About EURO Ressources S.A.
EURO Ressources S.A. is a French company focused on precious-metal royalties. As at December 31, 2021, IAMGOLD France S.A.S. an indirect wholly owned subsidiary of IAMGOLD Corporation, owned approximately 89.71% of all issued and outstanding shares of EURO Ressources S.A and 94.25% of the voting rights. EURO’s securities trade on the NYSE Euronext of Paris stock exchange under the symbol EUR.
Main assets of the Company are a royalty on the Rosebel gold mine production in Suriname, a royalty on the Paul Isnard concessions, a silver stream from a subsidiary of Orezone Gold Corporation 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 Orea Mining Corp. and Nord Gold SE (“Compagnie Minière Montagne d’Or”). The silver stream entitles EURO to receive 50% of the payable silver production over the life of mine on Orezone’s Bomboré Project, located in Burkina Faso, West Africa.
As of December 31, 2021, the Rosebel gold mine had estimated mineral proven reserves of 10.8 million tonnes averaging 0.6 g/t Au for 0.2 million ounces of gold, and probable reserves of 76.0 million tonnes averaging 1.0 g/t Au for 2.4 million ounces of gold. Rosebel commenced production in 2004 and as of December 31, 2021, the Rosebel mine had produced approximately 5.5 million ounces of gold and 1.5 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.
The silver stream entitles to receive 50% of the payable silver production over the life of mine on Orezone’s Bomboré Project, located in Burkina Faso, West Africa. The silver stream also stipulates a minimum guaranteed delivery obligation of 37,500 ounces of silver per annum subject to a catch-up payment on a shortfall on specified timelines, until delivery of 375,000 ounces of payable silver after which the minimum annual payment guarantee will no longer apply. Orezone has the right to buy back 50% of the silver stream in certain circumstances for $7.15 million.