EURO Ressources :EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2013
PARIS, France, February 21, 2014:Â EURO Ressources S.A. ("EURO" or the
"Company") (Paris:Â EUR) today announced its audited statutory financial results
prepared in accordance with Â French Generally Accepted Accounting Principles
("GAAP") and its audited financial results prepared in accordance with
International Financial Reporting Standards ("IFRS") for the year ended December
31, 2013.Â These audited financial results were approved by the Board of
Directors on February 21, 2014.Â All financial amounts are expressed in Euros
unless otherwise specified.
Under French GAAP, EURO reported a net profit of â‚¬23.3 million (â‚¬0.373 per
share) for the year ended December 31, 2013, compared to â‚¬25.3Â million (â‚¬0.405
per share) for the year ended December 31, 2012.
Under IFRS, EURO reported a net profit of â‚¬23.8Â million (â‚¬0.381 per share) in
2013, compared to â‚¬25.1Â million (â‚¬0.401 per share) in 2012.
Highlights for 2013
* Under French GAAP and IFRS, EURO recorded revenues from ordinary activities
of â‚¬29.3Â million for 2013, a decrease of 29% as compared to â‚¬41.5Â million
* Following the exercise of the Option agreement by COLUMBUS Gold Corp.
("COLUMBUS"), EURO realized a gain of â‚¬10.0Â million in 2013.
* EURO distributed a dividend in the amount of â‚¬22.5Â million (â‚¬0.36 per share)
in 2013 compared to 18.1Â million (â‚¬0.29 per share) in 2012.
"Despite the volatility in the gold price, EURO remains in excellent financial
shape with free cash flow to continue with its current strategy and to consider
other potential value adding transactions" stated Benjamin Little, Directeur
The following comments on the financial results for the year ended December
31, 2013 are taken from the French "Rapport de Gestion" (equivalent of
Management's Discussion and Analysis).
Under French GAAP, EURO recorded revenues from ordinary activities of
â‚¬29.3Â million for 2013, a decrease of 29% compared to revenues of â‚¬41.5Â million
for 2012.Â Revenues are essentially attributable to the Rosebel royalty for
â‚¬28.9Â million (2012: â‚¬41.1Â million).Â The decrease in revenues is substantially
due to the decrease of the 2013 average gold price of US$1,411 per ounce of gold
compared to US$1,669 per ounce of gold in 2012, for â‚¬6.8Â million, to the
decrease in gold production with 353,677 ounces of gold produced in 2013, as
compared to 402,012 ounces of gold produced during 2012, for â‚¬5.0Â million, and
to the strengthened euro currency for â‚¬0.4Â million.
On December 5, 2011, EURO entered into an Option agreement with COLUMBUS
allowing for the restructuring of the existing royalty on any future gold
production from the Paul Isnard concessions (the "Option").Â On November
7, 2013, COLUMBUS exercised the Option in return for cash (â‚¬3.0Â million), shares
of COLUMBUS (â‚¬3.9Â million) and a retained net smelter return ("NSR") royalty
(the NSR covers the Paul Isnard concessions and an area of interest surrounding
the concessions in French Guiana) with an estimated fair value of â‚¬4.2Â million.
Â In return, the Company transferred to COLUMBUS the intangible asset related to
the royalty on on gold production from the Paul gold production from the Paul
Isnard concessions receivable from AUPLATA.Â In addition, the Company was the
owner of an exploration permit ("PER") and had applied for an operating permit
("PEX") on November 29, 2010.Â Following its withdrawal on November 29, 2013
submitted to relevant ministries, the Company also disposed of the PER.Â The net
impact on results related to the exercise of the Option agreement is a gain of
â‚¬10.0Â million.Â In 2012, EURO recorded other income of â‚¬0.2Â million related to
the cash and shares received from COLUMBUS in connection with the amendment to
the Option agreement signed in July 2012 and the annual maintenance fee received
on November 30, 2012.
Operating expenses (excluding amortization and depreciation expenses) for 2013
â‚¬1.4Â million, compared to â‚¬1.5Â million in 2012, a decrease of 5%, primarily due
to a decrease in tax expenses (CVAE) mainly due to lower revenues in 2013,
partially offset by increased legal fees in relation to cost reduction
strategies, increased legal exchange and listing fees, and increased other
The amortization expense for â‚¬0.5Â million in 2013 is lower than the amortization
expense of â‚¬0.6Â million in 2012 mainly due to tax impact from the decrease in
gold production at the Rosebel mine.
EURO recorded an income tax expense of â‚¬13.3Â million for 2013, as compared to
â‚¬14.1Â million in 2012. Â The decrease is mainly due to lower royalty revenues in
2013 as compared to 2012, partially offset by the income tax impact of the
exercise of the Option agreement and higher income tax related to the dividend
distribution related to a higher dividend paid in 2013 compared to 2012.
Liquidity and Capital resources
Cash and cash equivalents at December 31, 2013 totalled â‚¬8.0Â million as compared
to â‚¬10.0Â million at December 31, 2012.Â All the cash and cash equivalents are
unrestricted. Â EURO expects to have sufficient cash flow to fund its on-going
Select IFRS results for the twelve and three months ended December 2013, as
compared to the twelve and three months ended December 31, 2012
Since December 31, 2010, EURO no longer prepares and publishes consolidated
financial statements for French purposes; only French GAAP can be applied for
the presentation of statutory financial statements and approval by the
shareholders. Â However, in order to comply with Canadian requirements and have
equivalency of information between French financial requirements and Canadian
financial requirements, the following information on the financial results is
provided for comparison purposes.
2013 compared to 2012
Under IFRS, EURO recorded a net profit of â‚¬23.8Â million (â‚¬0.381 per share) for
2013 compared to â‚¬25.1Â million (â‚¬0.401 per share) for 2012.
Revenues under IFRS are equivalent to revenues under French GAAP as reported
Operating expenses for 2013 were â‚¬1.0Â million compared to â‚¬0.9Â million in
2012.Â The increase is mainly due to increased legal fees in relation to cost
reduction strategies, increased legal exchange and listing fees, and increased
The decrease in amortization expense to â‚¬0.6 million in 2013 (2012: â‚¬0.7
million), is substantially due to decrease in gold production at the Rosebel
During the second quarter of 2013, EURO recorded an impairment expense on its
available-for-sale financial assets related to its investment in COLUMBUS in the
amount of â‚¬0.2Â million.Â At the end of 2013, EURO reviewed the value of its
available-for-sale financial assets for objective evidence of impairment based
on both quantitative and qualitative criteria and determined that an additional
impairment charge was not required.Â There was no impairment expense recorded in
EURO recorded net foreign exchange losses of â‚¬0.1 million in 2013, which
compares to â‚¬0.3Â million in 2012, related to the revaluation of bank accounts
and other significant balance sheet accounts denominated in euros, and the
revaluation and payment of dividends and income taxes.
EURO recorded an income tax expense of â‚¬13.7Â million for 2013 compared to
â‚¬14.8Â million in 2012.Â The decrease is mainly due to lower royalty revenues in
2013 as compared to 2012, partially offset by the income tax impact of the
exercise of the Option agreement. The primary difference between IFRS and French
GAAP is the C.V.A.E. for â‚¬0.4 million in 2013 (2012: â‚¬0.6Â million), which is
included in income tax expense under IFRS.
Three months ended December 31, 2013 compared to three months ended December
Under IFRS, EURO recorded a net profit of â‚¬9.8Â million (â‚¬0.156 per share) for
the fourth quarter of 2013 compared to a net profit of â‚¬7.4 million (â‚¬0.117 per
share) for the fourth quarter of 2012.
EURO recorded revenues from ordinary activities of â‚¬5.1Â million for the fourth
quarter of 2013, a decrease of 54% compared to revenues of â‚¬11.1Â million for the
fourth quarter of 2012.Â Revenues are essentially attributable to the Rosebel
royalty with â‚¬5.1Â million (2012: â‚¬11.0Â million).Â The decrease in revenues is
substantially due to the decrease in gold production with 74,216 ounces of gold
produced in the fourth quarter of 2013, as compared to 104,919 ounces of gold
produced during the fourth quarter of 2012, for â‚¬3.2Â million, the decrease in
the fourth quarter of 2013 average gold price of US$1,276 per ounce of gold
compared to US$1,722 per ounce of gold in the fourth quarter of 2012, for
â‚¬2.5Â million, and to the strengthened euro currency for â‚¬0.2Â million.
Operating expenses for the fourth quarter of 2013 were â‚¬0.2 million similar to
operating expenses of â‚¬0.2Â million incurred in the same quarter of 2012.
The decrease in amortization expense to â‚¬0.1 million in the fourth quarter of
2013 (fourth quarter of 2012: â‚¬0.2 million), is substantially due to decrease in
gold production at the Rosebel mine.
EURO recorded an income tax expense of â‚¬4.8Â million during the fourth quarter of
2013 compared to â‚¬3.8Â million during fourth quarter of 2012.Â The increase is
mainly due to the income tax impact of the exercise of the Option agreement
partially offset by the decrease in royalty revenues in 2013 compared to 2012.
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 62.5Â million shares outstanding. Â 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: Â Â 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.Â Â There can be no assurance that future developments affecting
the Company 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 United States Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold in the United States or to a U.S. person
absent registration, or an applicable exemption from the registration
requirements of, the Securities Act.
Additional information relating to EURO Ressources S.A. is available on SEDAR at
www.sedar.com.Â Further requests for information should be addressed to:
EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2013 :
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