03:57:32 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Digger Resources Inc
Symbol DIG
Shares Issued 11,349,035
Close 2014-10-27 C$ 0.15
Market Cap C$ 1,702,355
Recent Sedar Documents

Digger loses $65,625 in fiscal 2014

2014-10-30 14:15 ET - News Release

Mr. Norman Yeo reports

DIGGER RESOURCES INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE TWELVE MONTH PERIOD ENDED JULY 31, 2014

For the year ended July 31, 2014, Digger Resources Inc.'s net loss and comprehensive loss amounted to $65,625 (0.5 cent per share), compared with net loss and comprehensive loss of $163,720 (1.4 cents per share) for the year ended July 31, 2013. For the fourth quarter of the 2014 fiscal year, net loss amounted to $29,283 (0.2 cent loss per share), compared with a loss of $67,339 (0.8 cent loss per share) for the fourth quarter of the 2013 fiscal year.

The attached table includes selected financial data for the fourth quarter and 12-month period ended July 31, 2014, and 2013.

                                                   FINANCIAL HIGHLIGHTS

                              Fourth quarter     Fourth quarter       12-month period    12-month period
                                       ended              ended                 ended              ended
                               July 31, 2014      July 31, 2013         July 31, 2014      July 31, 2013

Revenues and other income                  -                  -                     -                  -
Net income (loss) and
comprehensive loss                 $ (29,283)         $ (67,339)            $ (65,625)        $ (163,720)
Income (loss) per share
-- basic and diluted                  (0.002)            (0.006)               (0.005)            (0.014)
Cash flows relating to
operating activities                  (4,695)            (4,325)              (47,223)           (51,684)

It should be noted that share-based compensation for the 12-month period ended July 31, 2014, was $19,213, as compared with $111,731 for the same period in 2013, resultant from the issuance of new options in September, 2012. Share-based compensation represents a non-cash charge resulting from applying the fair value method on stock options issued. Management believes EBITDA (earnings before interest, income taxes, depreciation and amortization), a measure that is not compliant with international financial reporting standards, to be an important measure as it excludes the effects of items, which primarily reflect the impact of long-term investment decisions, rather than the performance of the company's day-to-day operations. EBITDA was ($45,932) for the year ending July 31, 2014, compared with ($51,669) in the year ending July 31, 2013. The adjusted EBITDA designates the net income before items not affecting cash, the foreign exchange gain or loss, financial expenses, interest income, and income taxes. This measure supplies useful and complementary information which allows, amongst others, to evaluate profitability and cash flows provided by operations.

Additional information in regard to the three- and 12-month periods ended July 31, 2014

The financial information in regard to the three- and 12-month periods ended July 31, 2014, should be read in conjunction with the company's audited consolidated financial statements for the period ended July 31, 2014, and the management's discussion and analysis dated Oct. 21, 2014. These documents are available on SEDAR and on the company's website.

Update

The company's principal business activity is, through the application of its high-definition reservoir geochemistry technology (HDRG), the development of an effective exploration technique as an adjunct to existing seismic methods, and to assist in the environmentally sound discovery and development of new oil and natural gas reserves through the detection of metallic and non-metallic ions in near-surface soil profiles.

In 2014 DIG's HDRG leach underwent an order of magnitude improvement in its sensitivity for key elements and isotopes known to target hydrocarbons in Arabia and North Africa, indeed globally. HDRG now has the ability to measure a number of isotope species at surface, via technology transfer from successful ionic geochemical metal exploration studies. This potentially provides DIG with an opportunity to isotopically fingerprint and define different sources (ages) of hydrocarbons. The company is currently working with ALS Ltd. on a plan to effectively market HDRG technology to third party oil and gas explorers and producers. ALS is an internationally diversified testing services organization employing over 6,000 staff in 160 locations and 40 countries with a presence on every continent, offering a broad range of analytical services to leading global companies, governments and academic institutions.

In that regard, HDRG orientation surveys for five petroleum companies (IPCs) in the Middle East were completed in 2014. The HDRG orientation surveys consisted of 555 samples to evaluate the potential offered by the HDRG surveys, over both dry and oil-filled structures, and to determine whether the results from these HDRG surveys matched, in the estimation of the IPCs, the subsurface hydrocarbon distribution. The orientation surveys were subjected to a rigorous chain-of-custody set of procedures, thereby ensuring that there is no way in which DIG could interfere or tamper with the collection, shipping, analysis or interpretation of the results from this study. There will be no payment by the IPCs to DIG for the surveys unless the HDRG survey outcomes include:

  • Confirmation from the IPCs that HDRG anomalies corresponded with known oil and gas production reservoirs;
  • Confirmation from the IPCs that the HDRG anomalies showed previously recognized and new element signatures.

If the IPCs in fact confirm that the HDRG surveys were a success, they will pay to DIG $200 per sample collected and analyzed within 30 days of said confirmation. This could, assuming that all of the 555 samples collected are analyzed, result in revenues to the company of $111,000 and significant follow-up HDRG surveys. The findings in connection with the surveys are now being presented to the IPCs in a report format, and their confirmation is expected before the year-end.

Outlook

The company will continue to closely monitor its level of cash while targeting a capital structure allowing for the realization of its business plan, including the sales and marketing of its HDRG technology. By increasing its visibility and brand awareness through its association with ALS, DIG believes that its business will eventually experience sustained growth.

We seek Safe Harbor.

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