EXCLUSIVE: Geodrill Clocks 40% Revenue Growth In FY21

Geodrill Ltd GDLFF GEO reported fourth-quarter and FY21 revenue growth of 8.2% year-over-year to $26.7 million and +39.7% to $115.2 million. 

EPS for FY21 improved to $0.31 from 0.17 a year ago, and for Q4 improved to $0.06 from $0.05 in 4Q20.

FY21 Gross margin expanded by 75 bps to 26.1% and for Q4 contracted by 366 bps to 24.3%.

EBITDA for the fiscal increased by 55.4% Y/Y to $29.45 million, and the margin expanded by 258 bps to 25.6%. For Q4, EBITDA improved by 27.9% Y/Y to $7.31 million and the margin expanded by 420 bps to 27.3%.

Geodrill reported a ROCE of 22% and ROE of 16% for FY21 compared to 14% and 10% a year ago. The company ended the year with net cash of $2.4M.

FY22 Outlook: The company expects Drill rig fleet size to increase by seven rigs by the end of 2022.

Chief Executive Officer Dave Harper, in an exclusive quote to Benzinga, stated, “Not only did Geodrill have a strong quarter and year, we are really just at the start of what we anticipate to be a very strong growth cycle going in the next five years. We’re coming off 2022 with our highest annual revenue ever and have set the stage for exceptional future revenue expansion.”

“And that revenue expansion is already well underway; since the start of the year, we have announced three major contracts that will add over US$130M revenue to our bottom line by the end of 2026. To put that into perspective, we reported US$115M revenue for the entirety of last year, so these contracts add significant value going forward, and we’re stoked about the momentum.”

“Industry tailwinds, like rising gold prices, are something we anticipate may prompt a quickening of the improved sentiment we are seeing for the sector and further drive exploration budgets and spending,” continued Mr. Harper. “As such, the further expansion of our drill fleet with an additional 7 rigs planned in 2022, feels like perfect timing, as does our move into new geographical areas like Egypt.”

Price Action: GDLLF shares closed higher by 2.69% at $2.17 on Friday.