Euro Ressources S.A. Reports Earnings For The Quarter Ended March 31, 2016

PARIS, May 4, 2016: EURO Ressources S.A. ("EURO" or "the Company") (Paris: EUR) today announced its unaudited financial results prepared in accordance with International Financial Reporting Standards ("IFRS") for the first quarter ended March 31, 2016.  These unaudited interim financial results were approved by the Board of Directors on May 4, 2016.  All financial amounts are expressed in Euros ("?" or "euros") unless otherwise specified.


Highlights for the first quarter of 2016

Under IFRS, EURO reported a net profit of ?4.1 million (?0.066 per share) for the first quarter of 2016 compared to ?2.8 million (?0.045 per share) for the first quarter of 2015. The increase was mainly the result of lower income tax expense partially offset by lower revenues from royalties in 2016.


Liquidity and capital resources

Cash at March 31, 2016 totaled ?10.2 million compared to ?7.5 million at December 31, 2015.  All of the cash is unrestricted.  EURO expects to have sufficient cash flow to fund its on-going operational needs.

Comments on financial results for the first quarter ended March 31, 2016 from EURO's IFRS Management's Discussion and Analysis

Revenues were ?5.7 million during the first quarter of 2016, a decrease of 8% compared to revenues of ?6.2 million for the first quarter of 2015. Revenues were mainly attributable to the Rosebel royalty of ?5.6 million (first quarter of 2015: ?6.1 million).  The decrease in revenues was due to lower gold production of 71,723 ounces in the first quarter of 2016 compared to 79,825 ounces in the first quarter of 2015 (?0.6 million), and a lower average gold price in the first quarter of 2016 of US$1,183 per ounce of gold compared to US$1,218 per ounce of gold in the first quarter of 2015 (?0.2 million), partially offset by the weaker euro (?0.3 million).  Other royalties were ?0.1 million from third parties in French Guiana during the first quarter of 2016 (first quarter of 2015: ?0.1 million).

During the first quarter of 2016, the Company recorded operating expenses with a credit balance of (?0.015 million) compared to operating expenses of ?0.247 million during the same period in 2015.  The difference was  mainly due to an adjustment of the 2015 administrative costs recorded during the first quarter of 2016 (refer to Related party transactions in the Company's first quarter interim financial statements).

The amortization expense of ?0.14 million during the first quarter of 2016 was similar to the amortization expense recorded during the same period in 2015.

EURO recorded a foreign exchange gain of ?0.01 million in the first quarter of 2016 compared to a foreign exchange loss of ?0.12 million in the first quarter of 2015, mainly due to the revaluation of bank accounts and a greater volatility of the euro compared to the US$ during the first quarter of 2015.

EURO recorded an income tax expense of ?1.5 million in the first quarter of 2016 compared to ?2.9 million in the first quarter of 2015.  The decrease was mainly due to translation adjustments.


Outlook

In 2016, the Rosebel royalty is expected to provide revenues to the Company of between approximately ?21.9 million and ?22.6 million (US$24.1 million and US$24.9 million).  These pre-tax numbers assume a gold price of US$1,150 per ounce and an exchange rate of ?1 for US$1.1.  The Rosebel royalty production is anticipated to be between 300,000 and 310,000 ounces in 2016.  The impact of changes in the average gold price on EURO's annual revenues, based on an estimated production of 305,000 ounces, would be approximately US$3.0 million for each US$100 per ounce change in the gold price.  EURO's cash flow will primarily be affected by income tax payments, since there are no tax losses carried forward to offset any future revenue.  EURO expects its cash flow will be adequate to meet all corporate and related expenses.


About EURO

EURO is a French company whose principal asset is a gold production royalty from the Rosebel gold mine in Suriname (the "Rosebel royalty").  The Rosebel gold mine is 95%-owned by IAMGold Corp. ("IAMGOLD"), and it is operated by IAMGOLD.  EURO has approximately 62.5 million shares outstanding.  IAMGOLD France S.A.S., an indirect wholly owned subsidiary of IAMGOLD, owned approximately 89.71% of all issued and outstanding shares of EURO at March 31, 2016.


Statements Regarding Forward-Looking Information:   Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties.   There can be no assurance that future developments affecting the Company will be those anticipated by management.

Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein have not been registered under the United States Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold in the United States or to a U.S. person absent registration, or an applicable exemption from the registration requirements of the Securities Act


Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com.  Further requests for information should be addressed to:
EURO RESSOURCES REPORTS EARNINGS FOR THE QUARTER ENDED MARCH 31, 2016



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Source: EURO Ressources via Globenewswire HUG#2010154