Click here to close now.


Microsoft Cloud Authors: Jayaram Krishnaswamy, Elizabeth White, Andreas Grabner, Jim Kaskade, Pat Romanski

News Feed Item

Energold Drilling Announces Third Quarter 2012 Financial and Production Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/26/12 -- Energold Drilling Corp. (TSX VENTURE:EGD) ("Energold" or "the Company") announces year-to-date revenues of $115.8 million, an 18% increase from $98.2 million for the nine months ended September 30, 2012.

During the third quarter, the Mineral division drilled 92,300 meters, a decrease of 46% compared to Q3 2011, due to the continued weakness in the overall capital markets. The division remains profitable, generating $17.3 million in revenue this quarter and a net earnings of $0.6 million. The Energy division drilled 61,700 meters during the third quarter, generating $9.0 million in revenues, while the division's year-to-date revenues increased 302% to $38.9 million compared to the same period in 2011. The Manufacturing division's revenue for the first nine months in 2012 was $11.4 million, a 16% increase from $9.8 million in the comparable period in 2011.

Excluding non-cash and extraordinary items such as bonus acquisition expense for Energold Energy Drilling Services ("EEDS"), foreign exchange, and share-based payments, Energold generated $2.1 million in adjusted EBITDA on combined gross margins of 21%. Without the adjustments, the Company recorded a net loss of $2.5 million in Q3 2012. Fred Davidson, President and CEO, states, "Our results this quarter reflect the uncertain business environment, the decline in activity in some markets due to ongoing external factors including politics, weather issues, and difficulty in accessing capital for junior exploration companies. The Company's revenue remains robust in several diversified markets, with a strong senior and intermediate clientele who are committed to their projects."

Energold's growth has been significant over the past three years, and has broadened its revenue base to diversify the risk exposure of a purely mineral based business. EEDS in Alberta and the Manufacturing division, operating as Dando in the U.K., continue to perform above management's expectations. In the current period of softer demand for mineral exploration, the Company is leveraging relationships from its market leading position in frontier drilling and expand complementary service offerings to existing clients. Energold is focused on identifying new growth opportunities, increasing productivity, and capitalizing on synergies for growth within the Energy and Manufacturing divisions. With $27.8 million in the treasury, and over $96.0 million in working capital, management believes the Company remains in an enviable position to weather the current market environment and capitalize on acquisition opportunities.

Third Quarter Results Comparison
($CAD '000s except per-share amounts and meters drilled)

                                       For Three Months     For Nine Months
                                     Ended September 30  Ended September 30
                                         2012      2011      2012      2011
                 Mineral               17,251    31,244    65,468    78,684
                 Manufacturing          3,603     6,113    11,414     9,821
                 Energy                 9,036     9,676    38,928     9,676
Total Revenue                         $29,890   $47,033  $115,810   $98,181
Earnings (Loss)                                                            
                 Mineral                  628     7,910     4,102    14,198
                 Manufacturing           (288)      571      (294)     (204)
                 Energy                (2,848)     (291)   (7,463)     (291)
Total Earnings                        $(2,508)   $8,190   $(3,655)  $13,703
     Earnings Per Share     - Basic     (0.05)     0.20     (0.08)    (0.34)
                          - Diluted     (0.05)     0.20     (0.08)    (0.33)

(i) EBITDA - Earnings before interest, taxes, depreciation and amortization (see non-GAAP (generally accepted accounting principles) financial measures).

(ii) Adjusted Earnings - Extraordinary and non-cash items include bonus expense to Energold Energy, accretion expense on debenture, share-based payments, foreign exchange, dilution and equity gain/loss on IMPACT, impairment/write-down of assets.


Meters drilled during the third quarter decreased over the comparable quarter in 2011 as a result of the challenging capital markets, particularly in the junior mining sector. The Mineral division drilled 92,300 meters in the quarter, a 46% decrease from the comparable quarter in 2011 generating revenues of $17.3 million, a 45% dip from the comparable period in 2011. Average revenue per meter was $192 in the first nine months of 2012 compared to $174 in 2011. Management anticipates this to trend lower as excess rig capacity in the markets may lead to lower competitive bids. Gross margin percentage is historically tied to the business mix of frontier-style drilling and established brownfield drill programs, with the latter moving the average revenue per meter lower. With a higher percentage of programs dedicated to majors' brownfields projects during the third quarter, gross margin was 28%, compared to 31% in the comparable period 2011.

Meters Drilled During the Quarter

                                                         9 Months  9 Months
                                      Q3 2012   Q3 2011      2012      2011
Meters Drilled                         92,300   170,300   341,700   451,400
Drill Rigs                                130       122       N/A       N/A

As of September 30, 2012, Energold had a total of 130 mineral exploration rigs, with two track mounted rigs on order from the Manufacturing division, Dando. Mexico, the Caribbean, and Central America and accounted for over 52% of the meters drilled for the third quarter of 2012 with 45 rigs in the region. With local offices in Mexico City and a depot in Chihuahua to service field operations, the Company has expectations of further growth in Central America. South America currently has 42 drill rigs across Brazil, Colombia, Peru, Chile, and Argentina, contributing 21% of the total meters drilled for the quarter. During the quarter, demand stabilized in Brazil after declines in the second quarter; however costs remain elevated to retain key personnel. The market, in general, saw rapid growth in 2010 and 2011, but has recently experienced a decline in activity and utilization and increasing political risk. Colombia's growth remained positive, with several ongoing programs and commitments from existing clients in the area. The modular S rigs continue to be well suited for challenging and remote projects within this region and the Company expects the area to pick up as macro-economic issues continue to resolve. Energold currently has 40 rigs in Africa, and meters drilled here accounted for 27% of total meters drilled in the mineral division, a 7% increase from the comparable quarter in 2011. Additionally, there are currently two rigs in Asia, with efforts continuing to penetrate the Asian market where the Company's S rigs are ideal for the combination of challenging infrastructure and low labour costs.


EEDS generates the majority of its revenue during the winter months due to favorable ground conditions. As expected, the historically lower levels of activity during the third quarter resulted in a slight decrease in revenue of $9.0 million during the third quarter compared to $9.7 million in the third quarter of 2011. There were no seismic contracts worked on during the quarter; however, there are several outstanding tenders.

Oil sands operations account for $7.0 million revenues for the third quarter and $23.9 million of year-to-date revenue, approximately 61% of total revenues in EEDS. The Company drilled for oil sands clients despite the warmer months, a sign of the backlog of work available in the industry. As a testament to the robustness of the industry, in August 2012, EEDS was awarded multi-year energy drilling contracts valued at $45 million annually, scheduled to commence in 2013 (see News Release dated August 21, 2012: Currently, all of EEDS's oil sands rigs are committed for the 2012 to 2013 winter season, and management's growth target for 2013 is 25% to 50% above the 2012 figures.

Meters Drilled During the Quarter

                                                                   9 Months
                                                          Q3 2012      2012
Oil Sands coring                                           14,000    50,200
                                                           47,700   205,500
Seismic (Track and Heli portable)                               -   335,500
TOTAL                                                      61,700   591,200


Energold Manufacturing, operating as Dando, continued to expand its business clientele and marketing globally, generating $3.6 million in revenue accounted for using the percentage-of-completion method during the quarter, while incurring a net loss of $0.3 million this quarter as the group continues to work through lower margin legacy contracts. Year-to-date, the division is growing with revenues of $11.4 million and gross margins of 23% compared to $9.8 million and margin of 18% in 2011. The Company expects a strong Q4 to close out 2012 with contracts being completed before year end. With a sizable order book globally resulting from the implementation of a structured approach to procurement, increased sales and marketing efforts and synergies, Dando manufactured and shipped a variety of mining and water rigs to Uganda, Kurdistan, Nigeria, Ghana, and Indonesia during the quarter.

As part of the efforts to strengthen internal competencies and efficiencies, Industrial Processes Chihuahua, S.A.C. ("IPC"), a manufacturing facility in Chihuahua, Mexico, acquired by Energold in 2011, is now supplying the group globally. Previously, IPC was producing specific parts for the Company's Mexican operations and provided ongoing support for rig fleets in the area only.

Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, and manufacturing sectors in over 22 countries globally. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to mine site operations for both metals and energy sectors and has an established drill rig manufacturer, Dando. Energold also holds 6.98 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.

On behalf of the Directors of Energold Drilling Corp.,

Frederick W. Davidson, President, CEO

Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
This week, the team assembled in NYC for @Cloud Expo 2015 and @ThingsExpo 2015. For the past four years, this has been a must-attend event for MetraTech. We were happy to once again join industry visionaries, colleagues, customers and even competitors to share and explore the ways in which the Internet of Things (IoT) will impact our industry. Over the course of the show, we discussed the types of challenges we will collectively need to solve to capitalize on the opportunity IoT presents.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in high-performance, high-efficiency server, storage technology and green computing, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and Embedded Systems worldwide. Supermi...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
SYS-CON Events announced today that Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, will keynote at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
The IoT is upon us, but today’s databases, built on 30-year-old math, require multiple platforms to create a single solution. Data demands of the IoT require Big Data systems that can handle ingest, transactions and analytics concurrently adapting to varied situations as they occur, with speed at scale. In his session at @ThingsExpo, Chad Jones, chief strategy officer at Deep Information Sciences, will look differently at IoT data so enterprises can fully leverage their IoT potential. He’ll share tips on how to speed up business initiatives, harness Big Data and remain one step ahead by apply...
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context w...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...