+ Energold Drilling Corp. - News Releases - Energold Announces Second Quarter Results Including Record Production And Continued Expansion - Tue Dec 10, 2019

News Releases


 August 27, 2007
Energold Announces Second Quarter Results Including Record Production And Continued Expansion

 Energold Drilling Corp. (EGD:TSX.V) ("the Company") is pleased to announce its 2007 second quarter consolidated results including the best ever revenues and meters drilled for a quarter. Gross revenues for the quarter were $8.64 million (up 25%) on 64,000m of drilling from gross revenues of $6.9 million in 2006 on 52,000m of drilling and for the year to date revenues were $16.1 million (up 46%) on 117,000m compared to $11.0 million on 84,000m in 2006.

Earnings for the quarter were $1,836,000 (2006- $1,510,000), which includes a foreign exchange loss for the period of $1,206,000 (2006 - $275,000) and a gain on disposal of assets of $1,317,000 (2006 - $0). In 2006 the Company recorded a dilution gain on the investment in IMPACT of $1.06 million for the quarter and $1.39 million for the year to date, the comparable figures for 2007 were $23,000 for the quarter and $61,000 for the six months. Earnings per share were $0.07 for the quarter and for the six months $0.11 compared to $0.07* and $0.09* for the comparable periods in the prior year.

During the quarter the Company completed a $15.0 million financing which added net $13.9 million to the Company's balance sheet. As at June 30th consolidated working capital position was about $35.8 million, an increase of just over $17.0 million, almost double, from its net consolidated working capital position of $18.7 million at December 31, 2006.

Consolidated group cash and cash equivalents were $21.8 million at the end of the period compared to $10.9 million December 31, 2006 an increase of over 100%. Energold's very strong balance sheet does not reflect the current market value of the equity investment in IMPACT. Based on closing market prices at August 17, 2007 the investment has a current market value of $9.0 million or approximately $6 million more than our carrying cost. Energold has 29.92 million shares outstanding and fully diluted 34.9 million as of June 30, 2007.


Results Comparison (Canadian $ 000's except per-share amounts and meters drilled)
--------------------------------------------------------------------
                              Three Months              Six   Months
                   Ended June   Ended June   Ended June   Ended June
                     30, 2007    30, 2006*     30, 2007    30, 2006*
--------------------------------------------------------------------
Gross Revenues          8,640        6,948       16,113       11,053
Gross Margins           3,740        2,381        6,591        3,543
Income before Taxes     2,727        1,837        3,964        2,428
Net Income              1,836        1,510        2,655        1,931
Earnings Per Share 
  - Basic                0.07         0.07         0.11         0.09
  - Diluted              0.07         0.07         0.11         0.09
Metres Drilled         64,000       52,000      118,000       84,000
--------------------------------------------------------------------

*Restated

The Company fully consolidates its 50.01%-owned Pac Rim Drilling S.A.C., 50%-owned subsidiary Kluane International Drilling Inc. and its affiliates. The Company's approximately 16.7% interest in IMPACT Silver Corp. (IPT: TSX.V) is accounted for on an equity basis.

The increase in the overall level of activity reflected the existing demand within the industry and the growth of the Company's particular niche within that industry. The efforts of prior years provided the establishment of the infrastructure necessary to handle this increase and the Company is anticipating further growth in 2007 both in existing markets and a number of new locations. The Company subsequent to June 30th has ordered 8 new rigs anticipated as being delivered before the end of the third quarter bringing the total number of rigs jointly and directly owned to 41.

Energold will be reviewing its 2007 Second-Quarter results via the Internet at 1:00 pm ET, 10:00 am PT, Wednesday, September 5, 2007. The webcast (audio only) can be accessed at: http://events.onlinebroadcasting.com/energold/090507/index.php and will feature management discussing the Company's financial and operational results.

Energold Drilling Corp. is an environmentally and socially-sensitive diamond drilling company that services the mining industry. Energold also holds 6.6 million shares of IMPACT Silver Corp. (IPT: TSX-V) and a portfolio of exploration projects in the Dominican Republic.


On behalf of the Directors of Energold Drilling Corp.

"Frederick W. Davidson"
President, CEO

For further information, please contact:
Darrell Rader - Corporate Development

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.


900 - 543 Granville St.
Vancouver, B.C. V6C 1X8
www.energold.com


Telephone 604 681-9501
Facsimile 604 681-6813
info@energold.com
 
 

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