EURO RESSOURCES REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2016
(Thomson Reuters ONE) -
PARIS, France, May 4, 2016: EURO Ressources S.A. ("EURO" or "the Company")
(Paris: EUR) today announced its unaudited financial results prepared in
accordance with International Financial Reporting Standards ("IFRS") for the
first quarter ended March 31, 2016. These unaudited interim financial results
were approved by the Board of Directors on May 4, 2016. All financial amounts
are expressed in Euros ("?" or "euros") unless otherwise specified.
Highlights for the first quarter of 2016
Under IFRS, EURO reported a net profit of ?4.1 million (?0.066 per share) for
the first quarter of 2016 compared to ?2.8 million (?0.045 per share) for the
first quarter of 2015. The increase was mainly the result of lower income tax
expense partially offset by lower revenues from royalties in 2016.
Liquidity and capital resources
Cash at March 31, 2016 totaled ?10.2 million compared to ?7.5 million at
December 31, 2015. All of the cash is unrestricted. EURO expects to have
sufficient cash flow to fund its on-going operational needs.
Comments on financial results for the first quarter ended March 31, 2016 from
EURO's IFRS Management's Discussion and Analysis
Revenues were ?5.7 million during the first quarter of 2016, a decrease of 8%
compared to revenues of ?6.2 million for the first quarter of 2015. Revenues
were mainly attributable to the Rosebel royalty of ?5.6 million (first quarter
of 2015: ?6.1 million). The decrease in revenues was due to lower gold
production of 71,723 ounces in the first quarter of 2016 compared to 79,825
ounces in the first quarter of 2015 (?0.6 million), and a lower average gold
price in the first quarter of 2016 of US$1,183 per ounce of gold compared to
US$1,218 per ounce of gold in the first quarter of 2015 (?0.2 million),
partially offset by the weaker euro (?0.3 million). Other royalties were
?0.1 million from third parties in French Guiana during the first quarter of
2016 (first quarter of 2015: ?0.1 million).
During the first quarter of 2016, the Company recorded operating expenses with a
credit balance of (?0.015 million) compared to operating expenses of
?0.247 million during the same period in 2015. The difference was mainly due
to an adjustment of the 2015 administrative costs recorded during the first
quarter of 2016 (refer to Related party transactions in the Company's first
quarter interim financial statements).
The amortization expense of ?0.14 million during the first quarter of 2016 was
similar to the amortization expense recorded during the same period in 2015.
EURO recorded a foreign exchange gain of ?0.01 million in the first quarter of
2016 compared to a foreign exchange loss of ?0.12 million in the first quarter
of 2015, mainly due to the revaluation of bank accounts and a greater volatility
of the euro compared to the US$ during the first quarter of 2015.
EURO recorded an income tax expense of ?1.5 million in the first quarter of
2016 compared to ?2.9 million in the first quarter of 2015. The decrease was
mainly due to translation adjustments.
Outlook
In 2016, the Rosebel royalty is expected to provide revenues to the Company of
between approximately ?21.9 million and ?22.6 million (US$24.1 million and
US$24.9 million). These pre-tax numbers assume a gold price of US$1,150 per
ounce and an exchange rate of ?1 for US$1.1. The Rosebel royalty production is
anticipated to be between 300,000 and 310,000 ounces in 2016. The impact of
changes in the average gold price on EURO's annual revenues, based on an
estimated production of 305,000 ounces, would be approximately US$3.0 million
for each US$100 per ounce change in the gold price. EURO's cash flow will
primarily be affected by income tax payments, since there are no tax losses
carried forward to offset any future revenue. EURO expects its cash flow will
be adequate to meet all corporate and related expenses.
About EURO
EURO is a French company whose principal asset is a gold production royalty from
the Rosebel gold mine in Suriname (the "Rosebel royalty"). The Rosebel gold
mine is 95%-owned by IAMGOLD Corporation ("IAMGOLD"), and it is operated by
IAMGOLD. EURO has approximately 62.5 million shares outstanding. IAMGOLD
France S.A.S., an indirect wholly owned subsidiary of IAMGOLD, owned
approximately 89.71% of all issued and outstanding shares of EURO at March 31,
2016.
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:
EURO RESSOURCES REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2016:
http://hugin.info/143433/R/2010154/744006.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: EURO Ressources via GlobeNewswire
[HUG#2010154]
Unternehmensinformation / Kurzprofil:
Datum: 04.05.2016 - 23:20 Uhr
Sprache: Deutsch
News-ID 468875
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Kategorie:
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