WIN:CC - Chairman's Update
(TheNewswire)
Brossard, Q C - TheNewswire - April 14th, 2021 - WindfallGeotek Inc. (the “Company”, or “Windfall” ( TSXV:WIN ) ( OTC:WINKF ) ( FSE:L7C2)
DOES NOT CONSTITUTE AN OFFER OF THESECURITIES DESCRIBED HEREIN
Dear fellow shareholders,
I wanted to take this opportunity at the beginning of2023 to discuss our progress over 2022 and lay out the plan we remaincommitted to over the next 12 months.
2022 was a very difficult year for many parts of themining industry. We saw material changes in capital inflows andvaluations of firms, in spite of strong fundamentals. At Windfall weperceived this change in the capital environment early andre-positioned our operations to drive to break even. It is my firm andcontinuing belief that an operating discipline that seeks to minimizeburn and invests in high multiple valuable assets is the only way toachieve our vision of being the market leader in digital exploration.
Our pivot to focus on scale resulted in a completegreenfields replatforming of our technology stack leveraging newmethods and capabilities not the least of which is leveraging AmazonWeb Services for scale. This complete redo of our technology platformwas a significant investment in time and capital. Using technology asa leverage will help Windfall Geotek explore new avenues to add valueto the exploration teams using the data at its core. We think aplatform focused on data directly accessible by geologicalprofessionals will be a net positive in the exploration industry.
We started this digital transformation with our ownbusiness. With the leverage that comes from our technological scale,we were able to do things that were impossible in the previous decadeof the business. For example, in 2022, we completed 30 projects. Thisnumber is 10 times the average number of projects per year we did overthe previous decade. The optimizations to our cost structure means wecan partner with our clients and meet their financial realitiescreatively to gain market share.
It also means that we, in partnership with financialand operational groups, can make bets based on the insights we gainfrom the large data sets we process. For example, in 2022, weprototyped the process for engaging in this way with our clients,successfully partnering to build an important land package in Ontariowith our technology, yielding a 2% royalty and a 4 year optionagreement worth $1.4M.
On the application of our technology towards the scourge of landmines,in 2022 we deepened our partnership with Draganfly to support aproduct demonstration in Ukraine, and brought our deep knowledge insoftware and data models to support the build out of their drone andsensor facilities in the US. We jointly presented to decision makersin Europe, Asia, and North America, culminating in being invited tojointly present to the Canadian government our drone based detectionand de-mining solution in the summer of 2023.
2023 is going to be a pivotal year for the adoption ofAI assisted digital exploration. The decision by EarthLabs (formerlyGoldspot) to pivot out of this area means we can leverage our positionon the TSX Venture to take a more important market share. The sale oftheir platform for cash proceeds of $24M also sets a very favourablecomparative valuation to Windfall. Today we are one of the onlycompanies offering digital exploration capabilities able to structuredeals in a way that supports the junior market namely royalties,marketable securities, and cash.
Over the next 12 months we expect that we will take ourtechnology platform and bring its capabilities directly to VP’s ofExploration. This will put the power of digital exploration directlyin the Geologist’s hands to test and validate. Over the past 15years we have struggled as Geological professionals expressedskepticism in the technology.
By pivoting to a licensable cloud based platform withalgorithms that are explainable we will overcome the barrier that haslimited our go to market over the past 18 months- namely skepticism ofour technology by geological professionals. It is my sincere hope thatnext year I will be able to report another significant increase inprojects through the platform based on the optimizations we have madeto the business model and user interface.
2023 will also see us continuing to invest in ourpartnership with DraganFly, as we jointly work to mitigate the hugecost to human life in Ukraine and around the world. Our joint hardwareand software teams are engaged deeply. Though change comes slowly, weare excited about the commercial potential from our invitations to anumber of product demonstrations globally, the first of which is inJune 2023.
In closing I am very excited about our prospects thisyear, and continue to operate the business in a way that efficientlyuses shareholder capital. We remain debt free and continue to buildour asset base. As always we welcome constructive input from all ofyou on the business and your continued advocacy to share our missionwith all the primary exploration companies you invest and engage with.
Best Regards,
Dinesh Kandanchatha
Chairman
FORWARD-LOOKINGSTATEMENTS : This letter contains forward-looking statements, which relate tofuture events or future performance and reflect management’s currentexpectations and assumptions. Such forward-looking statements reflectmanagement’s current beliefs and are based on assumptions made byand using information currently available to the Company. Investorsare cautioned that these forward-looking statements are neitherpromises nor guarantees, and they are subject to risks anduncertainties that may cause future results to differ materially fromthose expected. These forward-looking statements are made as of thedate hereof and, except as required under applicable securitieslegislation, the Company does not assume any obligation to update orrevise them to reflect new events or circumstances. Allforward-looking statements made in this press release are qualified bythese cautionary statements and by those made in our filings withSEDAR in Canada (available at WWW.SEDAR.COM).
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