VANCOUVER, May 29, 2013 /CNW/ - Callinan Royalties Corporation
('Callinan', the 'Company') (TSXV: CAA) announces its financial results
for the three and nine months ended March 31, 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 9 month period ended March 31, 2013 net of income tax
expense is $7,229,874 and $1,881,047 for the quarter ended March 31,
2013, compared to $17,412,110 and $3,442,149 respectively, for the same
period last year. Income per share for basic and fully diluted is
$0.15 compared to $0.35 for basic and $0.35 fully diluted for the same
period last year.
A summary of the financial information is included in the following
March 31, 2013
March 31, 2012
March 31, 2013
March 31, 2012
Net Income /
Share Fully Diluted
Cash Flow from Operation
The following are highlights from the quarter:
Interim quarterly royalty payments for the quarter ended March 31, 2013
totaling $2.30 million from HudBay Minerals Inc. (compared to $4.00
million in the same quarter last year)
Cash on hand at March 31, 2013 was $24.58 million (compared to $27.84
million at March 31, 2012)
Roland Butler, CEO commented, "The third quarter saw lower royalty
revenue largely due to lower metal prices and higher costs at the 777
Mine, which may be temporary. While no new royalty agreements were
signed this quarter, numerous opportunities were evaluated and we are
generating new business on a regular basis."
777 Mines Royalties
On May 1, 2013 HudBay Minerals Inc. ("HudBay") reported its financial
results for the last quarter for its 777 mine. Ore production for the
first quarter 2013 was up 4% compared to the same period in 2012 due to
ore production from the 777 North ramp. Copper, zinc, gold and silver
grades were lower by 15%, 20%, 4% and 17%, respectively, due to the
sequencing of production stopes.
In addition, the operating costs per tonne of ore in the last quarter
were 21% higher compared to the same period in 2012, primarily due to
increased contractor costs and additional ground support requirements.
Subsequent to March 31, 2013, Callinan received interim quarterly
royalty payments totaling $2,298,145 from HudBay Minerals Inc.
(compared to $4,001,294 in the same quarter last year). The royalty
payments include a payment of $2,187,395 from the 6⅔% Net Profits
Interest Royalty and $110,750 from the production royalty of $0.25 per
ton of ore for the quarter ended March 31, 2013. This amount is net of
25% holdback by HudBay which is paid to Callinan in July of each year
as per the agreement.
For more information regarding the 777 mine, please see www.hudbayminerals.com.
During the 9 month period ended March 31, 2013, the Company received and
accrued $12,681,087 (2012 - $18,446,392) for its $0.25 per ton
production royalty and its 6⅔% Net Profits Interest ("NPI") royalty in
the Callinan Mine located in Flin Flon, Manitoba. Of that amount,
$346,441 represents the production royalty payment (2012 - $315,280)
for the 1,385,764 tons mined during the period, and $12,334,646 (2012 -
$18,131,112) for the 6⅔% NPI for the period. Additionally, $247,741
was received for interest revenue (2012 - $221,598), and $360,000 was
accrued for interest on the Company's debentures, for total revenues of
$13,288,828 (2012 - $18,667,990).
Cash on hand at March 31, 2013 was $24,584,446, which is $3,256,563
lower than the same period last year. As per the Company's cash
management policy, excess cash is invested in short-term term deposits
and bankers acceptance not exceeding ninety days, so as to secure
capital and earn a reasonable return.
Update on Independent Audit
The Board of Directors of Callinan has undertaken and completed a review
to determine the next course of action with respect to outstanding
issues with HudBay. Alternatives include, but may not be limited to,
providing notice in writing to HudBay and proceeding with litigation or
engaging in discussions with a view to a resolution of outstanding
As litigation remains an option to be considered by the Board of
Directors, the Company does not intend to disclose information from the
incomplete audit work conducted or report any developments with respect
to the review unless and until its Board of Directors has approved a
course of action that requires disclosure or otherwise deems that
disclosure of developments is appropriate.
The board of directors of Callinan Royalties Corporation has declared a
quarterly cash dividend for the quarter ending June 30, 2013 on its
common shares of two cents per common share to all shareholders of
record at the close of business on June 28, 2013. The ex-dividend date
will be June 26, 2013 and it is expected that the dividend will be paid
on or about July 15, 2013.
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, 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 owned by HudBay Minerals Inc.
located in Flin Flon, Manitoba, Canada as well as the adjacent 777
North Mine scheduled for production in 2012. 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 $25 million in cash and
approximately 49.1 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
Tamara Edwards, CFO
Callinan Royalties Corporation
+1 604 605 0885
1110 - 555 West Hastings Street
Canada, V6B 4N4