Geodrill reports 2015 first quarter financial results

TORONTO, May 11, 2015 /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, 2015. 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 loss per share, meters drilled and percentage)	For the three months ended Mar 31, 2015	For the three months ended Mar 31, 2014
Revenue	9,388	5,445
Gross profit/(loss)	2,008	(289)
Gross profit/(loss) margin	21%	(5%)
(Loss) per share - basic	(0.03)	(0.07)
EBITDA^(1)(2)	1,190	(1,100)
EBITDA margin	13%	(20%)
Meters drilled	122,539	51,939

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

"This is the fourth consecutive quarter in which Geodrill has generated over $9M in revenue and positive gross margins," said Dave Harper, President and CEO of Geodrill. "Our strong customer base, high performance fleet of rigs, and scale of operations allows Geodrill to sustain our business in this recessional market while being well-poised for growth opportunities."

Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three months ended March 31, 2015, 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 General Meeting of Shareholders at the Design Exchange, 234 Bay Street, TD Centre, Toronto at 10:00 am (EDT) in which management will discuss the quarterly financial results. 

A live audio webcast will be available through:

http://event.on24.com/r.htm?e=985761&s=1&k=77C54E26B9FC5BDE2395E009BFA5F44C

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: [phone].

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, 2015 for the EBITDA reconciliation.

About Geodrill Limited

Geodrill has been successful in establishing a leading market position in Ghana and Burkina Faso.  The Company also has operated in other West African jurisdictions and is entering into the African Copperbelt.  The proximity of Ghana to countries such as Mauritania, Liberia, Sierra Leone, Nigeria and Cameroon positions the Company favourably in its ability to service these markets.  Geodrill provides a broad selection of diverse drilling services, both exploration and delineation, 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 current client mix is made up juniors, intermediates and majors that are exploring for gold and other minerals.

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, 2015 and the Company's Annual Information Form dated March 31, 2015 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, [phone] ext 233, [email protected]