EURO Ressources reports earnings for the first quarter ended March 31, 2018

EURO RESSOURCES REPORTS EARNINGS FOR THE FIRST QUARTER
ENDED MARCH 31, 2018

Paris, France, May 9, 2018:  EURO Ressources S.A. ("EURO" or "the Company") (Paris: EUR) today announced its unaudited condensed interim financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") for the first quarter ended March 31, 2018.  These unaudited condensed interim financial statements were approved by the Board of Directors on May 9, 2018.  All financial amounts are expressed in Euros ("€" or "euros") unless otherwise specified.

First quarter ended March 31, 2018 compared to the same period in 2017

Under IFRS, EURO recorded a net profit of €3.9 million (€0.063 per share) for the first quarter of 2018 compared to €4.1 million (€0.066 per share) for the first quarter of 2017. 

Revenues were €5.6 million during the first quarter of 2018, a decrease of 14% compared to €6.5 million for the first quarter of 2017.  Revenues were mainly attributable to the Rosebel royalty of €5.5 million (first quarter of 2017: €6.4 million).  The decrease in revenues was mainly due to lower gold production with 68,793 ounces in the first quarter of 2018 compared to 78,272 ounces during the same period of 2017 (€0.8 million), and the strengthened euro (€0.8 million), partially offset by the higher average gold price during the first quarter of 2018 of US$1,329 per ounce of gold compared to US$1,219 per ounce of gold during the first quarter of 2017 (€0.7 million).

Operating expenses were €0.11 million during the first quarter of 2018 compared to €0.15 million during the same period last year.  The decrease is mainly due to lower administrative costs and the interest income on the reimbursement of tax on dividends.

The amortization expense of €0.11 million during the first quarter of 2018 was lower than the amortization expense of €0.19 million recorded during the first quarter of 2017, mainly due to lower production and higher reserves at the Rosebel mine and the impact of a stronger euro.

EURO recorded income tax expense of €1.6 million during the first quarter of 2018 compared to €2.1 million during the first quarter of 2017.  The decrease was mainly due to lower revenues, the deductible decrease in the fair value of marketable securities, and translation adjustments.  

Liquidity and capital resources

Cash at March 31, 2018 totaled €20.2 million as compared to €15.5 million at December 31, 2017.  The increase was mainly due to cash flow from operating activities.