- All dollar references below in Canadian
dollars -
TSXV: CAA
VANCOUVER, Feb. 24, 2015 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company' or 'We') (TSXV: CAA)
announces its financial results for the second quarter ended
December 31, 2014. 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 six month period ended December 31, 2014, net of income tax expense is
$4,139,278 compared to $3,157,534 for the same period last year.
Included in income and net income is $3,500,000 received from HudBay Minerals Inc.
('HudBay') for settlement of the litigation. Income per share for
both basic and fully diluted is $0.08, compared to $0.07 for basic and $0.06 fully diluted for the same period last
year.
A summary of the financial information is included in the following
table:
|
3 months
December 31,
2014
|
3 months
December 31,
2013
|
6 months
December 31,
2014
|
6 months
December 31,
2013
|
Royalty
Income
|
$1.45
million
|
$3.06
million
|
$4.26
million
|
$5.93
million
|
Litigation
Settlement
|
$3.5
million
|
Nil
|
$3.5
million
|
Nil
|
Net Income
|
$2.85
million
|
$1.45
million
|
$4.14
million
|
$3.16
million
|
Net Income
/
Share Fully
Diluted
|
$0.06
|
$0.03
|
$0.08
|
$0.06
|
Cash Flow from
Operations
|
$4.04
million
|
$1.11
million
|
$8.36
million
|
$7.85
million
|
The following are key highlights from the first half of fiscal
2015:
- $1,971,175 was paid out in
dividends to shareholders.
- Cash on hand at December 31, 2014
was $27,889,926 compared to
$26,092,977 at December 31, 2013. The cash does not include an
additional $7.9 million received in
late January from the early repayment of both the Wallbridge and
Gold Royalties debt instruments.
Quarterly Royalty Payments
Callinan received interim quarterly royalty payments totaling
$1,453,953 from HudBay for the
quarter ended December 31, 2014,
which will be the last quarter of payments under the 6⅔% Net
Profits Interest Royalty ("NPI") structure. These royalty payments
include $1,371,779 from the 6⅔% NPI
and $82,174 from the production
royalty of $0.25 per short ton of ore
milled. Interim quarterly royalty payments were $2,325,043 for the same quarter last year. The
reduction is due mainly to the two week unplanned maintenance
shutdown at the 777 Mine, as reported by HudBay on February 19 this year. The unplanned shutdown
impacted production, as did the mining of significantly lower zinc
grades with lower experienced recoveries. The higher unit operating
costs relate to underground mining and should not affect future
payments under the future 4% Net Smelter Return ("NSR")
structure.
The NPI payment represents 75% of an estimate by HudBay. The
remaining 25% is paid annually, in mid-July, 130 business days
after HudBay's financial year end.
About Callinan Royalties
Callinan Royalties Corporation is one of the oldest public
companies in Canada and one of the
first explorers that led to the development of the Flin Flon, Manitoba copper-zinc district.
Callinan holds a portfolio of royalties, including its cornerstone
4% Net Smelter Royalty on the Hudbay 777 Mine located in
Manitoba.
The Company invests its robust cash position to provide
alternative financing options to mineral exploration and
development companies with attractive projects and excellent
management.
Callinan is a dividend paying company soon to be listed on the TSX.
Callinan has a strong financial position with no debt, recurring
annual cash flow from the 777 royalties and approximately 49.4
million shares outstanding.
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 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 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