International Royalty Corporation reports 2009 first quarter results



    NYSE-A: ROY
    TSX: IRC

    DENVER, CO, May 13 /CNW Telbec/ - International Royalty Corporation
(NYSE-Amex:   ROY, TSX: IRC) (the "Company" or "IRC") today reported its 2009
first quarter financial results. All figures are in United States dollars
unless noted otherwise.

    Financial Highlights

    Royalty revenues for the three months ended March 31, 2009 were
$7,099,000, as compared to $10,283,000 for the three months ended March 31,
2008. The decrease is due to a decline in revenue from the Voisey's Bay mine
of $3.7 million offset by royalty revenue from the newly acquired Skyline
thermal coal mine of $325,000 and the newly commissioned Gwalia Deeps gold
mine of $314,000.
    Revenue recognized from the Voisey's Bay mine was $5.9 million for the
quarter ended March 31, 2009, compared to $9.6 million in the first quarter of
2008. The decrease in revenue from Voisey's Bay was due to significantly lower
nickel prices in 2009 compared to 2008, offset somewhat by an increase in
production of contained nickel in concentrate. Total contained nickel in
concentrates paid on the Voisey's Bay mine during the quarter ended March 31,
2009 was approximately 53.3 million pounds compared to approximately 38.0
million pounds for the quarter ended March 31, 2008. The average price of
nickel, however, dropped during the quarter from $12.38 per pound in 2008 to
$4.69 per pound in 2009.
    Net earnings during the quarter increased $900,000 to $3.3 million, or
$0.04 per share, compared to $2.4 million, or $0.03 per share for the same
period in 2008.
    In March 2009, the Canadian government enacted new legislation which will
allow qualifying taxpayers the ability to file their 2008 and subsequent
Canadian tax returns using a functional currency which is other than the
Canadian dollar. As a result of the legislation becoming substantively enacted
for financial reporting purposes in the three months ended March 31, 2009,
foreign currency losses of approximately $1.8 million previously recognized in
2008 were reversed in March 2009 and have been recorded as a foreign currency
gain on the consolidated statement of operations for the three months ended
March 31, 2009.
    Also, as a result of this new legislation, the Company translated its
non-monetary assets to a U.S. value using the foreign currency exchange rate
of CA$1.00 to US$1.012, the rate provided for by the new legislation. The use
of this rate to lock in the U.S. dollar value of the assets created a
permanent benefit in the tax basis of certain of the company's assets. This
change in tax basis created a future tax benefit of $2.0 million, which has
been reflected in the consolidated statement of operations for the three
months ended March 31, 2009.
    Cash flow provided by operations was $4.7 million during the quarter
ended March 31, 2009, compared to $6.4 million in the same quarter in 2008.
    Cash flows used in investing activities was $5.0 million during the
quarter ended March 31, 2009, compared to $1.1 million during the same quarter
in 2008. The change is due the acquisition of the producing Johnson Camp
royalty on March 31, 2009.

    Business Development Activities in the First Quarter of 2009

    On March 31, 2009, the Company acquired a 2.50% NSR royalty on Nord
Resources Corporation's ("Nord") producing Johnson Camp copper mine located in
Cochise County, Arizona. Nord commenced mining of new copper ore at the
Johnson Camp mine in February of 2009 and expects to ramp-up to an average
annual production rate of 25 million pounds of copper by this spring. The mine
is projected to have a life of 16 years based upon current Proven and Probable
Reserves of 66.6 million tonnes grading 0.335% copper for total contained
copper of 492 million pounds(1). Beginning after January 1, 2010, the royalty
rate for any given year can be adjusted slightly upward if certain annual
production targets are not met, and downward if excess production allows
previous short-falls to be recovered. However, the cumulative rate on copper
production can never fall below 2.50%. The royalty rate on any metals other
than copper can be reduced to 1.25%, if cumulative copper production from the
mine exceeds 250 million pounds within twelve years.

    Developments on Existing Royalties

    In January 2009, Vale Inco reached a new operating agreement with the
Government of Newfoundland and Labrador which included limiting shipments of
nickel in concentrate to an average of 55,000 tonnes per year through 2013.
Despite the decrease in expected production levels from 2008, this new
production rate will be more in line with the original mining plan of 2004.
There are no limits on copper and cobalt concentrates. Actual shipments of
nickel in concentrate totalled 74,219 tonnes in 2008; 58,023 tonnes in 2007;
and 30,424 tonnes in 2006. Due to the lower production levels and the lower
nickel and copper prices, management expects the 2009 revenues, amortization
and royalty tax expense from Voisey's Bay to decrease from 2007 and 2008.
    The Pascua royalty is a sliding-scale royalty on the Pascua-Lama gold
project which straddles the Chile-Argentina border, operated by Barrick Gold
Corporation ("Barrick"). The acquired royalties apply to the gold and copper
produced from the Pascua, i.e., the Chilean side, of the Pascua-Lama project.
IRC's share of the royalty is a linear sliding-scale NSR royalty ranging from
0.4725% at a gold price of $300 per ounce and below to 3.15% at a gold price
of $800 per ounce and above. On April 28, 2009, Chilean tax authorities
reached an accord with their counterparts in Argentina over tax issues related
to the Pascua-Lama gold project, but said some minor issues remain to be
resolved. On May 7, 2009, Barrick announced formal construction approval for
the Pascua-Lama project. Barrick, pending certain permits, has stated that
they expect to commission the mine in late 2012 and begin production in early
2013 at an annual rate of 750,000 to 800,000 ounces per year at a cash cost of
$20-$50 per ounce.(2) According to statements made in Barrick's conference
call announcing the construction decision at Pascua-Lama, production in the
early years of the mine is expected to be from the Chilean portion of the ore
body.
    In June/July of 2009, production is expected to begin at Wega Mining's
Inata gold project (Belahouro) in Burkina Faso, West Africa on which the
Company holds a 2.5% net smelter returns royalty. Wega Mining recently agreed
to a business combination with Avocet Mining PLC that is expected to give the
project access to sufficient resources for timely completion and start-up.(3)
    In the first week of June, 2009, copper cathode production is expected to
begin at Inmet Mining Corporation's Las Cruces copper project in Spain on
which the Company holds a 1.5% NSR royalty. Annual production at Las Cruces is
planned to average 72,000 tonnes of cathode copper over the life of the
mine.(4)
    St Barbara Limited, operating in Western Australia, started production at
its Gwalia Deeps underground gold project in the fourth quarter of 2008 at an
initial annual rate of 100,000 ounces per year of gold and is expected to ramp
up to 200,000 ounces per year within 18 months. The Company holds a 1.5% NSR
royalty on Gwalia Deeps. Production at the Gwalia Deeps project for the first
quarter of 2009 totalled 23,000 ounces.(5)
    In the third quarter of 2008, OZ Minerals Ltd. began production at its
Avebury nickel project in Tasmania, Australia. The first sales occurred in
August 2008 and IRC recorded its first royalty payment in the third quarter of
2008. On December 19, 2008, OZ Minerals announced that it put the Avebury
nickel mine on care and maintenance until further notice due to current market
conditions and the low nickel prices. OZ Minerals has recently agreed to sell
various assets, including the Avebury mine to China Minmetals Non-ferrous
Metals Company Limited ("Minmetals"). Minmetals has announced that they will
keep the Avebury mine on care and maintenance until further notice and require
the price of nickel to reach US$6.00 per pound to reopen the mine.(6)
    In the fourth quarter of 2007, Mercator Gold Plc ("Mercator") began gold
production at its Meekatharra operations in Western Australia at an expected
initial rate of 120,000 ounces per year. Production began in the Yaloginda
project area, where the Company owns a 0.45% NSR royalty and was expected to
expand into the Paddy's Flat project area in 2009, where IRC's royalty rate
increases to 1.5%. Production in the Yaloginda project area for 2008 totalled
39,000 ounces. In October 2008, Mercator suspended production due to unsafe
conditions on a highway near the edge of the pit. The government has since
moved the road. Mercator was also placed in voluntary administration while it
raises new funding or sells the project.(7) If sold, the mine will remain
subject to IRC's royalty.

    
    References:
       1. Johnson Camp Mine Project Feasibility Study pursuant to NI 43-101
          dated December 28, 2007.
       2. Barrick Gold Corporation, News Release, May 7, 2009
       3. Avocet Mining PLC, News Release, April 29, 2009
       4. Inmet Mining Corporation Investor Presentation, BMO Capital Markets
          2009 Global Metals & Mining Conference, February 23, 2009
       5. St Barbara Ltd Financial Results for the Twelve Months Ended
          June 30, 2008.
       6. OZ Minerals press release dated May 6, 2009
       7. Mercator Gold PLC, Mining and Finance Update, September 25, 2009


    Summary of Financial Information:

    ($ thousands, except per share data)                Three months ended
    (unaudited)                                              March 31
                                                   --------------------------
                                                        2009          2008
                                                   ------------  ------------
    Statement of Operations
      Royalty revenues                                  $7,099       $10,283
      Earnings (loss) from operations                      (80)        2,800
      Net earnings                                       3,305         2,411
      Basic and diluted earnings per share                0.04          0.03

    Statement of Cash Flows
      Cash provided by operating activities              4,680         6,397


                                                      March 31,  December 31,
                                                        2009          2008
                                                    -----------  ------------
    Balance Sheet
      Total assets                                    $373,417      $376,570
      Shareholders' equity                             299,230       297,280


    Payable production and revenues on the Company's royalties and average
metal prices received were as follows:


    Production and revenue (unaudited)

                                               Payable           Revenue
                                            Production(1)      (thousands)
                                            Quarter Ended     Quarter Ended
                                              March 31,         March 31,
                                          ----------------- -----------------
    Mine          Commodity     Royalty     2009     2008     2009     2008
    ------------------------------------- ----------------- -----------------

    Voisey's
     Bay                                                     $5,933   $9,598
                      Nickel    2.7% NSR   53,267   37,956
                      Copper    2.7% NSR   16,228   33,857
                      Cobalt    2.7% NSR    8,954    1,570

    Southern
     Cross              Gold    1.5% NSR       37       36      506      529

    Skyline     Thermal Coal       1.413      757        -      325        -

    Gwalia
     Deeps              Gold    1.5% NSR       23        -      314        -

    Williams            Gold   0.25% NSR       54       38      121       87

    Meekatharra         Gold  0.045% NSR        -       11        -       43

    Avebury(2)        Nickel    2.0% NSR        -        -     (104)       -

    (1) Gold is in thousands of ounces; nickel, copper and cobalt are in
        thousands of contained pounds in concentrate. Silver ounces are
        converted to gold ounce equivalents by dividing silver revenue by the
        average price of gold during the period.
    (2) 2009 amount represents an adjustment upon settlement of revenue from
        the fourth quarter of 2008.


    Average metal prices realized (in US$) (unaudited)
                                                          Quarter Ended
                                                             March 31,
                                                        2009          2008
                                                   ------------  ------------

    Gold, per ounce                                  $     911     $     976
    Thermal coal, per tonne                              30.38             -
    Nickel, per pound(1)                                  4.69         12.38
    Copper, per pound(1)                                  1.50          2.65
    Cobalt, per pound(1)                                 11.11         45.95

    (1) Before transportation, smelting and refining costs.
    

    Complete financial results are available on SEDAR and on the Company's
website at www.internationalroyalty.com.
    IRC invites you to participate in its Annual General Meeting of
Shareholders and First Quarter 2009 Results conference call and webcast.
    The Company will host this conference call Wednesday, May 13, 2009 at
11:00 AM EDT, 9:00 AM MDT.
    To participate in the conference call, please dial 416 644-3419 or toll
free 800 591-7539. To ensure your participation, please call approximately
five minutes prior to the scheduled start of the call.
    To participate via webcast, go to:
http://w.on24.com/r.htm?e=144389&s=1&k=87032492DC2FEDE097C4D3C9AD89E5FF
    Replay archive: Please dial 877 289-8525, passcode 2130 4477 followed by
the pound # sign. The conference call will be archived from Wednesday, May 13,
2009 1:00 PM EDT to Wednesday, May 20, 2009 11:59 PM EDT.
    This press release has been reviewed by Peter Clarke of SRK Consulting, a
qualified person for the purposes of National Instrument 43-101.

    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 release are forward-looking
statements, such as statements that describe IRC's expectations in regards to
the production start dates for the Las Cruces, Belahouro and Pascua projects
on which IRC has royalties, expected rates of production, lives of mine and
expected cash costs. Financial information contained in this press release is
unaudited. In certain cases, forward-looking statements can be identified by
the use of words or phrases such as "plans", "expects", "anticipates", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", or
"does not anticipate", or "believes" or variations of such words and phrases,
or state that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Since forward-looking
statements are not statements of historical fact and address future events,
conditions and expectations, forward-looking statements by their nature
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 the mine operators to finance, develop, reopen, restart or
successfully place their projects into production, including the price of
nickel, pending permits, and access to financial resources. IRC's
forward-looking statements in this release regarding the effect of new tax
legislation, benefits of tax legislation, projected royalty revenue, ongoing
production and royalties, projected amortization and royalty tax exposure,
anticipated governmental or regulatory impact on projects and the anticipated
timing of the start of production on several of the projects on which it has
royalties are based on certain assumptions. Such assumptions include, but are
not limited to, the validity of statements made by the project operators in
the public domain, commodity prices, accuracy of project operator projections,
governmental regualtion, and project operators' ability to finance, construct
and successfully operate these properties. The forward-looking statements
included in this release represent IRC's views as of the date of this release.
While IRC anticipates that subsequent events and developments may cause IRC's
views to change, IRC specifically disclaims any obligation to update these
forward-looking statements. These forward-looking statements should not be
relied upon as representing IRC's views as of any date subsequent to the date
of this release. 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.
    The terms "Proven and Probable Reserves" used in this press release are
Canadian mining terms as defined in accordance with National Instrument 43-101
- Standards of Disclosure for Mineral Projects under the guidelines set out in
the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves Definitions and guidelines
adopted by the CIM Council. These definitions differ from similar terms used
in the United States, where a mineral reserve is defined as a part of a
mineral deposit which could be economically and legally extracted or produced
at the time the mineral reserve determination is made. You should not assume
that Proven and Probable Reserves used in this press release are consistent
with United States standards.




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; Montreal: (514) 939-3989,
Fax: (514) 939-3717; Toronto: (416) 644-2020, Fax: (416) 644-2021;
www.renmarkfinancial.com

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INTERNATIONAL ROYALTY CORPORATION

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