Orbit Garant Drilling Inc T.OGD

Life after eanings...

[FrozenInOntario]

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 3^rd 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

[John14v3]

Thanks Frozen. Once again, that was a difficult earnings report to read. I find it shocking OGD has great revenue but are losing money. I understand the challenges but their competitors are fairing better it seems. Did they mention if the 4 contracts totaling $98.6 million released in November 2021 will be profitable? I might start pushing an annual $0.02 to $0.04/share dividend, like

[FrozenInOntario]

Hi John, On the competitors :yes but they either are more diversified (MDI FAR) or operating in other juridictions (Africa for GEO)   On the Covid front, Orbit has contracts with Agnico Eagle in Nunavut.  If you take a look, there was a lockdown in december lifted on January 17th.   So it validates what they were saying.   As I mentionned this is temporaty.