NEWS RELEASE |
Highlights
Under French GAAP, EURO reported net earnings of €12.9 million (€0.206 per share) for the year ended
Under IFRS, EURO reported net earnings of €11.3 million (€0.182 per share) for the year ended
Under French GAAP, EURO recorded revenues of €22.2 million in 2022, higher than revenues of €12.8 million reported in 2021.
Under IFRS, EURO recorded revenues of €22.2 million in 2022, higher than revenues of €12.6 million reported in 2021.
On
Liquidity and capital resources
Cash at
Marketable securities
EURO holds marketable securities related to mining companies which are part of a volatile market. Share market price exposure risk is related to the fluctuation in the market price of marketable securities. Investments in marketable securities are recorded at fair value.
As at
Under IFRS, in 2022, the Company recognized an unrealized loss of €0.5 million in other comprehensive income following the decrease of the fair value of these marketable securities (loss of €1.2 million in 2021).
Under French GAAP, a loss of €1.0 million was recorded following the decrease of the fair value of the marketable securities (2021: gain of €0.4 million), in the financial results in the statement of earnings.
Royalty assets
(Refer to MD&A for more details)
As at
The statements by the French Government in 2019 regarding the Compagnie Minière Montagne d’Or (the joint venture) have created some uncertainty around the delivery of the various authorizations and permits not yet obtained and required for developing the project and can potentially affect the operational and financial capacities of the project. On
As part of the impairment test performed as at
Comments on financial results prepared in accordance with French GAAP for the year ended
Under French GAAP, revenues totaled €22.2 million in 2022, an increase compared to revenues of €12.8 million reported in 2021. Revenues were mainly attributable to the Rosebel royalty in 2022 and only attributable to the Rosebel royalty in 2021. The increase in revenues was mainly due to higher gold production of 163,200 ounces in 2022 compared to 104,319 ounces in 2021 (€7.1 million) and a weakened euro (€2.5 million), partially offset by a lower average gold price in 2022 of
Under French GAAP, operating expenses (excluding amortization and depreciation expenses) totaled €0.8 million in 2022, same level as 2021.
The amortization expense of €0.2 million in 2022 was higher compared to €0.1 million in 2021 mainly due to higher gold production at the Rosebel mine in 2022.
The investment income was €0.3 million in 2022 compared to €0.1 million in 2021. The increase was mainly due to the increase of the interest rates in 2022.
Financial results included a foreign exchange gain on bank accounts under French GAAP of €1.1 million in 2022 compared to a foreign exchange gain on bank accounts of €1.5 million in 2021. The foreign exchange gain is mainly due to a fluctuation of foreign exchange rates in 2022 used for the conversion of bank accounts held in US dollars. This exchange rate differential in 2022 compared to 2021 was mainly due to the weakening of the euro against the US dollar in 2022 compared to 2021.
Under French GAAP, an impairment loss on investment of royalty interests of €4.2 was recorded in 2022 related to the Paul Isnard royalty asset (nil in 2021).
Under French GAAP, EURO recorded an income tax expense of €4.5 million in 2022 compared to €3.8 million in 2021. The increase was mainly due to the tax impact of higher earnings, partially offset by the tax impact of the change in fair value of the marketable securities and by translation adjustments.
Select IFRS financial results
Since
2022 compared to 2021 (IFRS)
Under IFRS, EURO recorded net earnings of €11.3 million (€0.182 per share) in 2022 compared to €7.6 million (€0.122 per share) during 2021.
Under IFRS, revenues totaled €22.2 million in 2022, higher than revenues of €12.6 million reported in 2021. Revenues were mainly attributable to the Rosebel royalty in 2022 and only attributable to the Rosebel royalty in 2021. The increase in revenues was mainly due to higher gold production of 163,200 ounces in 2022 compared to 104,319 ounces in 2021 (€7.1 million) and a weakened euro (€2.5 million), partially offset by a lower average gold price in 2022 of
Operating expenses in 2022 were €0.6 million compared to €0.7 in 2021. The decrease was mainly due to lower administrative costs and legal fees, partially offset by higher directors’ fees.
The amortization expense of €0.3 million during 2022 was higher than the amortization expense of €0.2 million recorded during 2021, mainly due to higher gold production at the Rosebel mine.
An impairment loss on investment of royalty interests of €5.2 million was recorded in 2022 related to the Paul Isnard royalty asset (nil in 2021).
The investment income in 2022 was €0.3 million compared to €0.1 million during the same period in 2021. The increase was mainly due to the increase of the interest rates in 2022.
EURO recorded a foreign exchange loss of €0.3 million in 2022 compared to a loss of €0.2 million in 2021, mainly due to the revaluation of dividends payable, bank accounts and income tax payable.
Under IFRS, EURO recorded an income tax expense of €4.6 million in 2022 compared to €4.0 million in 2021. The increase was mainly due to the tax impact of higher earnings, partially offset by the tax impact of the change in fair value of the marketable securities and translation adjustments.
Fourth quarter ended December 31, 2022 compared to the same period in 2021 (IFRS)
Under IFRS, EURO recorded a net earnings of €2.0 million (€0.033 per share) for the fourth quarter of 2022 compared to €2.6 million (€0.042 per share) for the fourth quarter of 2021.
Revenues were €7.1 million during the fourth quarter of 2022, an increase compared to revenues of €3.5 million during the fourth quarter of 2021. Revenues were only attributable to the Rosebel royalty in the fourth quarter of 2022 and only attributable to the Rosebel royalty in 2021. The increase in revenues was mainly due to a higher gold production of 52,426 ounces in the fourth quarter of 2022 compared to 28,162 ounces during the fourth quarter of 2021 (€2.9 million) and by a weakened euro (€0.9 million), partially offset by a lower average gold price during the fourth quarter of 2022 of
An impairment loss on investment of royalty interests of €5.2 was recorded in 2022 related to the Paul Isnard royalty asset (nil in 2021).
Under IFRS, EURO recorded an income tax recovery of €0.5 million during the fourth quarter of 2022 compared to an income tax expense of €0.6 million during the fourth quarter of 2021. The decrease was mainly due to the tax impact of lower earnings due to the impairment loss on investment of royalty interests recorded in the fourth quarter of 2022 and translation adjustments, partially offset by the tax impact of the change in fair value of the marketable securities.
Outlook
The Rosebel royalty production in 2022 was 163,200 ounces. On
Orezone announced on
EURO’s cash flow is expected to be primarily affected by income tax payments.
Global COVID-19 pandemic
COVID-19 impacts have been limited but remain closely monitored and controlled on a case-by-case basis.
Subsequent Event
On
The existing royalty on Rosebel held by EURO will remain an obligation of IAMGOLD. The Royalty payments will continue to be paid by IAMGOLD on a quarterly basis, based on gold production reports provided to IAMGOLD by Zijin.
About EURO
EURO is a French company whose main assets are a royalty on the Rosebel gold mine production in Suriname (the “Rosebel royalty”), a royalty on the Paul Isnard concessions, a silver stream from a subsidiary of Orezone Gold Corporation (“Orezone”) and marketable securities. On
EURO has approximately 62.5 million shares outstanding. At
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
Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com. Further requests for information should be addressed to:
Directeur Général Tel: +1 450 677 0040 Email: tbarry@euroressources.net | Directeur Général Délégué Tel: +1 450 677 0040 Email : shalle@euroressources.net |
Attachment
- PR 23-02EN 2023 02
23 EURO - News release-2022 Q4 Results_V3c_Final
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