Geodrill announces 2013 fourth quarter and year end financial results

TORONTO, March 3, 2014 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO), a leading West African based drilling company, reported its financial results for the three-month and twelve-month periods ended December 31, 2013. All figures are reported in U.S. dollars ($), unless otherwise indicated. Geodrill's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

Financial Highlights

US$ 000's
(except earnings per
share)
For the twelve
months ended
Dec 31, 2013
For the twelve
months ended
Dec 31, 2012
For the three
months ended
Dec 31, 2013
For the three
months ended
Dec 31, 2012
Revenue 37,212 65,586 3,559 12,921
Gross profit/(loss) 11,854 25,852 (1,929) 5,808
Gross profit margin 32% 39% (54%) 45%
(Loss)/earnings per share
- basic
(0.12) 0.08 (0.13) 0.02
EBITDA(1)(2) 7,232 13,549 (1,890) 3,275
EBITDA margin 19% 21% (53%) 25%
Meters drilled 393,322 819,486 41,416 129,487

Notes:
  (1)     EBITDA = earnings before interest, taxes, depreciation and amortization
  (2)     Please see "Non-IFRS Measures" below for additional discussion

Operational Highlights for fiscal 2013

  • Secured new contracts and are currently working with intermediate exploration companies in Burkina Faso including Orbis Gold Ltd;
  • Re-established the Company as an Ivory Coast driller and secured a number of contracts, notably with Endeavour Mining Corporation and Newcrest Mining Ltd; and
  • Established a state-of-the-art workshop and supply base at Ouagadougou, Burkina Faso;

"The industry wide slowdown for drilling activities has significantly decreased the demand for our drilling services and negatively impacted our financial performance for the overall year, specifically the last quarter of 2013.  With a sharp decline in demand, we have exercised capital discipline and strengthened our cost cutting measures," said Dave Harper, President and CEO of Geodrill Ltd. "Despite this challenging market, we have secured a number of new contracts, including a contract with a tier one gold mining company in Ghana."

Geodrill's annual audited financial statements and management's discussion & analysis ("MD&A"), for the three-month and twelve-month period ended December 31, 2013, are available via Geodrill's website at www.geodrill-gh.com and will be available on SEDAR at www.sedar.com.

Following the release, management of the Company will host a conference call at 10:00 am EST to discuss the financial results. 

You can join the call by dialing 1-888-231-8191 or 647-427-7450. A live audio webcast of the conference call will also be available through:

http://www.newswire.ca/en/webcast/detail/1303287/1438081

Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. An archived replay of the webcast will be available for 90 days. Operator Assisted Toll-Free Dial-In Number: (888) 231-8192.

Non-IFRS Measures
EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization and is used as a measure of financial performance. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the industry.  However, EBITDA is not a measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS.  EBITDA should not be viewed in isolation and does not purport to be an alternative to net income or gross profit as an indicator of operating performance or cash flows from operating activities as a measure of liquidity.  EBITDA does not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies, and EBITDA should not be construed as an alternative to other financial measures determined in accordance with IFRS.

Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as capital expenditures, contractual commitments, interest payments, tax payments and debt service requirements.  Please see the Company's MD&A for the three-month and twelve-month periods ended December 31, 2013 for the EBITDA reconciliation.

About Geodrill Limited
Geodrill Limited is a leading West African based drilling company operating in Ghana, Burkina Faso, Ivory Coast, Niger, Guinea, and currently expanding into Mali and Senegal.   Geodrill provides exploration and development drilling services to major, intermediate and junior mining companies with exploration and development operations in West Africa. The Company specializes in providing reverse circulation, diamond core and air-core drilling services using a modern fleet of drill rigs. The Company plans to grow organically and build its current client base while continuing to assess expansion opportunities throughout West Africa and other African jurisdictions.

Forward Looking Information
This press release may contain "forward-looking information" which may include, but is not limited to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the Management's Discussion & Analysis for the quarter ended December 31, 2013 and the Company's Annual Information Form dated March 27, 2013 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Geodrill Limited

For further information:


Joanna Longo
Terre Partners
(416) 238-1414 ext 233
jlongo@terrepartners.com