RE:0.17c in earning...... Elysee Development earns $3.61-million in fiscal 2016
2017-02-01 10:59 ET - News Release
Mr. Stuart Rogers reports
ELYSEE EARNS $3,617,285 ($0.17 PER SHARE) DURING THE FISCAL YEAR ENDED NOVEMBER 30, 2016
Elysee Development Corp. has released its audited financial results for the fiscal year ended Nov. 30, 2016. The audited financial statements and management discussion and analysis are available for viewing on SEDAR and on the company's website. All dollar amounts are in Canadian funds.
During the fiscal year ended Nov. 30, 2016, Elysee had net earnings of $3,617,285, as compared with net earnings of $744,279 for the fiscal year ended Nov. 30, 2015. The earnings for the current year were primarily the result of realized gains on marketable securities of $2,356,135, unrealized gains on marketable securities of $1,726,246, and interest and dividend income of $137,213. Earnings during the prior year were the result of net investment income of $853,794, a realized foreign exchange gain of $124,500, an unrealized foreign exchange gain of $139,011, and interest and dividend income of $69,044. As a result of the foregoing, Elysee earned 17 cents per share for the fiscal year ended Nov. 30, 2016, as compared with earnings per share of 3.5 cents during the prior year.
In keeping with its stated policy of returning cash to the shareholders whenever possible and prudent, Elysee declared and paid a dividend of two cents per share ($425,359) to its shareholders on April 27, 2016. A further two cents per share was returned to the shareholders in the form of dividends in December, 2016.
Guido Cloetens, the chairman of Elysee, stated: "We are extremely pleased with our performance during fiscal 2016, which marks our fourth year of profitability. After returning over $501,861 to the shareholders in the form of dividends and a buyback of shares during fiscal 2016, we were still able to increase our net shareholders equity to $11,569,781 at Nov. 30, 2016, from $8,037,909 at Nov. 30, 2015, an increase of $3,531,872 (43.9 per cent). While our success is linked to that of the junior resource market, our portfolio has now recovered from the overall downturn in the sector in the last quarter of fiscal 2016, and we will continue to be a highly selective and prudent speculator."
During the current fiscal year, Elysee took profits from some of its largest investment holdings, most notably from the sale of a substantial portion of its position in Silver Standard Resources Inc., which was the result of Silver Standard's acquisition of Claude Resources earlier this year. Elysee also sold shares it held in Tahoe Resources Inc., Kaminak Gold Corp. (acquired by Goldcorp Inc.), Osisko Mining Inc., Pretium Resources Inc., Kirkland Lake Gold Ltd. and Abitibi Royalties Inc., among others.
Elysee increased its participation in the specialty metals sector during fiscal 2016 with significant investments in Largo Resources Ltd. (vanadium), Niocorp Ltd. (niobium) and IBC Advanced Alloys Corp. (specialty alloys). In October, 2016, the company made a substantial investment in the base metal sector through its participation in a major financing for PolyMet Mining Corp. (copper/nickel/precious metals). Elysee also continued to invest in the precious metal sector through participation in private placement financings for, Rye Patch Gold Corp. (gold), Alexco Resources Corp. (silver) and Fiore Exploration Ltd. (silver).
As at Nov. 30, 2016, the fair value of the company's investments in marketable securities was $10,516,494, as compared with $3,920,592 as at Nov. 30, 2015. Cash and cash equivalents at Nov. 30, 2016, totalled $1,214,972, as compared with $4,106,844 at Nov. 30, 2015. The company's only debt comprised trade payables and accruals of $196,429 as of Nov. 30, 2016.
During the fiscal year ended Nov. 30, 2016, the company repurchased 333,000 of its shares at a total cost of $76,502 pursuant to a normal course issuer bid. These shares were returned to treasury and cancelled.
As of Nov. 30, 2016, the five most significant positions held by Elysee were PolyMet Mining, Terrax Minerals Inc., Largo Resources Ltd., IBC Advanced Alloys and Focus Ventures Ltd. Elysee's net asset value was 53 cents per share as of that same date. Net asset value is a non-GAAP (generally accepted accounting principles) measure calculated as the value of total assets less the value of total liabilities and divided by the total number of common shares outstanding as at a specific date. For the purpose of this calculation, share purchase warrants held by Elysee were valued using the Black-Scholes model calculation, as reported in the company's annual and quarterly financial statements. The term net asset value does not have any standardized meaning according to GAAP and therefore may not be comparable with similar measures presented by other companies. There is no comparable GAAP measure presented in Elysee's financial statements and thus no applicable quantitative reconciliation for such non-GAAP financial measure. The company believes that net asset value can provide information useful to its shareholders in understanding its performance and may assist in the evaluation of its business relative to that of its peers.
We seek Safe Harbor.