Geodrill Limited

Good morning, everyone, and welcome to GeoDrill's fourth quarter and year-end 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, March 2, 2026. 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 conference call. Joining me on the call today is Greg Borst, our Chief Financial Officer. Business 2025 was a year marked by solid execution and real momentum across the business. Throughout 2025, we continued to meet strong demand from our customers in West Africa while pushing ahead with our strategy to broaden feudal's geographic footprint in a disciplined and deliberate way. At the same time, we secured long-term contracts, expanded our operating capacity and continued to strengthen the culture of our safety and operational excellence that underpins everything we do. Furthermore, in 2026, we continue to see strong macro tailwinds across our key markets. Activity levels are healthy, sentiment is improving, and customers are leaning in. This gives us confidence that the groundwork we laid in 2025 positions us well for what lies ahead. Before I hand the call over to Greg, Let me touch on several key operational achievements of the year. We maintained a strong operating presence across West Africa with Ghana, Cote d'Ivoire and Senegal firmly established as our anchor jurisdictions. Customer relationships in these markets remain robust and our service offering continues to align with the region's solid pipeline of exploration and delivery and development activity. We also strengthen our long-term revenue visibility by securing additional multi-year contracts. These contracts not only underpin revenue stability for 2026 and beyond, but they also reflect the confidence our customers have in our ability, our performance, and our people. In South America, we continued to advance our focused strategy. We increased our regional fleet to 18 REITs with a particular focus on Chile. This reinforces our commitment to what we see as an important fast-growing market that positions us well to capture sustained demand in the region. We ended the year with a robust fleet of 100 weeks, ensuring we have the scale and the flexibility required to meet both current requirements and anticipated increased demand. In addition to executing operationally, we continued to demonstrate confidence in the strength and the long-term value of the business by repurchasing 91,700 shares during the year and an additional 5,800 1,800 shares subsequent to year end. This reflects the disciplined approach we take to capital allocation and our commitment to creating value for our shareholders. Before moving to the financial results, I would like to briefly also address the additional tax expense incurred in Cote d'Ivoire. In early 2026, Fudrell entered into a memorandum of understanding the local Cote d'Ivoire tax authorities related to the previously disclosed tax recovery notice. This followed certain restrictive measures initiated by the Cote d'Ivoire authorities in December 2025 to ensure uninterrupted operations, which is always our top priority. Management determined that reaching a settlement was the prudent and responsible force of action. It is important to note, however, that we are actively pursuing reimbursement of the additional taxes from the registered tax agency that we believe is responsible for this matter. We remain confident in our position and we will continue to take necessary steps to protect the company's interests always. With that, I'll now hand things over to Greg to work you through the financial performance for the year. Thank you.

Thank you, Dave. Fiscal 2025 delivered strong top-line results. We generated record annual revenue of $185 million, up from $143 million in 2024. representing a 29% year-over-year increase. Gross profit, however, declined to $33.4 million or 18% of revenue compared to a gross profit of $34.7 million or 24% of revenue in 2024. The decline for the gross profit and the gross profit margin in 2025 versus 2024 related to the following. The sharp appreciation of the Ghanaian CD increased our operating costs. We saw the CD appreciate by approximately 43% during the year. The group has significant costs such as payroll that are denominated in CD. And as a result, this had a direct impact on our gross margin decline. In addition, we incurred ramp-up costs in South America, largely due to scaling up in a new region ahead of full deployment and optimal utilization. our drilling mix also shifted, resulting in margin pressure. And, like many drilling operators, we faced inflationary and labor-related cost increases across our regions. Overall, EBITDA came in at $35.1 million, representing 19% of revenue despite margin compression. Additionally, as Dave mentioned, we recorded an additional tax expense in Cote d'Ivoire relating to prior years, which coupled with the lower gross margin further impacted net income for the year, resulting in a net loss for 2025 of $1.9 million, compared to net income of $9.1 million in 2024. EBITDA and the net loss were favorably impacted by the expected lifetime credit recovery of $450,000, a foreign exchange gain of $1.2 million, and the $3.3 million gain on equity investments. We closed the year with net cash of 7.8 million, excluding right of use liabilities, and shareholders' equity of 117 million, both highlighting the strength of our balance sheet. I will now pass the call back to Dave.