PARIS, August 7 /CNW/ - EURO Ressources S.A. (TSX:EUR) (Paris:EUR) today
announced its interim financial results for the second quarter and the half
year ended June 30, 2007, prepared in accordance with International Financial
Reporting Standards, as adopted by the European Union. These results present a
second quarter net profit of EUR 1.67 million compared to a net loss of EUR
0.68 million during the second quarter of 2006. The results for the half year,
were a record for EURO, with a net profit of EUR 1.34 million compared to a
net loss of EUR 3.54 million during the first half year of 2006. All financial
amounts are expressed in Euros.
James H. Dunnett, Directeur-General of EURO Ressources S.A. ("EURO")
commented: "We are most pleased to announce that EURO achieved record earnings
for the half-year ended June 30, 2007. The positive results of the second
quarter offset the difficulties experienced during the first quarter,
resulting from the strike at the Rosebel mine in that period."
"Production at Rosebel for the second quarter was in line with IAMGOLD's
forecast for 2007 and our royalty revenue from Rosebel continues to benefit
from the higher gold price. We look forward to the second half of 2007 with
sound liquidity and optimism for an increase in production at Rosebel. Also,
Golden Star has commenced the work program on the Paul Isnard property in
French Guiana which will support our application for renewal of the PER on
The royalty payable by IAMGOLD for the second quarter was based on
reported production from the Rosebel mine of 69,811 ounces of gold compared to
production of 76,385 ounces reported in the second quarter of 2006. This
decrease of 9% reflects the mining of lower grade ore, somewhat offset by
increased throughput. IAMGOLD reports forecast production at Rosebel for
calendar 2007 at 255,000 ounces and at 275,000 ounces annually thereafter, or
350,000 ounces annually if IAMGOLD determines to proceed with potential
expansion plans, presently under review.
More detailed information about the anticipated production levels and
reserve statements related to the Rosebel gold mine is available on IAMGOLD's
website which can be viewed at: www.iamgold.com.
A summary of the results for the quarter and six months ended June 30,
2007, taken from our Management's Discussion and Analysis, is given below.
Three Months Ended June 30, 2007 compared to three months ended June 30,
Royalty revenue totaled EUR 1.92 million during the period (2006: EUR
1.97 million). After accounting for the realized losses on gold derivatives
settled during the quarter, EURO's net revenue was EUR 0.88 million (2006: EUR
Liquidated gold derivative costs during the quarter were EUR 1.04 million
compared to EUR 936,000 for the second quarter of 2006. EURO recognized a fair
value mark-to-market derivative gain of EUR 1.60 million in the second quarter
of 2007 compared to a loss of EUR 1.10 million in the second quarter of 2006.
Second quarter 2007 general and administrative costs were EUR 0.6 million
for the quarter (Q2 2006: EUR 0.5 million). This increase reflects continuing
high legal and accounting expenses associated with the dual listing on the
Euronext and Toronto Stock Exchange and compliance with dual regulations,
accentuated by expenses related to potential new business and capital raising
activities. The reduction in interest expenses, EUR 0.13 million this quarter,
compared with EUR 0.20 million in Q2 2006, reflects interest on the reduced
debt to Macquarie Bank Limited following repayments this year.
The decrease in depreciation and amortization expenses of EUR 0.15
million (2006: EUR 0.19 million) during the three months ended June 30, 2007
reflects the decreased production at Rosebel. Debt accretion expense of EUR
0.09 million (2006: EUR 0.09 million) reflects the accounting treatment for
the deferred component of the Rosebel Royalty purchase consideration.
Six Months Ended June 30, 2007 compared to six months ended June 30, 2006
We recorded royalty revenue of EUR 3.26 million during the first six
months of 2007 (2006: EUR 3.56 million). Net of settlement of the gold hedging
maturing during the period, net revenue was EUR 1.2 million (2006: EUR 1.98
million). After providing for mark-to-market income of EUR 1.65 million (2006:
expense of EUR 5.44 million) arising from the accounting treatment for our
gold hedging contracts, we reported a net profit of EUR 1.35 million during
the period (2006: a net loss of EUR 3.54 million).
Consolidated cash as of June 30, 2007 was EUR 0.57 million) compared to
$1.30 million at the end of 2006. The Company expects that its current cash
flow position will enable it to adequately fund all of its operational and
debt service requirements.
EURO is a French company, presently focused on acquiring and holding
royalties and similar interests on operating gold mines. EURO also holds
certain gold mineral rights in French Guiana including Paul Isnard which
comprises 8 concessions and a PER over 140 sq. km. 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
Email : email@example.com Email : firstname.lastname@example.org
For further information:
For further information: EURO Ressources S.A. Susanne A. Hermans, +1 303
204 7771 Vice-President Finance email@example.com or James H.
Dunnett, +1 604 710 2242 Directeur-General firstname.lastname@example.org