Black Diamond Group Signs 1,244 Person Camp Installation & Rental Contract
CALGARY, ALBERTA--(Marketwired - May 26, 2014) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI) is pleased to announce it has secured a 1,244 person camp contract in the prolific Montney Shale region of northeastern British Columbia. The Company expects to generate approximately $34 million of revenue over the term of the three year contract. The first phase of 622 beds is expected to be installed during the second half of 2014, with rent starting January 2015. The remaining beds are anticipated to be deployed by April 2015. Black Diamond will fund the project from its previously announced 2014 capital budget. The Company anticipates that a portion of the capital spend related to this project will be deployed in the first quarter of 2015.
About Black Diamond
Founded in 2003, Black Diamond Group Limited is one of the fastest growing remote lodging, modular building and energy services companies worldwide. With its corporate head office located in Calgary, Alberta, Black Diamond provides world-class services to a wide spectrum of industries including oil and gas, mining, power, construction, engineering, military, government and education.
Through its direct and indirect wholly-owned subsidiaries and its approximate 50% equity participation in certain aboriginal limited partnerships, Black Diamond operates four complementary business units in nineteen strategic locations across Canada, the United States and Australia.
Black Diamond Structures rents and sells remote workforce housing and modular workspace solutions and provides associated services; Black Diamond Logistics provides turnkey lodging services, remote facility management and supply chain solutions; Black Diamond Energy Services rents and sells a complement of oilfield equipment and services and Black Diamond International rents and sells remote workforce housing and modular workspace solutions and provides associated services outside of North America.
Certain information in this news release contains forward-looking statements including management's assessment of the projected revenue to be generated from the camp contract, the timing of the installation of the first phase of the camp contract and the commencement of rent therefrom, the timing of the installation of the remaining beds covered by the camp contract, how the project will be funded, and the timing of the deployment of such funding. With respect to the forward-looking statements contained in this news release, Black Diamond has made assumptions, regarding among other things: that the counterparty to the camp contract will perform the contract as written, that there will be no unforeseen material delays in the project and that Black Diamond will continue to conduct its operations in a manner consistent with past operations. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, dependence on agreements and contracts, unexpected capital expenditure costs, delays in projects, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in Black Diamond's annual information form for the year ended December 31, 2013 and other reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Future Oriented Financial Information
This news release, in particular, the projected revenue to be generated from the camp contract, contains Future Oriented Financial Information ("FOFI") within the meaning of applicable securities laws. The FOFI has been prepared by management of the Company to provide an outlook of the Company's future activities and anticipated results and may not be appropriate for other purposes. The FOFI has been prepared based on a number of assumptions including assumptions with respect to the terms of the camp contract. The actual results of the operations of the Company and the resulting financial results may vary from the projections set forth herein, and such variations may be material. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments.
Black Diamond Group Limited - Investor Relations Contact
Senior Financial Analyst