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Orbit Garant Drilling Inc. (TSX:OGD), one of the largest Canadian-based mineral drilling companies, has reported the 5th consecutive quarter of year-over-year domestic drilling revenue growth in its latest quarter

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Orbit Garant Drilling Inc. (TSX:OGD), one of the largest Canadian-based mineral drilling companies, has reported the 5th consecutive quarter of year-over-year domestic drilling revenue growth in its latest quarter. The company reported revenue of $24.3 million for the 1st quarter in its 2016 fiscal year, an increase of 17.1% from $20.7 million reported in the quarter ended September 30, 2014.

Additional Information:

Company: Orbit Garant Drilling Inc.
Website: http://www.orbitgarant.com/fr/sites/fog/Main.aspx
Stock Symbol: TSX:OGD
Date Published: Nov 16, 2015
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch media

Orbit Garant Drilling Inc. (TSX:OGD), one of the largest Canadian-based mineral drilling companies, has reported the 5th consecutive quarter of year-over-year domestic drilling revenue growth in its latest quarter.

The company reported revenue of $24.3 million for the 1st quarter in its 2016 fiscal year, an increase of 17.1% from $20.7 million reported in the quarter ended September 30, 2014.

Gross profit increased to $3.3 million from $2.0 million, with gross margins at 13.7% up from 9.5%.

The net loss was $200,000 or $0.01 per share, down from a net loss of $600,000 or $0.02 per share.

Working capital was $43.4 million, after paying down $1.9 million on its revolving credit facility.

Eric Alexandre, President & CEO stated: “These positive trends reflect the stabilization of our core business in Canada and our focus on growing our international market presence. Planned capital expenditures of $6.5 million for fiscal 2016 include the continued expansion of our fleet of computerized drill rigs and investments in our international operations to support our long-term growth objectives. We believe the establishment of our new operating subsidiaries in the strategic markets of Chile and Ghana last year have positioned Orbit Garant for enhanced future growth and we are currently evaluating opportunities to further strengthen our international platform.”

The company, based in Val d’Or, Quebec, provides both underground and surface drilling services in Canada and internationally through its 209 drill rigs and more than 600 employees.

The company provides a full range of services to major, intermediate and junior mining companies, and has long term relationships with companies such as Goldcorp, Glencore and Hecla.

The company’s fleet drilled a total of 269,000 metres in the quarter, an increase of 12.4% from the 231,000 metres drilled in the comparable period in fiscal 2015.

Average revenue per metre drilled was $91.04, up from $89.12.

The shares are trading at $0.64, and with 33.3 million shares outstanding, the company is capitalized at $21.3 million.

For more information, please visit the company’s website www.orbitgarant.com or contact Alain Laplante, VP and CFO at 819-824-2707 ext 122.

Investor relations is handled by Bruce Wigle, who can be reached at 647-496-7856 or email bruce.wigle@orbitgarant.com.

I’m Samantha Deutscher for Investmentpitch media