EURO Ressources reports earnings for the second quarter and six months ended June 30, 2020

NEWS RELEASE

Paris: EUR

EURO RESSOURCES REPORTS EARNINGS FOR THE
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2020

Paris, France, August 6, 2020:  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, 2020. These unaudited interim financial statements were approved by the Board of Directors on August 6, 2020. 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, 2020 (€3.5 million for the second quarter of 2020 (€0.055 per share)) compared to €8.3 million (€0.132 per share) for the six months ended June 30, 2019 (€3.7 million for the second quarter of 2019 (€0.059 per share)).  

Under IFRS, EURO reported a net profit of €8.3 million (€0.132 per share) for the six months ended June 30, 2020 (€3.3 million for the second quarter of 2020 (€0.053 per share)) compared to €8.2 million (€0.131 per share) for the six months ended June 30, 2019 (€4.7 million for the second quarter of 2019 (€0.074 per share)). 

EURO recorded revenues of €12.5 million in the first six months of 2020 (€5.2 million in the second quarter of 2020) compared to revenues of €12.4 million in the first six months of 2019 (€6.5 million reported in the second quarter of 2019). 

On June 11, 2020, EURO paid dividends of €12.5 million (€0.20 per share).

Liquidity and capital resources

Cash at June 30, 2020 totaled €28.7 million as compared to €31.6 million at December 31, 2019.  The decrease was mainly due to the dividends paid, partially offset by cash flow from operating activities.

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.