Callinan Royalties reports it has received its latest interim quarterly payments totaling just over 1.4 million dollars from Hudbay for the quarter ended December 31st, 2014 which will be the last quarter of payments under the six and two thirds percent net profits interest royalty structure. They note these payments include just over 1.3 million from the net profits interest and just over 82 thousand from the production royalty of 25 cents per short ton of ore milled. They report the payment is down from 2.3 million for the same quarter last year due mainly to the two week unplanned maintenance shutdown at the Triple Seven Mine as well as significantly lower zinc grades with lower experienced recoveries. They add the higher unit operating costs relate to underground mining and should not affect their future payments under the new 4 percent net smelter return structure.
The payments are due to Callinan’s royalty interests on lands that include the Triple Seven and Triple Seven North mines in Flin Flon.