Pan Global Resources Inc. press release
Augen announces $0.9 million in net earnings and $0.03 EPS for 2005
TSXV - TSX Venture Exchange · Copper · Tin · Gold · Silver · Zinc · Lead · Cobalt · Nickel · Platinum · Palladium · Canada
TORONTO, April 28 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is pleased to announce consolidated financial results for the year ended December 31, 2005.
Income was $2.1 million, up 23% as from $1.8 million in 2004. Net earnings were $0.9 million in 2005, significantly up from a loss of $0.1 million in 2004, and translating into $0.03 earnings per share. Cash generated from operations amounted to $0.2 million for the year, up from $0.1 million of cash used in 2004. Assets increased 46% and totaled $4.2 million at December 31, 2005, and were offset by $0.4 million of current liabilities which were unchanged.
Managed Products income was $1,212 thousand as compared to $1,383 thousand in 2004. Annual & performance fees were $402 thousand, up 35% from $297 thousand in 2004, primarily due to the increase in assets under management resulting from the flow-through limited partnership offerings in 2004 and 2005. Consulting and due diligence fee income was $810 thousand down from $1,086 thousand in 2004, primarily reflecting a decline in the gross fee income related to the setup of the 2005 flow-through limited partnership as compared to the 2004 offering. Due diligence fees earned on resource flow- through investments by Augen Limited Partnership 2005 were $403 thousand, down $480 thousand in 2004, reflecting increasing efficiency in the advisory board review of potential projects and the move towards high capitalization stocks with improved access to technical information and generally, more advanced projects. "Investment performance for the 2004 and 2005 limited partnerships have been top-tier in the business. The expanded syndicate for the 2006 limited partnership offering includes firms such as Berkshire Securities, IPC Securities, HSBC Bank, Research Capital and Blackmont Capital, and well positions Augen to raise the $30 million maximum offering, which will have a positive lift on earnings in 2006", said J. David Mason, Chairman of Augen Capital Corp. Merchant Banking income was $953 thousand, up 148% from $384 thousand in 2004. Realized gains on the sale of investments were $664 thousand, up 185% from $233 thousand in 2004. Consulting & due diligence fees amounted to $30 thousand as compared to NIL in 2004, reflecting a more defined focus on merchant banking activities. Fee income generated from CFO, corporate secretarial and other investee company services for the year amounted to $237 thousand as compared to $24 thousand in 2004, primarily reflecting Augen's continued commitment to support Merchant Banking opportunities. "Augen continues to focus on bottom-line growth for its shareholders and key stakeholders, resulting in its strongest fiscal year since its inception. As the outlook for the resource sector remains strong, it is expected that Merchant Banking operations will be a significant contributor to Augen's future underpinning of our mission of being "Financier of First Resort for Emerging Resource Companies", said J. David Mason, Chairman of Augen Capital Corp. The Statements of Operations, Statements of Deficits, Consolidated Balance Sheets, and Statements of Cash Flows, and information provided by segment for the years ended December 31, 2005 and 2004 are available at www.sedar.com.
About Augen Capital
Based in Toronto, Augen is a merchant bank specializing in the financing of primarily early stage resource companies and is an industry leader in tax-advantaged flow-through investments in Canada's resource sector. Our Managed Products division earns fees related to the limited partnerships and mutual funds including setup, due diligence, and annual and performance fees. Our Merchant Banking division provides financing and strategic management support to resource investee companies and strives to maximize net gains realized on its core investment portfolio of emerging resource stocks. Augen has over $30 million in assets under management, including its merchant banking investment portfolio, four resource flow-through limited partnerships, and its mutual funds.
For more information on Augen Capital, visit our website at www.augencc.com The company's public documents may be accessed at www.sedar.com
The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission. %SEDAR: 00008335E