Royal Oak Ventures Inc.

August 26, 2011 18:42 ET

Royal Oak Announces Second Quarter Results and Revocation of Cease Trade Orders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2011) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") recorded a comprehensive loss of $0.7 million for the quarter ended June 30, 2011, which consists of net loss and other comprehensive loss, compared to a $1.9 million comprehensive loss in the same period in the prior year. The current period loss was primarily the result of an unrealized loss on the company's marketable securities, which are recorded at fair value.

The company reported a net loss of $0.1 million or $nil per common share for the quarter ended June 30, 2011 compared to $0.5 million or $nil per common share in the corresponding period of 2010. The net loss in the current quarter was the result of non-recurring general and administrative costs related to the company's relisting and other expenses incurred in the final steps of receivership, as well as the derecognition of certain of the company's future tax assets. The net loss in the same period in the prior year also included non-recurring general and administrative costs, the derecognition of certain tax assets, in addition to a $0.3 million foreign currency revaluation loss.

The company recorded an unrealized loss of $0.6 million in other comprehensive loss during the three months ended June 30, 2011 (2010 – $1.4 million), as a result of a decrease in the fair value the company's marketable securities portfolio.

The cease trade orders issued by the Ontario Securities Commission, British Columbia Securities Commission, Alberta Securities Commission, and Commission des valeurs mobilières du Québec against the company were revoked effective August 25, 2011. The company expects that its common voting and non-voting shares will be relisted and admitted to trading in the near future pending approval of the listing application by the TSX Venture Exchange.

Statements of Operations
(Unaudited)
Three months ended June 30 Six months ended June 30
Thousands, except per share amounts 2011 2010 2011 2010
Revenue
Investment income $ 225 $ 401 $ 445 $ 797
Expenses
General and administrative expense 261 241 380 372
Interest expense 181 356
261 422 380 728
(36 ) 21 65 69
Foreign currency revaluation 11 (273 ) 9 299
(Loss) income before income taxes (25 ) (294 ) 74 368
Deferred income tax (expense) recovery (65 ) (225 ) 9 61
Net (loss) income $ (90 ) $ (519 ) $ 83 $ 429
Net (loss) income per share $ $ $ $ 0.01
Changes in Net Book Value

The net book value of the company's common shares as at June 30, 2011 was $0.21 per share. The information in the following table shows the changes in net book value for the three and six months ended June 30, 2011 and 2010.

Three months ended June 30 Six months ended June 30
2011 2010 2011 2010
(Unaudited)
Thousands, except per share amounts
Total Per
Share
(2)
Total Per
Share
Total Per
Share
(2)
Total Per
Share
Net book value, beginning of period(1) $ 35,092 $ 0.21 $ 31,428 $ 0.19 $ 34,212 $ 0.21 $ 28,684 $ 0.17
Net (loss) income (90 ) (519 ) 83 429 0.01
Other comprehensive (loss) income (592 ) (1,412 ) (0.01 ) 115 384
Comprehensive (loss) income (682 ) (1,931 ) (0.01 ) 198 813 0.01
Net book value, end of period(1) $ 34,410 $ 0.21 $ 29,497 $ 0.18 $ 34,410 $ 0.21 $ 29,497 $ 0.18
(1) Net book value is a non-IFRS measure
(2) As at June 30, 2011 there were 162,496,456 common shares issued and outstanding
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, 2011 and December 31, 2010.

(Unaudited)
June 30 December 31
Thousands 2011 2010
Assets
Current Assets
Cash and cash equivalents $ 7,918 $ 9,038
Marketable securities 22,383 22,541
Accounts receivable 470 320
30,771 31,899
Non-current assets
Loans receivable 3,770 3,915
$ 34,541 $ 35,814
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 131 $ 1,602
Shareholders' Equity 34,410 34,212
$ 34,541 $ 35,814
Net book value per share(1,2) $ 0.21 $ 0.21
(1) Net book value is a non-IFRS measure
(2) As at June 30, 2011 there were 162,496,456 common shares issued and outstanding

Contact Information

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