PARIS, April 2 /CNW/ - EURO Ressources S.A. (TSX: EUR; Euronext of the
Bourse de Paris: EUR) today announced its audited consolidated financial
results for the year ended December 31, 2006 prepared in accordance with
International Financial Reporting Standards as adopted by the European Union.
During 2006, the Company benefited from the royalty income payable from
the Rosebel Gold Mine and recorded $9.63 million (EUR 7.67 million) of revenue
compared to $5.13 million (EUR 4.33 million) in 2005. Substantially all of
this revenue is income from the Rosebel Royalty. Liquidated hedging costs
associated with this revenue were $4.18 million (EUR 3.33 million) compared to
$0.5 million (EUR 0.44 million) in 2005, providing net revenue of $5.45
million (EUR 4.34 million) compared to $4.61 million (EUR 3.89 million) in
James Dunnett, Directeur-General of EURO stated: "We have benefited from
the substantially higher gold price in 2006 than we received in 2005. Rosebel
continues to perform well with production of approximately 300,000 ounces
during the year. Our liquidity position has strengthened as we have continued
to pay down debt aggressively. The continued higher gold price bodes well for
our cash flow in 2007, notwithstanding the adverse effect of the strike at
Rosebel that occurred earlier this year.
"Nonetheless the Company reports a net loss of $3.19 million (EUR 2.54
million) for the financial year due to fair value recognition of derivative
mark-to-market losses on gold used to hedge certain of the future cash flow
from the Rosebel Royalty. These unrealised derivative losses of $14.61 million
(EUR 11.06 million) compared to $9.56 million (EUR 8.07 million) in 2005,
before tax adjustment. These losses from fair value recognition do not reflect
EURO recognized a future tax credit of $9.73 million (EUR 7.37 million),
including $4.87 million (EUR 3.68 million) compared to $3.09 million (EUR 2.56
million) in 2005 in relation to the fair value derivative losses recorded
during the year. The resultant net loss of $3.19 million (EUR 2.54 million)
compares to a loss of $0.71 million (EUR 0.60 million) in 2005. The net loss
per common share in issue during 2006 was 6.3 cents per share (5.5 EUR uro
cents per share) compared to a net loss of 1.5 cents per share (1.3 EUR uro
cents per share) during 2005.
Further analysis of the financial results follows:
-- General and administrative expenses were $2.54 million (EUR 2.02
million) (2005: $1.88 million, EUR 1.59 million) reflecting continued high
legal and accounting expenses related to the dual listing of the Company and
costs associated with seeking new business.
-- Interest of $0.9 million (EUR 0.7 million) (2005: $0.5 million, EUR
0.4 million) reflects the higher interest rates in 2006 compared to 2005.
-- The decrease in amortization expense of $0.93 million (EUR 0.70
million) (2005: $1.33 million, EUR 1.12 million) reflects the increase in
resources of the Rosebel Royalty and the corresponding decrease in
amortization expense per ounce.
Consolidated cash and short-term investments as of December 31, 2006
totalled $1.72 million (EUR 1.30 million) versus $1.473 million (EUR 1.24
million) at December 31, 2005.
As reported by IAMGold Corporation, gold production from the Rosebel mine
was 300,727 ounces during 2006 and IAMGold currently forecasts production of
270,000 ounces of gold for Rosebel during calendar 2007. IAMGold has recently
announced that it is considering a possible expansion of production at Rosebel
to 400,000 ounces of gold production annually. More detailed information about
the Rosebel gold mine is available on IAMGold's website at: www.iamgold.com.
EURO is a French company, presently focused on acquiring and holding
mineral royalties and similar interests on operating gold mines. Additionally,
EURO continues to hold certain exploration and development mineral rights,
principally gold, in French Guiana, which are the subject of joint venture
arrangements. EURO has approximately 50.5 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements. Investors are
cautioned that forward-looking statements are inherently uncertain and involve
risks and uncertainties that could cause actual results to differ materially.
Such statements include comments regarding IAMGold's intentions to expand
production at the Rosebel mine and of the Company to acquire additional
royalty or mineral interests. There can be no assurance that future
developments affecting the Company or the Rosebel gold mine will be those
anticipated by management.
Not for distribution to United States newswire services or for
dissemination in the United States. The securities referred to herein have not
been registered under the US Securities Act of 1933 and may not be offered or
sold in the United States or to a US person absent registration or an
applicable exemption from registration.
Additional information relating to EURO Ressources S.A. is available on
SEDAR at www.sedar.com. Further requests for information should be addressed
James H. Dunnett, Susanne A. Hermans
Directeur-General Vice-President Finance
Tel: +1 604 710 2242 Tel: +1 303 204 7771
Fax: +1 604 608 3283 Email : email@example.com
Email : firstname.lastname@example.org
For further information:
For further information: EURO Ressources S.A. James H. Dunnett, +1 604
710 2242 Directeur-General Fax: +1 604 608 3283 email@example.com or Susanne
A. Hermans, +1 303 204 7771 Vice-President Finance