Geodrill Announces Second Quarter 2017 Financial Results

-Reports Record Quarterly Revenue-

TORONTO, Aug. 14, 2017 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX:GEO), a leading West African based drilling company, reported its financial results for the three and six month periods ended June 30, 2017.  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").

Highlights for Q2-2017:

  • Achieved record quarterly revenue of $22.6M, a 16% increase compared to Q2-2016;
  • Completed record production of 272,988 meters drilled, a 9% increase compared to Q2-2016;
  • Invested $3.8M into CAPEX;
  • Secured new client contracts including Ghana Manganese, Semafo CI, Cassius Gold, West African Resources deep hole program, Akoko Gold, Petroma ML and Kinross underground;
  • Ended Q2-2017 with cash of $10.0M and with net cash of $4.6M; and
  • Subsequent to quarter end, grew our rig fleet from 56 to 58 rigs, including one underground rig.

Financial Summary

US$ 000s

(except earnings per
share, meters drilled and
percentages)

For the three
months ended
June 30, 2017

For the three
months ended
June 30, 2016

For the six
months ended
June 30, 2017

For the six
months ended
June 30, 2016

Revenue

22,621

19,420

41,173

34,871

Gross profit

9,540

7,896

16,755

14,658

Gross profit margin

42%

41%

41%

42%

Earnings  per share - basic

0.05

0.06

0.06

0.10

EBITDA(1)(2)

5,235

5,428

8,376

10,247

EBITDA margin

23%

28%

20%

29%

Meters drilled

272,988

251,412

529,872

492,475

Notes:

(1)

EBITDA = earnings before interest, taxes, depreciation and amortization

(2)

Please see "Non-IFRS Measures" below for additional discussion

 

"In the second quarter we delivered record quarterly revenue and strengthened our cash position.  This was on the back of an expanded rig fleet and new commitments from both existing and new customers," said Dave Harper, CEO of Geodrill.  "Importantly, we were awarded our first underground contract with well-established global gold miner Kinross, signifying a natural extension of our platform of capabilities.  We remain committed to maintaining our strategy of providing gold-standard customer service with our fleet of highly-efficient, well-maintained rigs, positioning Geodrill to continue to deliver consistently strong results and industry-leading performance throughout 2017 and beyond." 

Dave Harper added, "During the quarter, we also appointed Greig Rodger to Geodrill's executive management team.  Greig embodies the core values of our company; a results-oriented work ethic that makes him a key addition to building our brand and footprint in West Africa.  Greig's strong background in drilling operations, business development, health and safety, and strategic planning will support our strong operational performance and drive our growth forward." 

Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three and six month periods ended June 30, 2017, 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 EDT 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://event.on24.com/r.htm?e=1475006&s=1&k=3359F9DCCEC9EBD478D0FB7065799EC6 

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.

About Geodrill Limited
Geodrill has been successful in establishing a leading market position in Ghana, Burkina Faso and Cote d'Ivoire and also operates in other African jurisdictions including Mali and Zambia.  The Company provides a broad selection of diverse drilling services, including exploration, delineation and grade control, to meet the specific needs of its clients.  Geodrill operates a fleet of high performance multi-purpose rigs, which offer the versatility of being able to perform both reverse circulation and diamond core drilling.  Geodrill's client mix is made up majors, intermediates and juniors that are exploring for gold and other minerals.  The Company's operational proximity to countries such as Mauritania, Liberia, Sierra Leone, Nigeria and Cameroon positions the Company favourably in its ability to service these markets.

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 and six month periods ended June 30, 2017 for the EBITDA reconciliation.

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 quarters ended June 30, 2017 and the Company's Annual Information Form dated March 31, 2017 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@terrepartners.com

RELATED LINKS
www.geodrillgh.com

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