TORONTO, March 3, 2014 /CNW/ - Geodrill Limited ("Geodrill" or the
"Company") (TSX: GEO), a leading West African based drilling company,
reported its financial results for the three-month and twelve-month
periods ended December 31, 2013. All figures are reported in U.S.
dollars ($), unless otherwise indicated. Geodrill's financial
statements are prepared in accordance with International Financial
Reporting Standards ("IFRS").
Financial Highlights
US$ 000's
(except earnings per
share)
|
For the twelve
months ended
Dec 31, 2013
|
For the twelve
months ended
Dec 31, 2012
|
For the three
months ended
Dec 31, 2013
|
For the three
months ended
Dec 31, 2012
|
|
Revenue
|
37,212
|
65,586
|
3,559
|
12,921
|
|
Gross profit/(loss)
|
11,854
|
25,852
|
(1,929)
|
5,808
|
|
Gross profit margin
|
32%
|
39%
|
(54%)
|
45%
|
(Loss)/earnings per share
- basic
|
(0.12)
|
0.08
|
(0.13)
|
0.02
|
|
EBITDA(1)(2)
|
7,232
|
13,549
|
(1,890)
|
3,275
|
|
EBITDA margin
|
19%
|
21%
|
(53%)
|
25%
|
|
Meters drilled
|
393,322
|
819,486
|
41,416
|
129,487
|
|
Notes:
|
|
|
(1) EBITDA = earnings before interest, taxes, depreciation and
amortization
|
|
|
(2) Please see "Non-IFRS Measures" below for additional discussion
|
Operational Highlights for fiscal 2013
-
Secured new contracts and are currently working with intermediate
exploration companies in Burkina Faso including Orbis Gold Ltd;
-
Re-established the Company as an Ivory Coast driller and secured a
number of contracts, notably with Endeavour Mining Corporation and
Newcrest Mining Ltd; and
-
Established a state-of-the-art workshop and supply base at Ouagadougou,
Burkina Faso;
"The industry wide slowdown for drilling activities has significantly
decreased the demand for our drilling services and negatively impacted
our financial performance for the overall year, specifically the last
quarter of 2013. With a sharp decline in demand, we have exercised
capital discipline and strengthened our cost cutting measures," said
Dave Harper, President and CEO of Geodrill Ltd. "Despite this
challenging market, we have secured a number of new contracts,
including a contract with a tier one gold mining company in Ghana."
Geodrill's annual audited financial statements and management's discussion & analysis ("MD&A"),
for the three-month and twelve-month period ended December 31, 2013,
are available via Geodrill's website at www.geodrill-gh.com and will be available on SEDAR at www.sedar.com.
Following the release, management of the Company will host a conference
call at 10:00 am EST to discuss the financial results.
You can join the call by dialing 1-888-231-8191 or 647-427-7450. A live
audio webcast of the conference call will also be available through:
http://www.newswire.ca/en/webcast/detail/1303287/1438081
Please connect at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be needed to
hear the webcast. An archived replay of the webcast will be available
for 90 days. Operator Assisted Toll-Free Dial-In Number: (888)
231-8192.
Non-IFRS Measures
EBITDA is defined as Earnings before Interest, Taxes, Depreciation and
Amortization and is used as a measure of financial performance. The
Company believes EBITDA is useful to investors because it is frequently
used by securities analysts, investors and other interested parties to
evaluate companies in the industry. However, EBITDA is not a measure
recognized by IFRS and does not have a standardized meaning prescribed
by IFRS. EBITDA should not be viewed in isolation and does not purport
to be an alternative to net income or gross profit as an indicator of
operating performance or cash flows from operating activities as a
measure of liquidity. EBITDA does not have a standardized meaning
prescribed by IFRS and therefore they may not be comparable to
similarly titled measures presented by other publicly traded companies,
and EBITDA should not be construed as an alternative to other financial
measures determined in accordance with IFRS.
Additionally, EBITDA is not intended to be a measure of free cash flow
for management's discretionary use, as it does not consider certain
cash requirements such as capital expenditures, contractual
commitments, interest payments, tax payments and debt service
requirements. Please see the Company's MD&A for the three-month and
twelve-month periods ended December 31, 2013 for the EBITDA
reconciliation.
About Geodrill Limited
Geodrill Limited is a leading West African based drilling company
operating in Ghana, Burkina Faso, Ivory Coast, Niger, Guinea, and
currently expanding into Mali and Senegal. Geodrill provides
exploration and development drilling services to major, intermediate
and junior mining companies with exploration and development operations
in West Africa. The Company specializes in providing reverse
circulation, diamond core and air-core drilling services using a modern
fleet of drill rigs. The Company plans to grow organically and build
its current client base while continuing to assess expansion
opportunities throughout West Africa and other African jurisdictions.
Forward Looking Information
This press release may contain "forward-looking information" which may
include, but is not limited to the future financial or operating
performance of the Company, its subsidiaries, future growth, results of
operations, performance, business prospects and opportunities. Often,
but not always, forward-looking statements can be identified by the use
of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"believes", or variations (including negative variations) of such words
and phrases, or by the use of words or phrases that state that certain
actions, events or results "may", "could", "would", "might" or "will"
be taken, occur or be achieved.
Forward-looking statements are based on certain assumptions and analyses
made by the Company in light of its experience and perception of
historical trends, current conditions and expected future developments
and other factors it believes are appropriate. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Company and/or its subsidiaries to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements contained in this press release
including, without limitation those described in the Management's
Discussion & Analysis for the quarter ended December 31, 2013 and the
Company's Annual Information Form dated March 27, 2013 under the
heading "Risk Factors". Although the Company has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in such forward-looking
statements, there may be other factors that may cause actions, events
or results to differ from those anticipated, estimated or intended.
Should one or more of these risks or uncertainties materialize or
should assumptions underlying such forward-looking statements prove
incorrect, actual results, performance or achievements may vary
materially from those expressed or implied by the forward-looking
statements contained in this press release. The forward-looking
information and forward-looking statements contained herein are made as
of the date of this press release and the Company disclaims any
obligation to update or review such information or statements, whether
as a result of new information, future events or otherwise, except as
required by law.
SOURCE Geodrill Limited
