SOURCE: EURO Ressources

November 11, 2011 02:18 ET

EURO Ressources Reports Earnings for the Third Quarter and Nine Months Ended September 30, 2011

PARIS--(Marketwire - Nov 11, 2011) - EURO Ressources S.A. ("EURO") (PARIS: EUR) today announced its unaudited financial results prepared in accordance with International Financial Reporting Standards ("IFRS") for the quarter and nine months ended September 30, 2011. These financial results were approved by the Board of Directors on November 10, 2011.

Under IFRS, EURO reported a net profit of EUR 5.85 million (EUR 0.094 per share) for the third quarter of 2011 and, EUR 15.60 million (EUR 0.250 per share) for the nine months ended September 30, 2011; this compares to EUR 4.48 million (EUR 0.072 per share) for the third quarter of 2010, and EUR 10.43 million (EUR 0.167 per share) for the nine months ended September 30, 2010. All financial amounts are expressed in Euros.

To comply with French requirements, EURO reported revenues of EUR 9.97 million under French GAAP for the quarter ended September 30, 2011, compared to EUR 7.37 million for the quarter ended September 30, 2010. Further details on the revenues are discussed below.

The following comments on the results for the quarter and nine months ended September 30, 2011, are taken from EURO's IFRS Management's Discussion and Analysis:

Three months ended September 30, 2011 compared to three months ended September 30, 2010

EURO recorded revenues of EUR 9.97 million for the third quarter of 2011, an increase of 35% as compared to EUR 7.37 million for the third quarter of 2010. Substantially all of this revenue is income from the Rosebel royalty. The increase in revenue is primarily explained by the record average gold price for the quarter ended September 30, 2011 of $1,702 per ounce as compared to $1,227 per ounce for the third quarter of 2010, an increase of 39%. The Rosebel gold mine produced 99,125 ounces of gold during the third quarter of 2011, a 6% decrease from the 105,623 ounces of gold produced during the third quarter of 2010.

Operating expenses for the third quarter of 2011 were EUR 0.23 million, as compared to EUR 0.24 million in the third quarter of 2010. This decrease of 4% reflects the general decline in activity for EURO.

The 10% decrease in amortization expense to EUR 0.151 million for the third quarter of 2011 as compared to EUR 0.168 million for the third quarter of 2010 reflects the 6% decrease in production for the quarter ended September 30, 2011 compared to the same period in 2010.

EURO recorded an income tax expense of EUR 3.25 million for the third quarter of 2011 (2010: EUR 2.47 million) due to higher profit.

Nine months ended September 30, 2011 compared to nine months ended September 30, 2010

EURO recorded revenues of EUR 25.34 million for the first nine months of 2011 compared to EUR 18.83 million for the same period in 2010, with EUR 25.16 million earned from the Rosebel royalty (EUR 18.76 million during the same period in 2010). The 35% increase in revenue is essentially attributable to the 30% increase in the average gold price for the nine months ended September 30, 2011 to $1,534 per ounce of gold (2010: $1,178 per ounce of gold). Another contributing factor was the 2% increase in production for the nine months ended September 30, 2011 to 295,870 ounces of gold (2010: 290,016 ounces of gold).

EURO recorded an income tax expense of EUR 7.76 million for the nine months ended September 30, 2011 (2010: EUR 5.69 million).

Liquidity

Cash and cash equivalents at September 30, 2011, totalled EUR 8.85 million. EURO expects to have sufficient cash flow to fund its on-going operational needs.

The second instalment of the issuance premium is scheduled to be paid on Monday, November 14, 2011, to all shareholders of record as of Friday, November 11, 2011, in the amount of EUR 0.19 per share, totalling EUR 11.874 million.

The distribution of the issuance premium was approved by the shareholders on June 21, 2011. The first instalment of the issuance premium was paid to all shareholders on July 11, 2011, in the amount of EUR 0.28 per share, totalling EUR 17.499 million.

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 December 17, 2008, EURO is a majority-owned subsidiary of IAMGOLD. IAMGOLD owns today directly (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 United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to a U.S. person absent registration, or an applicable exemption from the registration requirements of, the Securities Act.

Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com. Further requests for information should be addressed to:

Brian Trnkus
Directeur-Général
Tél: +1 416 933 4739
Email : btrnkus@euroressources.net

Susanne A. Hermans
Vice-President Finance
Tél: +1 303 204 7771
Email : shermans@euroressources.net

EURO RESSOURCES REPORTS EARNINGS FOR PERIOD ENDED SEPTEMBER 30, 2011: http://hugin.info/143433/R/1563133/484493.pdf

Contact Information

  • Further requests for information should be addressed to:

    Brian Trnkus
    Directeur-Général
    Tél: +1 416 933 4739
    Email : Email Contact

    Susanne A. Hermans
    Vice-President Finance
    Tél: +1 303 204 7771
    Email : Email Contact