Geodrill Limited

Good morning everyone and welcome to GeoGeo's first quarter 2025 financial 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 any 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, May 12, 2025. 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'll now turn the call over to Mr. Dave Harper, President and CEO of Geodrill. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Geodrill's Q1 2025 Financial Results Call. Joining me on the call today is our Chief Financial Officer Greg Borsk. So in the first quarter we achieved outstanding results setting new records for revenue and for EBITDA. These numbers are a testament to the strength of our strategy which is working well evidently as these results do speak for themselves. Indeed today's positive report card is the direct result of what operational and repositioning efforts undertaken during 23-24. The foundation built then is driving our exceptional financial performance today. To recap by level, so Greg Borsk will speak to these in more detail later. We achieved record revenue surpassing all historical benchmarks which included Two record-breaking months, one after the other, in February and March. EBITDA was also a record, a substantial plus over 100% year-over-year improver. Also, earnings per share, 12 cents year-over-year, plus 160% improver, just a penny shy of our previous record. These results significantly improved the balance sheet, also resulting in total shareholder equity. of $125 million, another year-over-year improver, 11% year-over-year improvement. Our strategy is all about balancing opportunity with risk and execution to ultimately deliver exceptional returns. Recall, key adjustments to our operating model were implemented over the past year, which were considered necessary in order to ensure the sustainability of the business. And it is pleasing that these adjustments are now fueling the momentum and validating our approach. Just to recap, these adjustments include building a diverse client portfolio of well-funded, top-tier mining companies in safe jurisdictions, effectively mitigating the risk. This strategic move has expanded into new markets and enhanced our resilience. One of the most significant achievements has been securing multi-rig contracts across both our core markets in West Africa and expanded markets of Egypt and South America. These contracts have substantially boosted our revenue visibility for the next three to five years, demonstrating our commitment to financial stability and, importantly, over the past year we've made strategic expansion in the South American market, increasing our operations to meet growing demand. Thanks to our focused execution, we are now reaping the rewards of that investment and expect continued revenue growth from this key region. These accomplishments position us for continued growth and reinforce our ability to deliver sustained value for our investors. Our team's execution and commitment have been instrumental in driving our success but it is also important to acknowledge the tailwinds of the strong commodity prices environment. Market conditions have amplified demand, creating a background where our positioning allows us to maximise opportunities. The synergy between strategy and favourable markets dynamics continues to propel our growth. Finally, it is important to say we are insulated from the effects of tariffs turmoil. ensuring stability and predictability in our operations. I'll now turn the call over to Greg Borstow, CFO, who will review our financial performance in detail. Thank you, Greg.

Thank you, Dave. I am pleased to report the financial performance for the first quarter of 2025. The company generated record revenue of $48.8 million for Q1 2025. an increase of $14.1 million or 41% when compared to $34.7 million for Q1 2024. The increase in revenue is the result of the increase in demand for Geodrill's drilling services and a robust gold price, as the majority of our clients are exploring for gold. The gross profit for Q1 2025 was $13.6 million, being 28% of revenue, compared to a gross profit of $7.4 million, or 21% of revenue, for Q1 2024. we were able to considerably increase our gross margin despite inflationary pressures facing the mining sector and mining service providers. EBITDA for Q1 2025 was $13.6 million or 28% of revenue compared to only $6.7 million or 19% of revenue for Q1 2024. The net income for Q1 2025 was $5.6 million, or 12 cents per share, compared to a net income of $2.1 million for Q1 2024, or 4 cents per share. In Q1 2025, we were able to increase the rig fleet, ending the quarter with 98 drill rigs. Building on Dave's comments, the record high revenue is fundamentally driven by two key factors. Our multi-rig, multi-year contracts and record high gold prices. Multi-rig, multi-year contracts have been instrumental in boosting our financial performance. And with robust global exploration spending, we are well positioned for fiscal 2025. At this point, I will turn the call back to Dave.