EURO RESSOURCES REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2013
PARIS, France, May 10, 2013: EURO Ressources S.A. ("EURO" or the "Company") (Paris: EUR) today announced its unaudited interim financial results prepared in accordance with International Financial Reporting Standards ("IFRS") for the quarter ended March 31, 2013. These unaudited financial results were approved by the Board of Directors on May 9, 2013.
Under IFRS, EURO reported a net profit of €5.84 million (€0.093 per share) for the quarter ended March 31, 2013, compared to €6.47 million (€0.104 per share) for the quarter ended March 31, 2012. All financial amounts are expressed in Euros unless otherwise specified.
To comply with French requirements, EURO reported revenues of €9.59 million under French GAAP and IFRS for the three months ended March 31, 2013, as compared to €10.00 million for the three months ended March 31, 2012. Further details on revenues are discussed below.
The following comments on the financial results for the quarter ended March 31, 2013 are taken from EURO's IFRS Management's Discussion and Analysis:
The revenues are essentially attributable to the Rosebel royalty with €9.51 million (first quarter of 2012: €9.89 million) earned from Rosebel. The 4% decrease in revenues is substantially due to the decrease in the average gold price for the first quarter of 2013 to $1,632 per ounce of gold (first quarter of 2012: $1,691 per ounce of gold) for €0.41 million, and to the decrease in gold production with 94,120 ounces of gold produced in the first quarter of 2013, as compared to 97,551 ounces of gold produced during the first quarter of 2012, for €0.34 million, offset by the weakened euro currency for €0.39 million.
Operating expenses for the first quarter of 2013 were €0.22 million, compared to €0.21 million for the first three months of 2012.
The decrease in amortization expense to €0.15 million (first quarter of 2012: €0.16 million), is substantially due to the decrease in gold production at the Rosebel mine.
EURO recorded net foreign exchange losses of €0.04 million during the first three months of 2013, compared to a net foreign exchange gain of €0.01 million during the first three months of 2012, related to the revaluation of bank accounts and other significant balance sheet accounts denominated in euros.
EURO recorded an income tax expense of €3.35 million for the first three months of 2013 (first quarter of 2012: €3.19 million). The increase is mainly due to weakened euro currency partially offset by lower revenues.
Liquidity and Capital resources
Cash and cash equivalents at March 31, 2013 totaled €18.47 million (December 31, 2012: €10.00 million). All of the cash and cash equivalents are unrestricted. EURO expects to have sufficient cash flow to fund its on-going operational needs.
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. IAMGOLD France S.A.S., an indirect wholly owned subsidiary of IAMGOLD, owns today approximately 86% of all outstanding shares.
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.
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Source: EURO Ressources via Thomson Reuters ONE