SOURCE: EURO Ressources

March 19, 2010 03:13 ET

EURO Ressources: EURO RESSOURCES HAS RECORD EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2009

PARIS--(Marketwire - March 19, 2010) - 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.

This information is provided by HUGIN

Contact Information

  • Further requests for information should be addressed to:

    Larry E. Phillips
    Directeur-Général
    Tel:+1 4163604710
    Email : Email Contact
    Susanne A. Hermans
    Vice-President Finance
    Tel.: +1 303 204 7771
    Email: Email Contact