Geodrill announces 2014 fourth quarter and year end financial results

TORONTO, March 2, 2015 /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, 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,

 meters drilled and

 percentage)

For the twelve

months ended

December 31,

2014

For the twelve

months ended

December 31,

2013

For the three

months ended

December 31,

2014

For the three

months ended

December 31,

2013

Revenue

35,595

37,212

9,704

3,559

Gross profit/(loss)

6,823

11,854

2,403

(1,929)

Gross profit/(loss) margin

19%

32%

25%

(54%)

(Loss) per share – basic

(0.16)

(0.12)

(0.03)

(0.13)

EBITDA(1)(2)

3,528

7,232

1,765

(1,890)

EBITDA margin

10%

19%

18%

(53%)

Meters drilled

458,606

393,322

146,944

41,416

Notes:  

(1)     EBITDA = earnings before interest, taxes, depreciation and amortization.

(2)     Please see "Non-IFRS Measures" below for additional discussion.

 

"While 2014 was another challenging year for the mining industry, Geodrill persisted and made a number of strides including winning new contracts with top tier mining companies, increasing the amount of meters drilled, and improved our cash position ," said Dave Harper, President and CEO of Geodrill.  "Despite these extremely competitive drilling markets, we were able to generate approximately $2.5 million in cash flow from operations. We remained prudent throughout the year, managing costs and completing the year with $5.2 million in cash.  With newly secured, multi-rig contracts and improved financial performance, we believe Geodrill is well-positioned for a recovery in the drilling market."

Operational Highlights for Fiscal Year 2014:

  • Grew our rig fleet to 39 rigs;
  • Expanded our geographic footprint into Côte d'Ivoire, Mali and Togo; and
  • Continued strategic expansion plans into the Central African copper belt;

Subsequent to the year end:

  • Secured a significant contract with SEMAFO Inc. in Burkina Faso; and
  • Extended existing contracts with Endeavour Mining Corporation in Cote d'Ivoire and Kinross Gold Corp. 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, 2014, 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/1478107/1645497

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 it 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, 2014 for the EBITDA reconciliation.

About Geodrill Limited
Geodrill Limited is a leading exploration drilling company operating in West Africa with established operations in Ghana, Burkina Faso, and Cote d'Ivoire.  Geodrill has also recently completed jobs in  Mali and Togo.  Geodrill provides exploration and development drilling services to major, intermediate and junior mining companies with exploration and development operations.  The Company is currently expanding into the Central African copper belt 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, 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, Investor Relations, (416) 238-1414 ext 233, jlongo@geodrill-gh.com

RELATED LINKS
www.geodrillgh.com

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