Augen Capital Reports Second Quarter Results

About this update from Gensource Potash Corp.

[{"type":"text","content":"\n\n\n\nShares outstanding: 36,615,615\n\n\nTORONTO, Aug. 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) today\nannounced its unaudited interim consolidated financial results for the second\nquarter and six month period ended June 30, 2008.\n\n\nNote: The adoption of CICA Handbook Section 3855, which requires the\nreporting of unrealized fluctuations in the fair value of the Merchant Banking\ninvestment portfolio, has resulted in greater volatility in the net earnings\nof Augen since it was adopted in the first quarter of 2007. While these\naccounting standards provide insight into the current fair value of the\nMerchant Banking (MB) investment portfolio, they do not necessarily provide an\naccurate indication of the ultimate realized gain or loss, which will be\ndifferent.\n\n\nSecond Quarter Results\n----------------------\n\n\nIn the quarter ended June 30, 2008 Augen's income was $694,099, compared\nwith $1.815 million in the same period of 2007. This variance was mainly the\nresult of a realized gain of more than $1 million from the partial disposition\nof Energy Fuels Inc. and a complete disposition of Goldquest Mining Corp. in\nthe MB segment, in the second quarter of 2007. Also contributing to the change\nin income was a decline in consulting and due diligence fees of approximately\n$167,000 in the Managed Products (MP) segment, in the second quarter of 2008.\n\n\nAugen's MB segment generated quarterly earnings of $167,025, before\nincome taxes, non-recurring charges, unrealized losses on investments,\nadjustment of the fair value of liabilities, and amortization, compared with\nearnings of $895,962 in the same period of 2007.\n\n\nIn the MP segment, the loss before income taxes, non-recurring charges\nand amortization was $271,088 compared with earnings of $153,142 in the second\nquarter of 2007.\n\n\nThe Company incurred a total of $503,712 in non-recurring charges in the\nquarter, 50% of which were allocated to each of the Company's operating\nsegments. The non-recurring charges include expenses relating to the 2008\nAnnual and Special Meeting of Shareholders.\n\n\nFor the second quarter of 2008, net loss before income taxes was\n$1.258 million compared with a loss of $261,626 in the same quarter of 2007.\n\n\nNet loss in the quarter was $958,814, compared with a net loss of\n$249,415 in the second qua...

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