EURO Ressources reports earnings for the third quarter and nine months ended September 30,2020

NEWS RELEASE

Paris: EUR

EURO RESSOURCES REPORTS EARNINGS FOR THE
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2020

Paris, France, November 5, 2020: 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 nine months ended September 30, 2020. These unaudited interim financial statements were approved by the Board of Directors on November 5, 2020. All financial amounts are expressed in Euros (“€” or “euros”) unless otherwise specified.

Highlights

Under IFRS, EURO reported a net profit of €3.0 million (€0.047 per share) and €11.2 million (€0.179 per share) for the three and nine months ended September 30, 2020, respectively, compared to €3.5 million (€0.056 per share) and €11.7 million (€0.187 per share) for the three and nine months ended September 30, 2019, respectively. 

EURO recorded revenues of €16.2 million in the first nine months of 2020 (€3.8 million in the third quarter of 2020) compared to revenues of €18.1 million in the first nine months of 2019 (€5.7 million reported in the third quarter of 2019). 

Liquidity and capital resources

Cash at September 30, 2020 totaled €30.2 million as compared to €31.6 million at December 31, 2019. The decrease was mainly due to the dividends and income tax 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. 

As at September 30, 2020, marketable securities were comprised of 19,095,345 shares of Orea Mining Corp. (“Orea”) (9.7% of outstanding shares; December 31, 2019: 10.6%) and 3,819,069 shares of Allegiant Gold Ltd. (“Allegiant”) (6.2% of outstanding shares; December 31, 2019: 6.2 %).

During the nine month period ended September 30, 2020, the Company recognized an unrealized gain under IFRS following the increase of the fair value of these marketable securities. Under IFRS, this gain of €0.2 million was recorded in other comprehensive income (loss of €1.5 million during the nine months ended September 30, 2019).