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4-Traders Homepage  >  Equities  >  Euronext Paris  >  EURO Ressources    EUR   FR0000054678

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EURO RESSOURCES : REPORTS EARNINGS FOR THE PERIOD ENDED SEPTEMBER 30, 2017

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11/10/2017 | 10:01pm CET

PARIS,   France,  November 10, 2017:   EURO  Ressources  S.A.  ("EURO"  or  "the
Company")  (Paris: EUR) today announced its  unaudited interim financial results
prepared in accordance with International Financial Reporting Standards ("IFRS")
for the nine months ended September 30, 2017.  These unaudited interim financial
results  were  approved  by  the  Board  of Directors on November 10, 2017.  All
financial  amounts  are  expressed  in  Euros  ("€" or "euros") unless otherwise
specified.
Highlights
Under  IFRS, EURO reported a  net profit of €4.3 million  (€0.069 per share) for
the  third quarter of  2017 compared to €4.4 million  (€0.070 per share) for the
third quarter of 2016.

IFRS results
Third quarter ended September 30, 2017 compared to the same period in 2016
Under  IFRS, EURO reported a  net profit of €4.3 million  (€0.069 per share) for
the  third quarter of  2017 compared to €4.4 million  (€0.070 per share) for the
third quarter of 2016.
Revenues  were €6.4 million during the third  quarter of 2017, lower compared to
revenues  of €6.9 million for  the third quarter  of 2016.  Revenues were mainly
attributable  to the  Rosebel royalty  of €6.3 million  (third quarter of 2016:
€6.7 million).  The decrease in revenues was mainly due to the impact of a lower
average  gold price in the  third quarter of 2017 of  US$1,278 per ounce of gold
compared  to  US$1,335  per  ounce  of  gold  in  the  third  quarter  of  2016
(€0.4 million),  and  a  stronger  euro  (€0.3 million), partially offset by the
impact  of higher gold production of 78,951 ounces in the third quarter of 2017
compared  to 75,296 ounces in  the third quarter  of 2016 (€0.2 million).  Other
royalties  from third  parties in  French Guiana  were €0.15 million  during the
third quarter of 2017 (third quarter of 2016: €0.16 million).
During  the third  quarter of  2017, the Company  recorded operating expenses of
€0.12 million, equivalent to the same period in 2016.
The  amortization expense of €0.13 million during  the third quarter of 2017 was
lower  than the amortization expense of  €0.17 million during the same period in
2016, mainly due to the impact of higher gold reserves at the Rosebel mine.
EURO  recorded an  income tax  expense of  €1.9 million in  the third quarter of
2017 compared  to €2.2 million in  the third quarter  of 2016.  The decrease was
mainly due to lower taxable income during the third quarter of 2017 explained by
lower revenues and a higher deductible foreign exchange loss.
Nine months ended September 30, 2017 compared to the same period in 2016
Under  IFRS, EURO reported a net profit  of €12.6 million (€0.201 per share) for
the  nine months ended September  30, 2017 compared to €11.8 million (€0.189 per
share) for the nine months ended September 30, 2016.

Revenues  were €19.4 million during the nine months ended September 30, 2017, an
increase  compared to revenues  of €18.9 million for  the same period in 2016.
Revenues  were mainly attributable to the Rosebel royalty of €19.1 million (nine
months  ended September 30, 2016: €18.6 million).  The  increase in revenues was
due  to higher production with 234,523 ounces in the nine months ended September
30, 2017 compared  to 223,687 ounces in the  same period of 2016 (€0.7 million),
partially  offset by the impact of a lower average gold price in the nine months
ended September 30, 2017 of US$1,251 per ounce compared to US$1,260 per ounce in
the  nine months ended September  30, 2016 (€0.2 million).  Other royalties were
€0.3 million from third parties in French Guiana during the first nine months of
2017 (first nine months of 2016: €0.3 million).
Operating   expenses   for   the   nine  months  ended  September  30, 2017 were
€0.38 million compared to €0.30 million in the same period in 2016. The increase
was  due to a fee reduction recorded  during the first quarter of 2016 to adjust
the   2015 administrative   costs.    In  2017, operating  expenses  included  a
reimbursement  of €0.1 million  by the  Government of  France of operating taxes
paid  in prior years, partially offset  by higher administrative costs and legal
fees.
The  amortization expense of €0.50 million during the first nine months of 2017
was  lower than the amortization expense of €0.52 million during the same period
in 2016, mainly due to the impact of higher gold reserves at the Rosebel mine.
EURO  recorded a foreign exchange loss of  €0.3 million in the first nine months
of  2017 compared to a gain  of €0.1 million in the  first nine months of 2016,
mainly due to the revaluation of dividends payable, bank accounts and income tax
receivable.
EURO  recorded an income  tax expense of  €5.8 million in the  nine months ended
September  30, 2017 compared to  €6.3 million in  the same  period of 2016.  The
decrease  was mainly due to a lower taxable income (mainly explained by a higher
deductible   foreign   exchange  loss  partially  offset  by  higher  revenues),
translation adjustments and a lower tax on dividends in 2017.
Liquidity and capital resources
Cash  at September 30, 2017 totaled  €11.8 million compared  to €11.1 million at
December  31, 2016.  EURO expects to  have sufficient cash  flow to fund its on-
going operations.
Outlook
In 2017, the Rosebel royalty production is anticipated to be between 311,000 and
321,000 ounces,  and the Rosebel royalty is  expected to provide revenues to the
Company    of    between    approximately    €25.1 million   and   €25.9 million
(US$27.8 million  and  US$28.8  million).   These  pre-tax numbers assume a gold
price  of US$1,250 per ounce and the 2017 actual average exchange rate of €1 for
US$1.1101.   The impact of  changes in the  average gold price  on EURO's annual
revenues,   based  on  an  estimated  production  of  316,000 ounces,  would  be
approximately  US$3.1 million  for  each  US$100  per  ounce  change in the gold
price.   EURO's cash  flow is  expected to  be primarily  affected by income tax
payments,  since there are no  tax losses that can  be carried forward to offset
any  future taxes payable.  EURO expects its  cash flow will be adequate to meet
all corporate and related expenses.
Subsequent event
Refund of the 3% tax on dividends
On  October 6, 2017, the Constitutional Court of France ruled that the 3% tax on
dividends  in its entirety is contrary to the Constitution.  Therefore, whatever
the  origin  of  the  dividends  distributed  (distribution  of  dividends  from
subsidiaries or operating profit), this 3% tax is abolished from that date.  The
Constitutional  Court's decision also applies retrospectively.  EURO's estimated
refund  of  tax  on  dividends  paid  from 2014 to 2017 of €1.56 million will be
accounted for during the fourth quarter of 2017.


About EURO
EURO  is a French company whose principal  asset is a royalty payable by IAMGOLD
Corporation  ("IAMGOLD") related to the gold production of the Rosebel gold mine
in  Suriname (the  "Rosebel royalty").   The Rosebel  gold mine  is 95%-owned by
IAMGOLD,  and it is  operated by IAMGOLD.   EURO has approximately 62.5 million
shares  outstanding.  IAMGOLD France S.A.S., an indirect wholly-owned subsidiary
of  IAMGOLD, owned approximately 89.71% of all  issued and outstanding shares of
EURO at September 30, 2017.
Statements Regarding Forward-Looking Information:   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.    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.  Further requests for information should be addressed to:
 Benjamin Little                      Line Lacroix
 Directeur-Général                    Directeur-Général Délégué
 Tel: +1 416 933 4954                 Tel: +1 450 677 2056
 Email:  [email protected]   Email : [email protected]
                                      

EURO RESSOURCES REPORTS EARNINGS FOR THE PERIOD ENDED SEPT.30, 2017: 
http://hugin.info/143433/R/2149051/824676.pdf



This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
    
Source: EURO Ressources via GlobeNewswire

 
  

© InPublic, source European Press Releases

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