Geodrill Limited GEODF

Paradigm $5.00 target

[microcaphobby]

Believing its fourth-quarter 2021 financial results showed its high growth is likely to continue, Paradigm Capital analyst Gordon Lawson raised his target for shares of Geodrill Ltd. (GEO-T) to $5 from $4, pointing to “its aggressive growth profile predominately with gold companies, as well as its growing client base located in West Africa, South America and Egypt.”

“Geodrill is recognized as one of the leading drilling companies that has grown organically, from one drill rig in 1998 to its current fleet of over 60,” said Mr. Lawson, maintaining a “buy” rating for . It remains one of the most profitable drilling companies. With the recent increase in the gold price and improved profitability of the gold industry, we see companies increasing exploration budgets, hence drilling demand remaining robust. With over 90% of its revenue derived from gold exploration and development, we expect Geodrill to be a significant beneficiary.”

[profitprophet1]

That's good news and not at all surprising. In fact it may well be a bit conservative if you consider that his "more than 60" is actually currently 71 with 7 more (9?) this year. I expect there may be some pricing power too as most of their rigs are locked in and utilization is very high. Thx for posting it Micro.