EURO Ressources reports earnings for the third quarter and nine months ended September 30, 2018

Paris, France, November 7, 2018:  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 three and nine months ended September 30, 2018.  These unaudited interim financial statements were approved by the Board of Directors on November 7, 2018.  All financial amounts are expressed in Euros ("€" or "euros") unless otherwise specified.

Highlights

Under IFRS, EURO reported a net profit of €3.2 million (€0.052 per share) and €10.9 million (€0.175 per share) for the three and nine months ended September 30, 2018, respectively, compared to €4.3 million (€0.069 per share) and €12.6 million (€0.201 per share) for the three and nine months ended September 30, 2017, respectively. 

Liquidity and capital resources

Cash at September 30, 2018 totaled €21.7 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 September 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") (6.3% 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.

During the nine month period ended September 30, 2018, the Company recognized an unrealized loss following the decrease of the fair value of these marketable securities.  Under IFRS, this loss of €7.2 million was recorded in other comprehensive income.

RESULTS OF OPERATIONS UNDER IFRS

Third quarter ended September 30, 2018 compared to the same period in 2017 (IFRS)