Q3 resultsENERGOLD ANNOUNCES THIRD QUARTER RESULTS
Nov 26, 2009 (TheNewswire.ca via COMTEX News Network) --
(via Thenewswire.ca)
Energold Drilling Corp. ("Energold") is pleased to announce its results for the third quarter. Drilling revenues for the third quarter were $6,408,000. Energold drilled 43,484 meters in the third quarter, up 17% from 37,200 meters in the second quarter of 2009. During the quarter, activity levels were up compared to the prior quarter but due to the weakening U.S. dollar and pricing pressures, Energold did not post a commensurate increase in revenue. The Company expects to continue generating positive cash flow before changes in non-cash working capital.
Energold incurred a net loss of $1,580,000 largely due to a foreign exchange loss of $1.3 million and future income tax expense of $1.0 million. During the fourth quarter and into the first quarter of 2010, Energold expects to renegotiate a number of its existing contracts replacing them with new contracts reflecting the current U.S. dollar environment.
Energold continues to be in an excellent financial position remaining debt free with an industry leading balance sheet including a working capital position of $47.9 million and cash and cash equivalents of $19.4 million.