- Recorded revenue of
$30.3M , a 14% decrease compared to Q3-2022; - Recorded EBITDA of
$0.6M or 2% of revenue which includes a$3.6M non-cash expected credit loss provision related to the aging of trade receivables – (excluding this provision EBITDA would have been$4.2M or 14% of revenue for Q3-2023); - Net loss for Q3-2023 was
$(3.0)M – (excluding the$3.6M non-cash expected credit loss provision related to the aging of a trade receivable, the net income would have been$0.6M for Q3-2023); and - Ended the quarter with net cash (excluding right of use liabilities) of
$3.6M .
- In the primary countries in which Geodrill operates being
Ghana ,Cote d'Ivoire andEgypt , revenue increased on a quarter to quarter basis; - Added 4 new drilling contracts in the quarter, two in
South America , one inIvory Coast and one inEgypt totalling approximately$10M ; - Achieved new milestone 14M LTI free hours at end Q3 2023;
- The Company due to security concerns wound-up its drill programs in
Burkina Faso , and redeployed the rigs to other countries; - The Company during the quarter had minimal activity in
Peru and did not drill inChile as a result of inclement weather conditions and is now drilling in bothPeru andChile in Q4 2023; - The Company had certain drill programs end in
Mali during the quarter; and - Further diversified its presence in
West Africa with a new drilling contract inSenegal .
- Intermediate and senior mining companies generating cash continues to drive demand for drilling;
- Capital markets continue to be challenging impacting junior and intermediate exploration companies needing to raise capital; and
- Bidding market remains robust, with strong demand for drilling in all geographic locations.
US$ 000s | For the three | For the three | For the nine | For the nine |
Revenue | 30,292 | 35,166 | 100,483 | 107,726 |
Gross profit | 5,804 | 10,912 | 25,738 | 33,141 |
Gross profit margin | 19 % | 31 % | 26 % | 31 % |
EBITDA(1)(2) | 646 | 9,303 | 17,307 | 30,843 |
EBITDA margin | 2 % | 26 % | 17 % | 29 % |
Net (Loss)/Income | (2,950) | 3,619 | 5,141 | 15,477 |
(Loss)/Earnings per share | ||||
Total Equity | 111,279 | 103,567 | 111,279 | 103,567 |
Notes: | |
(1) | EBITDA = earnings before interest, taxes, depreciation and amortization |
(2) | Please see "Non-IFRS Measures" below for additional discussion |
"Revenue was adversely impacted by certain drilling programs that came to an end and certain programs were only able to start drilling very late in the quarter. We made a prudent decision to keep staff employed in certain regions in anticipation of the fourth quarter drilling. In parallel, we saw the aging of our greater than 90 day receivables increase and booked a large non-cash expected credit loss provision in the quarter, which further impacted net income and EBITDA, resulting in a net loss. While the challenging capital markets have affected exploration drilling for junior companies, we are focused on meeting demand from our senior mining customers and continue to navigate these tough market conditions," said
"Geodrill's long-term outlook remains positive. We will continue to rely upon our decades of experience and operational efficiency as we adjust to the market conditions and challenges for the remainder of 2023. We take a long-term approach that is flexible enough to adjust to the day-to-day realities of the business while maintaining a focus on our core values. We remain confident in our ability to recapture momentum and return traditional value to shareholders," said
Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three month and nine period ended
Date & Time: | Monday, November 13, 2023 at 10:00 a.m. ET |
Telephone: | Toll Free ( |
International 1-416-764-8659 | |
Conference ID: | 899095 # |
Webcast: | https://app.webinar.net/Y0qbzpXzKga |
Conference Call Replay | |
Telephone: | Toll Free Replay (North America) 1-888-390-0541 |
International Replay 1-416-764-8677 | |
Entry Code: | 899095 # |
The conference call replay will be available from 12:00 p.m. ET on
Geodrill has been successful in establishing a leading market position in
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 year ended
SOURCE
© Canada Newswire, source