EURO Ressources S.A. (“EURO” or the “Company”) (Euronext: EUR) is a French company focused on precious-metal royalties. As at December 31, 2018, IAMGOLD France S.A.S. (“IAMGOLD France”), an indirect wholly owned subsidiary of IAMGOLD Corporation (“IAMGOLD”), owned approximately 89.71% of all issued and outstanding shares of EURO and 94.25% of the voting rights of EURO.
Main assets of the Company are a royalty on the Rosebel gold mine production in Suriname (the “Rosebel royalty”), a royalty on the Paul Isnard concessions, and marketable securities. The Rosebel royalty is payable by IAMGOLD. The Rosebel gold mine is 95%-owned by IAMGOLD, and is operated by IAMGOLD. The royalty on the Paul Isnard concessions is a net smelter returns production royalty on future production of the Paul Isnard concessions and an area of interest surrounding the concessions in French Guiana, owned under a joint venture agreement between Columbus Gold Corp. and Nord Gold SE (Compagnie Minière Montagne d’Or).
As of December 31, 2018, the Rosebel gold mine had estimated mineral proven reserves of 29.8 million tonnes averaging 0.6 g/t Au for 0.59 million ounces of gold, and probable reserves of 100.6 million tonnes averaging 1.0 g/t Au for 3.2 million ounces of gold. Rosebel commenced production in 2004 and as of December 31, 2018, the Rosebel mine had produced approximately 5.0 million ounces of gold and 2.0 million ounces of gold remained under the Rosebel royalty agreement. The related payments are calculated on the basis of gold production at the Rosebel mine and the market price of gold based on the Afternoon London price. The Rosebel Royalty is calculated based on 10% of the excess gold market price above US$300 per ounce for soft and transitional ore, and above US$350 per ounce for hard rock ore, and, in each case, after deducting a fixed royalty of 2% of production paid in-kind to the Government of Suriname.
The royalty income on the Paul Isnard concessions will be calculated by applying the percentage of royalty to the net smelter returns royalty established based on revenues from the sale of gold calculated per the average monthly gold price (in United States dollars) less applicable deductions per the agreement. The royalty percentage is 1.8% on the first two million ounces of gold and 0.9% on the next three million ounces of gold. A feasibility study for Montagne d’Or (part of the larger Paul Isnard sector) was filed in May 2017.