High foreign exchange gains/Increasing equity and solid liquid assets
Heidelberg. In the first half of 2015, Deutsche Rohstoff Group has achieved net income (all figures according to HGB and unaudited) amounting to EUR 0.2 million. The main reason for this result were foreign exchange gains in EUR/USD which amounted to EUR 5.8 million. These currency gains are not realized for the most part. Product sales did not incur since the revenue generating projects in the US and Australia have been sold in 2014. As of 30 June 2015, earnings before interest, tax, depreciation and amortization(EBITDA) amounted to EUR 3.1 million, earnings before interest and taxes (EBIT) to EUR 2.7 million and the profit from ordinary activities (EBT) to EUR 0.9 million.
The group´s equity capital increased by EUR 2.2 million to EUR 64.6 million in comparison to year end 2014. The equity ration is now standing at 49.5% compared to 46.4% at the end of 2014. Liquid assets (cash and cash equivalents) amounted to EUR 92.4 million (31.12.2014: EUR 103.3 million).
For the full year, the Management Board now expects significantly improved consolidated earnings than it did in late May. In the management report for 2014, a negative result in the upper single-digit million Euro range had been predicted. The Management Board now assumes a maximum net loss in the low single-digit million Euro range. EBITDA and EBIT are expected to be positive. This forecast is based on the assumption that the exchange rate EUR/USD does not change significantly until the end of the year and that no major write-downs are necessary.
Deutsche Rohstoff AG as the parent company also achieved a positive net result of EUR 2.7 million for the half year. EBITDA amounted to EUR 4.1 million, EBIT to EUR 4 million, the result from ordinary operations to EUR 3.4 million. There also was a foreign exchange gain of EUR 5.8 million. For the full year 2015, the Management Board also expects a profit.
The semi-annual report, which is available at the company’s website www.rohstoff.de (an English version will be available shortly), contains detailed descriptions of the development of the main projects of the group. Significant events in the first half of 2015:
- The US-subsidiary Elster Oil & Gas commenced oil and gas production from five horizontal wells in mid-September. Production rates for the first month will be reported in mid-October.
- Cub Creek Energy, another subsidiary in the US, contractually secured over 2,200 prospective acres for the development of hydrocarbons. Initial drilling is scheduled to begin in the forth quarter of 2015 and not later than the first quarter of 2016.
- Cub Creek Energy and Elster Oil & Gas are planning a total of approximately 150 horizontal wells on their acreage.
- In June 2015, Deutsche Rohstoff AG and the successful founders of Tekton Energy jointly established another US oil and gas company named Salt Creek Energy.
- The Canadian portfolio company Almonty Industries merged with Woulfe Mining in the beginning of September in order to create one of the largest tungsten producers outside of China. In a subsequent financing, Deutsche Rohstoff AG signed a convertible bond in the amount of 4 million Canadian dollars.
- During the year, Deutsche Rohstoff has invested in the Australian copper-exploration company Hammer Metals in several steps. Hammer holds large and promising license areas in the well-known Mount Isa region in Queensland, Australia. Deutsche Rohstoff AG’s share is approximately 25%, if all options should be exercised.
- The subsidiary Ceritech, headquartered in Leipzig, continued the development of it’s project for the extraction of rare earth elements from gypsum dumps. Ceritech sees this as a very good opportunity to build a reliable and cost efficient source of rare earth production.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “We are pleased with the good half-year results. Our cash position is significant. With the start of production of oil and gas by Elster, we have resumed to an operating and revenue generating business, which we will continue to expand in the coming months. The weak commodity markets continue to offer excellent investment opportunities.”
Heidelberg, 29 September 2015
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de