- Geodrill Ltd GEO reported a first-quarter FY22 revenue increase of 9% year-over-year to $33.4 million and net income per share of $0.13, the same as 1Q21.
- The gross margin contracted to 29% from 31% a year ago.
- EBITDA improved by 3.3% Y/Y to $10.35 million, with a margin of 31%, down 170 bps from 1Q21.
- Geodrill reported a ROCE of 16% and ROE of 21% for Q1 versus 17% and 21% a year ago.
- Geodrill increased its rig fleet to 74 rigs by expanding its client base in Egypt; and maintained rig utilization of 75% on the expanded rig fleet.
- FY22 Outlook: The company states that Drilling activity levels in West Africa increased significantly; and the Rig fleet, currently 74 rigs with additional rigs in manufacturing to meet growing demand.
- “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,” commented Greg Borsk, Chief Financial Officer.
- “Rig for rig, Geodrill continues to outperform, fortifying our position beyond traditional borders and into new geographical regions, diversifying revenue, minimizing risk and ultimately making Geodrill more attractive than ever as an investment. This sharp focus on executing on our capital market objectives has put us in a strong position to continue to benefit from the robust exploration environment. With current gold prices rising, we anticipate continued upward adjustments to capital spending by both senior and junior mining companies,” commented Dave Harper, President and Chief Executive Officer of Geodrill.
- Price Action: GEO shares closed lower by 1.28% at C$2.31 on TSX, and GDLLF closed lower by 2.70% at $1.80 on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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