- Delivers Another Strong Quarter -
TORONTO, Aug. 12, 2021 /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 six month periods ended June
30, 2021. 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 Overview Q2-2021:
- Generated revenue of $30.6M an
increase of 47% compared to Q2-2020;
- Achieved EBITDA of $7.4M or 24%
of revenue;
- Achieved strong profitability by increasing net income to
$4.0M or $0.09 per Ordinary share compared to $3.3M or $0.07 per
Ordinary share in Q2-2020;
- Generated a Return on Capital Employed (ROCE) of 21% and Return
on Equity (ROE) of 16%, compared to 11% and 5% respectively in
Q2-2020; and
- On August 11, 2021, the Geodrill
Board of Directors declared a semi-annual dividend of CDN$0.01 per share, payable on September 8, 2021, to shareholders of record at
the close of business on August 25,
2021.
Operational and Strategic Highlights:
- Continued to maintain high utilization rate of approximately
70%;
- Secured and extended multi-rig contracts in our core operations
in the Ivory Coast, Burkina Faso, Ghana and Mali, three being long-term contracts;
- Mobilized two rigs to Egypt,
our first contract in this new geographic region, and expect to be
drilling this quarter while the Company continues to expand its
footprint in Egypt;
- Subsequent to quarter end, secured a 4 rig long term
underground drilling contract in Ghana;
- Consolidated our efforts to develop a formalized global ESG
Framework to benefit and be aligned with all of our
stakeholders;
- Awarded the Millennium Excellence Awards, Ghana's most prestigious award honouring the
best institutions and individuals in all sectors of the Ghanaian
economy for their contributions to national development; and
- As at August 11, 2021 the Company
increased its rig fleet to 70 rigs.
Outlook:
- Continued robust demand for drilling services that supports
strong utilization rates throughout the remainder of 2021;
- Higher utilization rates across the mineral drilling industry
is driving more positive pricing; and
- Extremely active tendering market, with particularly strong
demand in exploration drilling.
Financial Summary
US$
000s
(except earnings
per
share and percentages)
|
For the
three
months
ended
June 30,
2021
|
For the
three
months
ended
June 30,
2020
|
For the six
months ended
June 30, 2021
|
For the six
months ended
June 30, 2020
|
Revenue
|
US$30,576
|
US$20,862
|
US$61,241
|
US$38,865
|
Gross
profit
|
US$8,333
|
US$6,635
|
US$17,965
|
US$9,750
|
Gross profit
margin
|
27%
|
32%
|
29%
|
25%
|
EBITDA(1)(2)
|
US$7,390
|
US$6,470
|
US$17,412
|
US$8,684
|
EBITDA
margin
|
24%
|
31%
|
28%
|
22%
|
Net
Earnings
|
US$3,965
|
US$3,281
|
US$9,618
|
US$3,398
|
Earnings per
share – basic
|
US$0.09
|
US$0.07
|
US$0.21
|
US$0.08
|
Notes:
|
|
(1)
|
EBITDA = earnings
before interest, taxes, depreciation and amortization
|
(2)
|
Please see
"Non-IFRS Measures" below for additional
discussion
|
"We closed the first half of 2021 with outstanding momentum
underscored by strong financial and operating performance.
Year to date, we grew revenue 58%, net income 183% and EBITDA
101%," said Greg Borsk, Chief
Financial Officer at Geodrill. "Strong market fundamentals and
robust demand for our services provides the foundation for solid
revenue performance for the remainder of 2021."
"We achieved another record-setting quarter delivering increased
revenue, earnings per share, and return on equity. Our significant
organic growth, in concert with industry tailwinds demonstrates the
strength of our market position and sets the stage for continued
long-term profitability," said Dave
Harper, President and CEO of Geodrill. "We enter
the second half of 2021 focused on growth, as we execute on a
number of long-term initiatives including expanding our global
reach in Egypt and South America to drive future profitability.
Buoyed by macro-economic trends, including strong metal prices,
falling gold reserves, and increased exploration activity, our
momentum and outlook remain positive to continue to deliver
industry-leading performance."
Geodrill's condensed interim consolidated financial
statements and management's discussion & analysis ("MD&A"),
for the three month period ended June 30,
2021, are available via Geodrill's website at
www.geodrill-gh.com and will be available on SEDAR at
www.sedar.com.
Management of the Company will host a conference call at
10:00 am EDT to discuss the financial
results.
You can join the call by dialing 1888 664 6392 or local 416 764
8659. A live audio webcast of the conference call will also be
available through:
https://produceredition.webcasts.com/starthere.jsp?ei=1480669&tp_key=0027025498
About Geodrill Limited
Geodrill has been successful
in establishing a leading market position in Ghana, Burkina
Faso, Cote d'Ivoire and
Mali. The Company is also
expanding its geographic presence into Egypt in North
Africa, and Peru in
South America. With the largest
fleet of multi-purpose rigs, Geodrill provides a broad selection of
diverse drilling services, including exploration, delineation,
underground and grade control drilling, to meet the specific needs
of its clients. The Company's client mix is made up of senior
mining, intermediate and junior exploration companies.
www.geodrill-gh.com.
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
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 six month periods ended June 30, 2021 for the EBITDA reconciliation.
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 June 30, 2021 and the
Company's Annual Information Form dated March 29, 2021 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