EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2016 - Seite 2

EURO recorded an income tax expense of €9.0 million in 2016, as compared to €8.0 million in 2015.  The increase is mainly due to higher royalty revenues in 2016 as compared to 2015.

Select IFRS financial results for 2016 compared to 2015

Since December 31, 2010, EURO no longer prepares and publishes consolidated financial statements for French purposes; only French GAAP can be applied for the presentation of statutory financial statements and approval by the shareholders.  However, in order to comply with Canadian requirements and have equivalency of information between French financial requirements and Canadian financial requirements, the following information on the IFRS financial results is provided for comparison purposes.

2016 compared to 2015 (IFRS)

EURO recorded a net profit of €15.9 million (€0.255 per share) in 2016 compared to €12.5 million (€0.201 per share) during 2015.

Revenues totaled €26.1 million in 2016, an increase of 14% compared to revenues of €22.8 million during 2015.  Revenues are mainly attributable to the Rosebel royalty for €25.7 million in 2016 (2015: €22.4 million).  The increase in revenues is due to a higher average gold price of US$1,249 per ounce in 2016 compared to US$1,162 per ounce in 2015 (€2.6 million), a higher gold production with 311,808 ounces in 2016 compared to 301,813 ounces during 2015 (€0.6 million), and the weaker euro (€0.1 million).

Operating expenses in 2016 were €0.4 million, lower than €0.9 million in 2015. The difference was mainly due to lower administrative costs, directors' fees and legal fees during 2016.

The amortization expense of €0.7 million during 2016 was higher than the amortization expense of €0.6 million recorded during 2015, mainly due to lower gold reserves at the Rosebel mine.

EURO recorded an income tax expense of €9.0 million for 2016 compared to €8.6 million in 2015.  The increase is mainly due to higher royalty revenues in 2016 compared to 2015 partially offset by translation adjustments.

Fourth quarter ended December 31, 2016 compared to the same period in 2015 (IFRS)

EURO recorded a net profit of €4.1 million (€0.066 per share) for the fourth quarter of 2016 compared to €2.7 million (€0.045 per share) for the fourth quarter of 2015. 

Revenues were €7.2 million during the fourth quarter of 2016, an increase of 36% compared to revenues of €5.3 million for the fourth quarter of 2015.  Revenues are mainly attributable to the Rosebel royalty of €7.2 million (fourth quarter of 2015: €5.2 million).  The increase in revenues is mainly due to higher gold production with 88,121 ounces in the fourth quarter of 2016 as compared to 73,081 ounces during the fourth quarter of 2015 (€1.0 million), and by the higher average gold price during the fourth quarter of 2016 of US$1,222 per ounce of gold compared to US$1,106 per ounce of gold during the fourth quarter of 2015 (€0.9 million).