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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

Post by FrozenInOntarioon Feb 10, 2022 3:51pm
269 Views
Post# 34417973

Life after eanings...

Life after eanings...Ok, listened to the conference call.  No questions.  Only tidbits of info : the slowdown due to Omnicron starting in December is also noticeable in January.  So it might have an impact on the 3rd quarter.   On the plus side, they recruited/trained 100 additional drillers.  Utilisation rate is above 60%.
The way I see it :  Drilling that gets delayed is not cancelled so I am not too concerned about it.    Now, can they jack up their margins from this miserable 6.5 % level ?   Looking at prior years, they were able to clock 20% margin.   Heck, Major Drilling is able to do more than 20% right now.
Assuming these margins, they would have realized 16 million more or 12 millions after tax after 6 months.   24 million annualized.   40 millions shares including options.  0,60/share.   Current price is now at 0,70.    Seems cheap to me.  Margin can expand.   Utilisation rate can expand.   Or the price of gold and copper gets whacked because we are in a recession/depression.   And then who cares.
So, can they get their margins back up to historical level when miners are full of cash ?   The odds would appear to be quite good.
GLTA

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