TSXV: CAA
VANCOUVER, March 3, 2014 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company') (TSXV: CAA) announces its
financial results for the three and six month periods ended
December 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). All dollar figures are in Canadian (CAD)
currency.
Net income for the six month period ended
December 31, 2013 net of income tax
expense is $3,157,534 and
$1,450,743 for the quarter ended
December 31, 2013, compared to
$5,348,827 and $2,892,704 for the same periods last year. Income
per share for six months is $0.07 for
basic and $0.06 for fully diluted
compared to $0.11 for both basic and
fully diluted for the same period last year.
A summary of the financial information is
included in the following table:
|
3 months
December 31, 2013 |
3 months
December 31, 2012 |
6 months
December 31, 2013 |
6 months
December 31, 2012 |
Royalty Income |
$3.06 million |
$5.22 million |
$5.93 million |
$9.65 million |
Net Income |
$1.45 million |
$2.89 million |
$3.16 million |
$5.35 million |
Net Income /
Share Fully Diluted |
$0.03 |
$0.06 |
$0.06 |
$0.11 |
Cash Flow from
Operation |
$1.11 million |
$1.78 million |
$7.85 million |
$8.88 million |
The following are key highlights for the second
quarter:
- $987,720 was paid out in
dividends to shareholders.
- Cash on hand at December 31, 2013
was $26,092,977 (compared to
$26,429,691 at December 31, 2012).
- Two alliance agreements were announced. Subsequently, two
royalty interests were created under the alliance agreements.
Callinan agreed to fund a $150,000
exploration program on Avrupa's Alvito Project in Portugal in exchange for a 1.5% net smelter
returns ("NSR") royalty. Callinan also agreed to fund a
$150,000 exploration program on the
Golden Shears project of Renaissance Gold in Nevada in exchange for a 1.5% NSR
royalty.
Quarterly Royalty Payments
Callinan received interim quarterly royalty
payments totaling $2,325,043 from
Hudbay Minerals Inc. for the quarter ended December 31, 2013. The royalty payments include a
payment of $2,212,459 from the 6⅔%
Net Profits Interest Royalty and $112,584 from the production royalty of
$0.25 per ton of ore milled. This
compares with interim quarterly royalty payments totaling
$3,939,810 for the same quarter last
year.
The Net Profits Interest payment represents 75%
of an estimate by Hudbay Minerals Inc. The remaining 25% is paid
annually in July; 130 business days after the financial year end of
Hudbay Minerals Inc. as per the agreement.
Quarterly Dividend
The Board of Directors of Callinan has declared
a quarterly cash dividend for the quarter ending March 31, 2014 on its common shares of
two cents per common share to all
shareholders of record at the close of business on March 31, 2014. The ex-dividend date will be
March 27, 2014 and it is expected
that the dividend will be paid on or about April 15, 2014.
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 are eligible
dividends for Canadian income tax purposes unless otherwise
stated.
Summary
Despite a difficult year in 2013 for the global
mining industry, Callinan continues to be a profitable royalty
company with a sustained dividend policy. Our quarterly royalty
income from the 777 mines is lower than last year for the same
period but we note some improvement compared to the payment
received last quarter. We see this as a positive development given
metal prices and challenges experienced at the 777 mine in 2013. We
are also pleased to see progress in some of the companies in which
we have invested. We look forward to 2014 under the governance of a
new board of directors as we continue to focus on building a
stronger company and adding quality royalty assets to our
portfolio.
On Behalf of the Board of Directors,
Roland
Butler
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
production royalty CAD $0.25 per ton
of ore milled on lands that include the 777 mine and 777 North mine
owned by Hudbay Minerals Inc. located in Flin Flon, Manitoba, Canada. 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 $26 million in cash and
approximately 49.2 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