Deutsche Rohstoff AG

Earnings Release • Sep 29, 2015

News Details

Corporate | 29 September 2015 11:50

Deutsche Rohstoff AG: Positive net income for the first half of 2015

Deutsche Rohstoff AG / Key word(s): Half Year Results/Change in Forecast

29.09.2015 11:50

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Deutsche Rohstoff AG: Positive net income for the first half of 2015
High foreign exchange gains/Increasing equity and solid liquid assets

Heidelberg. In the first half of 2015, Deutsche Rohstoff Group has achieved
net income (all figures according to HGB and unaudited) amounting to EUR
0.2 million. The main reason for this result were foreign exchange gains in
EUR/USD which amounted to EUR 5.8 million. These currency gains are not
realized for the most part. Product sales did not incur since the revenue
generating projects in the US and Australia have been sold in 2014. As of
30 June 2015, earnings before interest, tax, depreciation and
amortization(EBITDA) amounted to EUR 3.1 million, earnings before interest
and taxes (EBIT) to EUR 2.7 million and the profit from ordinary activities
(EBT) to EUR 0.9 million.

The group's equity capital increased by EUR 2.2 million to EUR 64.6 million
in comparison to year end 2014. The equity ration is now standing at 49.5%
compared to 46.4% at the end of 2014. Liquid assets (cash and cash
equivalents) amounted to EUR 92.4 million (31.12.2014: EUR 103.3 million).

For the full year, the Management Board now expects significantly improved
consolidated earnings than it did in late May. In the management report for
2014, a negative result in the upper single-digit million Euro range had
been predicted. The Management Board now assumes a maximum net loss in the
low single-digit million Euro range. EBITDA and EBIT are expected to be
positive. This forecast is based on the assumption that the exchange rate
EUR/USD does not change significantly until the end of the year and that no
major write-downs are necessary.

Deutsche Rohstoff AG as the parent company also achieved a positive net
result of EUR 2.7 million for the half year. EBITDA amounted to EUR 4.1
million, EBIT to EUR 4 million, the result from ordinary operations to EUR
3.4 million. There also was a foreign exchange gain of EUR 5.8 million. For
the full year 2015, the Management Board also expects a profit.

The semi-annual report, which is available at the company's website
www.rohstoff.de (an English version will be available shortly), contains
detailed descriptions of the development of the main projects of the group.
Significant events in the first half of 2015:

• The US-subsidiary Elster Oil & Gas commenced oil and gas production
  from five horizontal wells in mid-September. Production rates for the
  first month will be reported in mid-October.

• Cub Creek Energy, another subsidiary in the US, contractually secured
  over 2,200 prospective acres for the development of hydrocarbons.
  Initial drilling is scheduled to begin in the forth quarter of 2015 and
  not later than the first quarter of 2016.

• Cub Creek Energy and Elster Oil & Gas are planning a total of
  approximately 150 horizontal wells on their acreage.

• In June 2015, Deutsche Rohstoff AG and the successful founders of
  Tekton Energy jointly established another US oil and gas company named
  Salt Creek Energy.

• The Canadian portfolio company Almonty Industries merged with Woulfe
  Mining in the beginning of September in order to create one of the
  largest tungsten producers outside of China. In a subsequent financing,
  Deutsche Rohstoff AG signed a convertible bond in the amount of 4
  million Canadian dollars.

• During the year, Deutsche Rohstoff has invested in the Australian
  copper-exploration company Hammer Metals in several steps. Hammer holds
  large and promising license areas in the well-known Mount Isa region in
  Queensland, Australia. Deutsche Rohstoff AG's share is approximately
  25%, if all options should be exercised.

• The subsidiary Ceritech, headquartered in Leipzig, continued the
  development of it's project for the extraction of rare earth elements
  from gypsum dumps. Ceritech sees this as a very good opportunity to
  build a reliable and cost efficient source of rare earth production.

Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: "We are pleased with
the good half-year results. Our cash position is significant. With the
start of production of oil and gas by Elster, we have resumed to an
operating and revenue generating business, which we will continue to expand
in the coming months. The weak commodity markets continue to offer
excellent investment opportunities."

Heidelberg, 29 September 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

29.09.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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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

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