Quantcast

International Royalty Corporation Reports Second Quarter Results

August 14, 2008

DENVER, CO, Aug. 14 /PRNewswire-FirstCall/ — International Royalty Corporation (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 30.5ÃӚ“šÃƒÆ’“šÃƒ“š millionÃӚ“šÃƒÆ’“šÃƒ“š 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 68.4ÃӚ“šÃƒÆ’“šÃƒ“š 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 .

   On behalf of the Board of Directors,   INTERNATIONAL ROYALTY CORPORATION    Douglas B. Silver   Chairman and CEO  

INTERNATIONAL ROYALTY CORPORATION

CONTACT: Jack Perkins, Director of Investor Relations, (303) 991-9500;Douglas B. Silver, Chairman and CEO, (303) 799-9020,info@internationalroyalty.com, http://www.internationalroyalty.com/; Renmark FinancialCommunications Inc.: Barbara Komorowski: bkomorowski@renmarkfinancial.com; JenPower: jpower@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,http://www.renmarkfinancial.com/




comments powered by Disqus