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Geodrill Limited GEODF


Primary Symbol: T.GEO

Geodrill Limited is an Isle of Man-based exploration drilling company with a fleet of 76 drill rigs operating in Africa and South America. The Company operates in approximately two continents and seven countries, namely Ghana, Burkina Faso, Cote d’Ivoire, Mali in West Arica; Egypt in North Africa; and Peru and Chile in South America. The Company provides Reverse Circulation, Diamond Core, Deep Directional Navi Drilling, Air-Core, Grade Control, Geo-Tech, and Water Borehole drilling services to intermediate and junior mining companies and operates a fleet of multi-purpose rigs in Africa. Its fleet stands at approximately 76 drills and is made up of over nine types, including EDM 2000 multi-purpose (qty. 6), Sandvik DE 810 multi-purpose (qty. 11), Sandvik DE 740 core (qty. 10), Sandvik DE 710 core (qty. 10), X1200 Multi-Purpose (1), X900 Multi-Purpose (17), Austex X350 RC / Grade Control (qty. 2), Austex X300 Air-core (qty. 7) and LM90 (qty. 7).


TSX:GEO - Post by User

Comment by screamer99on May 19, 2021 8:57am
351 Views
Post# 33228770

RE:RE:RE:RE:RE:RE:Completely undervalued

RE:RE:RE:RE:RE:RE:Completely undervaluedQ2 revenues have outperformed Q1 revenues over the last 4 years so I'm optimistic with this Q2 being no different.  Espcially with more rigs and higher utilization.

If Q2-21 is another $10m+ EBITDA quarter, and Q3 and Q4 hold at $6m each, which I think is likely, we're at the $32m EBITDA I used in my example which I think will put over the $5 mark in due course.

The company will have excess cash at some point with low current debt levels.  It could initiate an NCIB but with insider ownerhsip as high as it is, I don't think investors would like see that ownership increase.

That leaves increasing the regular dividend (or implementing a quarterly or monthly dividends), paying a special dividend, or reinvesting the cash to increase the unit base.  All would move the SP in the same direction.

I'm sticking to companies with levels of debt for the time being but you put others on the radar for me to look into (thank you).
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