International Royalty anticipates minimal Q3 impact from Voisey's Bay strike



    
    NYSE-A: ROY
    TSX: IRC
    

    DENVER, CO, Aug. 4 /CNW Telbec/ - International Royalty Corporation
(NYSE-A: ROY, TSX: IRC) ("IRC" or the "Company") reports that employees at
nickel miner Vale Inco Ltd.'s ("Vale") Voisey's Bay operations have rejected a
contract offer and have been on strike since August 1, 2009. IRC owns an
effective 2.7% net smelter return royalty on the Voisey's Bay project.
    IRC's Chairman & CEO Douglas Silver said: "It is unfortunate that the
contract negotiations have led to the strike and we hope that the parties can
resolve their differences quickly and amicably. However, because of the
payment timing and pricing mechanisms in our royalty contract, the strike
should not impact payable metal in IRC's third quarter. Insofar as the
Voisey's Bay and Sudbury strikes help boost nickel prices in the market, the
strike may actually have a positive impact on IRC's third quarter revenues.
The impact from the strike, if any, would likely occur in the fourth quarter
of 2009 or the first quarter of 2010. Because IRC's royalty applies to pounds
of metal produced, any impact would be to defer revenue, not to reduce it."
    According to a July 8, 2009 update by the Canadian Press, the workers at
the Voisey's Bay mine and nickel processing concentrator voted against Vale's
offer. At issue was the proposed elimination of a bonus tied to the price of
nickel and a plan to close Vale's defined-benefit pension plan to new
employees. The same issues caused talks to break down between Vale and the
employees at its Sudbury operations in Northern Ontario on July 6, 2009.

    International Royalty Corporation

    International Royalty Corporation (IRC) is a global mineral royalty
company. IRC holds more than 85 royalties including an effective 2.7% NSR on
the Voisey's Bay mine, a sliding-scale NSR on the Pascua gold project in
Chile, a 1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR on
approximately 3.0 million acres of gold lands in Western Australia. IRC is
senior listed on the Toronto Stock Exchange (TSX: IRC) as well as the NYSE -
Amex (NYSE-A: ROY).

    On behalf of the Board of Directors,

    INTERNATIONAL ROYALTY CORPORATION
    
    Douglas B. Silver
    Chairman and CEO
    


    Cautionary Statement Regarding Forward-Looking Statements
    ---------------------------------------------------------

    Some of the statements contained in this document are forward-looking
statements, such as statements that describe intentions, objectives or goals,
and specifically include but are not limited to the expected impact of the
Voisey Bay and Sudbury strikes on payable metal in IRC's third and fourth
quarters in 2009 and the first quarter of 2010, and the impact of the Voisey
Bay and Sudbury strikes on deferring but not reducing revenue from the Voisey
Bay project. In certain cases, forward-looking statements can be identified by
the use of words such as "expects", "enable", "anticipates", "estimated" or
words of similar effect. Since forward-looking statements are not statements
of historical fact and address future events, conditions and expectations,
forward-looking statements inherently involve unknown risks, uncertainties,
assumptions and other factors well beyond the Company's ability to control or
predict. Actual results and developments may differ materially from those
contemplated by such forward-looking statements depending on, among others,
such key factors as the ability of Vale to eventually resolve the labor strike
at the Voisey Bay and Sudbury operations and return to profitable production
at those operations, the timing of any such resolution to the labor strikes,
the amount of deferred royalty payments from lack of metal production at
Voisey's Bay, absence of production delays or regulatory issues and other
risks associated with mining operations. IRC's forward-looking statements in
this document regarding the anticipated production are based on certain
assumptions. Such assumptions include, but are not limited to, the validity of
statements made by the project operator in the public domain, and its ability
to successfully operate the Voisey's Bay and Sudbury facilities. The
forward-looking statements included in this document represent IRC's views as
of the date of this document and subsequent events and developments may cause
IRC's views to change. These forward-looking statements should not be relied
upon as representing IRC's views as of any date subsequent to the date of this
document. Although IRC 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.
Accordingly, readers should not place undue reliance on any forward-looking
statements.




For further information:

For further information: Jack Perkins, Director of Investor Relations,
(303) 991-9500; Douglas B. Silver, Chairman and CEO, (303) 799-9020;
info@internationalroyalty.com; www.internationalroyalty.com; Renmark Financial
Communications Inc.: Barbara Komorowski, bkomorowski@renmarkfinancial.com;
Christine Stewart, cstewart@renmarkfinancial.com; (416) 644-2020, (514)
939-3989; www.renmarkfinancial.com

Organization Profile

INTERNATIONAL ROYALTY CORPORATION

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