DGAP-News: Basic Resources AG increases net profit significantly in 2010
(firmenpresse) - DGAP-News: Basic Resources AG / Key word(s): Final Results
Basic Resources AG increases net profit significantly in 2010
10.06.2011 / 11:40
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Basic Resources AG increases net profit significantly in 2010
Basic Resources AG (former YALTA AG) has left the impacts of financial
crisis behind and achieved a significant improvement in earnings in 2010.
The business of the company provides services in connection with M&A,
capital raising as well as listing and investor relations consultancy
through its subsidiary YALTA advisory GmbH. In addition, Basic Resources AG
participates in capital increases of its portfolio companies, but also with
other companies in the resources sector. Originally the entire area of
Emerging Markets was covered. Because of the diversity and the increasing
scale of the natural resources sector, focusing was carried out on this
field, which is one of the key growth sectors in emerging markets. Thus,
the services of Basic Resources AG can be offered more selectively,
contributing to raising the profile of the company and its perception in
the market. This was also documented by the name change from Yalta AG into
Basic Resources AG. This step has been received positively by the market.
By this way, new mandates could be acquired. Furthermore are under
negotiation.
To enable interested investors to a more recent, market-driven image of the
business and development of results, the institutions of Basic Resources AG
decided to publish from now on annual accounts based on IFRS, too. The
financial statements are available on the company's website at
www.basicresourcesag.de .
The accounting structure of the Basic Resources AG shows that earnings on
the disposal of financial assets have increased in accordance with German
HGB to k EUR 363 (prior year: k EUR 111) and other operating income to k
EUR 371 (prior year: k EUR 84). IFRS shows (net) profits amounting to k EUR
356 (prior year: k EUR 109), arising from the disposal of long-term gains
on financial assets. Due to the recovery in financial markets various elder
stocks could be sold with significant profit, other investments, still
contained in the portfolio, have made??up their interim losses or at least
reduced them clearly.
In sum, the new focus of the company towards resources was very successful.
The quality of investments, especially received by the capital increase by
way of contribution in kind last year, is proving to be excellent. The
exploration results, released so far, are supporting the positive
expectations of these investments in a strong manner. A drop of bitterness
is the devaluation of the old stake in Uranio AG. This has been necessary,
as the company has not reached a positive decision to get an extension of
its uranium licenses in the Central African Republic until today. As a
consequence of the importance and value of this project a sharp
depreciation of those shares on the stock exchange was caused. This is the
main reason for the increase of German HGB depreciation of investments upto
to k EUR 240 (previous year: k EUR 0).
According to HGB, net income rose to about k EUR 189 (previous year: k EUR
- 43). On the basis of IFRS, the net income even increased to about k EUR
865 (previous year: k EUR 38). The significantly higher profits based on
IFRS mainly result out of the 'market to market valuation' of assets on the
balance sheet date. The earnings per share (EPS) based on the weighted
average number of outstanding shares during the financial year is 0.06 EUR
in accordance with HGB and 0.28 EUR per share in accordance with IFRS. The
equity ratio of Basic Resources AG is far more than 90% in both evaluation
modes.
From the perspective of the Board the positive developments within the
portfolio companies themselves, as well as the sharp rise in commodity
prices, are not considered sufficiently by the market despite the caused
price increases occurred in the investment portfolio. We therefore expect,
on sight, further positive performance of our investments. In addition, as
previously reported, also the business of listing advice and support for
companies of the resources sector is running successfully. As one primary
listing at Frankfurt Stock Exchange has already been completed and another
one is being prepared, this activity develops encouraging. Here, our
subsidiary YALTA advisory GmbH, offering these services, records positive
effects.
The Board is looking optimistically to the current year, particularly as
the bottom line in the first 5 months of this fiscal year, lies over the
same period of last year based on IFRS measures. If there will be no
significant disruption on the capital markets, we are presently confident
to be able to exceed the results of 2010 significantly in the current
fiscal year.
Disclaimer:
This document was prepared by Basic Resources AG. The opinions stated
herein are those of Basic Resources AG at the time of publication and are
subject to change at any time. The document is only for the purpose of
information and use by its recipient. It is neither an offer nor an
invitation to purchase or sell Basic Resources AG shares. A reference to
the performance of the past shall not be understood as an indication of
future developments. The information and analysis contained in this
publication have been compiled from sources that are deemed to be reliable.
However, Basic Resources AG gives no guarantee with regard to their
reliability and completeness and rejects any claim for damages that may be
the result of use of this information. These press releases/ Research/
analysis/ content of the website may not be accessed directly or indirectly
in the U.S., Canada, Japan and Australia, to U.S. citizens or persons
resident in the named countries, yet brought in their territory
transmitted, or distributed. Persons into whose possession this document
comes should inform themselves about possible legal restrictions on the
dissemination of such research and comply with them. Any failure to comply
with this restriction may constitute a violation of U.S., Japanese,
Australian or Canadian securities laws or the laws of another jurisdiction.
End of Corporate News
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10.06.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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128205 10.06.2011
Datum: 10.06.2011 - 11:40 Uhr
Sprache: Deutsch
News-ID 34367
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