EURO RESSOURCES REPORTS
EARNINGS FOR THE FIRST
QUARTER ENDED
MARCH
31,
2022
Paris, France, May 4, 2022: EURO Ressources S.A.
(“EURO” or “the Company”) (Paris: EUR) today announced its
unaudited statutory interim financial results prepared in
accordance with International Financial Reporting Standards
(“IFRS”) for the first quarter ended March 31, 2022. These
unaudited interim financial statements were approved by the Board
of Directors on May 4, 2022. All financial amounts are
expressed in Euros (“€” or “euros”) unless otherwise specified.
Highlights
Under IFRS, EURO reported a net profit of €3.2
million (€0.051 per share) for the first quarter of 2022, compared
to €1.8 million (€0.030 per share) for the first quarter of
2021.
EURO recorded revenues of €4.8 million in
the first quarter of 2022 compared to revenues of €3.5 million
for the first quarter of 2021.
Liquidity and capital
resources
Cash at March 31, 2022 totaled €23.4
million as compared to €20.4 million at December 31, 2021. The
increase was mainly due to cash flow from operating activities.
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 March 31, 2022, marketable securities
were comprised of 19,095,345 shares of Orea Mining Corp. (“Orea”)
(9.0% of outstanding shares; December 31, 2021: 9.3%) and
3,819,069 shares of Allegiant Gold Ltd. (“Allegiant”) (4.9% of
outstanding shares; December 31, 2021: 4.9 %).
During the first quarter ended March 31, 2022,
the Company recognized an unrealized gain under IFRS following the
increase of the fair value of these marketable securities. Under
IFRS, this gain of €0.3 million was recorded in other comprehensive
income (loss of €1.0 million during the first quarter ended March
31, 2021).
Royalty assets
(Refer to MD&A for more detail)
As at March 31, 2022, the Company’s impairment
review indicated that the facts and circumstances did not represent
an indication of potential impairment for Rosebel and Bombore.
With regards to Paul Isnard, 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. The JV is still awaiting a decision by the Supreme Court
on whether it will admit and hear a final appeal by the French
Government on the renewal of the Montagne d’Or mining titles,
following the fact that the Administrative Court of Appeal in
Bordeaux had rejected the French Government’s appeal in July 2021.
In those circumstances, the Company is maintaining the same
assumption from the impairment test related to the Paul Isnard
royalty asset performed as at December 31, 2021. The Company
continues to assume that the various authorizations and permits
would be granted under conditions that will allow the JV to go on
with this project, though the timing is somewhat uncertain. No
impairment charges were recorded in the statement of earnings for
the period ended March 31, 2022.
First quarter
ended
March 31,
2022 compared to
the same period in
2021
(IFRS)
Under IFRS, EURO reported a net profit of €3.2
million (€0.051 per share) for the first quarter of 2022 compared
to €1.8 million (€0.030 per share) for the first quarter of
2021.
Revenues were €4.8 million during the first
quarter of 2022, an increase compared to €3.5 million for the first
quarter of 2021. Revenues were only attributable to the Rosebel
royalty in the first quarter of 2022 and 2021. The increase in
revenues was mainly due to higher gold production of 35,213 ounces
in the first quarter of 2022 compared to 29,232 ounces in the first
quarter of 2021 (€0.7 million), a weakened euro (€0.4 million) and
a higher average gold price in the first quarter of 2022 of
US$1,877 per ounce of gold compared to US$1,794 per ounce of gold
in the first quarter of 2021 (€0.2 million).
During the first quarter of 2022, the Company
recorded operating expenses of €0.1 million, same level as the
first quarter of 2021.
EURO recorded an income tax expense of €1.44
million in the first quarter of 2022 compared to €1.39 million in
the first quarter of 2021. The slight increase was mainly due to
the tax impact of higher earnings in the first quarter of 2022
compared to the first quarter of 2021, partially offset by
translation adjustments.
Outlook
The Rosebel royalty production is anticipated to
be between 113,000 ounces and 139,000 ounces in 2022. In 2022, the
Rosebel royalty is expected to provide revenues to the Company of
between approximately €12.3 million and €15.2 million (US$14.8
million and US$18.2 million). These pre-tax numbers assume a gold
price of US$1,700 per ounce and an exchange rate of €1 for US$1.20.
The impact of changes in the average gold price on EURO’s annual
revenues, based on an estimated production of 126,000 ounces, would
be approximately US$1.2 million for each US$100 per ounce change in
the gold price. The impact of a 5% change in the average foreign
exchange rate on EURO’s annual revenues would be approximately €0.7
million.
The Bombore project is anticipated to reach
commercial production in the third quarter of 2022.
The Company maintains certain cash available to
pursue opportunities that would enhance the Company's long-term
business.
Global
COVID-19 pandemic
The global COVID-19 pandemic continues to
evolve. Despite widespread mass immunization programs intended to
limit the effect of the virus in many countries, the emergence of
new variants, such as the new Omicron variant, caused rates of
infection to rapidly increase again globally early in the first
quarter of 2022. COVID-19 detection and mitigation protocols are
reviewed on an ongoing basis to adapt to the evolving situation.
The Company has been closely monitoring and taking necessary
measures to manage the impact of the COVID-19 pandemic on all
aspects of its operations.
At Rosebel, the COVID-19 situation has
stabilized during the quarter, following an increase in new cases
in January 2022. The site continues to monitor and implement
mitigating measures to reduce the impact, including actively
engaging in community related initiatives. Approximately 46% of the
workforce is fully vaccinated.
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. The Rosebel gold mine is
95%-owned by IAMGOLD Corporation (“IAMGOLD”), and is operated by
IAMGOLD. The royalty on the Paul Isnard concessions is a net
smelter returns production royalty on future production of the Paul
Isnard concessions and an area of interest surrounding the
concessions in French Guiana, owned under a joint venture agreement
between Orea Mining Corp. and Nord Gold SE (“Compagnie Minière
Montagne d’Or”). The silver stream entitles EURO to receive 50% of
the payable silver production over the life of mine on Orezone’s
Bomboré Project, located in Burkina Faso, West Africa.
EURO has approximately 62.5 million shares
outstanding. At March 31, 2022, IAMGOLD France S.A.S. (“IAMGOLD
France”), an indirect wholly owned subsidiary of IAMGOLD, owned
approximately 89.71% of all issued outstanding shares of EURO. As
at March 31, 2022, IAMGOLD France held 56,058,191 shares
representing 112,116,382 voting rights or 94.25% of the voting
rights of EURO. This threshold crossing results from a double
voting rights allocation.
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:
Tidiane BarryDirecteur GénéralTel: +1 450 677 0040Email:
tbarry@euroressources.net |
Sophie
HalléDirecteur Général DéléguéTel: +1 450 677 0040Email :
shalle@euroressources.net |
- PR 22-03EN 2022 05 04 EURO - News release-2022 Q1
Results_Final
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