+ Energold Drilling Corp. - News Releases - Energold Announces Record Third Quarter Results - Wed Jul 15, 2020

News Releases

 November 30, 2007
Energold Announces Record Third Quarter Results

 Energold Drilling Corp. (EGD: TSX.V) ("Energold" or "the Company") is pleased to announce its 2007 third quarter results. These results reflect the Corporate Reorganization Agreement concluded at the end of the quarter and described more completely below. Earnings for the quarter were $2,756,234 (including a gain on discontinued operations of $540,831), up 125% from $1,224,032 (which included a gain on discontinued operations of $566,464) in the third quarter of 2006. Gross revenues for ongoing activities were $6.89 million on 49,041 meters of drilling up 25% from gross revenues of $5.55 million on 38,361 meters in the comparable quarter of 2006. The ongoing operations of the Company drilled 139,168 meters in the year-to-date which is more than all the meters drilled, including the previous joint venture, for the entire year of 2006 (118,036 meters). Fully diluted earnings per share were $0.09 up from a $0.05 in the comparable quarter.

The Company ended the quarter with a very strong balance sheet with a fully consolidated working capital position of $31.3 million, an increase of over $14 million from its net consolidated working capital position of $17.6 million at September 30, 2006. Consolidated group cash and cash equivalents at the end of the quarter were $20.6 million. Non-current liabilities including those due to related parties and non-controlling interests where down from $7.57 million in the comparable quarter of 2006 to only $0.3 million on September 30, 2007.

At the end of the quarter, the Company completed a Corporate Reorganization Agreement with its former joint venture partner, whereby the Company obtained a 100% ownership and control of its drilling operations in Peru, Brazil, the Dominican Republic, Nicaragua, Zambia and Vietnam. Its former partner acquired a 100% interest in Ecuador and Guatemala. Following this agreement, the Company now has a 100% interest in 35 drilling rigs. Also included in the earnings for the quarter was a gain on the reorganization which, because of the terms of the Corporate Agreement, included reallocating certain earnings between the partners from January 1, 2007 onwards. That, and the goodwill gain on the acquisition, totalled $1.5 million. As part of the Corporate Agreement, all amounts due to related parties and non-controlling interests have been settled in full. The Company has no long term debt or long term liabilities outstanding, other than a small allowance for future income taxes. The Company has the financial strength and capacity to continue with its planned expansion plans unencumbered by issues involved with managing joint venture operations.

Third Quarter Results Comparison (Canadian $000's except per-share amounts and meters drilled)
September 30                          2007      2006(i)
Net Income before gain on 
  discontinued operations            2,215         657
Net Income                           2,756       1,224
Earnings Per Share - Basic            0.09        0.06
                   - Diluted          0.09        0.05
Cash and Term Deposits              20,606       5,114
Consolidated Working Capital        31,700      17,600
Metres Drilled                      49,041      38,361
 (i) restated to record dilution gain on investment in IMPACT.
The Company expects that the Reorganization will have a positive impact to net income in future years, as the Company capitalizes on the strong growth opportunities that it sees in South America, the Dominican Republic and other counties in which the Company previously had to share its profits as a result of being involved in joint venture operations.

The Company is continuing an aggressive program of expansion designed to access new markets for its drills and to increase its market share in existing markets. The Company is now firmly established throughout Latin America and is currently expanding into parts of Africa. This expansion resulted in both higher than normal costs for the period as well as record levels of production. While the U.S. dollar decline continues to impact margins, the Company is revising its contracts to reflect the change.

With the Company's strong financial position, its growth plans have been significantly accelerated. The Company expects to have approximately 41 wholly-owned rigs being either mobilized or in the field by the beginning of 2008. At that point, approximately five new rigs will be added each quarter thereafter. A target has been set of approximately 60 rigs by the end of 2008.

The Company will be discussing its 2007 Third Quarter Earnings results and hosting a question-and -answer period via a conference call and a live webcast on the Internet at 9:00 am PT, 12:00 pm ET, Friday November 30th. The dial-in numbers are 416-695-9745 or 1-800-355-4959. The webcast (audio only) can be accessed at:

Energold Drilling Corp. is an environmentally and socially-sensitive diamond drilling company that services the mining industry. Energold holds 6.6 million shares of IMPACT Silver Corp.

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.

You can view the Next News Releases item: Thu Feb 7, 2008, Energold Announces Record Number Of Metres Drilled And A 121% Expansion Of Drill Fleet In 2007

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