Scully Royalty .(US:SRL)2025-12-31 22:01Revenue and Production - In 2024, approximately 57% of total revenues were derived from the royalty interest in the Scully Mine, with total assets amounting to $438.1 million[17]. - The Scully Mine historically extracted about 11.8 million tonnes of raw iron per year, targeting an annual production capacity of 6.25 million metric tonnes of iron concentrate upon reactivation[18]. - In the first half of 2025, total iron ore products shipped from the mine were 1,451,147 tonnes, a decrease from 1,716,111 tonnes in the same period of 2024[25]. - Revenue for the six months ended June 30, 2025, was $18,557 thousand, compared to $18,093 thousand for the same period in 2024, reflecting a year-over-year increase of 2.6%[44]. - Royalty revenue represented 55% of total revenue in the first half of 2025, down from 58% in the comparative period of 2024[45]. - The average price of 65% Fe iron ore decreased to $113 per tonne in the first half of 2025, compared to $131 per tonne in the same period of 2024, indicating a decline of approximately 13.8%[37]. - Revenue for the first half of 2025 increased to $18.6 million, up from $18.1 million in the same period of 2024, driven by higher Merchant Banking revenues and a weaker Canadian dollar[48]. - Gross revenues for the six months ended June 30, 2025, were $18,557,000, an increase from $18,093,000 in the same period of 2024, representing a growth of 2.56%[150]. - For the six months ended June 30, 2025, total revenue was $18,557 million, a 2.6% increase from $18,093 million in the same period of 2024[186]. Financial Performance - The Merchant Banking segment generated revenue of $3,536 thousand in the first half of 2025, compared to $3,162 thousand in the same period of 2024, marking an increase of 11.8%[46]. - Royalty segment revenue decreased to $10.2 million from $10.6 million year-over-year, attributed to lower production and iron ore price volatility[48]. - Merchant Banking segment revenue rose to $3.5 million from $3.2 million, primarily due to higher revenues from industrial real estate properties[50]. - Total costs of sales and services increased to $5.5 million in the first half of 2025, compared to $4.4 million in the same period of 2024[51]. - Net loss attributable to shareholders was $2.0 million or $0.14 per share, significantly improved from a net loss of $19.9 million or $1.34 per share in the first half of 2024[58]. - EBITDA for the first half of 2025 was $4.3 million, a recovery from negative EBITDA of $12.2 million in the same period of 2024[58]. - The net loss attributable to owners of the parent company for the six months ended June 30, 2025, was $2,033,000, compared to a net loss of $19,923,000 in 2024, indicating a significant improvement[150]. - The company reported a basic loss per share of $0.14 for the six months ended June 30, 2025, compared to a loss per share of $1.34 in the same period of 2024[150]. - The company incurred finance costs of $1,158,000 for the six months ended June 30, 2025, compared to $836,000 in the same period of 2024, representing an increase of 38.5%[150]. - Other comprehensive income for the six months ended June 30, 2025, was $1,073,000, compared to $2,163,000 in 2024, indicating a decrease of 50.4%[154]. - The company’s total comprehensive loss for the period was $597,000 for the six months ended June 30, 2025, compared to a comprehensive loss of $17,684,000 in 2024, showing a significant reduction[154]. Assets and Liabilities - As of June 30, 2025, assets held for sale represented approximately 20% of consolidated total assets, with a net value of $68,995 thousand after recognizing an impairment loss of $18.6 million[40]. - Total current assets remained stable at $175.4 million as of June 30, 2025, compared to $175.3 million at December 31, 2024[76]. - Current tax receivables were $0.7 million as of June 30, 2025, unchanged from December 31, 2024[80]. - Assets held for sale decreased to $85.9 million as of June 30, 2025, from $88.5 million as of December 31, 2024[80]. - Account payables and accrued expenses increased to $17.4 million as of June 30, 2025, compared to $14.8 million as of December 31, 2024[80]. - Bonds payable rose to $39.3 million as of June 30, 2025, from $36.5 million as of December 31, 2024[82]. - Deferred income tax liabilities decreased to $49.8 million as of June 30, 2025, from $51.5 million as of December 31, 2024[82]. - Total liabilities decreased to $124,337,000 as of June 30, 2025, from $127,770,000 at the end of 2024, reflecting a reduction of 3.81%[148]. - The total equity of the company as of June 30, 2025, was $309,697,000, a slight decrease from $310,325,000 at the end of 2024[148]. Cash Flow and Capital Management - Cash flows from operating activities provided $4.0 million in the first half of 2025, compared to cash used of $16.0 million in the same period of 2024[74]. - Cash increased to $25.2 million as of June 30, 2025, up from $19.1 million at December 31, 2024, primarily due to effective working capital management[77]. - The net debt-to-equity ratio improved to 0.05 as of June 30, 2025, compared to 0.06 at December 31, 2024[65]. - Cash and cash equivalents increased to $25,195,000 as of June 30, 2025, from $19,052,000 at the end of 2024, showing a growth of 32.3%[148]. - The Group's cash at the end of the period was $56,847 million, down from $67,912 million at the end of the previous period[161]. Dividends and Shareholder Information - The company declared a dividend of $0.37 (US$0.26) per common share on December 31, 2024, to be paid on February 21, 2025[29]. - The Company paid a dividend of $0.37 per common share on February 21, 2025, to shareholders of record on January 24, 2025[188]. - The company has 15,226,351 Common Shares outstanding as of June 30, 2025, with no stock options issued[130]. - The weighted average number of common shares outstanding was 14,947,276 for the six months ended June 30, 2025, compared to 14,822,251 in 2024[190]. Legal and Regulatory Matters - The legal claim against the company amounted to approximately $129.5 million (€80.8 million) as of June 30, 2025, an increase from $120.7 million (€80.8 million) at the end of 2024[137]. - The company is exploring rationalization opportunities for underperforming or non-core assets as part of its strategy to focus on its core asset, the Scully iron ore royalty[199]. Accounting and Compliance - The company adopted accounting amendments effective January 1, 2024, which did not have a material impact on interim consolidated financial statements for the six months ended June 30, 2025[113]. - The new IFRS 18 standard, effective January 1, 2027, aims to improve financial reporting by requiring additional defined subtotals in profit or loss statements[116]. - The company is currently assessing the impacts of new amendments to IFRS 9 and IFRS 7 on financial instruments, effective for annual periods beginning on or after January 1, 2024[117]. - The company maintains effective disclosure controls and procedures as evaluated by its Chief Executive Officer and Chief Financial Officer as of June 30, 2025[131]. - The company faces various market risks, including interest rates and foreign currency exchange rates, which may affect its financial condition and results of operations[126].