Geodrill Limited

Good morning everyone and welcome to Geodrill's third 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 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, November 13, 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 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. Welcome to Geodrill's Q3 conference call. Joining me on today's call is Greg Borsk, our CFO. I'll begin. Fiscal 2025 is playing out to be a year of two halves. Our first half was evidently solid. Quarter 3 2025 reflects the complex realities of strategic expansion. While our financial results show short-term cost absorption, they also highlight the strength of our long-term vision. We are executing a deliberate strategy to build a resilient, geographically diversified platform capable of delivering consistent performance across seasonal and regional cycles. South America presents challenges but also opportunity. It is a market that demands upfront investment, operational discipline and patience. We have doubled our rig count in the region supporting major multi-phase drilling contracts. This expansion is not just about growth. It's about positioning Jidrel where we see long-term failure. Jidrel has always operated where there is opportunity and risk. This is how the company started 25 years ago. With risk comes reward. The higher the risk, the higher the reward. We don't chase crowded competitive markets. We never have. We go where opportunity lies. One of our key advantages is our proximity to operations. We live and work close to our drollery fleet, boots on the ground. I live in West Africa, and we've now established hubs in South America and in Egypt that are treated with the same level of commitment. Despite these headwinds, we remain focused. Our platform in Chile is growing. Our West African operations continue to show strong post-wet season demand. Surface draw programs in Egypt are restarting, and our multi-year, multi-rig contracts provide a solid foundation for sustained performance. We have achieved 7.8 million man-hours LTI-free. Our bidding pipeline is highly active. Commodity prices remain favorable, and our team continues to deliver with discipline and resilience. I'll now turn the call item to our CFO, who will review our financial performance in business.

Thank you, Dave. As Dave mentioned, in Q3, we faced significant headwinds. However, we still delivered revenue of $39 million. an increase of $4.9 million, or 14%, when compared to $34.1 million for Q3 2024. The increase in revenue was a result of the company's strategy to diversify its operations to South America and to operate in a geographic region that is not impacted by wet season. The increase in revenue was predominantly the result of an increase in revenue in South America of $5.8 million, partially offset by a decrease in revenue in West Africa and Egypt. The gross profit for Q3 2025 was $2.4 million, being 6% of revenue compared to a gross profit of $8.4 million, being 24% of revenue for Q3 2024. The decline in the gross profit margin this quarter can be summarized regionally as follows. West Africa contributed to 66% of the decline. The decline in the region was driven by the wet season slowdown. The drilling mix, wage inflation, and the Ghana CD appreciation. We expect improvements in Q4 in Ghana, Cote d'Ivoire, and steady performance in Senegal. Egypt contributed to 17% of the gross profit decline. This was due to lower revenue and lower drilling activity. Q4 recovery is expected from restarting surface drill programs in Egypt. Lastly, South America contributed to 17% of the decline. Rapid rig expansion in the region led to upfront costs and operational delays, especially in Chile. Q4 improvements are expected with stabilized operations and new job starts. EBITDA was $4.3 million or 11% of revenue compared to $7.6 million or 22% of revenue for Q3 2024. We reported a net loss for Q3 2025 of $1.5 million or a loss of $0.03 per share compared to net income of $2.6 million EBITDA and net loss were favorably impacted by the expected lifetime credit recovery of $100,000, a foreign exchange gain of $800,000, and the $1.8 million gain on equity investments. Despite operational challenges this quarter, our year-to-date performance reflects the underlying strength and resilience of our business. Over the first nine months, we have delivered solid financial results, maintained financial discipline, and reinforced our strategic positioning for long-term growth. We ended the quarter with shareholders' equity of 129 million, including net cash of 11.1 million. We remain confident in our ability to navigate the expansion in South America, leveraging our core capabilities and disciplined execution to optimize margins and capital efficiency. At this point, I will turn the call back to Dave.