Corporate | 21 December 2015 07:55
Deutsche Rohstoff AG / Key word(s): Miscellaneous
21.12.2015 07:55
Dissemination of a Corporate News, transmitted by DGAP - a service of EQS
Group AG.
The issuer / publisher is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Deutsche Rohstoff: Strong profit growth expected for 2016
Increased profit forecast for 2015/Overview of projects
Heidelberg. Deutsche Rohstoff AG expects a substantial rise in revenues
from the oil and gas production in the US for 2016 and consequently a
significantly higher consolidated profit than in the current year. Assuming
an oil price, which is linked to the forward curve and which results in an
average price for 2016 of USD 44, the Management Board expects sales of EUR
20.0 to 25.0 million. According to the budget, earnings before interest,
tax, depreciation and amortization (EBITDA) will amount to approximately
EUR 15.0 to 20.0 million. Net income will add up to approximately EUR 10.0
million. For the year and budget an average exchange rate of 1.10 EUR/USD
is assumed.
For the current year, the Management Board has revised its forecast
statement from the semi-annual report and now expects a positive net result
for the group. The reason is partly due to the further depreciation of the
Euro in recent months, which has brought additional currency gains and on
the other hand in the higher than expected production from the first five
wells of Elster, which are in production since mid-September. Deutsche
Rohstoff AG as the parent company also expects a positive annual result for
2015.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: "In the current
year, we set the foundation for strong growth in sales and earnings for the
years to come. The encouraging profit forecast for 2016 shows this very
clearly. Should oil prices rise again, we will be able to show significant
additional profit. It is also very encouraging that we can record foreign
exchange gains in the amount of approximately EUR 20 million due to the
decision made in mid 2014 to keep our total liquid funds in US-Dollars."
Compared to the information stated in the semi-annual report, here is an
overview of the activities of the Deutsche Rohstoff Group:
Cub Creek Energy/Elster Oil & Gas (share 74% / 93.04%):
Both companies have prepared detailed drilling proposals for the coming
year. They are planning a total of 44 gross wells. Further acquisitions are
currently under consideration. Just recently, Cub Creek and Elster
published a reserve calculation for parts of their acreage. Together, this
reserve calculation shows a proven reserve of 4.25 million BOE and a
probable reserve of 8.03 million BOE. According to the NYMEX Strip pricing
of 31 October 2015, these calculations may result in revenues of over USD
500 million, as well as a net value of almost USD 90 million. A detailed
press release can be found here: http://tinyurl.com/reservecalculation.
Almonty Industries (share: 13.9%):
Almonty submitted a new resource estimate according to the Canadian
Standard NI 43-101 for its Tungsten mines Los Santos and Wolfram Camp as
well as for the development project Valtreixal in Spain (more information
under www.almonty.com). Together with Sangdong/South Korea, Almonty now has
reserves of 12.4 million tonnes grading 0.41% WO3, Measured and Indicated
resources (including reserves) of 14.86 million tonnes grading 0.45% WO3
and Inferred resources amounting to 53.98 million tonnes grading 0.32% WO3.
Ceritech (share: 66%):
All work regarding the gypsum project is continuously progressing. The
Management Board is currently negotiating with owners of suitable material
supplies and continues working on optimizing the treatment process.
Hammer Metals (share 16%):
Hammer Metals announced last week, that is has signed a Joint Venture
Agreement with Newmont Mining, one of the world's leading gold producers.
Both companies will jointly explore an area of 250 square kilometers
(approximately 12.5% of Hammer's total land) within the Mount Isa region.
Newmont Mining is planning to invest up to USD 10.5 million for exploration
and project development and to receive a share of up to 75% of the land in
return. In the current difficult market phase, this transaction once again
emphasizes the high quality of Hammer's license areas.
Tin International/Sachsenzinn (share 60%):
The activities are still concentrating on the license area Sadisdorf. To
reduce costs, the Board of Tin International proposed to its shareholders
to liquidate the company. Shareholders have instead received shares of
Sachsenzinn, which was converted into a stock company for this purpose and
renamed to Tin International AG. Deutsche Rohstoff AG will therefore hold a
stake in 60% of Tin International AG instead of Tin International Ltd.
Rhein Petroleum (share 10%):
A test production is currently undertaken for the wells Bedernau 2 and
Lauben in the Unterallgäu (Operator is Wintershall GmbH) and for the well
Schwarzbach in South Hesse (Operator is Rhein Petroleum). For the coming
year, Rhein Petroleum is planning up to three further wells in their
license areas.
To simplify the portfolio structure and to intensify the focus on core
activities, the Management Board intents to sell or dismiss activities of
smaller portfolio companies in the coming weeks. This not only includes Tin
International, but also Jutland Petroleum and the Australian company
Strategic Resources Development.
Heidelberg, 21 December 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
21.12.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: 06221-87100-11
Fax: 06221-87100-22
E-mail: gutschlag@rohstoff.de
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of Announcement DGAP News-Service
---------------------------------------------------------------------------