Geodrill Limited

Good morning, everyone, and welcome to Geodrill's Q3 2024 results conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has difficulties here in the conference, please press star zero for the operator. I would like to remind everyone that this conference call is being recorded today, November 11, 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 will now 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 third quarter results. Joining me also on the call today is Greg Vorst, our Chief Financial Officer. In the third quarter of 2024, we delivered another solid financial performance. Some of the highlights were revenue increased 13% year over year, EBITDA also increased 22% year over year. Net income of $0.06 for 8% of revenue, which compares favorably to a $0.06 loss for the same quarter in 2023. And we further strengthened our balance sheet, which is now underpinned by more cash than debt. all of which we believe elevates the success of our financial planning. We also believe these results are a testament to our operational and strategic planning success. For context on this latter point, recall 2023, our strategic decision to transition our rig fleet from Burkina Faso to more attractive jurisdictions. This has proven to be the right move, evidently. And while this decision initially impacted our revenue in fiscal 2023, we've now bounced back and we're stronger than ever. This business is all about contracts. Our success in securing multiple REIT contracts in new jurisdictions has significantly boosted our revenue visibility and profitability which demonstrates our commitment to financial stability. Also recall, earlier in the year we secured contracts totaling $150 million USD in our core jurisdictions. These works are now well underway and strongly contributing to revenue and profitability and will do so for the next three to five years. Meanwhile, additionally, subsequent two contracts the quarter end, we have secured new contracts in Chile, totaling circa 50 million USD. These include two very significant multi-rig, multi-year contracts, the new Tier 1 customer, and we also secured a multi-rig contract extension with an existing customer. With our strong portfolio of long-term contracts with Tier 1 customers, favourable pricing and a robust pipeline of opportunities, we are now confident in delivering exceptional value to our shareholders and establishing a strong platform for growth going forward. At this point, I'll turn the call over to Greg Borsk for a detailed review of our financial performance. Thank you, Greg.

Thank you, Dave. The company generated revenue of $34.1 million for Q3 2024, an increase of $3.8 million or 13% when compared to $30.3 million for Q3 2023. The increase in revenue for Q3 is primarily due to the successful win of two significant multi-rig, multi-year contracts earlier in the year. These contracts have not only bolstered our revenue, but they have also reinforced our market presence and operational capabilities. The gross profit for Q3 2024 was $8.4 million, being 24% of revenue compared to a gross profit of $5.8 million, being 19% of revenue for Q3 2023. Ebitda for Q3 2024 was 7.6 million or 22% of revenue compared to only 600,000 or 2% of revenue for Q3 2023. Q3 2023 was impacted by a 3.6 million non-cash credit loss provision relating to the aging of the company's trade receivables. Excluding the provision EBITDA would have been 4.2 million or 14% of revenue for Q3 2023. The net income for Q3 2024 was 2.6 million or six cents per share compared to a net loss for Q3 2023 of $3 million or a loss of $0.06 per share. We ended the quarter with net cash excluding right-of-use liabilities of $3.5 million. Building on Dave's comments, the record high gold prices are driving robust global exploration spending, which in turn solidifies the strong fundamentals for the mineral drilling industry moving forward. At this point, I will turn the call back to Dave.