VAL-D'OR, QC, June 30,
2023 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD)
("Orbit Garant" or the "Company") today announced that it was
forced to suspend all its surface and underground drilling projects
in Québec and one project in Ontario as a result of the recent forest fires
in Québec. The suspension of the Company's drilling operations in
Québec started from May 29,
2023 on certain projects and then expanded from there as the fires
spread. The Company currently expects that its drilling activity in
Québec will start ramping up again at the beginning of July 2023, conditions permitting. The Company
restarted operations on the suspended project in Ontario earlier this week.
Orbit Garant expects that the suspension of these drilling
projects will result in a revenue reduction of approximately
$6 million for its Fiscal 2023 fourth quarter and will also
negatively impact net earnings. The Company will incur unexpected
costs in having to de-mobilize its personnel on these drilling
projects for this period and will also incur additional costs in
re-mobilizing personnel when these projects are safe to resume.
"The Abitibi-Témiscamingue region of Québec where our drilling
projects are located was one of the most impacted regions in the
province by the recent wildfires and the related intense smoke. Our
drilling crews did not experience any safety issues as they were
evacuated in a timely manner, and our equipment that remained on
the drilling projects has not been damaged," said Pierre Alexandre, President and Chief Executive
Officer of Orbit Garant. "We have been benefitting from strong
customer demand in Canada
throughout our 2023 fiscal year. Unfortunately, this temporary
setback in our final month of fiscal 2023 will negatively impact
our fourth quarter results. We look forward to fully resuming our
drilling operations in Québec within the next two to three
weeks."
About Orbit Garant
Headquartered in Val-d'Or,
Quebec, Orbit Garant is one of the largest Canadian-based
mineral drilling companies, providing both underground and surface
drilling services in Canada and
internationally through its 212 drill rigs and approximately 1,300
employees. Orbit Garant provides services to major, intermediate
and junior mining companies, through each stage of mining
exploration, development and production. The Company also provides
geotechnical drilling services to mining or mineral exploration
companies, engineering and environmental consultant firms, and
government agencies. For more information, please visit the
Company's website at www.orbitgarant.com.
Forward-looking
information
This news release may contain forward-looking statements
(within the meaning of applicable securities laws) relating to
business of Orbit Garant Drilling Inc. (the "Company") and the
environment in which it operates. Forward-looking statements are
identified by words such as "believe", "anticipate", "expect",
"intend", "plan", "will", "may" and other similar expressions.
These statements are based on the Company's expectations,
estimates, forecasts and projections. They are not guarantees of
future performance and involve risks and uncertainties that are
difficult to control or predict. Risks and uncertainties that could
cause actual results, performance or achievements to differ
materially include the world economic climate as it relates to the
mining industry; the Canadian economic environment; the Company's
ability to attract and retain customers and to manage its assets
and operating costs; the political situation in certain
jurisdictions in which the Company operates and the operating
environment in the jurisdictions in which the Company operates as
well as the risks and uncertainties are discussed in the Company's
regulatory filings available at www.sedar.com. There can be no
assurance that forward-looking statements will prove to be accurate
as actual outcomes and results may differ materially from those
expressed in these forward-looking statements. Readers, therefore,
should not place undue reliance on any such forward-looking
statements. Further, a forward-looking statement speaks only as of
the date on which such statement is made. The Company undertakes no
obligation to publicly update any such statement or to reflect new
information or the occurrence of future events or circumstances
except as required by applicable securities laws.
SOURCE Orbit Garant Drilling Inc.