PARIS, Nov. 13, 2014 (GLOBE NEWSWIRE) -- 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 ended September 30, 2014. These unaudited interim financial results were approved by the Board of Directors on November 13, 2014. All financial amounts are expressed in Euros ("€" or "euros") unless otherwise specified.
Under IFRS, EURO reported a net profit of €3.5 million (€0.055 per share) for the third quarter of 2014, compared to €4.4 million (€0.070 per share) for the third quarter ended September 30, 2013, and a net profit of €9.6 million (€0.154 per share) for the first nine months of 2014, compared to €14.0 million (€0.224 per share) for the nine months ended September 30, 2013.
Highlights for the third quarter of 2014
EURO recorded revenues from ordinary activities of €6.3 million for the third quarter of 2014, a decrease of 14% compared to €7.3 million for the third quarter of 2013. During the first nine months of 2014, EURO recorded revenues from ordinary activities of €17.3 million, a decrease of 29% compared to €24.2 million for the same period in 2013.
"Despite a significant drop in the gold price and lower production at Rosebel, EURO is in a strong financial position" stated Benjamin Little, Directeur-Général.
Liquidity and capital resources
Cash and cash equivalents at September 30, 2014 totaled €4.4 million as compared to €8.0 million at December 31, 2013. The decrease is mainly due to the payment of dividends on June 30, 2014 (€0.19 per share totaling €11.9 million) and tax payments, partially offset by revenues of royalties cashed during the period. All of the cash and cash equivalents are unrestricted. EURO expects to have sufficient cash flow to fund its ongoing operational needs.
Select IFRS financial results taken from EURO's IFRS Management's Discussion and Analysis
Third quarter ended September 30, 2014 compared to third quarter ended September 30, 2013
EURO recorded a net profit of €3.5 million (€0.055 per share) for the third quarter of 2014 compared to €4.4 million (€0.070 per share) for the third quarter of 2013.
EURO recorded revenues of €6.3 million for the third quarter of 2014, a decrease of 14% compared to revenues of €7.3 million during the third quarter of 2013. Revenues are mainly attributable to the Rosebel royalty of €6.2 million (third quarter of 2013: €7.3 million). The decrease in revenues is mainly due to the decrease in gold production with 87,890 ounces of gold produced in the third quarter of 2014 as compared to 99,470 ounces of gold produced during the third quarter of 2013 for €0.8 million, the lower average gold price during the third quarter of 2014 of US$1,282 per ounce of gold compared to US$1,326 per ounce of gold during the same period in 2013 for €0.3 million.
Operating expenses for the third quarter of 2014 were €0.14 million, which is lower than €0.28 million during the same period in 2013 mainly due to lower administrative costs, legal fees and legal exchange and listing fees.
The decrease in amortization expense to €0.14 million (third quarter of 2013: €0.16 million) is due to the decrease in gold production at the Rosebel mine.
EURO recorded an income tax expense of €2.4 million for the third quarter of 2014 compared to €2.5 million during the third quarter of 2013. The decrease in 2014 is mainly due to lower revenues.
Nine months ended September 30, 2014 compared to nine months ended September 30, 2013
EURO recorded a net profit of €9.6 million (€0.154 per share) for the nine months ended September 30, 2014 compared to €14.0 million (€0.224 per share) for the nine months ended September 30, 2013.
EURO recorded revenues of €17.3 million for the nine months ended September 30, 2014, a decrease of 29% compared to revenues of €24.2 million during the nine months ended September 30, 2013. Revenues are mainly attributable to the Rosebel royalty of €17.0 million (nine months ended September 30, 2013: €23.9 million). The decrease in revenues is mainly due to the lower average gold price during the nine months ended September 30, 2014 of US$1,288 per ounce of gold compared to US$1,456 per ounce of gold during the same period in 2013 for €3.2 million, the decrease in gold production with 243,157 ounces of gold produced in the nine months ended September 30, 2014 as compared to 279,461 ounces of gold produced during the same period in 2013 for €3.0 million, and the strengthened Euro currency for €0.6 million.
Operating expenses for the nine months ended September 30, 2014 were €0.6 million, which is lower than €0.8 million during the first nine months of 2013 mainly due to lower administrative costs, legal fees and operating taxes.
The decrease in amortization expense to €0.38 million (nine months ended September 30, 2013: €0.45 million) is due to the decrease in gold production at the Rosebel mine.
EURO recorded an income tax expense of €6.6 million including €0.4 million of tax on dividend distributions for the nine months ended September 30, 2014 compared to €8.9 million including €0.7 million of tax on dividend distributions during the nine months ended September 30, 2013. The decrease in 2014 is mainly due to lower revenues and to lower dividend distributions.
Outlook
The Rosebel royalty production guidance for 2014 has been decreased from a range between 347,000 and 368,000 ounces to a range between 332,000 and 337,000 ounces. For the full year 2014, the Rosebel royalty is now expected to provide cash flow to the Company of between €24.7 million and €25.0 million (US$32.0 million and US$32.5 million). The impact of changes in the average gold price on EURO's annual revenues, based on an estimated production of 335,000 ounces, would be approximately US$3.3 million for each change in gold price of US$100 per ounce. These pre-tax numbers assume a gold price of US$1,300 per ounce and an exchange rate of €1 for US$1.3. 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 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:
EURO RESSOURCES REPORTS EARNINGS FOR THE THIRD QUARTER AND: http://hugin.info/143433/R/1871353/658387.pdf
Benjamin Little
Directeur-Général
Tel: +1 416 933 4954
Email: blittle@euroressources.net
Line Lacroix
Directeur-Général Délégué
Tel: +1 450 677 2056
Email : llacroix@euroressources.net