COVID-19 Information

TORONTO, March 24, 2020 (GLOBE NEWSWIRE) – FORACO International S.A. (“Foraco” or the “Company”) (TSX: FAR) announces that it has been closely monitoring the latest developments of the COVID-19 coronavirus pandemic and the outbreak’s impacts on the Company’s operations and business preparedness plans. Foraco continues to hold the health and safety of its employees, contractors and communities that it conducts business in as a top priority. Company-wide crisis response plans were activated earlier this month as part of the Company’s crisis management protocols at all of its sites and offices around the world.

 

The Company has directed that all non-essential business travel be suspended and has shifted the Company’s corporate and regional offices to work from home arrangements where possible. At the Company’s job sites that are still operating, the Company has increased screening procedures, issued directives regarding social distancing, restricted visitors, and now requires routine temperature checks for all employees to ensure a safe environment for operations to continue as usual as possible. These decisions reinforce the Company’s objective of preventing the transmission of the COVID-19 virus among its employees, contractors and the communities in which is conducts business to the extent possible.

 

To the knowledge of the Company, as of today’s date none of the Company’s employees have been diagnosed with the COVID-19 virus, and most of the Company projects are operating normally. Certain projects have been paused in Australia, Argentina, Canada and Brazil in response to the COVID-19 pandemic. Some countries in west Africa have just closed their borders and the impact of these decisions is unknown. The situation remains volatile and it is difficult to predict how the Company’s operations will be affected as a result.

 

Chairman and Chief Executive Officer Daniel Simoncini said, “during this uncertain time the Company has closely monitored the very fluid situation, constantly updating scenarios, reviewing the latest guidance from the international medical community and strictly following recommendations and instructions of governments in the jurisdictions where we operate. The corporate team and each country’s management teams are in continuous contact to monitor the situation. Daily updates are received from each of the jobsites and offices. The Company also communicates regularly with employees, contractors and local communities on matters relating to COVID-19 and how to best protect against infection.”

 

In addition to Foraco’s normal contingency planning, the Company has reviewed its supply chain as part of its current crisis exposure and implemented certain additional contingency plans to minimize disruptions to its supply chains in light of borders closures, travel restrictions and manufacturing suspensions.

 

Vice Chief Executive Officer and Chief Financial Officer Jean-Pierre Charmensat said,

 

Foraco continues to prudently manage its liquidity position. We are currently evaluating various options to minimize our cash burn, including deferrals of non-critical liquidity and capital spending. We have an appropriate level of cash and cash equivalents to weather project shut downs in the short term. Furthermore, the proven flexibility of our organization has allowed us to deal with the current health crisis. We will provide updates as the situation evolves. 

 

About Foraco International SA

 

Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects.

Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 22 countries across five continents. For more information about Foraco, visit www.foraco.com.

 

For further information, please contact:

 

Fabien Sevestre (ir@foraco.com)

Tel: (705) 495-6363