Royal Oak Announces Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 23, 2013) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") recorded net income of $132 thousand ($nil per share) for the three months ended June 30, 2013, an increase of 20% over the $110 thousand ($nil per share) recorded in the same period in 2012. The increase in net income was primarily the result of higher general and administration costs in the prior year as a result of costs incurred to complete the re-listing of the company.

The company classifies securities within its investment portfolio as available-for-sale financial instruments and accordingly records unrealized change in the fair value of these investments in other comprehensive income. The company recorded a pre-tax unrealized loss of $256 thousand during the period (2012 - $492 thousand) as a result of a decrease in the fair value of the company's securities. This resulted in the company recording a comprehensive loss of $90 thousand in quarter (2012 - $321 thousand comprehensive loss).

Net income and comprehensive income for the six months ended June 30, 2013 were $357 thousand (2012 - $399 thousand) and $416 thousand (2012 - $573 thousand) respectively.

STATEMENTS OF OPERATIONS

			Three months ended June 30						Six months ended June 30
(CDN$ Thousands, except per share amounts)			2013			2012			2013		2012
Revenue
	Interest and dividend income	$	232		$	241		$	437	$	462
Expenses
	General, administrative and other		70			97			140		156
			162			144			297		306
Foreign currency revaluation			4			27			51		68
Income before income taxes			166			171			348		374
Deferred income tax (expense) recovery			(34	)		(61	)		9		25
Net income		$	132		$	110		$	357	$	399
Net income per share		$	−		$	−		$	0.01	$	−

CHANGES IN NET BOOK VALUE

The net book value of the company's common shares as at June 30, 2013 was $0.22 per share. The information in the following table shows the changes in net book value for the three and six months ended June 30, 2013 and 2012.

	Three months ended June 30												Six months ended June 30
		2013						2012						2013					2012
(CDN $ Thousands, except per share amounts)		Total			Per Share(1	)		Total			Per Share			Total		Per Share(1	)		Total		Per Share
Net book value, beginning of period (2)	$	35,031		$	0.22		$	33,821		$	0.21		$	34,525	$	0.21		$	32,927	$	0.20
Net income		132			-			110			-			357		0.01			399		-
Other comprehensive (loss) income		(222	)		-			(431	)		(0.01	)		59		-			174		-
Comprehensive (loss) income		(90	)		-			(321	)		(0.01	)		416		0.01			573		-
Net book value, end of period(2)	$	34,941		$	0.22		$	33,500		$	0.20		$	34,941	$	0.22		$	33,500	$	0.20

(1)	The company is 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 June 30, 2013 and December 31, 2012.

(CDN$ Thousands, except per share amounts)			June 30, 2013		December 31, 2012
Assets
Current assets
	Cash and cash equivalents	$	10,969	$	10,669
	Securities		20,895		19,988
	Accounts receivable		120		251
	Loans		3,712		3,703
		$	35,696	$	34,611
Liabilities and equity
Current liabilities
	Accounts payable and accrued liabilities	$	755	$	86
Equity			34,941		34,525
		$	35,696	$	34,611
Net book value per share (1,2)		$	0.22	$	0.21

(1)	As at June 30, 2013 and December 31, 2012 there were 162,496,456 shares, issued and outstanding
(2)	Net book value is a non-IFRS measure