ok I've got my answer. But looking at today's price it seems that investors we're not impressed... gosh!!!
MONTREAL, June 18 /CNW/ - At its annual general meeting held in Montreal
today, St. GeneviŠve Resources Ltd. presented its 1996 results and current
financial situation. It also reviewed the $120 million of financing achieved
by the St. GeneviŠve Group during fiscal 1996 as well as its restructuring
into commodity-specific sectors. In addition, the Company outlined
developments that may influence its share price over the next few months.
NET EARNINGS MORE THAN DOUBLED WITH REVENUES UP 84% OVER LAST YEAR
For the year ended December 31 1996. St. GeneviŠve Resources Ltd. had
consolidated net earnings of $19.2 million or $0.32 per share, compared to
$9.4 million or $0.19 per share for the previous year. Revenues increased by
84% over 1995 to $30.3 million. Pierre R. Gauthier, Chairman of the Board,
said this performance results from ``the Company's investment strategy and the
growth of the net value of its equity investments following their financing
activities.''
TOTAL ASSETS INCREASED BY 77% AND SHAREHOLDER EQUITY GREW BY 74%
As at December 31, 1996, total assets were $92.4 million, indicating a
76.7% increase over 1995. Investments increased by $52.1 million to $75.5
million. Due to a $25 million financing in the last quarter of 1996 and net
consolidated earnings of $19.2 million for the year, the net book value of the
Company announced to $77.5 million or $0.94 per share issued or to be compared
to $30.7 million or $0.54 per share on December 31, 1995. At the end of 1996,
the market value of the Company's investments amounted to $64.4 million
compared to $36.9 million the previous year.
According to Chairman of the Board, Pierre R. Gauthier, the strengthening
of the Company's financial position is the result of ``the further development
of existing ventures, coupled with the dynamic financing strategy adopted in
1996.''
$120 MILLION IN FINANCING IN 1996
Six financings totaling $120 million were completed in 1996: St.
GeneviŠve Resources Ltd. ($25 million), KWG Resources Inc. ($32 million),
Emerging Africa Gold - EAG Inc. ($32.5 million), Genoil Inc. ($20.3 million),
Spider Resources Inc. ($3.8 million) and Explogas Ltd ($6.3 million). Through
a creative strategy, the members of the Group maintained a strong cash
position and financed acquisitions and exploration programs in a number of
countries.
St. GeneviŠve Resources Ltd. holds rights to acquire interests in a
number of mining properties in Brazil, Haiti, Africa, Iceland and on Quebec's
north shore. Exploration work has been done during fiscal 1996 on these
properties. Exhaustive exploration and drilling work could be done
particularly on the gold and copper properties in Haiti.
FISCAL 1996 SAW THE GROUP EXPAND AND RESTRUCTURE INTO COMMODITY-SPECIFIC
SECTORS
During 1996, St-GeneviŠve Resources Ltd. acquired properties in the
mining, oil and gas sectors as well as strategic interests in affiliated
companies and direct interests in some projects.
To optimize its investments, the Group developed specific expertise in
the gold, diamond, precious and base metals and oil and gas sectors. It
re-organized according to these fields of expertise. Thus, Emerging Africa
Gold (EAG) Inc. was created to undertake exploration and development of gold
and precious metal deposits in Africa. KWG Resources Inc. now focuses on the
gold operations of the St. GeneviŠve Group following the take-over of Far East
Gold Inc. Elsewhere, the Company purchased an interest in Ambrex Mining
Corporation which is involved in exploration for precious and base metals in
Brazil. The Company also purchased, at the beginning of 1997, an interest in
Spider Resources Inc., a diamond exploration company. Also, Genoil Inc. was
created in order to intensify oil and gas activities.
MAJOR RECENT DEVELOPMENTS
During the meeting, management presented recent developments in certain
major projects that may influence the Company's share price over the next few
months.
KWG Resources Inc., whose mission it is to acquire and develop gold
deposits in Canada and in developing countries, is presently active in the
Russian Federation, Cuba, Haiti and the Dominican Republic.
In the Russian far-east on the Kamchatka peninsula, KWG plans to begin
pouring gold at its Ametistovoe gold deposit in the fourth quarter of 1997.
Pierre R. Gauthier, Chairman of the Board, mentioned that, ``since the
acquisition of mining rights at the Ametistovoe gold deposit in 1996, KWG has
been able to move efficiently into a production position due to extensive
drilling and trenching previously completed by Russian interests before they
ran out of funds.'' KWG intends to become a low-cost producer of 300,000
ounces of gold annually by 1998.
In Cuba, in a joint venture with Geominera S.A., a Cuban government
agency, KWG encountered surface mineralization at El Pilar/Gaspar right at the
centre of the Island. In February 1997, the results based on four shallow
trenches indicated an average of 5.6 grams of gold per tonne over a trench
length of 82 m. Last March, KWG announced additional encouraging results from
new holes the best of which averaged 40.29 g/t Au over a length of 41 m. KWG
is presently conducting feasibility studies on these properties.
In Haiti, KWG has completed an initial confirmation phase of diamond
drilling at the Grand Bois gold prospect. Assays from seventeen drill holes
totaling 4,500 meters have confirmed the presence of gold at a grade which is
compatible with the earlier UNDP results. These new drill results are
currently being incorporated into an updated and consolidated prefeasibility
report. As part of the confirmation drilling, significant copper
mineralization was encountered at the Grand Bois prospect. At Morne Bossa,
initial drilling encountered gold mineralization which compared favorably with
the much earlier UNDP results.
In the Dominican Republic, KWG together with its partner Falconbridge
International Investments Limited, announced preliminary results of the
Managua Project in the east central Dominican Republic. An average of 5.25
grams of gold per tonne over a trench length of 40 m was encountered. A 2,800
m, 12 drill program recently commenced in order to continue the evaluation of
this new discovery.
Genoil Inc. of Calgary, specializing in oil and gas exploration with
interests in Cuban properties, announced the start of drilling on the Ana
Maria no 1 well, offshore Cuba, together with the completion of a 742 km
seismic prospection program on Cuban onshore Block 20. Results should be known
soon.
St. GeneviŠve Resources Ltd. identifies and develops, directly and
through subsidiaries and affiliated companies active in targeted sectors,
mining and oil properties showing high added-value potential. Its shares trade
on the Montreal Exchange and the Toronto Stock Exchange under the symbol SGV.
News releases are available on Internet at sgv.com
NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE |
