Black Diamond Group Limited Signs Long-Term Renewal on Workforce Housing Camp in the SAGD Region of Alberta’s Oil Sands
CALGARY, ALBERTA–( Aug. 4, 2015) – Black Diamond Group Limited (“Black Diamond” or the “Company”) (TSX:BDI), a leading provider of workforce accommodation and modular workspace solutions, today announced that it has renewed a workforce housing camp contract in the steam assisted gravity drainage (“SAGD”) region of Alberta’s oil sands.
“We continue to work closely with our oil sands customers through this challenging commodity price environment,” said Trevor Haynes, Chairman and CEO of Black Diamond. “This contract is a great example where, by working closely with our customer and taking a flexible approach to meeting their needs, we have been able to retain their business.”
The renewal for 448 beds is expected to generate rental and logistics revenue of $26 million over its two year term. The contract includes a minimum guarantee of $16 million in revenue and an option to extend the term for one additional year (for a total of three years) at the same rates. The renewal is effective August 15th, 2015.
About Black Diamond
Black Diamond rents and sells portable workforce accommodation and work space solutions to business customers in Canada, the United States and Australia. We also provide specialized field rentals to the oil and gas industries of Canada and the United States. In addition, we provide turnkey lodging services, as well as a host of related services that include transportation, installation, dismantling, repairs, maintenance and ancillary field equipment rentals. From twenty locations around the world, we serve multiple sectors including oil and gas, mining, power, construction, engineering, military, government and education.
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Certain information in this news release contains forward-looking statements including management’s assessment of the projected revenue to be generated from the contract. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond’s control including, without limitation, 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, 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 reports on file with Canadian securities regulatory authorities and 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 contracts, 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 contracts. 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