Geodrill produces another set of record quarterly financial results

Drilling services provider Geodrill has announced strong financial results for the first quarter of 2022, during which it generated a record revenue of US$33.4 million – a 9% increase on the same period in 2021.

The TSX-listed firm also delivered record net income of $6 million – or 13 cents per share – in the period, along with an EBITDA of $10.4 million – or 31% of its revenue. Geodrill ended the quarter with net cash of $5.6 million.

Chief financial officer Greg Borsk said: “The start to 2022 was the best we have had in the company’s history. Our record quarterly performance demonstrates steady value generation.

“With strong gold and commodity prices driving demand for our services, we expect to keep delivering at this pace, with steady revenue growth and profitability,” he added.

From an operational perspective, Geodrill increased its rig fleet to 74 with the expansion of the company’s client base in Egypt, while maintaining a rig utilisation rate of 75%.

Drilling is underway at the recently awarded Centamin underground contract on the Sukari Gold Mine in Egypt, which is one of three major contracts Geodrill won in Q1. The firm also clinched deals with Perseus Mining and Endeavour Mining back in its traditional home of West Africa.

“Rig for rig, Geodrill continues to outperform, fortifying our position beyond traditional borders and into new geographical regions, diversifying revenue, minimising risk and ultimately making Geodrill more attractive than ever as an investment,” president and CEO Dave Harper said.