RE:RE:RE:poor IRAnd currently on net cash position, 7 new rigs (but Harper hinted to 9), all rigs fully spoken, except for 2 in Peru that should be book very soon. The 5 new rigs in Egypt = Centamines contract as it calls for 5 rigs/5years. Utlisation rate at 73% right now and pushing to 75.
Analyst asked "could we see a revenue number sort of close to 150 over the next two years? And is the - could the earnings be sort of north of $20 million?" Harper : "I think your numbers aren't that far out."
Actually, 20 millions would be 20% CAGR versus 10% CAGR they achieve in the last 5 year with 4 years in a down cycle.
To get to .50/shares would mean a 64% increase in net income. Why not.
Note the 4/5 times EBITDA on slide 6 of their presentation as the typical trading range for GEO during an upcycle. They are trading at 3.3 current EBITDA. 4-5 would get them at $ 3.20-4. And they did trade at 8 at the top which would translate to $ 8 CAN. Double their Ebitda and you are beginning to see serious numbers.
GLTA