-DECISION NOT TO DECLARE A SECOND SEMI-ANNUAL
DIVIDEND IN 2023-
TORONTO, Oct. 30,
2023 /CNW/ - Geodrill Limited ("Geodrill" or the
"Company") (TSX: GEO), is pre-announcing certain items impacting
the Company's quarterly earnings, earnings before interest, taxes,
depreciation and amortization ("EBITDA")1, and earnings
per share and the decision not to declare a second semi-annual
dividend in 2023. All figures are reported in U.S. dollars
($), unless otherwise indicated.
In the third quarter of 2023 the Company expects to record an
unaudited non-cash expected credit loss provision of
approximately $3.6M on a pre-tax basis related to the
aging of the Company's trade receivables in respect of certain
customers. The Company also expects in the third quarter unaudited
revenue of approximately $30M as a
result of slower than expected drilling activity in West Africa and South America. As a result, the Company's
earnings, EBITDA, and earnings per share will be impacted and the
Company expects to record a net loss in the third quarter of
2023.
The Board of Directors has therefore decided not to declare
the second semi-annual dividend in 2023. The dividend position will
be reviewed again in 2024. The declaration, timing, amount and
payment of future dividends remain at the discretion of the Board
of Directors.
The unaudited results for the third quarter ended September 30, 2023, will be released on
Monday, November 13, 2023.
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(1) EBITDA =
earnings before interest, taxes, depreciation and
amortization.
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About Geodrill Limited
Geodrill has been
successful in establishing a leading market position in
Ghana, and Cote d'Ivoire. The
Company also operates in other African jurisdictions including
Egypt, Mali and Senegal and is expanding its geographic
presence 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.
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, the issuance of dividends in
the future, 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
year ended December 31, 2022 and the
quarter ended June 30, 2022 and the
Company's Annual Information Form dated March 28, 2023 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