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EURO Ressources (0JSG)

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Monday 15 August, 2011

EURO Ressources

EURO RESSOURCES REPORTS EARNINGS FOR THE SECOND...






  EURO RESSOURCES REPORTS EARNINGS FOR THE SECOND QUARTER AND SIX MONTHS ENDED
                                 JUNE 30, 2011
PARIS,  France,  August  15, 2011:  EURO Ressources  S.A. ("EURO")  (Paris: EUR)
today  announced its audited statutory  financial results prepared in accordance
with  French Generally Accepted Accounting Principles ("GAAP") and the unaudited
financial  results prepared in accordance with International Financial Reporting
Standards  ("IFRS") for  the quarter  and six  months ended June 30, 2011. These
financial results were approved by the Board of Directors on August 11, 2011.

Under  French GAAP,  EURO reported  a net  profit of  €8.12 million  (€0.130 per
share)  for the  first six  months of  2011, compared to  a net  profit of €6.13
million (€0.098 per share) for the first six months of 2010.

Under  IFRS, EURO reported a net profit  of €9.75 million (€0.156 per share) for
the  first six  months of  2011, and €4.46  million (€0.071  per share)  for the
second  quarter of 2011; this compares to   €5.95 million (€0.095 per share) for
the  first six  months of  2010  and €2.48  million (€0.040  per share)  for the
second quarter of 2010.  All financial amounts are expressed in Euros.

The  table  below  summarizes  the  main  results  for the six months ended June
30, 2011 as  compared to the  six months ended  June 30, 2010, under French GAAP
and IFRS:

+------------------+--------------------------+--------------------------+-----+
|Income Statement  |French GAAP               |IFRS                      |Notes|
+------------------+--------------------------+--------------------------+-----+
|Revenue           |€15.36   million  for  the|€15.37   million  for  the|     |
|                  |first six months of 2011, |first six months of  2011,|     |
|                  |as   compared   to  €11.95|as   compared   to  €11.46|  1  |
|                  |million  for the first six|million  for the first six|     |
|                  |months     of     2010, an|months     of     2010, an|     |
|                  |increase of 29%           |increase of 34%           |     |
+------------------+--------------------------+--------------------------+-----+
|Operating expenses|€0.68   million   for  the|€0.49   million   for  the|     |
|                  |first six months of  2011,|first six months of 2011, |     |
|                  |as   compared   to   €0.71|as   compared   to   €0.55|  2  |
|                  |million  for the first six|million  for the first six|     |
|                  |months of 2010, a decrease|months of 2010, a decrease|     |
|                  |of 4%                     |of 11%                    |     |
+------------------+--------------------------+--------------------------+-----+
|Amortization      |€0.30   million   for  the|€0.285   million  for  the|     |
|                  |first six months of 2011 ,|first six months of 2011 ,|     |
|                  |as   compared   to   €0.28|as   compared   to  €0.287|  3  |
|                  |million  for the first six|million  for the first six|     |
|                  |months     of     2010, an|months of 2010, a decrease|     |
|                  |increase of 7%            | of 1%                    |     |
+------------------+--------------------------+--------------------------+-----+
|Income tax expense|€4.26   million   for  the|€4.50   million   for  the|     |
|                  |first six months of 2011, |first six months of 2011, |     |
|                  |as   compared   to   €3.22|as   compared   to   €3.22|  4  |
|                  |million  for the first six|million  for the first six|     |
|                  |months of 2010            |months of 2010            |     |
+------------------+--------------------------+--------------------------+-----+

One  of the main differences affecting the income statement presentation between
French GAAP and IFRS is the foreign exchange translation.  Under French GAAP the
foreign  exchange rate is calculated using the  exchange rate on the day of each
transaction,  whereas under IFRS, the exchange rate used is the average rate for
the period.

1.        Substantially  all of the revenue is income from the Rosebel royalty.
The  Rosebel gold mine produced 196,745 ounces of  gold for the first six months
of  2011, a 6.7% increase  from the  184,393 ounces of  gold produced during the
same  period in 2010.  This increase  in revenue is primarily  the result of the
record  average gold price for the six  months ended June 30, 2011 of $1,445 per
ounce  as compared to $1,152 per ounce  for the same period in 2010, an increase
of 25%.

The  difference between  French GAAP  and IFRS  is due  to the  foreign exchange
impact described above.

2.        The  decrease in  operating expenses  reflects the  general decline in
activity for EURO.

The  differences between the  two GAAP presentations  for the operating expenses
are  attributable to property  taxes (C.V.A.E.) which  are part of the operating
expenses  under French GAAP, whereas under IFRS, they are part of the income tax
expense.

3.        The  increase in amortization expenses  under French GAAP reflects the
increase in production.  The decrease in amortization expenses under IFRS is due
to  the strong Euro currency for  presentation purposes, with a foreign exchange
impact  of 8%, which is  partially offset by  the increase in  production at the
Rosebel mine of 6.7%.

 a. The difference in income tax expenses between French GAAP and IFRS is mainly
    due to the foreign exchange impact described above.

 Three  months ended June 30, 2011 compared to three months ended June 30, 2010
(from EURO's IFRS M D & A):

EURO  recorded  revenue  of  €7.48  million  for  the second quarter of 2011, an
increase  of 28% as compared to €5.85 million  for the second quarter of 2010.
Substantially  all  of  this  revenue  is  income from the Rosebel royalty.  The
Rosebel  gold mine produced  91,608 ounces of gold  during the second quarter of
2011, a  6% increase from the  86,049 ounces of gold  produced during the second
quarter  of 2010.  The increase in revenue  is primarily explained by the record
average  gold price for the  quarter ended June 30, 2011 of  $1,506 per ounce as
compared  to $1,197  per ounce  for the  second quarter  of 2010, an increase of
26%.

Operating  expenses  for  the  second  quarter  of  2011 were  €0.26 million, as
compared  to €0.30 million in the second quarter of 2010.  This decrease of 13%
reflects the general decline in activity for EURO.

The  decrease in amortization expense to €0.13 million for the second quarter of
2011 as compared to €0.14 million for the second quarter of 2010, a 7% decrease,
reflects  in large part the strong Euro currency, with a foreign exchange impact
of  13% for the quarter ended June  30, 2011; this decrease is partially offset,
by  the 6% increase in production at the Rosebel mine for the quarter ended June
30, 2011.

 EURO recorded an income tax expense of €2.28 million for the second quarter of
2011 (2010: €1.47 million).

Liquidity

Under  French GAAP and IFRS, cash and cash equivalents at June 30, 2011 totalled
€20.24 million.   EURO expects to have sufficient cash flow to fund its on-going
operational needs.

Based  on the financial results as of June 30, 2011 and the expectations for the
remainder of 2011, EURO anticipates paying the second instalment of the issuance
premium  in  the  maximum  amount  of  €0.19  per  share as scheduled on Monday,
November 14, 2011.  The distribution of the issuance premium was approved by the
shareholders on June 21, 2011.  The first instalment of the issuance premium was
paid  to all shareholders of record on July 11, 2011, in the amount of €0.28 per
share.


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.  Since  December
17, 2008, EURO  is a majority-owned  subsidiary of IAMGOLD.   IAMGOLD owns today
directly approximately 86% of EURO.

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:

Brian Trnkus
Directeur-Général
Tel:+1 4169334739
Email :[email protected]

Susanne A. Hermans
Vice-President Finance
Tél.: +1 303 204 7771
Email :[email protected]




EURO RESSOURCES REPORTS EARNINGS FOR THE SECOND QUARTER AND SIX MONTHS: 


http://hugin.info/143433/R/1538553/469946.pdf




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[HUG#1538553] 
  



                                                                                                                                          

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