The Rainmaker
15 years ago
ROY-International Royalty reports construction decision on world class Pascua gold royalty * On Friday May 8, 2009, 1:20 pm EDT
NYSE-A:ROY
DENVER, CO, May 8 /CNW Telbec/ - International Royalty Corporation (TSX: IRC, NYSE-Amex: ROY) ("IRC" or the "Company") reports today that Barrick Gold Corporation ("Barrick" or the "operator") announced that its world-class Pascua-Lama project is proceeding to construction. IRC owns the largest private royalty on the Chilean portion ("Pascua") of the Pascua-Lama project. It is a sliding scale royalty that varies with the price of gold. At a current spot gold price of around US$900/oz, the royalty rate would be 3.15% NSR and is expected to produce US$20 million in annual revenues to the Company. IRC purchased its Pascua royalty for a total of US$56.5 million in several transactions occurring in January through August of 2007.
According to the operator, Pascua-Lama currently has approximately 18 million ounces of contained gold in Proven and Probable Reserves, 4.7 million ounces of Measured and Indicated Resources(1), and is expected to have a mine life of more than 25 years. During the first five years of production, Barrick estimates average cash costs of US$20-US$50/oz gold and average annual production of about 750,000-800,000 ounces of gold. Commissioning of the project is expected in late 2012 and production in early 2013. The operator estimates pre-production construction costs of US$2.8-3.0 billion.(2) As a royalty holder, IRC is not exposed to this or any future capital expenses for the Pascua-Lama project.
Additional information on the construction of the Pascua-Lama project is available at http://www.barrick.com/Theme/Barrick/files/docs_presentations/05.07.2009%20-%2 0Pascua%20Lama%20Go%20Ahead%20Webcast.pdf.
This press release has been reviewed by Peter Clarke of SRK Consulting, a qualified person for the purposes of National Instrument 43-101.
References:
(1). Proven Reserves contain 42.68 million tons of ore at 0.050 oz/ton
for 2.13 million ounces. Probable Reserves contain 397.55 million
tons of ore at 0.039 oz/ton for 15.67 million ounces. Measured
Resources contain 12.51 million tons of ore at 0.039 oz/ton for 487
thousand ounces and Indicated Resources contain 118.99 million tons
of ore at 0.035 oz/ton for 4.2 million ounces. Contained silver
within reported proven gold Reserves are 75.54 million ounces at a
grade of 1.77 oz/ton and contained silver within reported Probable
gold Reserves are 642.08 million ounces at a grade of 1.62 oz/ton.
Mineral Reserves and Resources have been calculated in accordance
with National Instrument 43-101 as required by Canadian securities
regulatory authorities. For a breakdown of Reserves and Resources by
category and additional information relating to Reserves and
Resources, see pages 21-31 of Barrick's 2008 Form 40-F/Annual
Information Form on file with the U.S. Securities and Exchange
Commission and Canadian provincial securities regulatory
authorities.
(2). News Release, Barrick Gold Corporation, May 7, 2009
International Royalty Corporation
International Royalty Corporation (IRC) is a global mineral-royalty company. IRC holds more than 85 royalties including an effective 2.7% NSR on the Voisey's Bay mine, a sliding-scale NSR on the Pascua-Lama gold project in Chile, a 1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR on approximately 3.0 million acres of gold lands in Western Australia. IRC is senior listed on the Toronto Stock Exchange (TSX:IRC - News) as well as the NYSE Amex (NYSE-A:ROY).
On behalf of the Board of Directors,
INTERNATIONAL ROYALTY CORPORATION
Douglas B. Silver
Chairman and CEO
Cautionary Statement Regarding Forward-Looking Statements
---------------------------------------------------------
Some of the statements contained in this document are forward-looking statements, such as statements that describe IRC's future plans, intentions, objectives or goals, and specifically include but are not limited to IRC's expectations as to gold production levels at the Pascua-Lama mine, and corresponding expected royalty revenue. In certain cases, forward-looking statements can be identified by the use of words such as "expects", "enable", "anticipates", "estimated" or words of similar effect. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements inherently involve unknown risks, uncertainties, assumptions and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements depending on, among others, such key factors as the prices of the underlying commodities, accuracy of operator estimates, actual production at the Pascua-Lama gold project, absence of production delays or regulatory issues and other risks associated with mining operations. IRC's forward-looking statements in this document regarding the anticipated production are based on certain assumptions. Such assumptions include, but are not limited to, the validity of statements made by the project operators in the public domain, and their ability to finance, construct and successfully operate the Pascua-Lama project. The forward-looking statements included in this document represent IRC's views as of the date of this document and subsequent events and developments may cause IRC's views to change. These forward-looking statements should not be relied upon as representing IRC's views as of any date subsequent to the date of this document. Although IRC 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. Accordingly, readers should not place undue reliance on any forward-looking statements.
Cautionary note to U.S. Investors: The SEC permits the disclosure of only those mineral deposits that can be economically and legally extracted and produced. This news release uses the team "Measured and Indicated Resources" which the SEC guidelines prohibit from inclusion in filing with the SEC.
For further information
Jack Perkins, Director of Investor Relations, (303) 991-9500
Douglas B. Silver, Chairman and CEO, (303) 799-9020, info@internationalroyalty.com
www.internationalroyalty.com
Renmark Financial Communications Inc.: Barbara Komorowski, bkomorowski@renmarkfinancial.com
Christine Stewart, cstewart@renmarkfinancial.com
Montreal: (514) 939-3989, Fax: (514) 939-3717
Toronto: (416) 644-2020, Fax: (416) 644-2021
www.renmarkfinancial.com
futrcash
16 years ago
International Royalty Corporation reports second quarter results
AMEX:ROY TSX:IRC
DENVER, CO, Aug. 14 /PRNewswire-FirstCall/ -- International Royalty Corporation (AMEX:ROYAMEX:TSX:AMEX:IRC) (the "Company" or "IRC") today reported its second quarter 2008 financial results. All figures are unaudited and in United States dollars unless otherwise noted.
Quarterly Highlights
Royalty revenues were $8,610,000 for the second quarter of 2008, a decrease of $4,597,000 from the same period last year. An increase in royalty revenues from the Southern Cross and Meekatharra gold mines of $113,000 and $51,000, respectively, were offset by a decrease of $4,741,000 in gross revenues from the Voisey's Bay nickel-copper-cobalt mine which is attributed to the significant drop in nickel prices from 2007 levels.
The Voisey's Bay royalty payment during the second quarter of 2008 was based on total contained nickel in concentrates of approximately 30.5 million pounds, compared to approximately 29.7 million pounds for the second quarter of 2007. The increase in paid production was offset by a sharp decrease in the average price of nickel during the quarter from $21.10 per pound in the second quarter of 2007 to $12.93 per pound in the second quarter of 2008. These quarterly royalty revenues do not include revenues derived from the copper concentrates produced during the corresponding period due to seasonal transportation schedules. The copper concentrates produced during this period typically are reflected in the third and fourth quarter royalty revenues.
Net earnings during the quarter were $927,000, or $0.01 per share, compared to $2.4 million, or $0.04 per share in 2007.
Cash flow from operations decreased from $6,642,000 in the second quarter of 2007 to $(467,000) during the second quarter of 2008. This decrease in cash flow was primarily due to an income tax payment of $7,502,000 paid during the second quarter of 2008.
Six Month Highlights
For the six months ended June 30, 2008, royalty revenues decreased $4,492,000 to $18,893,000 as compared to $23,385,000 for the same period in 2007. An increase in royalty revenues from the Southern Cross and Meekatharra gold mines for the six months ended June 30, 2008 of $272,000 and $93,000, respectively, were offset by a decrease of $4,848,000 in gross revenues from the Voisey's Bay nickel-copper-cobalt mine.
The Voisey's Bay royalty payment during the six months ended June 30, 2008 was based on total contained nickel in concentrates of approximately 68.4Â million pounds, compared to approximately 56.7 million pounds for the same period in 2007, an increase of 20.7%. The increase in paid production in 2008 was offset by a decrease in the average price of nickel during the quarter from $18.96 per pound in the second quarter of 2007 to $12.63 per pound in the second quarter of 2008, a decrease of 33.4%.
Net earnings during the first six months of 2008 were $3,338,000, or $0.04 per share, compared to $6,860,000, or $0.07 per share in 2007.
Cash flow from operations decreased from $11,608,000 in 2007 to $5,931,000 in 2008. This decrease in cash flow was primarily due to an income tax payment of $7,502,000 paid during the second quarter of 2008.
Summary of Financial Information
($ thousands, except per share data, unaudited) Three Months Ended Six Months Ended June 30, June 30, ---------------------------------------- 2008 2007 2008 2007 ---------------------------------------- Statement of Operations Royalty revenues $8,610 $13,207 $18,893 $23,385 Earnings from operations 2,198 6,151 4,998 9,843 Earnings before income taxes 1,465 3,585 4,713 6,860 Net earnings 927 2,380 3,338 4,545 Basic net earnings per share 0.01 0.04 0.04 0.07 Diluted net earnings per share 0.01 0.03 0.04 0.07
Statement of Cash Flows Cash provided by (used in) operating activities $(467) $6,642 $5,931 $11,608
June 30, December 2008 31, 2007 --------- --------- Balance Sheet Total assets $379,653 $384,482 Shareholders' equity 298,003 295,679
Payable production and revenues on the Company's royalties and average metal prices received were as follows:
Production and revenue (unaudited) Payable Metal Production (1) ---------------------------------- Six Quarter Ended Months Ended June 30, June 30, ----------------- ---------------- Mine Commodity Royalty 2008 2007 2008 2007 ----------------- ---------------- Williams Gold 0.25% NSR 31 53 69 117
Southern Cross Gold 1.5% NSR 37 37 73 75
Meekatharra Gold 0.45% NSR 13 - 24 -
Voisey's Bay Nickel 2.7% NSR 30,504 29,698 68,460 56,703 Copper 2.7% NSR 8,629 5,059 42,486 17,677 Cobalt 2.7% NSR 1,551 1,222 3,121 2,316
(1) Gold is in thousands of ounces; nickel, copper and cobalt are in thousands of contained pounds in concentrate. Silver ounces are converted to gold ounce equivalents by dividing silver revenue by the average price of gold during the period.
Revenue (thousands) ------------------------------------- Six Quarter Ended Months Ended June 30, June 30, --------- ------------------ ----------------- Mine 2008 2007 2008 2007 --------- ------------------ -----------------
Williams $ 69 $ 89 $ 156 $ 191
Southern Cross 478 365 1,007 735
Meekatharra 51 - 93 -
Voisey's Bay 7,986 12,727 17,584 22,432
Average metal prices realized (in US$) (unaudited)
Six Quarter Ended Months Ended June 30, June 30, ------------------ ----------------- 2008 2007 2008 2007 ------------------ ----------------- Gold, per ounce $ 851 $ 660 $ 912 $ 654 Nickel, per pound (1) 12.93 21.10 12.63 18.96 Copper, per pound (1) 5.00 3.31 3.09 2.68 Cobalt, per pound (1) 47.17 27.54 46.55 26.99
(1) Before transportation, smelting and refining costs.
Complete financial results are available on SEDAR, EDGAR and on the Company's website at http://www.internationalroyalty.com/.
IRC invites you to participate in its conference call to discuss second quarter results.
The Company will host this conference call on Monday, August 18, 2008 at 1:00 PM (EDT) / 11:00 AM (MDT).
To participate in the conference call, please dial 647-427-3411 or North American toll free 1-888-241-0326, at least five minutes prior to the scheduled start of the call.
A replay of the conference call will be available as of 3:00 PM (EDT) / 1:00 PM (MDT) August 18, 2008 to September 18, 2008. Please dial 1-800-677-8849 or 402-220-1454 and enter the following access code 50295931.
International Royalty Corporation ---------------------------------
International Royalty Corporation (IRC) is a global mineral royalty company. IRC holds approximately 80 royalties including an effective 2.7% NSR on the Voisey's Bay mine, a sliding-scale NSR on the Pascua gold project in Chile, a 1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR on approximately 3.0 million acres of gold lands in Western Australia. IRC is senior listed on the Toronto Stock Exchange (TSX:IRC) as well as the American Stock Exchange (AMEX:ROY).
On behalf of the Board of Directors, INTERNATIONAL ROYALTY CORPORATION
Douglas B. Silver Chairman and CEO
DATASOURCE: INTERNATIONAL ROYALTY CORPORATION
CONTACT: Jack Perkins, Director of Investor Relations, (303) 991-9500;
Douglas B. Silver, Chairman and CEO, (303) 799-9020,
, http://www.internationalroyalty.com/; Renmark Financial
Communications Inc.: Barbara Komorowski: ; Jen
Power: , (514) 939-3989, Fax: (514) 939-3717,
http://www.renmarkfinancial.com/
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