Peers showing recovery well under way - the diffenece here is...

Peers showing recovery well under way - the diffenece here is that BLY has almost ZERO DEBT. The interest savings on the previous years equates to over 30 million dollars based on previous announcements - moving from over 700 million in debt to around 40 million is not reflected in the share price as management have to meet - if not exceed on the upside. Macwank when floating this puppy loaded it with crippiling debt - thats gone. So, when will the company be reweighted ?

Look to Major Drilling ( a smaller compeditor) and i expect a profit upgrade very soon.

____>TSE announcement Q410 up 47%

Major Drilling posted quarterly revenue of $97.4 million, up 47 percent from the $66.4
million recorded for the same quarter last year.
�� Net earnings were $3.2 million or $0.14 per share for the quarter compared to a net loss
of $4.6 million or $0.19 per share for the prior year quarter.
We continue to see a sequential recovery by region. Six months ago, we saw activity increase
primarily in Chile and Argentina. In this past quarter, Canada posted a strong recovery with a
revenue increase of more than 125 percent over the same period last year. Overall, revenue
increased by 47 percent. Currently, we are seeing a much more general resumption of activities
around the world and if customers move forward with their stated plans, we expect year-overyear
growth to continue at a similar pace for the upcoming year. The quarter-over-quarter
increase in revenue came from improved rig utilization as pricing remains very competitive.
This growth is despite the unfavorable year-over-year foreign exchange translation, which
reduced our revenue in Canadian dollars by more than $10 million, said Francis McGuire,
President and CEO of Major Drilling. During the quarter, the Company had net earnings of
$3.2 million or $0.14 per share.
At this point, the bulk of the increased activity is coming from intermediate mining companies
and junior mining companies with advanced properties. While senior companies have increased
their exploration budgets for calendar 2010, spending has not yet rebounded to their pre-financial
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crisis levels. Early stage exploration companies have shown little increase in activity as they are
still experiencing difficulties in getting financing, said Mr. McGuire.
Margins in this quarter were affected by training, mobilization and setup costs in both the
mineral and energy sectors but should improve as the year goes by. Also, in Australia, we are
working our way out of some low-margin contracts while heavy rain and client delays continued
to have a very negative impact on our Australian energy operations with 180 drill days lost
during the quarter.
Although this has been a very difficult year, we ended the year with break-even profitability
while maintaining our core capabilities and financial strength, which positions us well for the
anticipated upcoming increase in activity.
Looking ahead to fiscal 2011, we have a positive but cautious view. Our global utilization rates
are expected to continue to improve as each month goes by. Some of our regions have reached
high levels of utilization, which could lead to a more positive pricing environment. Most of our
other regions should see a pickup in utilization but pricing is likely to remain competitive.
Net capital expenditures for the quarter were $7.3 million for a total of $24.5 million for fiscal
2010. In the quarter, we purchased 2 additional rigs while retiring 10 rigs through our
modernization program. The Company expects to spend $50 million in capital expenditures in
fiscal 2011, with the intent of purchasing 50 rigs that are much better tailored to the market. We
expect that 30 of the rigs will replace older rigs that had very low utilization rates. During the
quarter, we also added a significant amount of support vehicles and equipment to meet these
changing patterns of demand and our new safety standards. Through this, we plan to continue
our efforts to improve rig utilization and reliability.
The expected increase in utilization and some increases in pricing should provide considerable
leverage to increase revenue, margins and profits. A shortage of experienced drill crews is reemerging
as a factor, which will put some pressure on productivity and margins as we go
forward.
When we experience significant increases in activity, the Company always has a temporary
drain on cash due to working capital requirements as more rigs are started. This occurred this
quarter as cash levels, net of long-term debt, dropped to $6.3 million. Cash levels should rebuild
as receivables are collected, stated Mr. McGuire.

Krudd and the Super mega profits banks are next tax.

Swannie and Krud have managed to send Aust back into the era of safari suits and bell bottoms - its nice every now and the to have the govt live our lives for us, its nice to let the smart kid have his day - but as Kevin Whitlem will soon figure out as the door of the lodge hits him on the arse as he's tossed out in September.

Go BLY BABY !
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