VANCOUVER, March 1, 2012 /CNW/ - Callinan Royalties Corporation ("Callinan" or "the Company") reports strong financial performance in the three month and six month periods ending December 31, 2011.
Callinan holds a 6⅔% Net Profits Interest ("NPI") royalty and another $0.25 per ton royalty on its royalty lands that include the 777 Mine owned by HudBay Minerals Inc. located at Flin Flon, Manitoba, Canada as well as the adjacent 777 North Mine scheduled for production in 2012. The following are highlights from the second fiscal quarter:
- Callinan Royalties Corporation received interim quarterly royalty payments totaling $4,836,406 from HudBay Minerals Inc.
- The board of directors of the Company declared a regular quarterly cash dividend for the first fiscal quarter on its common shares of two cents per common share. The dividend was paid on January 13, 2012.
- During the three months ending December 31, 2011, Callinan purchased 1,134,400 of its common shares at an average price of $2.57 for cancellation under the Normal Course Issuer Bid. Callinan announced continuation of the Normal Course Issuer Bid into 2012.
- The independent audit by Grant Thornton of the NPI calculations continues. Once this phase of work has been completed Grant Thornton will report to the Board of Directors of Callinan.
- The Company held its Annual General Meeting on December 09, 2011. All resolutions were approved by shareholders, including the election of directors Anna Stylianides, David Korbin, Frank Dembinsky, Roland Butler and Brian Irwin who was appointed as Chairman.
|Three Months||Three Months||Six Months||Six Months|
|December 2011||December 2010||December 2011||December 2010|
|Net earnings (i)||4,335,613||2,423,218||13,969,961||6,443,079|
|Average number of voting shares outstanding||49,170,861||45,917,208||49,292,828||46,040,118|
|Net income per share||$||0.09||$||0.05||$||0.28||$||0.14|
|Average number of shares outstanding||50,012,739||46,220,703||50,393,249||46,343,313|
|Net income per share||$ 0.09||$ 0.05||$ 0.27||$ 0.13|
|As At||December 2011||December 2010|
|Working capital (ii)||$||35,066,148||$||23,757,695|
|(i) Includes a recovery of deferred income taxes|
|(ii) Working capital consists of current assets less current liabilities|
On Behalf of the Board of Directors,
Roland Butler, CEO
Callinan Royalties Corporation is a mineral royalty company based in Canada. Its principal business activities centre on acquiring and creating a portfolio of mineral royalties while diligently managing its royalty interests and investments.
The Corporation currently has two producing royalties. Callinan holds a 6⅔% net profits interest royalty and another $0.25 per ton royalty on lands that include the 777 Mine owned by HudBay Minerals Inc. located at 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 located on that property, which is located adjacent to the 777 Mine.
Callinan is a Tier 1 company listed on the TSXV under the symbol CAA. The Corporation has a strong financial position with no debt, approximately $29 million in cash and approximately 48.5 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.
For further 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