-Operational Excellence Drives Record Profitability –
TORONTO, May 9, 2022 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO), a leading West African based drilling company, reported its financial results for the three month period ended March 31, 2022. All figures are reported in U.S. dollars ($), unless otherwise indicated. Geodrill's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
Financial Overview Q1-2022:
- Generated record revenue of $33.4M an increase of $2.7M or 9% compared to Q1-2021;
- Delivered record net income of $6.0M or $0.13 per Ordinary Share;
- Achieved EBITDA of $10.4M or 31% of revenue;
- Improved Total Equity to $92.7M; and generated Return on Capital Employed (ROCE) of 21% and Return on Equity (ROE) of 16%; and
- Ended the quarter with net cash (excluding right of use liabilities) of $5.6M.
Operational and Strategic Highlights:
- Increased rig fleet to 74 rigs with the expansion of the Company's client base in Egypt;
- Maintained rig utilization of 75% on the increased rig fleet;
- Drilling underway with 6 Rigs drilling on the newly awarded Centamin underground contract on the Sukari Gold Mine in Egypt; and
- Completed a milestone of 6.5 million LTI Free Man hours at March 31, 2022.
Outlook:
- Well-funded exploration companies and senior mining companies generating cash continues to drive demand for drilling;
- Drilling activity levels in West Africa has increased significantly in 2022;
- Rig fleet, currently 74 rigs with additional rigs in manufacturing to meet growing demand; and
- Extremely active bidding market, with particularly strong demand in exploration drilling in all geographic locations including in Peru.
Financial Summary
| US$ 000s (except earnings per share and percentages) | For the three months ended Mar 31, 2022 | For the three months ended Mar 31, 2021 |
| Revenue | US$33,409 | US$30,665 |
| Gross profit | US$9,811 | US$9,632 |
| Gross profit margin | 29% | 31% |
| EBITDA(1)(2) | US$10,351 | US$10,021 |
| EBITDA margin | 31% | 33% |
| Net Income | US$5,951 | US$5,652 |
| Earnings per share – basic | US$0.13 | US$0.13 |
| Return on Equity (ROE) | 16% | 17% |
| Return on Capital Employed
(ROCE) | 21% | 22% |
| Notes: |
| | (1) EBITDA = earnings before interest, taxes, depreciation and amortization |
| | (2) Please see "Non-IFRS Measures" below for additional discussion |
| | |
"The start to 2022 was the best we have had in the Company's history. Our record quarterly performance demonstrates steady value generation," said Greg Borsk, Chief Financial Officer of Geodrill. "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. We continue to maintain a robust balance sheet, while providing the premium drilling services that have set Geodrill apart in the past and will continue to drive growth in the future".
"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," said Dave Harper, President and Chief Executive Officer of Geodrill. "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."