Geodrill Limited GEODF

A question to the wise re: inventories. They are $34 mill US

[drunk@noon]

almost 50 mill Cdn. What excactly are these inventories. And why is the level so high?  Are these supplies or equipment used up during the drilling of holes? JAnd are there for are recognized as expenses as the revenue is recognives. just wondering what these invintories are vs being classified as equipment. It is a large number.
Thanks in advance.

[screamer99]

Could be and likely is just parts. With 80 - 90 rigs in remote areas, having ~$500k - ~$600k in parts available per rig seems reasonable.

[drewmumaw]

It also includes fuel and reverse circulation drill pipes. From an old MD&A: When bidding on a drilling contract, the cost of consumables (including fuel) is a key consideration in deciding upon the pricing of a contract. A material increase in the cost of consumables (including fuel) could result in materially higher costs and could materially reduce the Company’s financial