Geodrill Limited

Good morning everyone and welcome to the Jill Drills Q2 2024 results conference call. At this time all participants are in a listen-only mode. Following the presentation, we'll conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has difficulties hearing the conference, please press star zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded Today, August 12, 2024. Before we begin, certain statements made on today's call by management may be forward-looking in nature and, as such, are subject to various risks and uncertainties. Please refer to the company's press release and MD&A for more details on these risks and uncertainties. I would now like to turn the call over to Mr. Dave Harper, President and CEO of Geodrill. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us today to discuss General's financial and operational results for the second quarter of 2024. Joining me on the call today is Greg Borsk, our CFO. Now, let's dive into the financial highlights for the reporting period. In the second quarter, we achieved two consecutive months of record-breaking revenue. Building on the momentum witnessed in the first quarter, we realised that unprecedented revenue peaks, firstly in May, then immediately followed by a further increase in June, both of which surpassing all previous historical benchmarks. Overall, quarter two revenue was a significant 26% year-over-year increase, as well a robust 19% quarter-over-quarter improver. Net income was an impressive year-over-year surge of 147%, as well a remarkable quarter-over-quarter increase of 130%. And for EBITDA, we recorded a substantial year-over-year increase of 72%, as well a 60% quarter-over-quarter improver. Additionally, noteworthy, we increased our cash position by 27% year-over-quarter and also reduced the company's debt by 9%, achieving an overall debt-to-equity ratio of 8%, which underscores our dedication to maintaining a solid balance sheet position. Also importantly in the quarter, we made significant investments amounting to $2.8 million in the upgrade and maintenance of our modern fleet of draw rigs and equipment, This investment ensures that we will continue to lead the industry with state-of-the-art equipment, ensuring us to deliver exceptional service to our clients and maintain our competitive edge. These financial decisions are a testament to our disciplined approach to managing resources and our continuous effort to enhance shareholder value. And we are confident these actions will contribute contribute to our sustained growth and the success of the business. Now looking at the operational highlights, we ended quarter two with a total of 91 rigs in our operational fleet to meet ongoing demand. We also reached a new safety milestone, achieving 17.5 million hours without lost time injury. Recall in the first half of 2024, we secured contracts totaling more than $150 million USD, which will significantly contribute to our revenues and profitability over the next three to five years. These contracts include two substantial long-term agreements with top-tier mining companies for multiple REITs. Our operations in Egypt, Chile and Peru continue to excel, supported by long-standing contracts with Tier 1 mining companies and multi-year agreements. Our strategic focus with senior miners through long-term contracts is directly contributing to our goal of delivering sustainable results to our shareholders. These contracts are not only a reflection of our commitment to stability and growth, but also an affirmation of the trust placed in us by industry leaders. Moreover, the growing mineral drilling market, largely fuelled by a strong gold price, has created favourable conditions for our operations, allowing us to capitalise on the opportunities presented by the buoyant mineral drilling market. The synergies of these two factors Our strategic long-term contracts and the robust gold price market positions us exceptionally well to continue our trajectory of growth and success. I will now turn the call over to our CFO, Greg Bors, who will review our financial performance in detail. Thank you, Greg.

Thank you, Dave. I am pleased to report that our financial performance for the second quarter of 2024 has been exceptional. We achieved record-breaking quarterly revenue, the highest in the company's history, which is a testament to our strategic planning and execution. The company generated revenue of $41.2 million for Q2 2024. an increase of $8.5 million or 26% when compared to $32.6 million for Q2 2023. The gross profit for Q2 2024 was $12.7 million, being 31% of revenue compared to a gross profit of $7.8 million being 24% of revenue for Q2 2023. EBITDA for Q2 2024 was $10.7 million or 26% of revenue compared to only $6.2 million or 19% of revenue for Q2 2023. The net income for Q2 2024 was $4.8 million or $0.10 per share compared to $2 million or $0.04 per share for Q2 2023. I would also like to highlight other key financial accomplishments in the second quarter. We generated net cash from operating activities of $5.9 million, which reflects our strong operational performance and efficient cash flow management. We also increased the company's cash by 27% over Q1 2024, while reducing total debt by 9%. ending the quarter with net cash, excluding right of use liabilities, of $300,000. Echoing Dave's comments, with the gold price well above $2,400, global exploration spending continues to be strong and provides strong fundamentals for the company going forward. At this point, I will turn the call back to Dave.