GEODRILL REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS
-Generated Record Revenue Driven by Long-Term Contracts-
Financial Highlights Q2-2024:
- Generated record revenue of
$41.2M , a 26% increase compared to Q2-2023; - Delivered EBITDA of
$10.7M or 26% of revenue compared to$6.2M or 19% of revenue in Q2-2023; - Achieved net income of
$4.8M or$0.10 per Ordinary Share, compared to$2.0M or$0.04 per Ordinary Share in Q2-2023; - Increased the Company's cash by 27% over Q1 2024 while reducing total debt by 9%; and
- Ended the quarter with net cash (excluding right of use liabilities) of
$0.3M .
Operational Highlights Q2-2024:
- Achieved a new milestone of 17.5M LTI free hours;
- In the first half of 2024, the Company secured contracts totaling more than
$150M that will strongly contribute to revenue and profitability over the next 3-5 years; - Expanded the Company's customer base with the addition of contracts with Newcore Gold, Calisto Cobre and Red Sea Resources;
- In addition to
West Africa , continued to drill other geographic regions includingEgypt ,Chile andPeru during the first half of 2024; and - Re-invested and upgraded the Company's fleet to support two very significant multi-rig contracts ending the quarter with 91 rigs.
Outlook:
- Favorable Market Conditions: The strong gold price continues to provide tailwinds for exploration drilling;
- Geographical Expansion: The Company is actively expanding its geographical reach and diversifying its commodity portfolio.
Financial Summary
US$ 000s |
For the three |
For the three |
For the six |
For the six |
Revenue |
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Gross profit |
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Gross profit margin |
31 % |
24 % |
27 % |
28 % |
EBITDA(1)(2) |
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EBITDA margin |
26 % |
19 % |
23 % |
24 % |
Net Income |
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Earnings per share - basic |
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Notes: |
(1) EBITDA = earnings before interest, taxes, depreciation and amortization |
(2) Please see "Non-IFRS Measures" below for additional discussion |
"This quarter, Geodrill achieved a new quarterly revenue record, underscoring the success of our platform, the efficient execution of our drill programs and our commitment to exceed our customer's expectations," said
"Our growth strategy has consistently yielded positive results over consecutive years, and this reporting period was no exception. Geodrill secured multi-rig contracts that will generate substantial revenues over the next five years," stated
Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three and six month period ended June 30, 2024, are available via Geodrill's website at www.geodrill. ltd and will be available on SEDAR+ at www.sedarplus.ca . Management of the Company will host a conference call at 10:00 am ET to discuss the financial results.
Q2 2024 Conference Call Information
Date & Time: |
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Telephone: |
Toll Free ( |
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International 1-416-764-8659 |
Conference ID: |
27035411 |
Webcast: |
Conference Call Replay
Telephone: |
Toll Free Replay (North America) 1-888-390-0541 |
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International Replay 1-416-764-8677 |
Entry Code: |
982698 # |
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The conference call replay will be available from |
About
Geodrill has been successful in establishing a leading market position in
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 month period ended
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 June, 2024 and the Company's Annual Information Form dated
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