EurOmax Releases Third Quarter (September 30) Unaudited Financial Results
VANCOUVER, ALBERTA, Nov. 24, 2010 (Marketwire) -- EurOmax Resources Limited (TSX VENTURE:EOX) (FRANKFURT:OMZ) ("EurOmax" or, the "Company") announced today the release of the financial statements and related management, discussion and analysis for the quarter ended September 30, 2010. Please refer to www.sedar.com for the complete set of financial statements, notes and MD&A. Highlights for the quarter include the following:
As of September 30, 2010 (see attached excerpt):
Cash balance - $2.8 million
Accounts payable - $1.3 million
Working capital - $2.3 million
For the quarter ended September 30, 2010 (see attached excerpt):
Net loss for the quarter - $5.8 million
Shareholder meeting expense - $1.9 million
Write-off of mineral properties - $3.5 million
Cash depletion - the $1.9 million cost of the contested shareholder meeting, which concluded on September 23, 2010, has significantly reduced the cash available for exploration programs and other corporate purposes. After payment of accounts payable and accrued liabilities as of September 30, the actual cash available was $1.5 million. The Company's new board of directors has factored this available cash balance into its ongoing transition process and corporate planning.
Property review - a formal review of all the Company's prospects and properties was initiated in October and is expected to be completed shortly. Based upon a preliminary review of the exploration results on the properties to date, it was concluded that the Ceovishte property in Serbia and the Kazandol property in Macedonia would not justify any additional exploration expenditures by the Company. Accordingly, the $3.5 million carrying value of both these properties has been written off. There may be additional property write-offs pending the completion of the Company's review of its property portfolio.
Drilling program at Ilovitza, Macedonia - in order to drill a sufficient number of holes and gather the appropriate technical data to prepare a detailed application for a Mining Concession on this property before the Company's exploration permit expires in May 2011, the Company has an active drilling program in place which is expected to continue for at least the balance of 2010. This drilling program is the only drilling the Company is conducting pending the completion of the Company's review of its property portfolio.
Mark Gustafson, President & CEO, stated "The third quarter results reflect all the significant costs related to the contested shareholder meeting and the write-offs due to the lack of exploration success on two of the Company's properties. Our current cash balance is approximately $1 million and we are continuing to implement our transition plan. The new board of directors of the Company would like to thank our CFO, Mr. Christopher Serin, for providing his professional and timely assistance in preparing these quarterly results."
EurOmax Resources Ltd.
Consolidated balance sheets
(unaudited - prepared by management)
September 30 December 31,
2010 2009
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$ $
Assets
Current assets
Cash and cash equivalents 2,863,044 8,234,111
Accounts receivable, prepaids and deposits 780,561 689,580
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3,643,605 8,923,691
Investment (Note 8) 221,519 475,190
Restricted cash (Note 6) 51,470 47,223
Property and equipment (Note 7) 6,325,969 7,240,205
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10,242,563 16,686,309
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,361,862 295,349
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1,361,862 295,349
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Shareholders' equity
Share capital (Note 9) 33,101,084 33,101,084
Warrants 897,038 897,038
Contributed surplus 1,785,872 1,613,272
Accumulated other comprehensive (loss) income (91,093) 156,352
Deficit (26,812,200) (19,376,786)
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8,880,701 16,390,960
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10,242,563 16,686,309
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Approved by the Board
(Signed) Mark G. Gustafson
Mark G. Gustafson, Director
(Signed) Donald R. Siemens
Donald R. Siemens, Director
EurOmax Resources Ltd.
Consolidated statements of loss (income)
(unaudited - prepared by management)
Three months ended Nine months ended
September 30 September 30
2010 2009 2010 2009
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$ $ $ $
Expenses
General and administrative
(Note 10) 339,295 318,704 1,425,261 890,260
Shareholder meeting
(Note 10) 1,863,333 - 1,863,333 -
General exploration 13,480 340,794 108,034 381,002
Write-off of mineral
properties 3,521,055 - 3,521,055 -
Stock-based compensation - 203,910 172,600 250,293
Depletion, depreciation and
accretion 19,025 15,767 57,905 38,054
Other (5,482) 1,470 (7,496) 1,130
Foreign exchange loss 32,020 317,651 291,551 339,964
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5,782,726 1,198,296 7,432,243 1,900,703
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Other expenses (income)
(Gain) on conversion of
note receivable - (73,070) - (70,316)
(Gain) on investment - (9,615) - (435,806)
Loss on stock option held - 2,281 - 4,058
Loss (gain) on disposal of
property and equipment - (3,684,548) 4,440 (3,684,548)
Interest (income) expense (1,226) 19,280 (1,269) 12,242
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(1,226) (3,745,672) 3,171 (4,174,370)
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Net loss (income) and
comprehensive loss (income) 5,781,500 (2,547,376) 7,435,414 (2,273,667)
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Net loss (income) and
comprehensive loss (income)
per share
Basic and diluted 0.05 (0.02) 0.06 (0.03)
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Weighted average number of
shares
Basic and diluted 120,062,039 119,062,039 120,062,039 80,996,202
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
EurOmax Resources Limited President & CEO (604) 454-8677 markg@euromaxresources.com www.EurOmaxresources.com
