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EURO Ressources (0JSG)

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Wednesday 06 November, 2013

EURO Ressources

EURO Ressources : EURO RESSOURCES REPORTS EARNI...

EURO Ressources : EURO RESSOURCES REPORTS EARNINGS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2013

PARIS, France, November 6, 2013:  EURO Ressources S.A. ("EURO" or the "Company")
(Paris: EUR) today announced its unaudited interim financial results prepared in accordance with International Financial Reporting Standards ("IFRS") for the third quarter and nine months ended September 30, 2013.  These unaudited financial results were approved by the Board of Directors on October 30, 2013.  All financial amounts are expressed in Euros unless otherwise specified.

Under IFRS, EURO reported a net profit of €4.40 million (€0.070 per share) for the third quarter of 2013 and a net profit of €13.97 million (€0.224 per share) for the nine months ended September 30, 2013; this compares to a net profit of €5.67 million (€0.091 per share) for the third quarter of 2012 and a net profit of €17.68 million (€0.283 per share) for the nine months ended September 30, 2012.

To comply with French requirements, EURO reported revenues of €7.35 million under French GAAP and IFRS for the three months ended September 30, 2013, as compared to €10.22 million for the three months ended September 30, 2012, a decrease of 28%.  Further details on revenues are discussed below.

The following comments on the financial results for the third quarter and nine months ended September 30, 2013, are taken from EURO's IFRS Management's Discussion and Analysis.

Third quarter ended September 30, 2013 compared to the same period in 2012

EURO recorded revenues of €7.35 million for the third quarter of 2013, a decrease of 28% compared to revenues of €10.22 million for the third quarter of 2012.  Revenues are essentially attributable to the Rosebel royalty with €7.29 million (third quarter of 2012: €10.16 million).  The 28% decrease in revenues is substantially due to the decrease in the average gold price for the third quarter of 2013 to US$1,326 per ounce of gold (third quarter of 2012: US$1,652 per ounce of gold) for €2.51 million, and to the strengthened euro currency for €0.32 million.  There was a less than 1% decrease in gold production for the third quarter of 2013 with 99,470 ounces of gold produced, compared to 100,056 ounces of gold produced in the third quarter of 2012.

Operating expenses for the third quarter of 2013 were €0.28 million, compared to €0.26 million for the third quarter of 2012.  The increase is mainly due to the increase in legal fees related to the cost reduction strategies, and legal exchange and listing fees, partially offset by lower operating taxes.

The decrease in amortization expense to €0.16 million for the third quarter ended
September 30, 2013 (third quarter of 2012: €0.17 million), is substantially due to the decrease in gold production at the Rosebel mine.

EURO recorded an income tax expense of €2.53 million for the third quarter of 2013 (third quarter of 2012: €3.89 million). The decrease is mainly due to lower revenues.

Nine months ended September 30, 2013 as compared to nine months ended September 30, 2012

EURO recorded revenues of €24.17 million for the nine months ended September 30, 2013, a decrease of 20% compared to revenues of €30.36 million for the nine months ended
September 30, 2012.  Revenues are essentially attributable to the Rosebel royalty with €23.87 million (first nine months of 2012: €30.09 million) earned from Rosebel.  The 20% decrease in revenues is substantially due to the decrease in the average gold price for the first nine months of 2013 to US$1,456 per ounce of gold (first nine months of 2012: US$1,652 per ounce of gold) for €4.25 million, and to the decrease in gold production with 279,461 ounces of gold produced in the first nine months of 2013, as compared to 297,093 ounces of gold produced during the first nine months of 2012, for €1.77 million. 

Operating expenses for the first nine months of 2013 were €0.79 million, compared to €0.70 million for the first nine months of 2012.  The increase is mainly due to increased legal fees in relation to cost reduction strategies, increased legal exchange and listing fees, and increased operating taxes.

The decrease in amortization expense to €0.45 million for the first nine months ended September 30, 2013 (first nine months of 2012: €0.49 million), is substantially due to the decrease in gold production at the Rosebel mine.

During the second quarter of 2013, EURO recorded an impairment expense on its available-for-sale financial assets related to its investment in COLUMBUS Gold Corporation in the amount of €0.21 million.  During the third quarter of 2013, EURO reviewed the value of its available-for-sale financial assets for objective evidence of impairment based on both quantitative and qualitative criteria and determined that an impairment charge was not required. There was no impairment expense recorded in the third quarters of 2013 and 2012. 

EURO recorded an income tax expense of €8.87 million for the first nine months of 2013 (first nine months of 2012: €11.0 million). The decrease is mainly due to lower revenues, partially offset by the second rectifying Finance act of 2012, which imposes a 3% (€0.67 million) additional tax on all dividend distributions.

Liquidity and Capital resources

Cash and cash equivalents at September 30, 2013 totaled €0.71 million (December 31, 2012: €10.00 million).  EURO made a dividend distribution on August 6, 2013 in the amount of €22.50 million (€0.36 per share).  All of the cash and cash equivalents are unrestricted.  EURO expects to have sufficient cash flow to fund its on-going operational needs.

Management

On September 5th, 2013, Mr. Brian Trnkus resigned as Directeur-Général Délégué.  On October 30th, 2013, Mrs. Susanne A. Hermans resigned as Directeur-Général Délégué and ceased to be Vice-Président Finance of EURO. Mrs. Susanne A. Hermans served as Vice-President Finance since 2005 and as Directeur-Général Délégué since 2007.  Mrs. Line Lacroix, Manager Finance at IAMGOLD, was appointed as new Directeur-Général Délégué and Manager Finance of EURO.  The Board of Directors want to thank Mrs. Susanne A. Hermans and Mr. Brian Trnkus for all they have done during these years for EURO.

About EURO

EURO is a French company whose principal asset is the Rosebel Royalty on gold production at the Rosebel mine operated by IAMGOLD Corporation ("IAMGOLD").  EURO has approximately 62.5 million shares outstanding. IAMGOLD France S.A.S., an indirect wholly owned subsidiary of IAMGOLD, owns today approximately 86% of all outstanding shares.

Statements Regarding Forward-Looking Information:   Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties.   There can be no assurance that future developments affecting the Company will be those anticipated by management.

Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to a U.S. person absent registration, or an applicable exemption from the registration requirements of, the Securities Act.

Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com.  Further requests for information should be addressed to:

Benjamin Little 
Directeur-Général
Tel:       +1 416 933 4954
Email:   [email protected]

Line Lacroix
Directeur-Général Délégué
Manager Finance
Tel:    +1 450 677 2056
Email : [email protected]




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Source: EURO Ressources via Thomson Reuters ONE

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