TSXV: CAA
VANCOUVER, May 29, 2014 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company') (TSXV: CAA) announces its
financial results for the three and nine months ended March 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).
All dollar figures are in Canadian (CAD) currency.
Net income for the nine month period ended March 31, 2014 net of income tax expense is
$4,193,026 and $1,035,492 for the quarter ended March 31, 2014, compared to $7,229,874 and $1,881,047 respectively, for the same period last
year. Income per share for nine months is $0.09 for both basic and fully diluted compared
to $0.15 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
March 31,
2014
|
3 months
March 31,
2013
|
9 months
March 31,
2014
|
9 months
March 31,
2013
|
Income
|
$2.22
million
|
$3.22
million
|
$8.59
million
|
$13.29
million
|
Net Income
|
$1.03
million
|
$1.88
million
|
$4.19
million
|
$7.23
million
|
Net Income
/
Share Fully
Diluted
|
$0.02
|
$0.04
|
$0.09
|
$0.15
|
Cash Flow
from
Operation
|
$1.52
million
|
$(0.65)
million
|
$9.38
million
|
$8.23
million
|
The following are key highlights for the third quarter:
- $999,811 was paid out in
dividends to shareholders.
- Cash on hand at March 31, 2014
was $25,188,909 (compared to
$24,584,446 at March 31, 2013).
Quarterly Royalty Payments
Callinan received interim quarterly royalty payments totaling
$1,396,246 from Hudbay Minerals Inc.
for the quarter ended March 31, 2014.
The royalty payments include a payment of $1,288,914 from the 6⅔% Net Profits Interest
Royalty and $107,332 from the
production royalty of $0.25 per ton
of ore milled, compared to payments totalling $2,298,145 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 June 30,
2014 on its common shares of two
cents per common share to all shareholders of record at the
close of business on June 30, 2014.
The ex-dividend date will be June 26,
2014 and it is expected that the dividend will be paid on or
about July 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.
Direct Registration System
Callinan is pleased to announce that it has elected to
participate in the Direct Registration System ("DRS"). The DRS
program allows Callinan shareholders to keep their securities
without having a physical share certificate issued as evidence of
ownership. Instead, the shares are held in the shareholder name and
registered electronically in the Company's records, which are
maintained by Callinan's transfer agent, Canadian Stock Transfer
("CST Trust Company"). Current shareholders are not affected by the
Company's participation in the DRS program which is simply a step
towards facilitating current or potential new shareholders in their
ability to hold shares of the Company electronically.
If you are a registered holder of the Company's common shares
and wish to convert physical securities to DRS, go to
www.canstockta.com for additional information. CST Trust Company
can also be directly contacted at:
CST Trust Company
1066 West Hastings Street, Suite 1600
Vancouver, BC V6E 3X1
Telephone: 1-800-387-0825
Summary
Callinan is a profitable royalty company with a continuing
dividend policy and evaluation of numerous royalty opportunities is
ongoing. Callinan's quarterly royalty income from the 777 mines is
lower compared to the same period last year. Metal prices and
challenges experienced at the 777 mine in 2013 continued in early
2014. Please refer to Hudbay's public filings for more
information.
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 $24 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