Top-News
Freitag,
30.04.2021 23:00
von
PR Newswire
| Aufrufe: 149
Scully Royalty Ltd. Provides Corporate Update And Announces Actions Seeking To Maximize Shareholder Value
Ein Wärmekraftwerk (Symbolbild).
© Alex_Wang1 / iStock / Getty Images Plus / Getty Images
PR Newswire
HONG KONG, April 30, 2021
HONG KONG, April 30, 2021 /PRNewswire/ -- Scully Royalty Ltd. (the "Company") (NYSE: SRL) is pleased to announce that it has filed its annual report on form 20-F with the Securities and Exchange Commission, and also provides the following corporate updates:
UPDATE ON THE SCULLY MINE
The most valuable asset that the Company owns is its net revenues royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. The royalty rate under this interest is 7.0% on iron ore shipped from the mine and 4.2% on iron ore shipped from tailings and other disposed materials, with a minimum payment of C$3.25 million per annum.
In 2017, a new operator acquired the Scully mine and has disclosed that it has since achieved a number of milestones, including completing a US$276 million financing and commencing operations at the mine in 2019. The Scully mine has a capacity of 6 million tonnes per annum and produces a premium iron ore product, with Fe content in excess of 65%.
Iron ore is primarily used to make steel, which is considered to be a critical commodity for global economic development. As such, the demand and consequently the pricing of iron ore are largely dependent upon the raw material requirements of integrated steel producers. Demand for blast furnace steel is in turn cyclical in nature and is influenced by, among other things, the level of global economic activity.
The operator of the mine has disclosed the Scully iron ore mine produces a high-grade ore in excess of 65% iron content that also has other favorable characteristics, such as relatively low contaminant ratios. Globally, steelmakers value high grade iron ore with low contaminants (such as silica, alumina, and phosphorus) because they improve environmental and financial performance through more efficient raw material utilization, higher plant yields, and lower emissions. Therefore, it is common and generally expected for 65% Fe iron ore, including the Scully iron ore mine's product, to sell at a premium to 62% Fe iron ore. In 2020, the Platts 65% Fe index price was at an approximately 12% (US$13) premium to the Platts 62% Fe Index price.
The Scully Iron Ore Mine
We are encouraged by the development of iron ore pricing and the production ramp up of the mine to date. The following is a three-year price chart of 62% iron ore.
The following table sets forth total iron ore products shipped (which include pellets, chips and concentrates by the Scully mine operator in 2019 and 2020:
| | H1 | H2 | Full Year |
| (in thousands of tonnes) | |||
| 2019 | - | 954,579 | 954,579 |
| 2020 | 1,459,162 | 1,539,492 | 2,998,654 |
CASH DIVIDEND POLICY
As a result of the positive developments at the Scully iron ore mine, going forward, the Company has determined to focus its efforts on enhancing shareholder value and maximizing earnings and dividends to its shareholders based upon its iron ore royalty interest. Aligned with this focus, the Company is pleased to announce that its board of directors has taken the first step by approving a policy for future cash dividends.
While no dividends have been declared or determined to date,the dividend policy is intended to maximize potential future dividends payable to holders of common shares after consideration of the Company's financial position, operating results, ongoing working capital requirements and other factors.
Any cash dividend payment will be made in accordance with regulatory requirements after the approval of our Board of Directors. Subject to board approval and dependent on the Company's results, financial position and other factors the Company currently expects that the first dividend payment under its Cash Dividend Policy to be made in the second half of 2021.
STOCK DIVIDENDS AND LIQUIDITY OF OUR COMMON SHARES
It has been and remains our goal and initiative to structure the group in a way that substantially eliminates the discount between the market price of our common shares and our stated net book value per share. For example, we believe that the value of our royalty interest in the Scully iron ore mine is not properly reflected in the price of our common shares. We believe that one of the reasons for this discrepancy is our complex group structure and diverse portfolio of assets with different economics, capital requirements, and growth prospects. One of the major obstacles for achieving this goal is the very limited liquidity in our common shares. This trading profile restricts many investors from acquiring shareholdings, as the illiquidity of our stock does not qualify us for institutional ownership.
| C$'000s,exceptshareandpershareamounts | 12/31/20 |
| Currentassets | 129,211 |
| Non-currentassets | 379,914 |
| Current liabilities | 16,137 |
| Non-currentliabilities | 124,264 |
| Shareholders' equity | 361,544 |
| | |
| Sharesoutstanding('000s) | 12,555 |
| Bookvaluepershare(C$) | 28.80 |
| Bookvaluepershare(US$) | 22.62 |
| Marketprice per share(US$; 04/27/21 closingprice) | 9.35 |
| Price/Book | 41.34% |
To help address this issue of illiquidity with our common shares, our Board of Directors has approved two stock dividends which will increase the number of shares outstanding without diluting any individual shareholder position. The goal of these stock dividends is to improve shareholder value and liquidity and make our common shares more accessible to a broader base of investors. The details of the tax free stock dividends are:
- a 9% stock dividend will be distributed on May 31, 2021, to shareholders of record as at May 14, 2021, where such holders will receive 9 common shares for every 100 common share held on the record date; and
- an 8% stock dividend will be distributed on November 30, 2021, to shareholders of record as at November 15, 2021, where such holders will receive 8 common shares for every 100 common share held on the record date.
The above stock dividends are subject to receipt of any requisite stock exchange approvals.
DISCONTINUED OPERATIONS
To support the Company's core focus, the other two of our operating segments – Industrial and Merchant Banking will be classified as discontinued operations in our 2021 financial statements.
As a result of the discontinued operations accounting, beginning with our 2021 half-year financial results, our balance sheet will present the assets and liabilities of Industrial and Merchant Banking as assets held for sale, and liabilities associated with assets held for sale, respectively. Management is committed to a plan to rationalize these interests. As a result, all financial results of these two segments will be consolidated into one line on our income statement, being "Income (loss) from discontinued operations". This will result in our financial statements to be materially focused on our core royalty asset going forward.
| December31,2020(C$'000s,exceptshareandpershareamounts) | Royalty | Industrial | MerchantBanking | AllOther | ConsolidatedSRL |
| Assets | 226,645 | 153,240 | 107,440 | 21,800 | 509,125 |
| Liabilitiesand non-controllinginterests | 53,519 | 43,418 | 49,844 | 800 | 147,581 |
| Equity | 173,126 | 109,822 | 57,596 | 21,000 | 361,544 |
| | | | | | |
| Revenuefromexternalcustomers | 31,360 | 17,666 | 10,406 | 0 | 59,432 |
| Income(loss)beforeincometaxes | 25,293 | (1,229) | 832 | (13,717) | 11,179 |
| | | | | | |
| Equity perShare (C$) | 13.79 | 8.75 | 4.59 | 1.67 | 28.80 Werbung Mehr Nachrichten zur Scully Royalty Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1  Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |
