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
<p> please visit <a href="http://www.callinan.com">www.callinan.com</a> or contact: </p> <p> Roland Butler, CEO<br/> Callinan Royalties Corporation<br/> +1 709 535 3433<br/> <a href="mailto:shareholder@callinan.com">shareholder@callinan.com</a> </p> <p> Tamara Edwards, CFO<br/> Callinan Royalties Corporation<br/> +1 604 424 8639<br/> <a href="mailto:shareholder@callinan.com">shareholder@callinan.com</a> </p> <p> Corporate Office:<br/> 770 - 475 West Georgia Street<br/> Vancouver, BC<br/> Canada, V6B 4M9 </p>