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Orbit Garant Drilling Inc T.OGD

Alternate Symbol(s):  OBGRF

Orbit Garant Drilling Inc. is a Canadian-based mineral drilling company. The Company provides both underground and surface drilling services in Canada and internationally to major, intermediate and junior mining companies, through each stage of mineral exploration, mine development and production. It operates through two segments: Canada (including surface drilling, underground drilling and manufacturing Canada), and International (including surface drilling and underground drilling). Its drilling services include surface drilling, underground drilling, geotechnical drilling, directional drilling and reverse circulation. The Company also provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. It manufactures custom drill rigs and ancillary equipment for its own use and manufactures conventional drill rigs for third-party customers from its facilities in Val-d’Or, Quebec.


TSX:OGD - Post by User

Bullboard Posts
Comment by Straiteon Dec 31, 2019 9:26pm
153 Views
Post# 30507605

RE:Dust settling from Earnings Report

RE:Dust settling from Earnings ReportHello, I have been intrigued by the recent price action with surges on earnings report on low volume quickly followed by selling pressure. We will see if this is a sign of new positive trend starting in 2020. With regards to "If earnings cannot accelerate in next report, serious cost cutting and a dividend should be discussed." While I won't argue against cost cutting as long as it is reasonable and does not affect operations/security/reliability of equipment, it makes no sense to pay a dividend if the company's earnings are not sufficient and the company has debt. Since this is a quite cyclical business, it may make sense to pay some debt. They have a little over 30m$ of debt due Mid-2021 costing between 5.95 and 8.45% interest. If this is the beginning of an exploration/mining bull market, it makes sense to use good times to put some $ aside for bad times. After that, as long as it can be justified, excess cash flows may better be used for strategic acquisitions or share buybacks. These type of cash use are more flexible than dividends and thus likely more appropriate.
Bullboard Posts