TSXV: CAA
VANCOUVER, Nov. 28, 2013 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company') (TSXV: CAA) announces its
financial results for the first fiscal quarter ended September 30, 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 3 month period ended
September 30, 2013 net of income tax
expense is $1,706,791 compared to
$2,456,123 for the same period last
year. Income per share for both basic and fully diluted is
$0.03 compared to $0.05 for the same period last year.
A summary of the financial information is
included in the following table:
|
3 months
September 30, 2013 |
3 months
September 30, 2012 |
Income |
$3.04 million |
$4.58 million |
Net Income |
$1.70 million |
$2.45 million |
Net Income /
Share Fully Diluted |
$0.03 |
$0.05 |
Net Cash Flow from
Operation |
$6.74 million |
$7.11 million |
The following are key highlights for the
quarter:
- $981,848 was paid out in
dividends to shareholders.
- Cash on hand at September 30,
2013 was $27,155,571 (compared
to $30,234,769 at September 30, 2012).
- Callinan announced it would recommence litigation and file an
amended statement of claim against Hudson Bay Mining & Smelting
Co. Ltd., a subsidiary of Hudbay Minerals Inc.
- As previously announced on July 23,
2013, Callinan completed a staged royalty investment with
Excelsior Mining. Callinan has acquired a 0.5% Gross Revenue
Royalty on the Gunnison Copper Project in Arizona and holds the right to increase its
royalty following completion of key milestones.
- Following the quarter ended September
30, 2013, Callinan announced the creation of two exploration
alliances. As part of these alliances, Callinan has agreed to fund
a $150,000 exploration program on the
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 in Nevada in exchange for a 1.5% NSR
royalty.
Roland Butler,
CEO commented "The 777 mine encountered some challenges earlier
this year, yet there were production increases at the 777 mine and
contributions from the 777 North ramp. With weak metal markets, our
royalty revenue for the recent quarter was negatively impacted.
However, operational issues have been managed and Hudbay has
reported that mining of higher grade copper zones is planned for
the future. We successfully completed three agreements in recent
months to create royalties in geologically attractive and stable
mining jurisdictions alongside companies with capable management.
Otherwise, we remain cautious in the current investment environment
even though many opportunities have become available."
Quarterly Royalty Payments
Callinan Royalties Corporation received interim
quarterly royalty payments totaling $2,182,060.50 from HudBay Minerals Inc. for the
quarter ended September 30, 2013.
The royalty payments include a payment of
$2,068,658.00 from the 6⅔% Net
Profits Interest Royalty and $113,402.50 from the production royalty of
$0.25 per ton of ore. This compares
with interim quarterly royalty payments totaling $3,359,471.50 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 mid-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 Royalties Corporation has
declared a quarterly cash dividend for the quarter ending
December 31, 2013 on its common
shares of two cents per common share
to all shareholders of record at the close of business on
December 31, 2013. The ex-dividend
date will be December 27, 2013 and it
is expected that the dividend will be paid on or about January 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 Royalties Corporation are eligible
dividends for Canadian income tax purposes unless otherwise
stated.
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
$0.25 per ton production royalty 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 $27 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