EURO Ressources : EURO RESSOURCES HAS RECORD EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2009
March 19 2010 - 2:12AM
Marketwired
EURO Ressources S.A. (Paris: EUR) today announced its audited
consolidated financial results for the year ended 31 December 2009
prepared in accordance with International Financial Reporting
Standards as adopted by the European Union. EURO reported record
profit of EUR 10.77 million (EUR 0.17 per share) for 2009, and
earnings of EUR 3.03 million (EUR 0.05 per share) for the fourth
quarter of 2009; this compares to a profit of EUR 4.68 million (EUR
0.08 per share) for 2008 and EUR 0.46 million (EUR 0.01 per share)
for the fourth quarter of 2008. All financial amounts are expressed
in EUR uros.
Highlights for 2009:
EURO and Golden Star settled the litigation regarding the Paul
Isnard properties in French Guiana.
The remaining 5,700 ounces of the gold derivative contracts
matured on December 31, 2009 with settlement at the end of January
2010.
EURO has record cash surplus of EUR 11.50 million and no
debt.
The following comments on the results for the quarter and twelve
months ended December 31, 2009, are taken from our Management's
Discussion and Analysis:
Three months ended December 31, 2009 compared to three months
ended December 31, 2008
EURO recorded revenue of EUR 5.35 million in the quarter ended
December 31, 2009, compared to EUR 3.21 million in the fourth
quarter of 2008, an increase of 67%. Substantially all of this
revenue is income from the Rosebel royalty. The Rosebel gold mine
produced 104,170 ounces of gold in the fourth quarter of 2009, a 16
% increase from the 89,651 ounces of gold produced in the fourth
quarter of 2008. The increase is due to increased production at
Rosebel and record average London PM gold price for the fourth
quarter of 2009 ($1,099.63 per ounce of gold, 2008: $794.76 per
ounce of gold).
EURO recorded liquidated gold hedging costs for the fourth
quarter of 2009 of EUR 2.55 million related to the last 5,700
ounces of gold scheduled to be settled at the end of January 2010,
this compares to no scheduled gold hedging cost for the fourth
quarter of 2008. However, EURO did liquidate in the fourth quarter
of 2008 8,550 ounces of gold in advance of their respective
scheduled maturities for a total cost of EUR 2.74 million
General and administrative expenses in the fourth quarter of
2009 were EUR 0.18 million, as compared to EUR 2.55 million in the
same quarter last year, including EUR 0.07 million associated with
the IAMGOLD arbitration and EUR 1.79 million of costs associated
with the unsolicited takeover bid. Excluding these costs, there was
a 75% decrease in G&A costs compared to the EUR 0.69 million of
similar expenses in the fourth quarter of 2008.
Twelve months ended December 31, 2009 compared to twelve months
ended December 31, 2008
We had revenue of EUR 19.45 million in 2009 compared to EUR
12.43 million in 2008, an increase of 56%. Substantially all of
this revenue is income from the Rosebel royalty. The Rosebel gold
mine produced 412,491 ounces of gold during 2009 (2008: 331,131
ounces of gold), an increase of 25%. EURO is very fortunate to be
able to continue to benefit from the improvements in throughput,
cut-off grade optimization and recovery that were completed by
IAMGOLD towards the end of 2008. This increase in revenue also
reflects the increase in the average price of gold for the year of
$972.35 per ounce of gold as compared to $871.96 per ounce of gold
in 2008, an increase of 12%.
General and administrative expenses were EUR 1.76 million, as
compared to EUR 4.02 million in 2008. Excluding the costs in 2008
related to the takeover bid by IAMGOLD and the IAMGOLD arbitration
costs of EUR 2.10 million, there was an 8% reduction in general and
administrative costs as compared to last year. The company is
striving to reduce these costs and completed in July of 2009, the
delisting from the Toronto Stock Exchange as a cost reduction
strategy and is continuing to find ways to reduce general and
administrative expenses
The increase in amortization expenses to EUR 0.61 million (2008:
EUR 0.47 million), a 30% increase, reflects the higher gold
production at the Rosebel mine as compared to 2008
We have recognized a temporary future tax credit in the 2009
balance sheet of EUR 0.88 million being EUR 0.85 from the gold
forward sales contract. As at December 31, 2009, there is no more
carry loss forward.
Liquidity
Consolidated cash and cash equivalents at December 31, 2009
totalled EUR 11.51 million. EURO expects 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 86% 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
Tel.: +1 303 204 7771
Email : shermans@euroressources.net
This information is provided by HUGIN
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