Geodrill Limited

Good morning, ladies and gentlemen. Thank you for standing by. For today's call, phone participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session, and instructions will be provided at that time for you. If anyone has any difficulties hearing the call, please press star followed by zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded on Tuesday, August 8th at 10 a.m. Eastern Standard Time and is being broadcast live via the Internet. During today's call, management will make statements regarding management's expectations for the company's future financial and operational performance. These statements are considered forward-looking statements. Each forward-looking statement speaks only as of the date of this call and actual results may differ materially from management expectations for a variety of reasons. including market and general economic conditions and the risks and uncertainties detailed from time to time in the company's CEDAR filings. I will now turn the call over to President and CEO of Geodrill Limited, Mr. Dave Harper.

Thank you, Operator. Good morning and welcome to Geodrill's Q2 2023 Quarterly Financial Results Conference call. I will begin with an overview of our operations and performance for the quarter. Our CFO, Greg Bourse, will then give a more detailed review of our second quarter financial results, after which I will discuss our outlook for the remainder of 2023. In quarter two, we took a step back to reposition the company for future growth by sharpening our focus on favourable geographies. This decision consequently impacted our utilisation and ultimately our financial results for the quarter. It is noteworthy that whilst our financial results were negatively impacted, we remained profitable, delivering positive EBITDA and net income while also maintaining our sharpened focus underpinned by our strong reputation which continues to drive revenue and earnings growth while building long-term value for shareholders via the continued strengthening of our balance sheet. As the global market mineral drilling market remains robust. We are better positioned today than ever before with a focus on new geographies to capture market share and expand our footprint and to diversify our commodity exposure. Our strategy since inception has been to provide diverse mineral drilling services backed by unparalleled access to technical and maintenance support via full service workshops which derives high utilization and performance to best service our customers' needs. Our objective remains steadfastly to keep our customers satisfied while continuing to improve our efficiencies and ultimately margins, while also expanding our geographical footprint to capture market share in favorable jurisdictions, which will ultimately drive value for shareholders in the long term. I'll now turn the call over to Greg, our CFO, to review our financial results in detail.

Thank you, Dave. As a reminder, all figures are in U.S. dollars. We generated revenue of $32.6 million, representing a decrease of $6.5 million, or 17%, when compared to $39.2 million for Q2 2022. While GeoDrill continues to experience strong demand for its drilling services, the comparative quarter of Q2 2022 was a record quarter in terms of revenue and EBITDA, setting very high comparables to match or beat. Of the $6.5 million decline in revenue, Burkina Faso represented $3.2 million on a quarter to quarter basis, which is representative of winding up drilling programs in that region and redeploying the rigs to more favorable regions. Gross profit for Q2 2023 was $7.8 million, being 24% of revenue compared to a gross profit of 12.4 million being 32% of revenue for Q2 2022. On a year-to-date basis, gross profit is 28% compared to 31% for 2022. We recorded EBITDA of 6.2 million or 19% of revenue compared to $11.2 million or 29% of revenue for Q2 2022. Overall, we generated net income of $2 million for Q2 or $0.04 per share compared to $5.9 million for Q2 2022 or $0.13 per share. We ended the quarter with net cash of $6.4 million. With the gold price averaging $1,965 during Q2, global exploration spending continues to be strong and provides strong fundamentals for the drilling industry going forward. At this point, I will turn the call back to Dave.