International Royalty Corporation reports second quarter results



    AMEX:  ROY
    TSX:IRC

    DENVER, CO, Aug. 14 /CNW Telbec/ - International Royalty Corporation
(AMEX:   ROY, TSX: IRC) (the "Company" or "IRC") today reported its second
quarter 2008 financial results. All figures are unaudited and in United States
dollars unless otherwise noted.

    Quarterly Highlights

    Royalty revenues were $8,610,000 for the second quarter of 2008, a
decrease of $4,597,000 from the same period last year. An increase in royalty
revenues from the Southern Cross and Meekatharra gold mines of $113,000 and
$51,000, respectively, were offset by a decrease of $4,741,000 in gross
revenues from the Voisey's Bay nickel-copper-cobalt mine which is attributed
to the significant drop in nickel prices from 2007 levels.
    The Voisey's Bay royalty payment during the second quarter of 2008 was
based on total contained nickel in concentrates of approximately
30.5 million pounds, compared to approximately 29.7 million pounds for the
second quarter of 2007. The increase in paid production was offset by a sharp
decrease in the average price of nickel during the quarter from $21.10 per
pound in the second quarter of 2007 to $12.93 per pound in the second quarter
of 2008. These quarterly royalty revenues do not include revenues derived from
the copper concentrates produced during the corresponding period due to
seasonal transportation schedules. The copper concentrates produced during
this period typically are reflected in the third and fourth quarter royalty
revenues.
    Net earnings during the quarter were $927,000, or $0.01 per share,
compared to $2.4 million, or $0.04 per share in 2007.
    Cash flow from operations decreased from $6,642,000 in the second quarter
of 2007 to $(467,000) during the second quarter of 2008. This decrease in cash
flow was primarily due to an income tax payment of $7,502,000 paid during the
second quarter of 2008.

    Six Month Highlights

    For the six months ended June 30, 2008, royalty revenues decreased
$4,492,000 to $18,893,000 as compared to $23,385,000 for the same period in
2007. An increase in royalty revenues from the Southern Cross and Meekatharra
gold mines for the six months ended June 30, 2008 of $272,000 and $93,000,
respectively, were offset by a decrease of $4,848,000 in gross revenues from
the Voisey's Bay nickel-copper-cobalt mine.
    The Voisey's Bay royalty payment during the six months ended June 30,
2008 was based on total contained nickel in concentrates of approximately
68.4 million pounds, compared to approximately 56.7 million pounds for the
same period in 2007, an increase of 20.7%. The increase in paid production in
2008 was offset by a decrease in the average price of nickel during the
quarter from $18.96 per pound in the second quarter of 2007 to $12.63 per
pound in the second quarter of 2008, a decrease of 33.4%.
    Net earnings during the first six months of 2008 were $3,338,000, or
$0.04 per share, compared to $6,860,000, or $0.07 per share in 2007.
    Cash flow from operations decreased from $11,608,000 in 2007 to
$5,931,000 in 2008. This decrease in cash flow was primarily due to an income
tax payment of $7,502,000 paid during the second quarter of 2008.

    
    Summary of Financial Information

    ($ thousands, except per
     share data, unaudited)           Three Months Ended    Six Months Ended
                                                 June 30,            June 30,
                                     ----------------------------------------
                                          2008      2007      2008      2007
                                     ----------------------------------------
    Statement of Operations
    Royalty revenues                    $8,610   $13,207   $18,893   $23,385
    Earnings from operations             2,198     6,151     4,998     9,843
    Earnings before income taxes         1,465     3,585     4,713     6,860
    Net earnings                           927     2,380     3,338     4,545
    Basic net earnings per share          0.01      0.04      0.04      0.07
    Diluted net earnings per share        0.01      0.03      0.04      0.07

    Statement of Cash Flows
      Cash provided by (used in)
       operating activities              $(467)   $6,642    $5,931   $11,608

                                                           June 30, December
                                                              2008  31, 2007
                                                          --------- ---------
    Balance Sheet
      Total assets                                        $379,653  $384,482
      Shareholders' equity                                 298,003   295,679


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

    Production and revenue (unaudited)
                                               Payable Metal Production (1)
                                           ----------------------------------
                                                                         Six
                                             Quarter Ended      Months Ended
                                                   June 30,          June 30,
                                           ----------------- ----------------
    Mine             Commodity  Royalty      2008     2007     2008     2007
                                           ----------------- ----------------
    Williams         Gold       0.25% NSR      31       53       69      117

    Southern Cross   Gold       1.5% NSR       37       37       73       75

    Meekatharra      Gold       0.45% NSR      13        -       24        -

    Voisey's Bay
                     Nickel     2.7% NSR   30,504   29,698   68,460   56,703
                     Copper     2.7% NSR    8,629    5,059   42,486   17,677
                     Cobalt     2.7% NSR    1,551    1,222    3,121    2,316

    (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.


                                                  Revenue (thousands)
                                        -------------------------------------
                                                                         Six
                                           Quarter Ended        Months Ended
                                                 June 30,            June 30,
    ---------                           ------------------  -----------------
    Mine                                  2008      2007      2008      2007
    ---------                           ------------------  -----------------

    Williams                              $ 69      $ 89     $ 156     $ 191

    Southern Cross                         478       365     1,007       735

    Meekatharra                             51         -        93         -

    Voisey's Bay                         7,986    12,727    17,584    22,432


    Average metal prices realized (in US$) (unaudited)

                                                                         Six
                                           Quarter Ended        Months Ended
                                                 June 30,            June 30,
                                        ------------------  -----------------
                                          2008      2007      2008      2007
                                        ------------------  -----------------
    Gold, per ounce                      $ 851     $ 660     $ 912     $ 654
    Nickel, per pound (1)                12.93     21.10     12.63     18.96
    Copper, per pound (1)                 5.00      3.31      3.09      2.68
    Cobalt, per pound (1)                47.17     27.54     46.55     26.99

    (1) Before transportation, smelting and refining costs.
    

    Complete financial results are available on SEDAR, EDGAR and on the
Company's website at www.internationalroyalty.com.
    IRC invites you to participate in its conference call to discuss second
quarter results.
    The Company will host this conference call on Monday, August 18, 2008 at
1:00 PM (EDT) / 11:00 AM (MDT).
    To participate in the conference call, please dial 647-427-3411 or North
American toll free 1-888-241-0326, at least five minutes prior to the
scheduled start of the call.
    A replay of the conference call will be available as of 3:00 PM (EDT) /
1:00 PM (MDT) August 18, 2008 to September 18, 2008. Please dial
1-800-677-8849 or 402-220-1454 and enter the following access code 50295931.

    International Royalty Corporation
    ---------------------------------

    International Royalty Corporation (IRC) is a global mineral royalty
company. IRC holds approximately 80 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 American
Stock Exchange (AMEX:   ROY).

    On behalf of the Board of Directors,
    INTERNATIONAL ROYALTY CORPORATION

    Douglas B. Silver
    Chairman and CEO




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; Jen
Power: jpower@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

Organization Profile

INTERNATIONAL ROYALTY CORPORATION

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