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:
Derek E. Gorgi
Vice-President Finance
(416) 363-9491