EURO Ressources reports earnings for the year ended December 31,
2022
EURO RESSOURCES REPORTS EARNINGS
FOR THE YEAR
ENDED
DECEMBER 31,
2022
Paris, France, February 23, 2023: EURO
Ressources S.A. (“EURO” or “the Company”) (Paris: EUR) today
announced its audited statutory financial results prepared in
accordance with 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, 2022. These audited financial results were
approved by the Board of Directors on February 23, 2023. All
financial amounts are expressed in Euros (“€” or “euros”) unless
otherwise specified.
Highlights
Under French GAAP, EURO reported net earnings of
€12.9 million (€0.206 per share) for the year ended December
31, 2022, compared to €10.1 million (€0.162 per share) for the
year ended December 31, 2021.
Under IFRS, EURO reported net earnings of
€11.3 million (€0.182 per share) for the year ended December
31, 2022, compared to €7.6 million (€0.122 per share) in
2021.
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 June 9, 2022, EURO paid dividends in the
amount of €15.6 million (€0.25 per share).
Liquidity and
capital resources
Cash at December 31, 2022 totaled €21.4 million
as compared to €20.4 million at December 31, 2021. The
increase was mainly due to cash flow from operating activities,
partially offset by dividends and income tax paid.
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 December 31, 2022, marketable
securities comprised 19,095,345 shares of Orea Mining Corp.
(“Orea”) (8.8% of outstanding shares; December 31, 2021:
9.3%) and 3,819,069 shares of Allegiant Gold Ltd. (“Allegiant”)
(3.7% of outstanding shares; December 31, 2021: 4.9%).
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 December 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.
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.
As part of the impairment test performed as at
December 31, 2022, the Company considered the historical
uncertainties related to obtaining the various authorizations and
permits necessary for Orea to continue this project, the change in
shareholding that occurred during the year following the sanctions
imposed on Nordgold and the major uncertainties regarding the
financing of the project and the fact that Orea has fully
depreciated its investment in its last published annual
accounts.Thus, as 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 at the end of the year. Under IFRS, an impairment
charge of €5,2 million (€4.2 million under French GAAP) was
recognized in the income statement for the year ended December 31,
2022.
Comments on financial
results prepared in accordance with French
GAAP for the year ended December 31,
2022 compared to
2021
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 US$1,794
per ounce of gold compared to US$1,797 per ounce of gold in 2021
(€0.1 million). In 2022, EURO also accounted for revenues from the
silver stream of the Bombore mine for €0.1 million. The revenues
also included a foreign exchange gain on commercial operations of
€0.02 million (€0.2 million in 2021).
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 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.
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 IFRS financial results is provided for comparison purposes.
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 US$1,794
per ounce of gold compared to US$1,797 per ounce of gold in 2021
(€0.1 million). In 2022, EURO also accounted for revenues from the
silver stream of the Bombore mine for €0.1 million.
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 US$1,725 per ounce of gold
compared to US$1,795 per ounce of gold during the fourth quarter of
2021 (€0.3 million). In 2022, EURO also accounted for revenues from
the silver stream of the Bombore mine for €0.1 million.
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 October 18, 2022, IAMGOLD has entered into a
definitive agreement with Zijin Mining Group Co. Ltd. (“Zijin”) to
sell its 95% interest in Rosebel Gold Mines N.V..The transaction
closed on January 31, 2023, 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.
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 October 18, 2022, IAMGOLD announced that it
has entered into a definitive agreement with Zijin Mining Group Co.
Ltd. to sell its 95% interest in Rosebel Gold Mines N.V. for cash
consideration of $360 million. The transaction closed on January
31, 2023.
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 October 18, 2022, IAMGOLD
announced that it had entered into a definitive agreement with
Zijin Mining Group Co. Ltd. to sell its interests in the Rosebel
mine. The transaction closed on January 31, 2023. The existing
royalty on Rosebel held by EURO will remain an obligation of
IAMGOLD (see Subsequent Event). 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. Orea Mining Corp. now
holds a 100% interest in the Montagne d’Or project. 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. At December 31, 2022, IAMGOLD France S.A.S. (“IAMGOLD
France”), a wholly owned subsidiary of IAMGOLD, owned 90% of all
issued outstanding shares of EURO. As at December 31, 2022,
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 23-02EN 2023 02 23 EURO - News release-2022 Q4
Results_V3c_Final
Euro Ressources (EU:EUR)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Euro Ressources (EU:EUR)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024