EURO Ressources : EURO RESSOURCES REPORTS EARNINGS FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE, 2009
August 13 2009 - 1:05AM
Marketwired
EURO RESSOURCES REPORTS EARNINGS FOR THE SECOND QUARTER AND SIX
MONTHS ENDED 30 JUNE, 2009
EURO Ressources S.A. (Paris: EUR) today announced its
consolidated financial results for the second quarter and half year
ended 30 June 2009 prepared in accordance with International
Financial Reporting Standards as adopted by the European Union.
EURO reported a profit of EUR 4.62 million (EUR 0.074 per share)
for the period ended 30 June 2009 and a profit of EUR 2.72 million
(EUR 0.04 per share) for the second quarter of 2009; this compares
to a profit of EUR 2.02 million (0.03 per share) for the first six
months of 2008 and EUR 1.23 million (EUR 0.02 per share) for the
second quarter of 2008. All financial amounts are expressed in
Euros.
The following comments on the results for the quarter and six
months ended 30 June 2009 are taken from our Management's
Discussion and Analysis:
Three months ended June 30, 2009 compared to three months ended
June 30, 2008
We had record revenue of EUR 4.86 million in the quarter ended
30 June 2009 compared to EUR 2.87 million in the second quarter of
2008, an increase of 69%. Substantially all of this revenue is
income from the Rosebel royalty. The Rosebel gold mine produced a
record 108,947 ounces of gold during the second quarter of 2009, a
39% increase from the 78,522 ounces of gold produced in the second
quarter of 2008. This increase is the result of the improvements in
throughput, cut-off grade optimization and recovery that were
completed towards the end of 2008, and there was an almost 3%
increase in the average gold price for the quarter ended 30 June
2009 (Q2:2009: $922.17/ounce, Q2 2008: 896.29/ounce).
There were no scheduled gold hedging maturities during the
second quarter of 2009 or during the same period in 2008.
General and administrative expenses in the second quarter of
2009 were EUR 0.49 million, as compared to EUR 0.42 million during
the same quarter last year, an increase of 17% related mainly to
costs for securing our property at Paul Isnard in French Guiana
(approximately EUR 0.10 million), due to the many illegal mining
operations there. There was no interest expense incurred in the
second quarter of 2009, because we repaid the loan to Macquarie
Bank Limited ("Macquarie") in full in December of 2008, this
compares to an interest expense of EUR 0.02 million for the same
period last year.
The increase in amortization expenses to EUR 0.17 million (2008:
EUR 0.10 million), a 60% increase reflects the higher gold
production for the quarter ended June 30, 2009.
Hedge positions implemented as a condition of our loan from
Macquarie Bank resulted in a mark-to-market expense of EUR 0.10
million (2008: EUR 0.31 million), a decrease of 67% due to the
large reduction of ounces of gold hedged from 22,800 to 8,550.
Six months ended June 30, 2009 compared to six months ended June
30, 2008
We recorded a net profit EUR 4.622 million during the first six
months of 2009, compared to a net profit of EUR 2.02 million for
the first six months of 2008. We had record revenue from royalties
for the first six months of 2009 of EUR 8.82 million compared to
EUR 6.01 million for the first six months of 2008, with EUR 8.73
million earned from the Rosebel royalty (EUR 5.85 million during
the same period last year). The 47% increase in revenue for the
first six months of 2009 is mainly due to a record increase in gold
production for the first six months of 2009 of 196,664 ounces of
gold, as compared to 154,524 ounces of gold for the same period
last year, a 27% increase. There was only a marginal 1% increase in
the average gold price for the six months ended June 30, 2009 as
compared to the same period last year (2009: $915.18, 2008:
$910.44).
We have recognized a future tax credit on the balance sheet of
EUR 3.21 million being EUR 0.95 million against the unrealized
mark-to-market position at June 30, 2009 and EUR 2.15 million in
respect to cumulative net operating losses.
Liquidity
Consolidated cash and cash equivalents at 30 June 2009 totalled
EUR 3.58 million, including EUR 3.47 million of restricted cash. We
expect to have sufficient cash flow to fund our on-going
operational needs.
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 the 17th of December 2008, EURO is a majority
owned subsidiary of IAMGOLD. IAMGOLD owns approximately 85.5% 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 US Securities Act of 1933
and may not be offered or sold in the United States or to a US
person absent registration or an applicable exemption from
registration.
Additional information relating to EURO Ressources S.A. is
available on SEDAR at www.sedar.com. Further requests for
information should be addressed to:
Larry E. Phillips
Directeur-Général
Tel:+1 4163604710
Email : phillips@euroressources.net
Susanne A. Hermans
Vice-President Finance
Tél.: +1 303 204 7771
Email : shermans@euroressources.net
This information is provided by HUGIN
Larry E. Phillips Directeur-Général Tel:+1 4163604710 Email :
Email Contact Susanne A. Hermans Vice-President Finance Tél.: +1
303 204 7771 Email : Email Contact
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