Highlights
- Generated revenue of
$114.2 million , an increase of 28% from Q1 2021, driven by increasing momentum in gold drilling activity. - Increased revenue from junior miners.
- Recorded net earnings of
$7.0 million or$0.09 per share. - Repaid
$15.0 million of debt; well capitalized with$87 million of total liquidity and a net cash position (1) of$7.6 million , an increase of$9.6 million compared to Q1 2021. - Achieved new drilling record with completion of 2,000-meter hole of PQ size, the largest size of core sample in the industry.
“Although the COVID-19 pandemic continues to impact operations in certain regions, many projects resumed operations during the quarter on the back of stronger metal prices and a positive long-term outlook,” said
“I would like to salute our crews at the Oyu Tolgoi copper project in
“The Company had a strong financial performance in the quarter, generating
In millions of Canadian dollars (except earnings per share) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | ||||||||||||
Revenue | $ | 114.2 | $ | 121.2 | $ | 203.6 | $ | 238.6 | ||||||||
Gross margin | 20.0 | % | 20.4 | % | 18.7 | % | 19.3 | % | ||||||||
Adjusted gross margin (2) | 28.3 | % | 28.1 | % | 28.1 | % | 27.1 | % | ||||||||
EBITDA (2) | 19.3 | 20.5 | 33.2 | 38.4 | ||||||||||||
As percentage of revenue | 16.9 | % | 16.9 | % | 16.3 | % | 16.1 | % | ||||||||
Net earnings | 7.0 | 7.3 | 9.2 | 13.3 | ||||||||||||
Earnings per share | 0.09 | 0.09 | 0.11 | 0.17 |
(1) Net cash position (net of debt, excluding lease liabilities reported under IFRS16 Leases)
(2) See “Non-IFRS Financial Measures”
Second Quarter Ended
Total revenue for the quarter was
Revenue for the quarter from
South and Central American revenue decreased by 27.5% to
Asian and African revenue decreased by 15.7% to
Gross margin percentage for the quarter was 20.0%, compared to 20.4% for the same period last year. Depreciation expense totaling
General and administrative costs were
The income tax provision for the quarter was an expense of
Net earnings were
NON-IFRS FINANCIAL MEASURES
The Company’s financial data has been prepared in accordance with IFRS, with the exception of certain financial measures detailed below. The Company believes these non-IFRS financial measures are key, for both management and investors, in evaluating performance at a consolidated level and are commonly reported and widely used by investors and lending institutions as indicators of a company’s operating performance and ability to incur and service debt, and as a valuation metric. These measures do 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 should not be construed as an alternative to other financial measures determined in accordance with IFRS.
Adjusted gross profit/margin - excludes depreciation expense:
(in $000s CAD) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | ||||||||||||
Total revenue | $ | 114,152 | $ | 121,182 | $ | 203,572 | $ | 238,641 | ||||||||
Direct costs | 91,300 | 96,475 | 165,595 | 192,565 | ||||||||||||
Less: depreciation | (9,468 | ) | (9,311 | ) | (19,175 | ) | (18,632 | ) | ||||||||
Adjusted gross profit | 32,320 | 34,018 | 57,152 | 64,708 | ||||||||||||
Adjusted gross margin | 28.3 | % | 28.1 | % | 28.1 | % | 27.1 | % |
EBITDA - earnings before interest, taxes, depreciation and amortization:
(in $000s CAD) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | ||||||||||||
Net earnings | $ | 7,009 | $ | 7,259 | $ | 9,157 | $ | 13,292 | ||||||||
Finance costs | 336 | 204 | 624 | 423 | ||||||||||||
Income tax provision | 2,006 | 3,020 | 3,237 | 5,014 | ||||||||||||
Depreciation and amortization | 9,975 | 9,972 | 20,195 | 19,689 | ||||||||||||
EBITDA | $ | 19,326 | $ | 20,455 | $ | 33,213 | $ | 38,418 |
Forward-Looking Statements
This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this news release that address future events, developments or performance that the Company expects to occur (including management’s expectations regarding the Company’s objectives, strategies, financial condition, results of operations, cash flows and businesses) are forward-looking statements. Forward-looking statements are typically identified by future or conditional verbs such as “outlook”, “believe”, “anticipate”, “estimate”, “project”, “expect”, “intend”, “plan”, and terms and expressions of similar import. All forward-looking information in this news release is qualified by this cautionary note.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management related to the factors set forth below. While these factors and assumptions are considered reasonable by the Company as at the date of this document in light of management’s experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information.
Such forward-looking statements are subject to a number of risks and uncertainties that include, but are not limited to: the level of activity in the mining industry and the demand for the Company’s services; the Canadian and international economic environments; the Company’s dependence on key customers; the level of funding for the Company’s clients (particularly for junior mining companies); implications of the COVID-19 pandemic; competitive pressures; exposure to currency movements (which can affect the Company’s revenue in Canadian dollars); the geographic distribution of the Company’s operations; the impact of operational changes; changes in jurisdictions in which the Company operates (including changes in regulation); failure by counterparties to fulfill contractual obligations; as well as other risk factors described under “General Risks and Uncertainties” in the Company’s Annual Information Form for the year ended
Forward-looking statements made in this document are made as of the date of this document and the Company disclaims any intention and assumes no obligation to update any forward-looking statement, even if new information becomes available, as a result of future events or for any other reasons, except as required by applicable securities laws.
About Major Drilling
Webcast/Conference Call Information
To participate in the conference call, please dial 416-340-2217, participant passcode 7929520# and ask for Major Drilling’s Second Quarter Results Conference Call. To ensure your participation, please call in approximately five minutes prior to the scheduled start of the call.
For those unable to participate, a taped rebroadcast will be available approximately one hour after the completion of the call until midnight,
For further information:
Tel: (506) 857-8636
Fax: (506) 857-9211
ir@majordrilling.com
Interim Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands of Canadian dollars, except per share information) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
TOTAL REVENUE | $ | 114,152 | $ | 121,182 | $ | 203,572 | $ | 238,641 | ||||||||
DIRECT COSTS (note 6) | 91,300 | 96,475 | 165,595 | 192,565 | ||||||||||||
GROSS PROFIT | 22,852 | 24,707 | 37,977 | 46,076 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
General and administrative | 11,568 | 12,127 | 22,794 | 24,292 | ||||||||||||
Other expenses | 1,584 | 1,575 | 2,479 | 2,733 | ||||||||||||
(Gain) loss on disposal of property, plant and equipment | 67 | (19 | ) | 11 | (144 | ) | ||||||||||
Foreign exchange (gain) loss | 282 | 541 | (325 | ) | 466 | |||||||||||
Finance costs | 336 | 204 | 624 | 423 | ||||||||||||
13,837 | 14,428 | 25,583 | 27,770 | |||||||||||||
EARNINGS BEFORE INCOME TAX | 9,015 | 10,279 | 12,394 | 18,306 | ||||||||||||
INCOME TAX PROVISION (RECOVERY) (note 7) | ||||||||||||||||
Current | 2,063 | 3,553 | 3,864 | 5,447 | ||||||||||||
Deferred | (57 | ) | (533 | ) | (627 | ) | (433 | ) | ||||||||
2,006 | 3,020 | 3,237 | 5,014 | |||||||||||||
NET EARNINGS | $ | 7,009 | $ | 7,259 | $ | 9,157 | $ | 13,292 | ||||||||
EARNINGS PER SHARE (note 8) | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.09 | $ | 0.11 | $ | 0.17 | ||||||||
Diluted | $ | 0.09 | $ | 0.09 | $ | 0.11 | $ | 0.17 | ||||||||
Interim Condensed Consolidated Statements of Comprehensive Earnings | ||||||||||||||||
(in thousands of Canadian dollars) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
NET EARNINGS | $ | 7,009 | $ | 7,259 | $ | 9,157 | $ | 13,292 | ||||||||
OTHER COMPREHENSIVE EARNINGS | ||||||||||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||||||
Unrealized gain (loss) on foreign currency translations | (2,715 | ) | (2,383 | ) | (10,805 | ) | (8,139 | ) | ||||||||
Unrealized gain (loss) on derivatives (net of tax) | 43 | 768 | 1,713 | 936 | ||||||||||||
COMPREHENSIVE EARNINGS | $ | 4,337 | $ | 5,644 | $ | 65 | $ | 6,089 |
Interim Condensed Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||
For the six months ended | ||||||||||||||||||||||||
(in thousands of Canadian dollars) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Retained | ||||||||||||||||||||||||
earnings | Other | Share-based | Foreign currency | |||||||||||||||||||||
Share capital | (deficit) | reserves | payments reserve | translation reserve | Total | |||||||||||||||||||
BALANCE AS AT | $ | 241,264 | $ | 29,020 | $ | (570 | ) | $ | 14,503 | $ | 78,783 | $ | 363,000 | |||||||||||
Share-based compensation | - | - | - | 141 | - | 141 | ||||||||||||||||||
Stock options expired | - | 3,460 | - | (3,460 | ) | - | - | |||||||||||||||||
241,264 | 32,480 | (570 | ) | 11,184 | 78,783 | 363,141 | ||||||||||||||||||
Comprehensive earnings: | ||||||||||||||||||||||||
Net earnings | - | 13,292 | - | - | - | 13,292 | ||||||||||||||||||
Unrealized gain (loss) on foreign currency translations | - | - | - | - | (8,139 | ) | (8,139 | ) | ||||||||||||||||
Unrealized gain (loss) on derivatives | - | - | 936 | - | - | 936 | ||||||||||||||||||
Total comprehensive earnings (loss) | - | 13,292 | 936 | - | (8,139 | ) | 6,089 | |||||||||||||||||
BALANCE AS AT | $ | 241,264 | $ | 45,772 | $ | 366 | $ | 11,184 | $ | 70,644 | $ | 369,230 | ||||||||||||
BALANCE AS AT | $ | 243,189 | $ | (35,691 | ) | $ | (611 | ) | $ | 8,519 | $ | 81,640 | $ | 297,046 | ||||||||||
Exercise of stock options | 41 | - | - | (17 | ) | - | 24 | |||||||||||||||||
Share-based compensation | - | - | - | 149 | - | 149 | ||||||||||||||||||
Stock options expired | - | 3,525 | - | (3,525 | ) | - | - | |||||||||||||||||
243,230 | (32,166 | ) | (611 | ) | 5,126 | 81,640 | 297,219 | |||||||||||||||||
Comprehensive earnings: | ||||||||||||||||||||||||
Net earnings | - | 9,157 | - | - | - | 9,157 | ||||||||||||||||||
Unrealized gain (loss) on foreign currency translations | - | - | - | - | (10,805 | ) | (10,805 | ) | ||||||||||||||||
Unrealized gain (loss) on derivatives | - | - | 1,713 | - | - | 1,713 | ||||||||||||||||||
Total comprehensive earnings (loss) | - | 9,157 | 1,713 | - | (10,805 | ) | 65 | |||||||||||||||||
BALANCE AS AT | $ | 243,230 | $ | (23,009 | ) | $ | 1,102 | $ | 5,126 | $ | 70,835 | $ | 297,284 |
*Opening balances have been allocated to include expired or forfeited stock options of
Interim Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
(in thousands of Canadian dollars) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Earnings before income tax | $ | 9,015 | $ | 10,279 | $ | 12,394 | $ | 18,306 | ||||||||
Operating items not involving cash | ||||||||||||||||
Depreciation and amortization (note 6) | 9,975 | 9,972 | 20,195 | 19,689 | ||||||||||||
(Gain) loss on disposal of property, plant and equipment | 67 | (19 | ) | 11 | (144 | ) | ||||||||||
Share-based compensation | 73 | 51 | 149 | 141 | ||||||||||||
Finance costs recognized in earnings before income tax | 336 | 204 | 624 | 423 | ||||||||||||
19,466 | 20,487 | 33,373 | 38,415 | |||||||||||||
Changes in non-cash operating working capital items | 365 | 982 | (12,542 | ) | (4,632 | ) | ||||||||||
Finance costs paid | (336 | ) | (204 | ) | (624 | ) | (423 | ) | ||||||||
Income taxes paid | (1,541 | ) | (2,750 | ) | (2,865 | ) | (4,604 | ) | ||||||||
Cash flow from (used in) operating activities | 17,954 | 18,515 | 17,342 | 28,756 | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Repayment of lease liabilities | (488 | ) | (544 | ) | (798 | ) | (844 | ) | ||||||||
Repayment of long-term debt | (15,250 | ) | (291 | ) | (35,501 | ) | (556 | ) | ||||||||
Issuance of common shares due to exercise of stock options | 24 | - | 24 | - | ||||||||||||
Cash flow from (used in) financing activities | (15,714 | ) | (835 | ) | (36,275 | ) | (1,400 | ) | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Acquisition of property, plant and equipment (note 5) | (8,045 | ) | (5,543 | ) | (15,544 | ) | (16,108 | ) | ||||||||
Proceeds from disposal of property, plant and equipment | 191 | 462 | 492 | 728 | ||||||||||||
Cash flow from (used in) investing activities | (7,854 | ) | (5,081 | ) | (15,052 | ) | (15,380 | ) | ||||||||
Effect of exchange rate changes | 108 | (60 | ) | (883 | ) | 38 | ||||||||||
INCREASE (DECREASE) IN CASH | (5,506 | ) | 12,539 | (34,868 | ) | 12,014 | ||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 29,071 | 26,841 | 58,433 | 27,366 | ||||||||||||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | $ | 23,565 | $ | 39,380 | $ | 23,565 | $ | 39,380 |
Interim Condensed Consolidated Balance Sheets | ||||||||
As at | ||||||||
(in thousands of Canadian dollars) | ||||||||
(unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 23,565 | $ | 58,433 | ||||
Trade and other receivables | 97,233 | 71,641 | ||||||
Income tax receivable | 3,874 | 4,350 | ||||||
Inventories | 91,074 | 99,823 | ||||||
Prepaid expenses | 3,782 | 4,497 | ||||||
219,528 | 238,744 | |||||||
PROPERTY, PLANT AND EQUIPMENT (note 5) | 155,639 | 165,103 | ||||||
RIGHT-OF-USE ASSETS | 3,134 | 3,803 | ||||||
DEFERRED INCOME TAX ASSETS | 9,581 | 9,613 | ||||||
7,708 | 7,708 | |||||||
INTANGIBLE ASSETS | 757 | 946 | ||||||
$ | 396,347 | $ | 425,917 | |||||
LIABILITIES | ||||||||
CURRENT LIABILITIES | ||||||||
Trade and other payables | $ | 62,631 | $ | 55,858 | ||||
Income tax payable | 1,604 | 926 | ||||||
Current portion of lease liabilities | 1,094 | 1,121 | ||||||
Current portion of long-term debt | 860 | 1,024 | ||||||
66,189 | 58,929 | |||||||
LEASE LIABILITIES | 2,067 | 2,701 | ||||||
CONTINGENT CONSIDERATION | 1,807 | 1,807 | ||||||
LONG-TERM DEBT | 15,148 | 50,333 | ||||||
DEFERRED INCOME TAX LIABILITIES | 13,852 | 15,101 | ||||||
99,063 | 128,871 | |||||||
SHAREHOLDERS' EQUITY | ||||||||
Share capital | 243,230 | 243,189 | ||||||
Retained earnings (deficit) | (23,009 | ) | (35,691 | ) | ||||
Other reserves | 1,102 | (611 | ) | |||||
Share-based payments reserve | 5,126 | 8,519 | ||||||
Foreign currency translation reserve | 70,835 | 81,640 | ||||||
297,284 | 297,046 | |||||||
$ | 396,347 | $ | 425,917 |
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
(in thousands of Canadian dollars, except per share information)
1. NATURE OF ACTIVITIES
2. BASIS OF PRESENTATION
Statement of compliance
These Interim Condensed Consolidated Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting (“IAS 34”) as issued by the
On
Basis of consolidation
These Interim Condensed Consolidated Financial Statements incorporate the financial statements of the Company and entities controlled by the Company. Control is achieved when the Company is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
The results of subsidiaries acquired or disposed of during the period are included in the Consolidated Statements of Operations from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Intra-group transactions, balances, income and expenses are eliminated on consolidation, where appropriate.
Basis of preparation
These Interim Condensed Consolidated Financial Statements have been prepared based on the historical cost basis, except for certain financial instruments that are measured at fair value, using the same accounting policies and methods of computation as presented in the Company’s annual Consolidated Financial Statements for the year ended
3. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGMENTS
The preparation of financial statements, in conformity with International Financial Reporting Standards (“IFRS”), requires management to make judgments, estimates and assumptions that are not readily apparent from other sources, which affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Depending on the severity and duration of disruptions caused by the COVID-19 pandemic, results could be impacted in future periods. It is not possible at this time to estimate the magnitude of such potential future impacts.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. Significant areas requiring the use of management estimates relate to the useful lives of property, plant and equipment for depreciation purposes, property, plant and equipment and inventory valuation, determination of income and other taxes, assumptions used in the compilation of share-based payments, fair value of assets acquired and liabilities assumed in business acquisitions, amounts recorded as accrued liabilities, contingent consideration and allowance for doubtful accounts, and impairment testing of goodwill and intangible assets.
The Company applied judgment in determining the functional currency of the Company and its subsidiaries, the determination of cash-generating units (“CGUs”), the degree of componentization of property, plant and equipment, the recognition of provisions and accrued liabilities, and the determination of the probability that deferred income tax assets will be realized from future taxable earnings.
4. SEASONALITY OF OPERATIONS
The third quarter (November to January) is normally the Company’s weakest quarter due to the shutdown of mining and exploration activities, often for extended periods over the holiday season.
5. PROPERTY, PLANT AND EQUIPMENT
Capital expenditures for the three and six months ended
6. EXPENSES BY NATURE
Direct costs by nature are as follows:
(in $000s CAD) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | ||||||||||||
Depreciation | $ | 9,468 | $ | 9,311 | $ | 19,175 | $ | 18,632 | ||||||||
Employee benefit expenses | 41,013 | 40,699 | 71,706 | 81,983 | ||||||||||||
Cost of inventory | 16,297 | 17,730 | 31,452 | 34,745 | ||||||||||||
Other | 24,522 | 28,735 | 43,262 | 57,205 | ||||||||||||
Direct costs | $ | 91,300 | $ | 96,475 | $ | 165,595 | $ | 192,565 |
Depreciation expense recorded in general and administrative expenses for the three and six months ended
7. INCOME TAXES
The income tax provision for the period can be reconciled to accounting earnings before income tax as follows:
Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | |||||||||||||
Earnings before income tax | $ | 9,015 | $ | 10,279 | $ | 12,394 | $ | 18,306 | ||||||||
Statutory Canadian corporate income tax rate | 27 | % | 27 | % | 27 | % | 27 | % | ||||||||
Expected income tax provision based on statutory rate | 2,434 | 2,775 | 3,346 | 4,942 | ||||||||||||
Non-recognition of tax benefits related to losses | 520 | 277 | 1,362 | 372 | ||||||||||||
Utilization of previously unrecognized losses | (1,376 | ) | (238 | ) | (1,553 | ) | (583 | ) | ||||||||
Other foreign taxes paid | 118 | 154 | 239 | 322 | ||||||||||||
Rate variances in foreign jurisdictions | (69 | ) | (143 | ) | (232 | ) | (161 | ) | ||||||||
Permanent differences and other | 379 | 195 | 75 | 122 | ||||||||||||
Income tax provision recognized in net earnings | $ | 2,006 | $ | 3,020 | $ | 3,237 | $ | 5,014 |
The Company periodically assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. For those matters where it is probable that an adjustment will be made, the Company records its best estimate of these tax liabilities, including related interest charges. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax laws. While management believes they have adequately provided for the probable outcome of these matters, future results may include favourable or unfavourable adjustments to these estimated tax liabilities in the period the assessments are made, or resolved, or when the statutes of limitations lapse.
8. EARNINGS PER SHARE
All of the Company’s earnings are attributable to common shares, therefore, net earnings is used in determining earnings per share.
Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | |||||||||||||
Net earnings | $ | 7,009 | $ | 7,259 | $ | 9,157 | $ | 13,292 | ||||||||
Weighted average number of shares: | ||||||||||||||||
Basic (000s) | 80,638 | 80,300 | 80,636 | 80,300 | ||||||||||||
Diluted (000s) | 80,806 | 80,330 | 80,700 | 80,308 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.09 | $ | 0.11 | $ | 0.17 | ||||||||
Diluted | $ | 0.09 | $ | 0.09 | $ | 0.11 | $ | 0.17 |
The calculation of diluted earnings per share for the three and six months ended
The total number of shares outstanding on
9. SEGMENTED INFORMATION
The Company’s operations are divided into the following three geographic segments, corresponding to its management structure:
Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | |||||||||||||
Revenue | ||||||||||||||||
$ | 70,617 | $ | 65,337 | $ | 116,662 | $ | 126,294 | |||||||||
South and | 21,573 | 29,785 | $ | 41,108 | 62,471 | |||||||||||
21,962 | 26,060 | $ | 45,802 | 49,876 | ||||||||||||
$ | 114,152 | $ | 121,182 | $ | 203,572 | $ | 238,641 |
*
Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | |||||||||||||
Earnings (loss) from operations | ||||||||||||||||
$ | 8,609 | $ | 7,078 | $ | 11,410 | $ | 12,416 | |||||||||
South and | (728 | ) | 1,128 | (1,771 | ) | 2,986 | ||||||||||
3,276 | 5,085 | 6,277 | 8,897 | |||||||||||||
11,157 | 13,291 | 15,916 | 24,299 | |||||||||||||
Finance costs | 336 | 204 | 624 | 423 | ||||||||||||
General corporate expenses** | 1,806 | 2,808 | 2,898 | 5,570 | ||||||||||||
Income tax | 2,006 | 3,020 | 3,237 | 5,014 | ||||||||||||
4,148 | 6,032 | 6,759 | 11,007 | |||||||||||||
Net Earnings | $ | 7,009 | $ | 7,259 | $ | 9,157 | $ | 13,292 |
**General corporate expenses include expenses for corporate offices and stock options.
Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | |||||||||||||
Capital expenditures | ||||||||||||||||
$ | 4,565 | $ | 3,459 | $ | 12,586 | $ | 11,923 | |||||||||
South and | 584 | 831 | 784 | 1,573 | ||||||||||||
1,164 | 374 | 2,111 | 1,580 | |||||||||||||
Unallocated and corporate assets | 63 | 879 | 63 | 1,032 | ||||||||||||
Total capital expenditures | $ | 6,376 | $ | 5,543 | $ | 15,544 | $ | 16,108 |
Depreciation and amortization | ||||||||||||||||
$ | 5,098 | $ | 4,530 | $ | 10,122 | $ | 8,985 | |||||||||
South and | 3,042 | 3,762 | 6,400 | 7,439 | ||||||||||||
1,774 | 1,647 | 3,566 | 3,204 | |||||||||||||
Unallocated and corporate assets | 61 | 33 | 107 | 61 | ||||||||||||
Total depreciation and amortization | $ | 9,975 | $ | 9,972 | $ | 20,195 | $ | 19,689 |
Identifiable assets | ||||||||
$ | 196,523 | $ | 180,925 | |||||
South and | 119,226 | 129,748 | ||||||
122,955 | 121,954 | |||||||
Unallocated and corporate assets (liabilities) | (42,357 | ) | (6,710 | ) | ||||
Total identifiable assets | $ | 396,347 | $ | 425,917 |
*
10. FINANCIAL INSTRUMENTS
Fair value
The carrying values of cash, trade and other receivables, demand credit facilities and trade and other payables approximate their fair value due to the relatively short period to maturity of the instruments. The carrying value of long-term debt approximates its fair value as the interest applicable is reflective of fair market rates.
Financial assets and liabilities measured at fair value are classified and disclosed in one of the following categories:
- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2 - inputs other than quoted prices included in level 1 that are observable for the assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
- Level 3 - inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The Company’s derivatives are classified as level 2 financial instruments. There were no transfers of amounts between level 1, level 2 and level 3 financial instruments for the quarter ended
The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.
Credit risk
As at
The movements in the allowance for impairment of trade receivables during the three and twelve month periods were as follows:
Opening balance | $ | 1,226 | $ | 863 | ||||
Increase in impairment allowance | 298 | 442 | ||||||
Recovery of amounts previously impaired | (59 | ) | - | |||||
Write-off charged against allowance | (76 | ) | (37 | ) | ||||
Foreign exchange translation differences | (35 | ) | (42 | ) | ||||
Ending balance | $ | 1,354 | $ | 1,226 |
Foreign currency risk
As at
Rate variance | MNT/USD | IDR/USD | USD/CLP | USD/AUD | USD/BRL | USD/CAD | Other | |||||||||||||||||||||||
Net exposure on monetary assets | 7,435 | 6,535 | 5,346 | 4,513 | 2,847 | 1,906 | 358 | |||||||||||||||||||||||
EBIT impact | +/-10% | 826 | 726 | 594 | 501 | 316 | 212 | 40 | ||||||||||||||||||||||
Liquidity risk
The following table details contractual maturities for the Company’s financial liabilities:
1 year | 2-3 years | 4-5 years | Total | |||||||||||||
Trade and other payables | $ | 62,631 | $ | - | $ | - | $ | 62,631 | ||||||||
Lease liabilities (interest included) | 1,362 | 2,103 | 348 | 3,813 | ||||||||||||
Contingent consideration (undiscounted) | - | 2,500 | - | 2,500 | ||||||||||||
Long-term debt (interest included) | 1,327 | 15,932 | - | 17,259 | ||||||||||||
$ | 65,320 | $ | 20,535 | $ | 348 | $ | 86,203 |
Source:
2020 GlobeNewswire, Inc., source