Premier Royalty Inc. Announces 2013 Second Quarter Results
Second Quarter Highlights Include:
- Royalty revenue of $2.7 million
- 1,859 ounces of gold attributable to the Corporation
- Adjusted EBITDA of $1.9 million(1)
- Operating cash flow of $1.8 million and $0.02 per share cash flow
-($0.09) per share net loss due to a $8.7 million write down at Buffelsfontein
- Strong balance sheet with $32 Million in cash at end of Q2; no debt
President and CEO Abraham Drost, P.Geo. stated that "in spite of difficult market conditions in the sector, the Company's royalty contracts delivered a 57% increase in attributable gold ounces in Q2 over Q1. The ounces were sold at an average weighted price of US$1,425. Although we expect that the pending closure at Buffels will reduce ounces attributable by approximately 7% for the balance of 2013, we are pleased that outperformance at some of our other royalties such as on Newmont's Emigrant Springs Mine and the Aura Minerals operations may lead to improvements in guidance going forward."
Premier Royalty is forecasting attributable production of 6,500 to 7,000 ounces of gold in 2013 from its royalty portfolio which is based on Operator guidance.
Premier Royalty's Management's Discussion and Analysis (MD&A) and Financial Statements for the second quarter results are now accessible on the Company's website and on SEDAR at www.sedar.com.
Conference Call Details:
Management will be available on a conference call scheduled for Tuesday August 13, 2013 at 11am ET to discuss second quarter results. To participate in the call please use the below numbers:
Toll-Free (877) 215-9784
Local (647) 788-4917
About Premier Royalty Inc.
With a current cash balance of $33.5 million, the Company is well positioned for accretive growth. Premier Royalty's current royalty portfolio also features cash flow from several producing gold mines including:
- 1.5% NSR on the Emigrant Springs Mine operated by Newmont on the Carlin Trend in Nevada, USA
- 1% NSR on the Thunder Creek Deposit of the Timmins West Mine operated by Lake Shore Gold Mines in Timmins, Canada
- 1% NSR on the Mine Waste Solutions (MWS) tailings processing facility operated by AngloGold Ashanti near Johannesburg, South Africa
- 1% NSR on the Gualcamayo Mine operated by Yamana Gold Inc. in San Juan Province, Argentina
- 1.5% NSR on the San Andres Mine in Honduras and the Sao Vicente and Sao Francisco Mines in Brazil, operated by Aura Minerals Inc.
Premier Royalty Inc. also has a number of other promising earlier stage exploration and development royalties in its growth pipeline and is actively assessing other potential royalty acquisitions and corporate development opportunities in stable jurisdictions.
CAUTIONARY STATEMENT REGARDING TERMINOLOGY AND FORWARD-LOOKING INFORMATION:
Adjusted EBITDA is a non-IFRS financial measure with no standardized meaning under IFRS. For further information and a detailed reconciliation, please see page 6 of the Company's MD&A for the three and six months ended June 30, 2013.1 This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Premier Royalty's Annual Information Form dated as of December 31, 2012. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier Royalty disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Premier Royalty Inc.
Abraham Drost, P.Geo., President & CEO
Premier Royalty Inc.
Nicole Marchand, Investor Relations