Abitibi Royalties: Q2-2019 Royalty Payment
July 17 2019 - 7:00AM
Abitibi Royalties Inc.
(RZZ-TSX-V, ATBYF-OTC-Nasdaq Intl: “Abitibi Royalties” or the
“Company”) is pleased to announce its Q2-2019 royalty payment from
the Canadian Malartic Mine, located near Val-d’Or Québec and total
cash generated during the quarter. In addition, the Company’s board
of directors has approved an initial quarterly dividend payment on
the Company’s outstanding common shares of CDN$0.03 per common
share (which would amount to CDN$0.12 per common share on an annual
basis).
Q2-2019 Royalty Payment
During Q2-2019, the Company generated total cash
of approximately CDN$1.2 million, with approximately CDN$817,000
coming from royalties on the open pit portion contained within the
Company’s 3% NSR (Fig. 1) at the Canadian Malartic
Mine. Royalties from the open pit portion of the Canadian Malartic
Mine commenced at the end of Q4-2018 (the Company’s core
underground royalties at East Malartic and Odyssey are not in
production). The Canadian Malartic Mine is the largest gold mine in
Canada and is operated by Agnico Eagle Mines Limited (“Agnico
Eagle”) and Yamana Gold Inc. (“Yamana”). The remainder of the cash
generated during the quarter came from options premiums
(CDN$267,000) and dividends (CDN$92,000). Please see news release
dated March 14, 2019 for the Company’s 2019-2021 royalty production
schedule. The Company has 12,527,210 shares outstanding and
12,543,410 shares on a fully diluted basis.
During the six months ended June 30, 2019, the
Company generated cash of approximately CDN$2.2 million (See news
release dated April 16, 2019 for Q1-2019 breakdown).
Initial Quarterly Dividend Approved
The Company’s board of directors has approved,
subject to regulatory approval, an initial quarterly dividend on
the Company’s outstanding common shares of CDN$0.03 per common
share (which would amount to CDN$0.12 per common share on an annual
basis). The record and payment dates for the initial quarterly
dividend will be September 9 and 30, respectively. The ex-dividend
date will be announced in a subsequent news release once finalized.
The full amount of the dividend will be designated as an “eligible
dividend” as defined in the Income Tax Act (Canada). Before
implementing the dividend, the Company’s board of directors and
management reviewed Abitibi Royalties’ business of acquiring
additional royalties, in addition to further reducing the issued
share capital through purchases conducted under the Normal Course
Issuer Bid program. From this review, it was determined the
Company has sufficient resources to meet its business
objectives.
The declaration, amount and payment of future
dividends are subject to the board of directors’ continuing
determination that the payment is in the best interests of the
Company, its shareholders and are in compliance with all laws and
regulations applicable to the declaration and payment of dividends
by the Company.
About Abitibi Royalties
Abitibi Royalties owns various royalty interests
at the Canadian Malartic Mine near Val-d’Or Québec. In addition,
the Company is building a portfolio of royalties on early stage
properties near producing mines. The Company has approximately
CDN$41.2 million (as of July 16, 2019) in cash and investments* and
is debt free.
*Investment values calculated based on closing
prices and certain share price limits due to call option contracts.
Please see the Company’s Q1-2019 MD&A (prepared as of May 16,
2019) for further call option contract details.For
additional information, please contact:
Shanda Kilborn –
Director, Corporate Development 2864 chemin
SullivanVal-d’Or, Québec J9P 0B9Tel.: 1-888-392-3857Email:
info@abitibiroyalties.com |
|
Forward Looking Statements:
This news release contains certain statements
that may be deemed “forward-looking statements”. Forward
looking statements are statements that are not historical facts and
are generally, but not always, identified by the words “expects”,
“plans”, “anticipates”, “believes”, “intends”, “estimates”,
“projects”, “potential” and similar expressions, or that events or
conditions “will”, “would”, “may”, “could” or “should” occur.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or realities may differ materially from those in forward
looking statements. Forward looking statements are based on the
beliefs, estimates and opinions of the Company’s management on the
date the statements are made. Except as required by law, the
Company undertakes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change.
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 news release.
Figure 1. Abitibi Royalties’ Canadian Malartic
Royalties
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