Toronto-listed mineral drilling contractor Geodrill has booked a record net profit and EBITDA on a 40% surge in revenue in FY21.
The company reported its highest ever annual revenue of US$115.2 million for the 12 months to the end of December, 2021, as well as net income of $14.1m ($7.5m in FY20) and EBITDA of $29.5m ($19m).
“With the gold price in 2021 averaging approximately US$1800/oz, global exploration spending continues to increase,” Geodrill said.
“The majority of exploration spending is on gold and in conjunction with the increase in the gold price, the company, which drills approximately 95% for clients exploring for gold, has also seen the impact on its clients. The juniors now have access to the capital markets and are able to raise capital for their exploration properties. The intermediates and senior clients are continuing to generate sufficient cash flows from their operations and are expanding their exploration budgets accordingly. The company has been extremely busy in 2021 and is well positioned for 2022.”
Geodrill had 71 drill rigs at the end of 2021, with 66 units available for work at the time. It said rig fleet utilisation averaged above 70% in FY21.
The company’s share price is up nearly 30% year-to-date, capitalising Geodrill at C$126m.