Geodrill on target with revenue, earnings surge

Leading West Africa driller enjoying gold-led activity surge

Toronto-listed African mineral drilling company Geodrill is on track to blitz last year’s earnings and revenue levels after lifting third-quarter revenue 44% year-on-year to US$27.2 million and increasing EBITDA to $4.735m.

The company’s net earnings for the first nine months of 2021 are up to $11.36m from $5.36m at the same time last year. Revenues have climbed to $88.47m year-to-date, compared with $82.44m for the whole of 2020 and $87.4m in fiscal 2019.

Geodrill has maintained a similar high EBITDA margin (25%) to last year on much higher turnover.

September-quarter EBITDA of $22.15m this year compares with $13.24m at the same time last year.

“Momentum in the first half of 2021 continued into the third quarter,” said CFO Greg Borsk.

“The result is another strong quarter for Geodrill with a solid operating performance and significant growth in revenue. As gold price continues to rally, significant demand and strong market fundamentals remain in place for the rest of the year.”

Geodrill’s share price is up about 39% year-to-date, capitalising the company at C$102 million.

CEO Dave Harper said Geodrill maintained a strong position in the Ghana, Burkina Faso, Cote d’Ivoire and Mali gold drilling markets, recently picked up its first contract in Egypt, and also secured a maiden job in Peru in South America.

The company had 64 of its 71 drill rigs available for work at the end of September this year, with three rigs being shipped and a further four undergoing repair and/or maintenance.

After paying no dividends in a COVID-hit 2020, Geodrill has paid out C2c a share so far in 2021.


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