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Energold Announces Record First Quarter Revenue And Profit
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Energold Drilling Corp. ("Energold") is pleased to announce its 2008
first quarter results. Gross drilling revenues for the first quarter
were $8.6 million up 48% from $5.8 million in the first quarter of
2007. Net income for the first quarter was $1.7 million, up 116% from
$800,000 (including $308,000 from discontinued operations). Energold
drilled 56,862 metres in the quarter compared to 31,300 for 2007. The
Company ended the quarter with a very strong balance sheet with a fully
consolidated working capital position of $36.1 million, an increase of
over $16.5 million from its net consolidated working capital position
of $19.6 million at March 31, 2007. Consolidated group cash and cash
equivalents at the end of the quarter were $20.6 million.
First Quarter Results Comparison (Canadian $000's except per-share
amounts and meters drilled)
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March 31 2008 2007(i) % Change
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Revenue 8,624 5,844 48
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Net Income 1,769 819 116
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Earnings Per Share - Basic 0.06 0.03
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- Diluted 0.05 0.03
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Cash and Term Deposits 20,672 7,095 191
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Consolidated Working Capital 36,100 19,600 84
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Meters Drilled 56,862 31,300 82
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(i) 2007 Results (excluding Meters Drilled) include both Continued
and Discontinued Operations
The contract drilling industry remains highly cyclical with a slow-down
experienced in the months on either side of the Christmas holiday and
high season occurring during late summer. The production mix during
the quarter varied as more drill contracts reflected price increases
driven by the declining U.S. dollar. As a result, the average revenue
per meter exceeded $150.00, compared to last year's average of $135.00.
As anticipated, start-up situations in new markets and rig
mobilizations contributed to increased operating costs. Even with the
large number of rigs being mobilized, margins remained at about 40%.
Over the next two to three years, Energold is focusing its efforts on a
number of key objectives, including increasing its market share. More
of the industry's interest is becoming focused on "frontier areas"
where the lack of infrastructure has held back exploration in the past.
As a direct result of this, Energold believes that the demand for its
style of drilling is expanding faster than the industry as a whole.
New contracts and requests for tenders suggest that the balance of 2008
will continue to be extremely busy.
Energold is also continuing its investment in drill rig development.
The Series III model continues to provide enhanced depth capabilities
well beyond 800 meters. In January 2008, the Series III model was
recognized by the prestigious London-based Mining Magazine in the
category of Exploration for Capital Equipment. Combined with a new
program of redesign and retrofitting of older models, improved
performance capabilities from the drill fleet in the coming year are
anticipated.
The Company will be discussing its 2008 First Quarter Earnings results
and hosting a question-and-answer period via a conference call at 12:00
pm PT, 3:00 pm ET, Monday, June 2, 2008. The dial-in numbers are 416
695 9745 or 800 355 4959.
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) 2008 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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