Investment Highlights:
- Timberline Resources Corporation (“Timberline”, “the company”) completed the previously announced acquisition of Staccato Gold Resources Ltd.
- In June 2010, TLR announced that the company’s wholly-owned subsidiary, Timberline Drilling, has extended its existing underground and surface drilling contracts into 2014 with Newmont (NYSE: NEM), a significant client of the company.
- Timberline Drilling has also secured three contracts for core drilling with junior exploration companies starting in Q4-2010.
- Timberline has successfully extended its $5 million convertible loan, originally due on October 30, 2010, to April 30, 2012.
- Q2-2010 revenues were $5.26 million, compared to $3.49 million in Q2-2009. The increase was primarily due to increased demand for drilling services; Q2-2010 net loss was -$0.91 million (EPS: -0.02), compared to -$1.21 million in Q2-2009 (EPS: -0.03), which was inline with our expectations.
- We have introduced our revenue/eps forecasts in this report. We expect the company to generate total revenues of $21.54 million and a net loss of -$4.22 million (EPS: -0.08) in FY2010, up from $17.57 million and – $7.31 million (EPS: -0.22) in FY2009, respectively.
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