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Energold Announces Record First Quarter Results
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Energold Drilling Corp. (EGD: TSX.V) ("Energold" or "the Company") is
pleased to announce its 2007 first quarter results. Earnings for the
quarter were $819,000 (2006 - $420,000), up 95% from the 2006 earnings,
which have been restated to record a dilution gain on the Company's
investment in IMPACT Silver Corp (IPT: TSX.V) ("IMPACT"). Gross
revenues were $7.47 million on 53,000m of drilling up 82% from gross
revenues of $4.10 million on 32,000m in the comparable quarter of 2006.
Fully diluted earnings per share were $0.04 up from a restated $0.02 in
the comparable quarter.
The Company ended the quarter with a very strong balance sheet with a
net consolidated working capital position of $19.6 million, an increase
of over $5.5 million from its net consolidated working capital position
of $14.1 million at March 31, 2006. Consolidated group cash and cash
equivalents at the end of the quarter were $9.4 million and accounts
receivable totalled $7.0 million. The investment in drilling
inventories increased to $8.6 million at March 31, 2007. Our balance
sheet strength also does not reflect the current market value of our
equity investment in IMPACT. Based on closing market prices at May 25,
2007, the investment has a current quoted market value of $10.7
million. This is $7.8 million more than our carrying value. Energold
had 22.93 million shares outstanding as of March 31, 2007.
Subsequent to the first quarter end, on May 15, 2007, as part of a
private placement, the Company sold 6,830,000 units at a price of $2.20
per unit. Each unit consists of one common share and one-half share
purchase warrant. One full warrant entitles the holder to purchase an
additional share of the Company at a price of $2.85 per share until May
15, 2008. The Company paid an underwriter's commission in the amount of
$1,051,820 and also granted to the underwriter 478,100 "compensation
options" entitling the underwriter to acquire up to 478,100 units at a
price of $2.20 per unit for a period of twelve months under the same
terms and conditions as the private placement. The net funds received
from the private placement have been added to the Company's working
capital and will be used to enhance the growth of its future
operations.
First Quarter Results Comparison (Canadian $ 000's except per-share
amounts and meters drilled)
March 31 2007 2006*
Income before Taxes 1,237 591
Net Income 819 420
Earnings Per Share - Basic 0.04 0.02
- Diluted 0.04 0.02
Cash and Term Deposits 9,429 4,756
Consolidated Working Capital 19,607 14,082
Metres Drilled 53,000 32,000
* restated to record dilution gain on investment in IMPACT.
The Company fully consolidates its wholly owned subsidiaries and its
50.01%-owned Pac Rim Drilling S.A.C., and 50%-owned subsidiary Kluane
International Drilling Inc. and its affiliates. The Company's 16.4%
interest in IMPACT is accounted for on an equity basis. As at the end
of March, the Company had a total of 30 drills, either jointly or
wholly-owned being mobilized or in the field and a further two drill
rigs under construction.
The increase in the overall level of activity reflected the existing
demand within the industry and the growth of the Company's particular
niche within that industry. With the exception of Central America,
every region experienced significant growth. The efforts of prior years
provided the establishment of the infrastructure necessary to handle
this increase and the Company is anticipating further growth in 2007.
The Company added two new rigs during the quarter, and plans to more
deeply penetrate certain existing markets while expanding into at least
one new market.
The Company will be reviewing its 2007 First Quarter results via the
Internet at 4:00 pm ET, 1:00 pm PT, Thursday May 31. The webcast (audio
only) can be accessed at:
http://events.onlinebroadcasting.com/energold/053107/index.php and will
feature management discussing the Company's financial and operational
results ending with a question-and-answer period. Investors are
encouraged to forward any questions they may have to info@energold.com.
Energold Drilling Corp. is an environmentally- and socially-sensitive
diamond drilling company that services the mining industry. Energold
holds 6.6 million shares of IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling Corp.
"Frederick W. Davidson"
President, CEO
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
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Copyright (c) 2007 ENERGOLD DRILLING CORP. (EGD) All rights reserved.
For more information visit our website at http://www.energold.com/ or
send mailto:info@energold.com
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