Canadian Royalties Announces Financial Results For the Quarter Ended June 30, 2008



    MONTREAL, Aug. 14 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ)
("Canadian Royalties" or the "Corporation") announces that it filed its
financial results on August 14, 2008, for the quarter ended June 30, 2008
together with the management's discussion and analysis of the financial
condition and results of operations for the six-month period ended June 30,
2008.

    Financial Results Quarter Ended June 30, 2008

    On May 21, 2008, the Corporation obtained the Environmental Certificate
of Authorization for the Nunavik Nickel Project from the Ministère des
Ressources naturelles et de la Faune du Québec and the Corporation commenced
construction work on the Nunavik Nickel Project. Engineering designs and
construction plans are being modified to adjust infrastructure capacity and
mining equipment to 4,500 tonnes per day, an increase which is to occur
24 months following the start of production, as per the revised mine plan
compared to 3,500 tonnes per day in the SNC-Lavalin bankable feasibility
study. As a result of this change, modifications to the wharf design and
increased mining equipment have increased the total construction budget from
$465.6 million to $517.6 million. Readers are directed to the management's
discussion and analysis of the financial condition and results of operations
for the six-month period ended June 30, 2008 for additional information.
    As of June 30, 2008, the Corporation had spent and committed
approximately $179.5 million in investments for the engineering and equipment
for the Nunavik Nickel Project. The balance of funds required by the
Corporation to complete the construction and start-up the Nunavik Nickel
Project are anticipated to be derived from strategic partner contributions and
a project term loan.
    The following table sets forth the income statement highlights.

    
    -------------------------------------------------------------------------
    Income Statement Highlights
    (in thousands of Cdn dollars, except per share amounts)

                                   Three Months               Six Months
                                 2008         2007         2008         2007
                          ------------ ------------ ------------ ------------

    Net loss                    1,551        1,294        3,453        1,700

    Net loss per share          0.016        0.020        0.035        0.026
    -------------------------------------------------------------------------

    The Net loss for the six months reflects the cost of additional support
staff due to the increased activity level and increased professional fees.

    -------------------------------------------------------------------------
    Balance Sheet Highlights
    (in thousands of Cdn dollars)
                                                        June 30  December 31
                                                           2008         2007
                                                    ------------ ------------
    Cash and cash equivalents                           112,595       37,008

    Working Capital (excluding
     cash and cash equivalents)                           6,962        6,130

    Total Assets                                        305,414      163,301

    Long-term debt                                       95,935        7,776

    Shareholders' Equity                                192,088      141,290
    -------------------------------------------------------------------------
    

    Implementation of Asset Conservation Plan

    As previously announced in the Corporation's press release dated
August 5, 2008, on August 4, 2008, the Board of Directors approved an Asset
Conservation Plan intended to conserve the Corporation's assets by deferring
project expenditures until project financing is in place for the Nunavik
Nickel Project. The Asset Conservation Plan has been prompted by the dramatic
changes in capital markets, combined with challenges in accessing
infrastructure and delays in resolution of litigation which have impaired the
Corporation's ability to raise the balance of funds required to bring the
Nunavik Nickel Project into production during the middle of 2010.
    Engineering and other test work for the Nunavik Nickel Project will
continue as scheduled but only essential construction work will be carried out
at the Nunavik Nickel Project for the balance of 2008. Exploration work on all
properties of Canadian Royalties will continue as scheduled.
    Exploration activities in the first semester of 2008 were confined mainly
to analyzing the results of the 2007 exploration program and planning the 2008
program including further exploration of new discoveries on the sites of
Allammaq and Puimajuq.

    Qualified Person

    Glenn J. Mullan is the Qualified Person in accordance with NI 43-101, and
is responsible for the technical information presented in this news release.

    About Canadian Royalties and the Nunavik Nickel Project

    Canadian Royalties has initiated the development of an independent,
stand-alone nickel-copper mine on its Nunavik Nickel Project, located
20 kilometers south of Xstrata Nickel's Raglan Mine in Nunavik, Québec.
Canadian Royalties has received its Environmental Certificate of Authorization
on May 21, 2008 and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon
sites of the Nunavik Nickel Project on July 29, 2008.

    Forward-looking Statement

    This news release contains certain forward-looking statements or
forward-looking information. These forward-looking statements are subject to a
variety of risks and uncertainties beyond the Corporation's ability to control
or predict which could cause actual events or results to differ materially
from those anticipated in such forward-looking statements. Such risks and
uncertainties are disclosed under the heading "Risk Factors" in the
Corporation's Annual Information Form for the year ended December 31, 2007 and
dated March 31, 2008. Further, forward-looking information is in addition
based on various assumptions, including, without limitation, the expectation
and beliefs of management, the assumed long term price of nickel, that the
Nunavik Nickel Project is a technical viable and economic operation, that it
can be successfully completed by the Corporation, that the Corporation will
receive the required permits and access to surface rights, and that the
Corporation can access financing, appropriate equipment, and sufficient
labour. Should one or more of these risks and uncertainties materialize, or
should the underlying assumption prove incorrect or different, actual results
may vary materially from those described in the forward-looking statements.
All forward-looking statements speak only as of the date of this news release
and the Corporation does not undertake any obligation to update or publicly
disclose any revisions to such forward-looking statements to reflect events,
circumstances or changes in expectations after the date hereof, except as
required by law. Accordingly, readers should not place undue reliance on
forward-looking statements.
    For additional information please visit our website at
www.canadianroyalties.com.




For further information:

For further information: please visit our website at
www.canadianroyalties.com or contact: Richard R. Faucher, President & CEO,
Canadian Royalties Inc., (514) 879-1688,
richard.faucher@canadianroyalties.com;----- Marc Chaput, VP, Investor
Relations and Communications, Canadian Royalties Inc., (514) 879-1688, ext.
1223, marc.chaput@canadianroyalties.com;----- Renmark Financial Communications
Inc.: Jason Roy: jroy@renmarkfinancial.com; Dan Symons:
dsymons@renmarkfinancial.com; Média - Adam Ross: aross@renmarkfinancial.com,
(514) 939-3989, Téléc.: (514) 939-3717, www.renmarkfinancial.com

Organization Profile

CANADIAN ROYALTIES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890