Callinan Royalties Releases Q1 Financial Statements & Announces Quarterly Royalty Payments and Dividend Payment Date

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

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

Corporate Office:
1110 - 555 West Hastings Street
Vancouver, BC
Canada, V6B 4N4

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Callinan Royalties Corporation

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