32,400,614 shares outstanding
TORONTO, Sept. 14 /CNW/ - Augen Capital Corp. (the "Company" or "Augen")
(TSX-V: AUG) is pleased to announce consolidated financial results for the
second quarter ending June 30, 2006.
<<
- Consolidated income rose to $1.3 million for the quarter
(YTD $3.2 million) from $0.1 million for the same quarter (YTD $0.5
million) last year.
- Consolidated expenses were $1.5 million for the quarter
(YTD $1.8 million) from $0.3 million (YTD $1.3 million) last year.
- Consolidated earnings for the quarter before prior to a one-time
charge were $0.3 million (YTD $0.6 million), up from a loss of
$0.2 million (YTD $0.1 million) last year.
- Consolidated net assets at June 30, 2006 increased 60% to
$5.9 million compared to $3.7 million last year.
>>
Managed Products advisory and performance fees for Q2 2006 were
$0.2 million ($1.5 million YTD) as compared to $0.1 million for the same
quarter (YTD $0.1 million) in 2005, reflecting the substantial period over
period increase in assets under administration and performance fees. Merchant
Banking realized gains on the sale of investments significantly rose to
$0.9 million for Q2 2006 ($1.5 million YTD) as compared to a marginal loss for
the same quarter ($0.4 million in YTD gains) in 2005, reflecting good resource
deal flow and active trading of the investment portfolio in a strong resource
market.
Managed Products expenses were $0.7 million in Q2 2006 ($0.9 million YTD)
from $0.2 million ($0.4 million YTD) in 2005. Sales & marketing expenses
increased to $0.1 million for the quarter reflecting the addition of a new
member on the sales team and a new internal investor relations role.
Professional fees were $0.1 million in Q2 2006 as compared to a nominal amount
last year. The Company recorded a one-time charge of $0.3 million in the
current quarter to cover the amount of compensation due to Augen R2B and
sundry expenses resulting from a NAV restatement. Merchant Banking expenses
were $0.8 million in Q2 2006 ($0.9 million YTD) from $0.1 million
($0.2 million YTD) in 2005. Incentive compensation of $0.5 million was accrued
during the quarter as compared to NIL in 2005 related to investee company
positions that have experienced significant unrealized market value
appreciation during the quarter. An investment write-down provision of
$0.1 million was taken during the quarter as compared to NIL in 2005.
The Company's merchant banking portfolio is reported at cost on the
financial statements. The market value of the portfolio is $4.3 million at
June 30, 2006 as compared to $2.2 million in 2005. The net assets on a market
value basis have substantially appreciated to $8.6 million as at June 30, 2006
as compared to $4.0 million at 2005. Please see note 8 to the Q2 2006 interim
financial statements for further details.
The Company also announces the appointment of two new directors to the
Board of the Company:
Lynda Bloom holds a M.Sc. in geoscience from Queen's University,
Kingston, and has 30 years of experience in the mining industry. Her public
company experience includes responsibilities in project generation, financing
and regulatory compliance. She is recognized as a world-expert on assaying
methods with over 40 technical presentations and publications to her credit.
She is a director of the Prospectors and Developers Association of Canada and
recently completed her term as Chair of the Canadian Institute of Mining and
Metallurgy-Toronto Branch, as well as being on several government advisory
boards.
Rod Whyte has over 30 years international experience in mining and
natural resources markets. He is based in London, England, is Chairman of
Moneta Porcupine Mines in Canada and of EastWest Timber in Russia as well as a
consultant to several Australian or AIM listed companies. He is a member of
the International Advisory Board of Sino Strategic International Limited an
ASX listed company. In the past 25 years he has been Director of Sales and
Research at TC Coombs & Co and was previously a mining analyst at Kleinwort
Grieveson, now Dresdner Bank.
The Company announces that it has granted 650,000 stock options to
directors, officers and consultants of the Company. The options are
exercisable at a price of $0.30 per share over a period of three years into
common shares of the Company and are fully vested at the time of issuance. The
options are subject to a four month Exchange hold period and regulatory
approval.
About Augen Capital
Based in Toronto, Augen is a merchant bank specializing in the financing
of early-stage resource companies and is an industry leader in tax-advantaged
flow-through investments in Canada's resource sectors. The Company has over
$40 million in assets under management, including a core portfolio of emerging
resource stocks, three Resource Flow-Through Limited Partnerships, and its
mutual fund, Augen Resource Strategy Fund. Through a distribution force of
national MFDA and IDA firms, Augen offers high-income and high net worth
individuals resource flow-through tax sheltering, together with exposure to
mineral, oil and gas exploration companies that are selected to potentially
outperform the market. Investors in Augen, the public company, benefit from
positions in over 150 emerging resource companies and merchant banking
revenues derived from early stage financings.
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
