Orbit Garant Drilling Inc.

Good morning, ladies and gentlemen, and welcome to OrbitGorun Drilling's fiscal 2025 year-end and fourth quarter results conference call and webcast. At this time, all lines are in listen-only mode. Following management's remarks, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Please be aware that certain information discussed today may be forward-looking and that actual results could differ materially. Certain non-IFRS financial measures will also be discussed. Please refer to the company's CDAR filings for additional information on both risk factors and non-IFRS measures. This call is being recorded on Thursday, September 25, 2025. I would now like to turn the conference over to Mr. Daniel Mahieu, President and CEO of Orbit Garand Drilling. Please go ahead, sir.

Thank you, Virginia, and good morning, ladies and gentlemen. With me on the call today is Pialik Kaptan, Chief Financial Officer. Following my opening remark, Pialik will review our financial results in greater detail, and I will conclude with comments on our outlook. We will then wake on questions. I'm extremely proud of our financial performance for the fiscal year 2025 as we generate our highest net earning in more than 10 years. I want to take the opportunity to thank all the employees that contribute to deliver this solid performance. Our performance reflects our continued focus on our strategic plan. We continue to benefit from our focus on senior and well-financed intermediate customers in Canada and South America, our disciplined business strategy and continuous operational improvement program, as well as our exits from West Africa in Q2 last year. We finished this year with a solid fourth quarter with revenue growth of 3.9% compared to Q4 last year and net earnings of 6 cents per share. This reflects six consecutive quarters of year-over-year increase in net earnings. Our adjusted growth margin was excess of 20% in the quarter, Achieving adjusting growth margin of 20% or more is one of our primary objectives. Our solid revenue in the quarter reflects higher revenue per metered grill in Canada and increased ring activity in South America. Our performance is also supported by a strong customer demand. The price of gold is currently at a historically high level, and the price of copper also remains strong. which provides a strong incentive for mining companies to continue to invest in mine exploration and development activities. We expect demand to remain positive from senior and intermediate companies despite the highly competitive environment. Demand from junior companies has been constrained due to the financing conditions, but we are starting to see increased financing activities on the junior side. We have a strong relationship in the junior mining sector and are well positioned to selectively pursue business with juniors when demand picks up again. We still have significant available grading capacity in Canada and the potential to extend our regional presence, and we can easily mobilize drill rigs with minimal capex as opportunities present themselves. I will now turn the call over to Pierre-Luc to review our results for the fourth quarter and fiscal 2025 in greater detail. Pierre-Luc?

Thank you, Daniel, and good morning, everyone. Revenue for our fiscal fourth quarter totaled $47.2 million, up from $45.3 million in Q4 last year. Canada revenue was $33.8 million in the quarter, an increase of 2.7%. from $32.8 million in Q4 a year ago, reflecting higher revenue per meter drilled. International revenue totaled $13.4 million, an increase of 7.0% from $12.5 million in Q4 a year ago, reflecting increased drilling activity in South America. Gross profits was $7.6 million, or 16.0% of revenue compared to $7.5 million or 16.6% of revenue in Q4 2024. Adjusted gross margin, excluding depreciation expenses and a gain on disposal of property, plant, and equipment was 20.2% in the quarter compared to 17.8% in Q4 2024. The increases in gross profit and adjusted gross margin were primarily attributable to higher revenue per meter drilled in Canada, increased drilling activity in South America, and the cessation of drilling activities in West Africa during Q2 2024, which were unprofitable. Adjusted EBITDA totaled $5.5 million, down from $6.7 million in Q4 last year. The decrease was primarily attributable to an unfavorable foreign exchange variance in startup costs for a new project in South America, partially offset by increased operating earnings in Canada. Net earnings for the quarter were $2.2 million, or 6 cents per share, diluted, compared to a net loss of $2.3 million, or 6 cents per share, diluted in Q4 last year. Our net earnings in Q4 this year were primarily attributable to the effect of the substantial modification of a receivable and expected credit loss and the reclassification of cumulative translation adjustments in Q4 a year ago related to our exits from West Africa, partially offset by slight reduction in consolidated operating earnings, a reduced income tax recovery, and an unfavorable foreign exchange movement. For fiscal 2025, We generated revenue of $189 million, an increase of 4.3% compared to fiscal 2024. Canada revenue totaled $136.1 million for fiscal 2025, an increase of 2.6% compared to fiscal 2024, reflecting higher revenue per meter drill. International revenue for fiscal 2025 totaled $53.7 an increase of 9.0% compared to fiscal 2024, reflecting increased drilling activity in South America. Gross profit for fiscal 2025 was $28.3 million, or 15.0% of revenue, compared to $21.2 million, or 11.7% of revenue in fiscal 2024. Adjusted gross margin excluding depreciation expense and a gain on disposal of property, plant, and equipment was 19.5% in fiscal 2025 compared to 15.9% in fiscal 2024. The increases in gross profit and adjusted gross margin were primarily attributable to higher revenue per meter drilled in Canada, increased drilling activity in South America, and the cessation of our drilling activities in West Africa during Q2 2024. Adjusted EBITDA to hold $21.7 million in fiscal 2025 compared to $14.7 million in fiscal 2024. The increase reflects higher operating earnings in both Canada and South America and a favorable foreign exchange variation. Net earnings for fiscal 2025 were $7.5 million or $0.20 per share diluted compared to a net loss of $2.4 million or $0.06 per share diluted in fiscal 2024. Our net earnings in fiscal 2025 were primarily attributable to increased operating earnings in both Canada and South America, the effect of a substantial modification of our receivable and expected credit loss, and the reclassification of cumulative translation adjustments in Q4 2024, interest revenue on the long-term receivable related to the sale of our assets in West Africa, and a favorable foreign exchange variation partially offset by increased income tax expense. Turning to our balance sheet, we repaid a net amount of $7.5 million on our credit facility in fiscal 2025 compared to a net repayment of $0.7 million in fiscal 2024. Our long-term debt under the credit facility, including an undrawn $5.0 million revolving credit facility and the current portions, was $14.0 million at year end compared to $21.5 million at year end fiscal 2024. Pursuant to our normal course issuer bid, we repurchased and canceled 68,916 of our common shares at a weighted average price of $0.82 per share during fiscal 2025. Our issuer bid formally terminates on October 30th this year. We believe that our capital allocation initiatives in paying down debt and buying back shares during fiscal 2025 will help drive further value creation for shareholders. Our working capital at year-end totaled $50.4 million compared to $48.6 million at the end of fiscal 2024. I will now turn the call back to Daniel for closing comments.

Thank you, Gareth. Let me close by reiterating that we embark on an important strategic shift a few years ago, and I'm extremely pleased with how the company has responded to this plan, and we are seeing the result of these efforts. 2025 marked our best financial performance over the last 10 years, and I like the dedication of the entire Orbit Guarantee. Our strategic focus on Canada and South America Discipline business strategy and continuous operational improvement programs are working well for us, and we are going to stick on it as we continue to work hard to strengthen our market position and profitability. Metal prices are also trending positively for us, with gold prices spiking to record levels this year, Gold miners are highly motivated to increase their mineral, mineral reserve and resources, but they need to spend money on drilling to prove them up. We generate more than 60% of our revenue from gold drilling operation in fiscal 2025, and we are therefore well positioned to benefit from gold exploration and development spending. have also been strong this year, even with economic concern related to Calais. We believe this reflects the strong demand outlook for copper, a mineral that is necessary for the ongoing electrification of the global economy. We are well positioned to benefit from increased exploration and development spending related to copper with our presence in Chile, the largest copper-producing country in the world. With the right strategic focus and supportive industry fundamentals, we believe that we are well positioned to drive heaven's profitability in a substantial basis and build long-term value for our shareholders. That concludes our formal remark for today. We will now welcome in question. Virginia, please begin the question period.

We will now begin the question and answer period. In order to ask a question, simply press star followed by the number one on your telephone keypad. Again, for any questions, please press star one. We'll pause for just a moment to compile the Q&A roster.

And as a reminder to ask a question, that is star followed by the number one on your telephone keypad. We have no questions at this time.

Daniel, are there any closing remarks?

Yes, thank you, Virginia. Thank you, everyone, for participating today. We look forward to speaking with you again soon. Bye-bye.

This concludes our call today. Thank you all for joining. You may now disconnect.