EURO Ressources

EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2013 - Seite 2

On December 5, 2011, EURO entered into an Option agreement with COLUMBUS allowing for the restructuring of the existing royalty on any future gold production from the Paul Isnard concessions (the "Option").  On November 7, 2013, COLUMBUS exercised the Option in return for cash (€3.0 million), shares of COLUMBUS (€3.9 million) and a retained net smelter return ("NSR") royalty (the NSR covers the Paul Isnard concessions and an area of interest surrounding the concessions in French Guiana) with an estimated fair value of €4.2 million.  In return, the Company transferred to COLUMBUS the intangible asset related to the royalty on on gold production from the Paul gold production from the Paul Isnard concessions receivable from AUPLATA.  In addition, the Company was the owner of an exploration permit ("PER") and had applied for an operating permit ("PEX") on November 29, 2010.  Following its withdrawal on November 29, 2013 submitted to relevant ministries, the Company also disposed of the PER.  The net impact on results related to the exercise of the Option agreement is a gain of €10.0 million.  In 2012, EURO recorded other income of €0.2 million related to the cash and shares received from COLUMBUS in connection with the amendment to the Option agreement signed in July 2012 and the annual maintenance fee received on November 30, 2012.

Operating expenses (excluding amortization and depreciation expenses) for 2013 were
€1.4 million, compared to €1.5 million in 2012, a decrease of 5%, primarily due to a decrease in tax expenses (CVAE) mainly due to lower revenues in 2013, partially offset by increased legal fees in relation to cost reduction strategies, increased legal exchange and listing fees, and increased other operating taxes.

The amortization expense for €0.5 million in 2013 is lower than the amortization expense of €0.6 million in 2012 mainly due to tax impact from the decrease in gold production at the Rosebel mine.

EURO recorded an income tax expense of €13.3 million for 2013, as compared to €14.1 million in 2012.  The decrease is mainly due to lower royalty revenues in 2013 as compared to 2012, partially offset by the income tax impact of the exercise of the Option agreement and higher income tax related to the dividend distribution related to a higher dividend paid in 2013 compared to 2012.

Liquidity and Capital resources

Cash and cash equivalents at December 31, 2013 totalled €8.0 million as compared to €10.0 million at December 31, 2012.  All the cash and cash equivalents are unrestricted.  EURO expects to have sufficient cash flow to fund its on-going operational needs.