Royal Oak Ventures Inc.
CNSX : ROV
CNSX : ROV.B

April 26, 2013 16:31 ET

Royal Oak Announces 2012 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 26, 2013) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") (CNSX:ROV)(CNSX:ROV.B) recorded comprehensive income of $1.6 million for the year ended December 31, 2012, a $2.9 million increase over the comprehensive loss of $1.3 million in the prior year. Comprehensive income in the current year consisted of other comprehensive income of $2.0 million (2011 - loss of $0.6 million) and a net loss of $0.4 million (2011 - $0.6 million).

The company classifies marketable securities within its investment portfolio as available-for-sale financial instruments and accordingly records unrealized changes in the fair value of these investments in other comprehensive income. The company recorded a pre-tax unrealized gain of $2.2 million during 2012 (2011 - loss of $0.7 million) in other comprehensive income, which included $1.2 million of previously unrealized losses transferred to net income as a result of the disposition of certain securities within the portfolio. The remainder of the gain in other comprehensive income is a result of an increase in the fair value of the company's marketable securities.

The company reported a net loss of $0.4 million for the year ended December 31, 2012 compared to a loss of $0.6 million in 2011 or $nil per share (2011 - $nil). The current year loss included a $1.2 million loss (2011 - $nil) on the disposition of a security held within the company's investment portfolio.

STATEMENTS OF OPERATIONS
For the years ended December 31
Thousands, except per share amounts
2012 2011
Revenue
Investment income
Interest and dividend income $ 908 $ 889
Other investment losses (1,326 ) (1,033 )
(418 ) (144 )
Expenses
General, administrative and other 318 561
(736 ) (705 )
Foreign currency revaluation 111 137
Loss before income taxes (625 ) (568 )
Deferred income tax recovery (expense) 255 (78 )
Net loss $ (370 ) $ (646 )
Net loss per share (basic and diluted) $ - $ -

CHANGES IN NET BOOK VALUE

The net book value of the company's common shares as at December 31, 2012 was $0.21 per share. The information in the following table shows the changes in net book value for the years ended December 31, 2012 and 2011.

2012 2011
For the years ended December 31
Thousands, except per share amounts
Total Per
Share
(1)
Total Per
Share (1)
Net book value, beginning of period (2) $ 32,927 $ 0.20 $ 34,212 $ 0.21
Net loss (370 ) - (646 ) -
Other comprehensive income (loss) 1,968 0.01 (639 ) (0.01 )
Comprehensive income (loss) 1,598 0.01 (1,285 ) (0.01 )
Net book value, end of period (2) $ 34,525 $ 0.21 $ 32,927 $ 0.20
(1) As at December 31, 2012 and December 31, 2011 the company was capitalized with 162,496,456 shares, consisting of 3,157,189 common shares and 159,339,267 non-voting shares, which are referred to collectively as "shares"
(2) Net book value is a non-IFRS measure

STATEMENTS OF FINANCIAL POSITION

The information in the following table has been extracted from the company's statements of financial position as at December 31, 2012 and 2011.

Thousands, except per share amounts December 31
2012
December 31
2011
Assets
Current assets
Cash and cash equivalents $ 10,669 $ 7,742
Marketable securities 19,988 21,162
Accounts receivable 251 134
Loans receivable 3,703 4,007
$ 34,611 $ 33,045
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 86 $ 118
Equity 34,525 32,927
$ 34,611 $ 33,045
Net book value per share (1,2) $ 0.21 $ 0.20
(1) As at December 31, 2012 there were 162,496,456 shares issued and outstanding
(2) Net book value is a non-IFRS measure

Contact Information

  • Royal Oak Ventures Inc.
    Derek E. Gorgi
    Vice-President Finance
    (416) 363-9491