interest Royalty and $107,332 from the production royalty of $0.25 per ton of ore milled, compared to payments totalling $2,298,145 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 June 30, 2014 on its common shares of two cents per common share to all shareholders of record at the close of business on June 30, 2014. The ex-dividend date will be June 26, 2014 and it is expected that the dividend will be paid on or about July 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.

Direct Registration System

Callinan is pleased to announce that it has elected to participate in the Direct Registration System ("DRS"). The DRS program allows Callinan shareholders to keep their securities without having a physical share certificate issued as evidence of ownership. Instead, the shares are held in the shareholder name and registered electronically in the Company's records, which are maintained by Callinan's transfer agent, Canadian Stock Transfer ("CST Trust Company"). Current shareholders are not affected by the Company's participation in the DRS program which is simply a step towards facilitating current or potential new shareholders in their ability to hold shares of the Company electronically.

If you are a registered holder of the Company's common shares and wish to convert physical securities to DRS, go to www.canstockta.com for additional information. CST Trust Company can also be directly contacted at:

CST Trust Company
1066 West Hastings Street, Suite 1600
Vancouver, BC V6E 3X1
Telephone: 1-800-387-0825

Summary

Callinan is a profitable royalty company with a continuing dividend policy and evaluation of numerous royalty opportunities is ongoing. Callinan's quarterly royalty income from the 777 mines is lower compared to the same period last year. Metal prices and challenges experienced at the 777 mine in 2013 continued in early 2014. Please refer to Hudbay's public filings for more information.

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 $24 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

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