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Energold Announces Record Second Quarter Revenue And Profit
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Energold Drilling Corp. ("Energold") is pleased to announce record 2008
second quarter results. Gross drilling revenues for the second quarter
were $11.4 million, up 91% from $6 million in the second quarter of
2007. Net income from continuing operations for the second quarter was
$2.4 million, up 54% from $1.5 million. The Company ended the quarter
with a very strong balance sheet with a fully consolidated working
capital position of $43.6 million. Consolidated group cash and cash
equivalents at the end of the quarter were $20.4 million.
Second Quarter Results Comparison (Canadian $000's except per-share
amounts and meters drilled)
Click link below to view table:
http://www.energold.com/s/NewsReleases.asp?ReportID=316965
Energold has drilled a record number of meters for the second quarter
of over 63,000 meters, up 65 per cent from 38,000 meters in the
comparable quarter of 2007. For the first six months Energold drilled
120,000 meters (70,000 meters -- 2007). Strong growth in Mexico and
Africa provided, once again, the largest increases for the period.
Energold commenced the second quarter with 49 drill rigs. Through the
quarter, 20 additional drill rigs were added bringing the total number
of rigs operating or being mobilized at the end of the second quarter
to 69. However, the effect of these additions on revenues and meters
drilled will not become apparent until the second half of the year.
Six of these newly added rigs came through acquisition, the remainder
through organic growth. Energold ordered another seven drills
subsequent to the end of the second quarter. They are anticipated to
be delivered over the next three to four months.
Energold's rapid expansion of its drilling capacity is designed to
respond to continued significant demand in its industry segment. By
the end of the second quarter, the average revenue per meter had risen
to $179 per meter compared to $135 per meter in 2007
Investment in drilling supplies inventories to support continuing
operations increased to $14.4 million, up from $8.7 million at December
31, 2007. The increase in the carrying values of inventory is
attributable to: higher supply prices, outfitting new drill rigs and
the decision to increase inventories in the field. Due to the need to
be self-sustaining in remote operating locations, Energold estimates
that it requires an investment in inventory of approximately $225,000
for each new drill that is put into the field. In certain countries,
the Company has also built strategic inventories in order to reduce
time delays experienced in clearing customs.
Of the more than 15 countries with ongoing operations, Mexico has
become the largest. Energold had approximately 15 rigs in Mexico at
the end of the quarter, with two more being mobilized in comparison to
four rigs at the end of March 2006. Clientele are primarily larger
companies with a considerable portion of the drilling occurring at
either existing mines or major projects with multiple drills. With
additional crews and improved local logistics, additional rigs
(including two underground drills) will be added in response to the
continuing demand for the balance of 2008. Energold anticipates ending
the year with approximately 20 rigs in Mexico.
Energold is now active throughout most of Latin America and has
currently 13 rigs in sub-Sahara Africa, with five more to be delivered
to Africa in the third quarter of 2008.
Energold will be discussing its 2008 Second Quarter Earnings results
and hosting a question-and-answer period via a conference call at 1:00
pm ET, 10:00 am PT, Thursday, August 28, 2008. The dial-in numbers are
(416) 695 9745 and (800) 355 4959. The webcast (audio only) can be
accessed at: .
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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