SOURCE: EURO Ressources

August 13, 2009 02:06 ET

EURO Ressources : EURO RESSOURCES REPORTS EARNINGS FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE, 2009

PARIS--(Marketwire - August 13, 2009) -


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

Contact Information

  • 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