Geodrill reports 2014 first quarter financial results

TORONTO, May 12, 2014 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO), a leading West African based drilling company, reported its financial results for the three months ended March 31, 2014. 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$ 000s

(except earnings per share)

For the three

months ended

Mar 31, 2014

For the three

months ended

Mar 31, 2013

Revenue

5,445

15,032

Gross profit/(loss)

(289)

6,391

Gross profit (loss) margin

(5%)

43%

(Loss)/earnings per share - basic

(0.07)

0.03

EBITDA(1)(2)

(1,100)

4,270

EBITDA margin

(20%)

28%

Meters drilled

51,939

176,494

 

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

Operational Highlights for the first quarter:

  • Secured new contracts and are currently working with senior mining companies namely Kinross Gold, Perseus Mining and advanced exploration companies including Ampella Mining, Roxgold Inc., Asanko Gold and Orbis Gold;
  • Established operations in Mali and expanding into Togo; and
  • Strengthened our Board of Directors with the appointment of Adrian Reynolds.

"The first quarter results of 2014 continued to be impacted by an industry-wide slowdown in drilling activities," said Dave Harper, President and CEO of Geodrill Ltd.  "We continue to navigate this challenging market by maintaining cost cutting discipline across the Company while remaining competitive. Looking forward, we are witnessing strong bidding activity in our target regions, securing new contracts with both mining and intermediate exploration companies, and pursuing further opportunities for Geodrill that will develop over the coming months."

Geodrill's annual audited financial statements and management's discussion & analysis ("MD&A"), for the three months ended March 31, 2014, are available via Geodrill's website at www.geodrill-gh.com and will be available on SEDAR at www.sedar.com.

Annual General Meeting of Shareholders

Following the release, the Company will host its Annual and Special Meeting of Shareholders at the Design Exchange, 234 Bay Street, TD Centre, Toronto at 10:00 am (EST) in which management will discuss the quarterly financial results. 

A live audio webcast will be available through:

 http://www.newswire.ca/en/webcast/detail/1339335/1480573

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 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 months ended March 31, 2014 for the EBITDA reconciliation.

About Geodrill Limited
Geodrill Limited is a leading West African based drilling company operating in Ghana, Burkina Faso, Ivory Coast, Mali and currently expanding into Togo.  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 March 31, 2014  and the Company's Annual Information Form dated March 31, 2014 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