PARIS, November 14 /CNW/ - EURO Ressources S.A. (TSX:EUR) (Paris:EUR)
today announced its unaudited interim consolidated financial results for the
third quarter of the 2007 financial year and nine months ended September 30,
2007. These results are a third quarter loss of EUR 1.52 million and a loss of
EUR 0.18 million for the nine months ended September 30, 2007.
James H. Dunnett, Directeur-General of EURO Ressources S.A. ("EURO")
commented: "Although production at Rosebel was slightly lower than in the
comparative period of 2006, we are pleased with the continued improvement of
Rosebel production following the strike in the first quarter of 2007.
Production has now recovered to a 300,000 annual rate and the capital
expenditure program, presently being undertaken by IAMGOLD at Rosebel, should
underpin the current level of production. IAMGOLD has forecast an increase in
production once the additional facilities are fully commissioned.
"The gold price increased to an average of $680 during the third quarter,
which reflected positively in the cash we receive from our royalties, however
we continue to record non-cash losses on our hedge position. The increase in
the gold price since the end of the quarter, to over $800/ounce, will further
improve our cash-flow and liquidity. We intend to use this improved liquidity
and the proceeds from the rights issue, after repayment of certain debts, to
seek to limit and reduce our gold hedge exposure."
The royalty payable by IAMGOLD for the third quarter was on reported
production from the Rosebel mine of 75,227 ounces of gold, a 3% decrease
compared to production of 77,837 ounces reported in the third quarter of 2006,
but an 8% increase over second quarter 2007. 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:
Three months ended September 30, 2007 compared to three months ended
September 30, 2006
Royalty revenue totaled EUR 2.02 million during the three month period
(2006: EUR 2.00 million) and, after accounting for losses on gold derivatives
liquidated during the period, EURO's net revenue was EUR 1.11 million (2006:
EUR 1.11 million). Liquidated gold derivative costs during the quarter were
EUR 0.91 million compared to EUR 0.89 million for the third quarter of 2006.
EURO recognized a fair value non-cash mark-to-market derivative loss of EUR
2.35 million in the third quarter of 2007 compared to a non-cash
mark-to-market gain of EUR 2.30 million in the third quarter of 2006.
Third quarter 2007 general and administrative costs were EUR 0.5 million
(Q3 2006: EUR 0.4 million) reflecting legal and accounting expenses associated
with the dual listing on the Euronext and Toronto Stock Exchange and
compliance with dual regulations for capital raising activities. The reduction
in interest expenses, EUR 0.12 million this quarter, compared with EUR 0.15
million in Q3 2006, reflects the continuing reduction in debt to Macquarie
The decrease in depreciation and amortization expenses of EUR 0.16
million (2006: EUR 0.18 million) during the three months ended September 30,
2007 reflects the decreased production at Rosebel. Debt accretion expense of
EUR 0.08 million (2006: EUR 0.09 million) reflects the accounting treatment
for the deferred component of the Rosebel Royalty purchase consideration.
Nine months ended September 30, 2007 compared to nine months ended
September 30, 2006
We recorded royalty revenue of EUR 5.29 million during the first nine
months of 2007 (2006: EUR 5.56 million). Net of liquidated losses on gold
hedging recorded during the period, net revenue was EUR 2.35 million (2006:
EUR 3.09 million). We recorded a non-cash mark-to-market derivative loss of
EUR 0.71 million (2006: 3.14 million) arising from the accounting treatment
for our remaining gold hedging contracts.
Consolidated cash as of September 30, 2007 was EUR 0.57 million compared
to EUR 1.30 million at the end of 2006. The Company expects that its cash flow
from royalties will enable it to adequately fund all anticipated 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, before the issuance of shares from the current
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. James H. Dunnett,
+1-604-710-2242 Directeur-General email@example.com Susanne A. Hermans,
+1-303-204-7771 Vice-President Finance firstname.lastname@example.org