AUGEN reports Q3 2007 results



    Shares outstanding: 36,280,614

    TORONTO, Nov. 30 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is
pleased to announce its interim consolidated financial results for the third
quarter ended September 30, 2007. The highlights are as follows:

    
    -   Income for the quarter was unchanged at $0.8 million as compared to
        the same quarter in 2006;

    -   Net realized gains on the sale of Merchant Banking ("MB") investments
        was $0.1 million, offset by an unrealized loss of $2.3 million
        reflecting the unrealized decline in the fair value of the MB
        portfolio;

    -   Expenses for the quarter increased to $0.9 million from $0.6 million
        for the same quarter in 2006;

    -   Fair value of consolidated assets increased 16% to $11.9 million at
        September 30, 2007 from $10.3 million at December 31, 2006.
    

    The 2007 adoption of CICA Handbook Section 3855, which now requires the
reporting of unrealized fluctuations in the fair value of the MB investment
portfolio, has resulted in greater volatility in the net earnings of Augen
beginning in Q1 2007. These accounting standards provide insight into the
current fair value of the MB investment portfolio, but do not necessarily
provide an accurate indication of the ultimate realized gain or loss, which
will be different. This is the first year in which unrealized fluctuations in
the MB investment portfolio have been recorded.
    The Q3 2007 net earnings, before the unrealized loss on MB investment
portfolio of $2.3 million as described above, were $0.2 million or $0.01 per
share, as compared to earnings of $0.1 million or $0.00 per share in Q3 2006.
Net realized gains on the sale of MB investments was $0.1 million for the
quarter as compared to $0.2 million in 2006.
    The unrealized loss on the MB investment portfolio was $2.3 million for
the quarter which reflects an unrealized decline in the fair value of the MB
investment portfolio during the quarter. There is no comparative in 2006 due
to the prospective application of CICA Handbook Section 3855. The fair value
of liabilities, previously reported in the amount of $0.9 million in Q1 2007
and charged directly to retained earnings as a transitional adjustment under
CICA Handbook Section 3855, was adjusted to $0.3 million during the quarter by
way of a charge to the Statement of Earnings and Comprehensive Earnings. The
corresponding future taxes were also adjusted during the current quarter.
    Year-to-date earnings before income taxes for the MB segment, and prior
to unrealized losses of $4.3 million on investments held for trading, and
prior to the change in fair value of liabilities of $0.5 million, was
$0.6 million on year-to-date income of $1.9 million.
    Year-to-date earnings before income taxes for the Managed Products ("MP")
segment, and prior to non-recurring charges, was $0.2 million on year-to-date
income of $1.4 million. The MP segment results include $0.2 million in
non-recurring charges consisting of $0.1 million related to the flow-through
sales and distribution agreement, and $0.1 million in non-recurring
professional advisory fees and charges related to new product initiatives.
    Results for the MP segment will be more meaningful once all fees
associated with the flow-through consulting assets raised in the year are
realized. Fees, such as due diligence fees, may be earned on the balance of
approximately $28 million in consulting assets to be invested prior to
December 31 of each year with only a marginal impact on operating costs.
Performance fees, as applicable, on prior Augen limited partnerships, are only
reported when the net assets are acquired by the Augen Resource Strategy Fund.
    "The Q3 2007 net loss of $2.0 million or $0.06 per share was impacted by
$2.5 million or $0.07 per share in unrealized losses, the change in fair value
of liabilities, and non-recurring items. Investments contained in our Merchant
Banking portfolio show good upside potential in the near-term. The Managed
Products segment should increasingly reflect benefits from the sales and
distribution agreement with BluMont Capital Corporation with higher capital
raises which will be accretive to earnings going forward", said George D.
Elliott, CEO of Augen.
    The interim consolidated financial statements for the quarter ended
September 30, 2007 are available at www.augencc.com or at www.sedar.com.
Extracts for the quarter ended September 30, 2007 are attached below:


    
    -------------------------------------------------------------------------
    Consolidated Statements of Earnings
    -------------------------------------------------------------------------
                                 Managed Products        Merchant Banking

    For the nine month                   As Restated             As Restated
     period ended
     September 30,              2007        2006        2007        2006
                                 $           $           $           $
    -------------------------------------------------------------------------
      Income                   1,366,004   1,368,437   1,913,469   1,965,519
      Expenses                 1,360,561   1,323,849   1,278,905     634,176
    -------------------------------------------------------------------------
      Earnings before
       undernoted items            5,443      44,588     634,564   1,331,343
      Unrealized loss on
       investments held
       for trading                     -           -   4,272,282           -
      Adjustment to fair
       value of liabilities            -           -    (481,334)          -
      Amortization                 4,957       4,787       4,956       4,786
    -------------------------------------------------------------------------
      Earnings (loss) before
       income taxes                  486      39,801  (3,161,340)  1,326,557
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------
                                     Total

    For the nine month                   As Restated
     period ended
     September 30,              2007        2006
                                 $           $
    -------------------------------------------------
      Income                   3,279,473   3,333,956
      Expenses                 2,639,466   1,958,025
    -------------------------------------------------
      Earnings before
       undernoted items          640,007   1,375,931
      Unrealized loss on
       investments held
       for trading             4,272,282           -
      Adjustment to fair
       value of liabilities     (481,334)          -
      Amortization                 9,913       9,573
    -------------------------------------------------
      Earnings (loss) before
       income taxes           (3,160,854)  1,366,358
    -------------------------------------------------
    -------------------------------------------------



    -------------------------------------------------------------------------
    Consolidated Assets
    -------------------------------------------------------------------------
                                Managed Products        Merchant Banking
                             September    December   September    December
    As at,                    30, 2007    31, 2006    30, 2007    31, 2006
                                 $           $           $           $
    -------------------------------------------------------------------------
      Total assets
       (excluding goodwill)      397,680   1,231,869  11,411,762   9,037,267
      Goodwill                         -           -      62,014           -
    -------------------------------------------------------------------------
                                 397,680   1,231,869  11,473,776   9,037,267
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------
                                     Total
                             September    December
    As at,                    30, 2007    31, 2006
                                 $           $
    -------------------------------------------------
      Total assets
       (excluding goodwill)   11,809,442  10,269,136
      Goodwill                    62,014           -
    -------------------------------------------------
                              11,871,456  10,269,136
    -------------------------------------------------
    -------------------------------------------------
    

    About Augen Capital

    Augen Capital Corp. (TSX-V: AUG) ("Augen") is a Toronto-based public
merchant bank specializing in the financing of and investment in emerging
resource companies. Augen manages a merchant banking hard dollar portfolio of
emerging resource stocks including private companies and is an industry
performance leader in tax-advantaged flow-through investments in Canada's
resource sector having raised over $58 million in flow-through limited
partnership assets since inception. Augen currently has $47 million in
flow-through investment consulting assets, including $28 million raised in
2007 by Augen and its sales and distribution partner. Augen holds over one
hundred gold, base metals and uranium exploration and development public and
private companies with direct holdings in its merchant banking portfolio and
consulting assets in flow-through limited partnerships.

    For more information on Augen Capital, visit our website at
    www.augencc.com
    The company's public documents may be accessed at www.sedar.com

    The TSX Venture has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.
    -------------------------------------------------------------------------

    This news release contains forward-looking statements. These statements
are based on certain factors and assumptions as set forth in this new release
including expected growth, results of operations, performance and business
prospects and opportunities. While the Company considers these factors and
assumptions to be reasonable based on information currently available, they
may prove to be incorrect. A number of factors could cause actual results to
differ materially from those in the forward-looking statements, including, but
not limited to results of exploration, project development, reclamation and
capital costs of the companies in the merchant banking portfolios ("investee
companies"), and the Company's financial condition and prospects, could differ
materially from those currently anticipated in such statements for many
reasons such as: changes in general economic conditions and conditions in the
financial markets; changes in demand and prices for the minerals the investee
companies expect to produce; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments; technological
and operational difficulties encountered in connection with the activities of
the Company's and investee companies. Additional risks and uncertainties can
be found in our 2006 Management's Discussion and Analysis and in filings with
the Canadian provincial securities commissions. Forward-looking statements are
given only as at the date of this news release and the Company disclaims any
obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.

    %SEDAR: 00008335E




For further information:

For further information: George D. Elliott, Chief Executive Officer,
Tel: (416) 777-2007, Ext. 222; J. David Mason, Chairman, Tel: (416) 777-2007,
Ext. 223, investorrelations@augencc.com

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