For Immediate
Release
19 March 2009
EUROPEAN GOLDFIELDS LIMITED
RESULTS FOR 2008
STRONG BALANCE SHEET, NO DEBT
STRONG PRODUCTION PERFORMANCE
CERTEJ COMPLETES FEASIBILITY STUDY- NEW MINING PERMIT AWARDED
19 March 2009 - European Goldfields Limited (AIM: EGU / TSX: EGU)
("European Goldfields" or the "Company") today reports its results for
the financial year ended 31 December 2008.
Financial highlights:
- Sales of USD60 million reflecting lower metal prices
- Operating profit of USD5.6 million
- Working capital of USD193 million
- Profit (after tax) of USD5.5 million
- Capex of USD37 million underwrites future projects
- Greek corporate tax rate reduced to 20%
Operational highlights:
- Stratoni: Mine production up 26% versus 2007. Focus on cost
reduction and productivity efficiencies
- Skouries: Continued progress on engineering - mill shells and other
major components ready for shipment
- Olympias: Continued sale of gold concentrates - submission of EIS
for re-treatment of tailings
- Certej: Definitive Feasibility Study completed, life of mine
extended - new mining permit awarded - permitting process well
advanced
Corporate highlights:
- European Goldfields added to S&P/TSX Composite Index
- Chairman increases personal shareholding
- Cameron Mingay and Martyn Konig appointed as Non-Executive
Directors
- Joint Venture in Turkey with Ariana Resources underway
- Total project reserves now exceed 10 million ounces of Gold
Commenting on the results, David Reading, Chief Executive Officer of
European Goldfields, said: "We continue to build a successful European
mining company. Despite the market downturn during 2008 we made
significant progress during the year in project development
in Greece and permitting in Romania. With the proven support of our
partners and stakeholders, excellent infrastructure and a strong and
growing reserve base, we are delivering robust projects through a
realistic and phased development programme. Though we are benefiting
from the falling costs of building our mines, we remain focused on
preserving our substantial cash balances and continuing to develop our
business into a mid-tier mining group. In summary the company is well
positioned to overcome the current down turn and grow our business.
This position is endorsed by our significant capital spend in 2008 and
our strong balance sheet."
Conference Call & Webcast - European Goldfields will host a conference
call on Thursday 19 March 2009 at 10:00 a.m. ET / 2:00 pm
(London, UK time) to update investors and analysts on its results.
Participants may join the call by dialing the following numbers,
approximately 10 minutes before its start.
- From North America: (toll free) 1 866 793 4279
- From the UK, Austria, Belgium, Denmark, France, Germany, Ireland,
Italy, Netherlands, Norway, Sweden & Switzerland: +44 (0)20 8609
1435 or (toll free from the UK) 0808 109 1498
- Participant pass code: 887754#
A live audio webcast will be available on:
http://mediaserve.buchanan.uk.com/webcasts/room8audio/lrframes.htm
A replay of the webcast will be available on:
http://mediaserve.buchanan.uk.com/webcasts/eg190309/lrframes.htm
Click on, or paste the following link into your web browser, to view
the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/1152P_1-2009-3-19.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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