EURO Ressources reports earnings for the 2nd quarter and six months ended June 30, 2018

Paris, France, August 9, 2018:  EURO Ressources S.A. ("EURO" or "the Company") (Paris: EUR) today announced its unaudited statutory interim financial results prepared in accordance with French Generally Accepted Accounting Principles ("GAAP") and its unaudited condensed interim financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") for the six months ended June 30, 2018.  These unaudited interim financial statements were approved by the Board of Directors on August 9, 2018.  All financial amounts are expressed in Euros ("€" or "euros") unless otherwise specified.

Highlights

Under French GAAP, EURO reported a net profit of €8.5 million (€0.137 per share) for the six months ended June 30, 2018 compared to €6.7 million (€0.108 per share) for the six months ended June 30, 2017.  

Under IFRS, EURO reported a net profit of €7.7 million (€0.123 per share) for the six months ended June 30, 2018 compared to €8.3 million (€0.133 per share) for the six months ended June 30, 2017. 

EURO recorded revenues of €11.6 million in the first six months of 2018 (€6.0 million in the second quarter of 2018) compared to revenues of €13.0 million in the first six months of 2017 (€6.5 million reported in the second quarter of 2017). 

On June 14, 2018, EURO paid dividends of €9.4 million (€0.15 per share).

Liquidity and capital resources

Cash at June 30, 2018 totaled €17.4 million as compared to €15.5 million at December 31, 2017.  The increase was mainly due to cash flow from operating activities partially offset by the dividends 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 June 30, 2018, marketable securities were comprised of 19,095,345 shares of Columbus Gold Corp. ("Columbus") (12.0% of outstanding shares; December 31, 2017: 12.0%) and 3,819,069 shares of Allegiant Gold Ltd. ("Allegiant") (8.2% of outstanding shares; December 31, 2017: 0%).

Following the approval of a spin-out arrangement by Columbus' shareholders on November 27, 2017, EURO received on January 30, 2018, a common share of Allegiant for every five Columbus shares held.  This transaction resulted in a gain of €1.7 million based on the fair value of shares received of C$0.68 per share on the date of the transaction.Under IFRS, this gain was accounted for in other comprehensive income, and under French GAAP, this gain was accounted for in financial income in net earnings.