Canadian Royalties Announces Financial Results for the Quarter Ended March 31, 2007
Thu May 15, 5:55 PMMONTREAL, May 15 /CNW Telbec/ - Canadian Royalties Inc. (TSX: CZZ.TO) ("Canadian Royalties" or the "Corporation") announces that it filed on May 15, 2008 its financial results for the Quarter ended March 31, 2008.
Financial Results Quarter Ended March 31
During the quarter the company continued its progress towards the development of the Nunavik Nickel Project planning the start of construction work early in the summer of 2008 once the appropriate permits have been approved. As part of this process, on April 9, 2008, the Corporation, three Inuit communities located in the vicinity of the Project and the Makivik Corporation signed an Impact and Benefits Agreement (the "IBA"). The IBA is a formal commitment by the company to ensure fair distribution of the economic benefits arising from the project. The company is expecting the regulatory authorities to issue the Global Certificate of Authorization by the end of May 2008.
As of March 31, 2008, the company had spent and committed approximately $ 124.9 million in investments for engineering and equipment for the $ 465.6 million project. The investments have been funded through $ 100 million of equity issued in 2007, $ 9.8 million of supplier equipment loans and the convertible debenture financing of $ 137.5 million completed in March 2008. The remainder of the project investment funding will be in the form of a project term loan currently being negotiated with a consortium of banks.
Income Statement Highlights
(in thousands of Cdn dollars, except per share amounts)
Three Months Three Months
2008 2007
Net loss 1,902 406
Net loss per share 0.019 0.006
The Net loss for the quarter reflects the cost of additional support staff
due to the increased activity level and increased professional fees.
Balance Sheet Highlights
(in thousands of Cdn dollars)
March 31 December 31
2008 2007
Cash and cash equivalents 141,827 37,008
Working Capital (excluding cash
and cash equivalents) 10,479 6,318
Total Assets 291,781 163,301
Long term debt 92,957 7,776
Shareholders Equity 185,976 141,290
The full text of the Corporation's financial documentation is available
for public viewing via the internet at www.sedar.com.
Forward-looking Statements
This news release contains certain forward-looking statements. These
forward-looking statements are subject to a variety of risks and uncertainties
beyond the Corporation's ability to control or predict which could cause
actual events or results to differ materially from those anticipated in such
forward-looking statements. Such risks and uncertainties are disclosed under
the heading "Risk Factors" in the Corporation's Annual Information Form dated
March 31, 2008 for the year ended December 31, 2007. Forward-looking
statements are based on a number of assumptions which may prove to be
incorrect, including, but not limited to, assumptions disclosed under the
heading "Forward-Looking Statements" in the Corporation's Annual Information
Form dated March 31, 2008 for the year ended December 31, 2007. Actual results
and developments are likely to differ, and may differ materially, from those
expressed or implied by the forward-looking statements contained in this press
release. Accordingly, readers should not place undue reliance on
forward-looking statements.
For additional information please visit our website at
www.canadianroyalties.com.
ContactsRichard R. Faucher President and CEO
(514) 879-1688
Toll free: (877) 879-1688
richard.faucher@canadianroyalties.com Gerald Price
Chief Financial Officer
(514) 879-1688
Toll free: (877) 879-1688
gerry.price@canadianroyalties.com Renmark Financial Communications Inc.: Jason Roy: jroy@renmarkfinancial.com Dan Symons: dsymons@renmarkfinancial.com Media - Adam Ross: aross@renmarkfinancial.com
(514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com
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