TSXV: CAA
VANCOUVER,
Aug. 23, 2013 /CNW/ - Callinan
Royalties Corporation ("Callinan") (TSXV:CAA) has received interim
quarterly royalty payments totaling $2,206,639 from Hudbay Minerals Inc. ("Hudbay")
(TSX:HBM).
The royalty payments include a payment of
$2,095,515 from the 6⅔% net profits
Interest royalty and $111,124 from
the production royalty of $0.25 per
ton of ore for the quarter ended June 30,
2013.
The net profits interest payment represents 75%
of an estimate by Hudbay. The remaining 25% is paid annually, in
mid-July, 130 business days after the financial year end of Hudbay
as per the agreement. Total royalty payments for the 2012 calendar
year were $19,996,975 including
interest. Please see Callinan's press release dated
July 23, 2013 for details.
The quarterly payments are due to Callinan's
royalty interests on lands that include the 777 mine and 777 North
mine at Flin Flon, Manitoba,
Canada, which are principal mining operations of Hudbay.
In its most recent financial results, Hudbay
reported increased ore production at the Flin Flon operations due to the additional
production from the 777 North mine. However, ore grades in the
second quarter were lower compared with the same period last year
due to planned sequencing of mining stopes.
Overall operating costs were reported as higher.
Mining costs increased at the 777 mine due to contractor costs and
additional ground support requirements. Higher concentrator costs
at Flin Flon are mostly due to
reduced ore throughput compared with the same period last year due
to closure of other mining operations of Hudbay.
These factors combined with lower metal prices
resulted in lower revenues to Callinan in this quarter compared to
the same quarter last year. Hudbay provides operational details on
the 777 mine and 777 North mine and full-year guidance for overall
production and operating costs, which can be found in Hudbay's
publicly available disclosure documents.
In the future, quarterly royalty payments
received by Callinan will be reported in the quarterly financial
statements with commentary provided in the accompanying Management
Discussion and Analysis consistent with normal industry practices.
This represents a change in practice by Callinan whereby royalty
payments have normally been reported following receipt. A summary
of most recent quarterly royalty payments received by Callinan is
available on the company's website at www.callinan.com
Quarterly Dividend
The board of directors of Callinan Royalties
Corporation has declared a quarterly cash dividend for the quarter
ending September 30, 2013 on its
common shares of two cents per common
share to all shareholders of record at the close of business on
September 30, 2013. The ex-dividend
date will be September 26, 2013 and
it is expected that the dividend will be paid on or about
October 15, 2013.
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 the 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 $28 million in cash and
approximately 49.1 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