EURO Ressources reports earnings for the first quarter ended March
31, 2023
EURO RESSOURCES REPORTS
EARNINGS FOR THE FIRST
QUARTER ENDED
MARCH
31,
2023
Paris, France, May 12, 2023: 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, 2023. These
unaudited interim financial statements were approved by the Board
of Directors on May 12, 2023. All financial amounts are
expressed in Euros (“€” or “euros”) unless otherwise specified.
Highlights
Under IFRS, EURO reported net earnings of €6.1
million (€0.098 per share) for the first quarter of 2023, compared
to €3.2 million (€0.051 per share) for the first quarter of
2022.
EURO recorded revenues of €8.2 million in
the first quarter of 2023 compared to revenues of €4.8 million
for the first quarter of 2022.
Liquidity and capital
resources
Cash at March 31, 2023 totaled €26.4
million as compared to €21.4 million at December 31, 2022. 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, 2023, marketable securities
were comprised of 19,095,345 shares of Orea Mining Corp. (“Orea”)
(8.4% of outstanding shares; December 31, 2022: 8.8%) and
3,819,069 shares of Allegiant Gold Ltd. (“Allegiant”) (3.7% of
outstanding shares; December 31, 2022: 3.7 %).
During the first quarter ended March 31, 2023,
the Company recognized an unrealized gain under IFRS following the
increase of the fair value of these marketable securities. Under
IFRS, this gain of €0.4 million was recorded in other comprehensive
income (gain of €0.3 million during the first quarter ended March
31, 2022).
Royalty assets (Refer to MD&A for more
detail)
As at March 31, 2023, the Company’s impairment
review indicated that the facts and circumstances did not represent
an indication of potential impairment for Rosebel and Bombore.
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 May 10, 2022, Orea
reported that the French Supreme Court has admitted the final
appeal of the French Government on the renewal of the Montagne d’Or
project mining titles, following the fact that the Administrative
Court of Appeal in Bordeaux had rejected the French Government’s
appeal in July 2021. On August 31, 2022, Orea reported that it has
entered into a legally binding letter agreement with Nordgold to
obtain its 55.01% interest in the Montagne d’Or joint-venture,
following the sanctions imposed by the United States on Nordgold.
On September 13, 2022, Orea confirmed that the French Government
responsible for overseeing matters related to Russian sanctions,
has approved the proposed transaction with Nordgold. On December
21, 2022, Orea published its financial statements as of September
30, 2022 in which the investment relating to the Montagne d'Or
project is fully depreciated. On January 4, 2023, Orea announced
that it has signed a Definitive Agreement to acquire Nordgold’s
55.01% interest in the Montagne d’Or joint-venture company
(“HoldingCo”). The Definitive Agreement was signed with the
approval of the French treasury which is responsible for overseeing
matters related to Russian sanctions. On March 1, 2023, Orea
reported that it wished to obtain comfort on sanctions from the
Canadien government prior to proceeding with closing. On May 4,
2023, Orea provided an update on the closing of the acquisition of
the additional 55.01% interest in the Montagne d’Or project holding
company. The French government and Nordgold have both extended the
deadline to close the acquisition to May 31, 2023. A final response
from the Canadian government to Orea’s permit application regarding
the acquisition is pending.
In the impairment test performed at December 31,
2022, the Company considered that the events that occurred in 2022
questioned the viability of the project and its ability to generate
future economic interest. Consequently, the Company has fully
impaired the value of its royalty asset as at December 31, 2022. No
indication of recovery in the value of the royalty asset has been
identified as at March 31, 2023.
First quarter
ended
March 31,
2023 compared to
the same period in
2022
(IFRS)
Under IFRS, EURO reported net earnings of €6.1
million (€0.098 per share) for the first quarter of 2023 compared
to €3.2 million (€0.051 per share) for the first quarter of
2022.
Revenues were €8.2 million during the first
quarter of 2023, an increase compared to €4.8 million for the first
quarter of 2022. Revenues were mainly attributable to the Rosebel
royalty in the first quarter of 2023 and only attributable to the
Rosebel royalty in 2022. The increase in revenues was mainly due to
higher gold production of 57,414 ounces in the first quarter of
2023 compared to 35,213 ounces in the first quarter of 2022 (€2.8
million), a weakened euro (€0.4 million) and a higher average gold
price in the first quarter of 2023 of US$1,890 per ounce of gold
compared to US$1,877 per ounce of gold in the first quarter of 2022
(€0.1 million). Euro also accounted for revenues from the silver
stream of the Bombore mine for €0.1 million.
During the first quarter of 2023, the Company
recorded operating expenses of €0.2 million, compared to €0.1
million in the first quarter of 2022. The increase was mainly due
to higher legal fees incurred during the first quarter of 2023
compared to the first quarter of 2022.
The investment income in the first quarter of
2023 was €0.3 million compared to €0.01 million in the first
quarter of 2022. The increase was mainly due to the increase of the
interest rates in the first quarter of 2023.
EURO recorded an income tax expense of €2.0
million in the first quarter of 2023 compared to €1.4 million in
the first quarter of 2022. The increase was mainly due to the tax
impact of higher earnings and the change in fair value of the
marketable securities in the first quarter of 2023 compared to the
first quarter of 2022, partially offset by translation
adjustments.
Outlook
Since January 31, 2023, the Rosebel gold mine is
95%-owned and operated by Zijin, and as such, no information on
anticipated production for the year 2023 has been disclosed for the
Rosebel royalty.
Orezone announced on December 1, 2022 that the
Bombore Gold Mine had achieved commercial production. No
information on anticipated production for the year 2023 has been
disclosed related to the silver stream.
EURO’s cash flow is expected to be primarily
affected by income tax payments. The Company maintains certain cash
available to pursue opportunities that would enhance the Company's
long-term business.
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. Since January 31, 2023, the
Rosebel gold mine is 95%-owned and operated by Zijin Mining Group
Co. Ltd (“Zijin”). The existing royalty on Rosebel held by EURO
will remain an obligation of 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 by
Orea Mining Corp. The silver stream entitles EURO to receive 50% of
the payable silver production over the life of mine on Orezone’s
Bombore mine, located in Burkina Faso, West Africa.
EURO has approximately 62.5 million shares
outstanding. As at March 31, 2023, IAMGOLD France S.A.S. (“IAMGOLD
France”), an indirect wholly owned subsidiary of IAMGOLD, owned 90%
of all issued outstanding shares of EURO. As at March 31,
2023, IAMGOLD France held 56,242,153 shares representing
112,300,344 voting rights or 94.38% of the voting rights of
EURO.
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 23-04EN 2023 05 12 EURO - News release-2023 Q1
Results_Final
Grafico Azioni Euro Ressources (EU:EUR)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Euro Ressources (EU:EUR)
Storico
Da Mag 2023 a Mag 2024