Post by
screamer99 on Nov 11, 2021 7:31am
Q3 results
A great result in my view. Look out for the "other loss / income" which relates to equity investments.
If you factor in the net change of a decrease of $650k, EBITDA is that much higher.
Gross profit - $5.6m
SG&A - ($2.7m)
Depreciation - $2.1m
=
Operating profit of $5.0m during the wet season (compared to $4m, last year) and compared to about $7mm in Q2-21.
If the market mistinterprets the flat EBITDA and doesn't consider the equity investment noise, I'll be adding.
Good utilization and increasing rig count will provide for better quarters ahead. The company is also in a net cash position!
Comment by
InFactsWeTrust on Nov 12, 2021 11:32am
Thanks for your insights. They make a lot of sense. If the explorers don't pay up, they don't get the gold out, so there's an even bigger supply shortage and gold rockets higher, which means they can afford to pay more. May as well pay up now and get your drillers in place before your competition does.
Comment by
nodice7777 on Nov 12, 2021 12:04pm
Correct. Drillers tend to be later cycle plays in the resource cycle. Let's face it, we were hoping for better results in Q3 which resulited in the the knee jerk reaction to the downside but it's one quarter and what matters is what lies ahead not behind and things look bright for geodrill.