Business
ENERGOLD ANNOUNCES FIRST QUARTER RESULTS
ENERGOLD ANNOUNCES FIRST QUARTER RESULTS
About this update from Impact Silver Corp.
[{"type":"text","content":"\nENERGOLD ANNOUNCES FIRST QUARTER RESULTS\n\n\n May 28, 2010 (TheNewswire.ca) -- Energold Drilling Corp. (EGD: TSX.V)(\"Energold\" or \"the Company\") is pleased to announce continued increased demand for drilling services in the first quarter resulting in 54,362 meters drilled, up 165% from 20,490 meters in the first quarter of 2009. The Company experienced an increased level of activity across all geographic markets. Over 25,000 meters were drilled in April 2010; the strongest month since the third quarter of 2008, demonstrating the general recovery in the industry. However, pricing still remains below traditional levels due to a significant portion of the Company's drilling programs being conducted at mine sites, which command lower prices than the Company's traditional frontier drilling. As the Company shifts back towards a greater amount of frontier drilling average drilling prices will increase.Revenues in the first quarter were $8.1 million, up 110% from $3.9 million in the first quarter of 2009, and up 12% from the prior quarter. Energold incurred a net loss of $1.4 million, largely due to an unrealized foreign exchange loss of $0.5 million. Gross margin increased to $1.2 million, up 39% from $0.9 million in the first quarter of 2009.The Company remains in excellent financial position with a working capital position of $44.7 million and cash and cash equivalents of $12.8 million and no long-term debt. The Company's balance sheet strength also does not reflect the market value of its equity investment in IMPACT Silver Corp. (TSXV:IPT) (IPT: TSX-V). The Company's 13.69% interest in IMPACT Silver Corp. is accounted for on an equity basis. Based on closing market prices at May 27, 2010, the investment has a quoted market value of $7.8 million, which is $4.1 million more than our carrying value.First Quarter Results Comparison\n Three Months Ended March 31 \n 2010 2009 \nRevenues ($CAD 000s) 8,072 3,851 \nGross margin ($CAD 000s) 1,190 858 \n \nNet earnings (loss)($CAD 000s) (1,357) 403 \nEarnings per share - Basic ($CAD) (0.04) 0.01 \n- Diluted ($CAD) (0.04) 0.01 \n \nMeters drilled 54,362 20,490 \n \n Balances at \n March 31, 2010 Dec 31, 2009 \n \nCash and cash equivalents ($CAD 000s) 12,825 18,460 \nWorking capital ($CAD 000s) 44,681 46,519 \n \nRig fleet 91 80 \nAs expected, the first quarter proved to be a substantial ...