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-Continued Momentum Drives Record Third Quarter Performance-

TORONTO, Nov. 11, 2022 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO) (OTCQX: GEODF) a leading West African based drilling company, reported its financial results for the three month and nine month period ended September 30, 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").

Geodrill Ltd. Logo (CNW Group/Geodrill Limited)

Financial Overview Q3-2022:

  • Increased revenue to $35.2M, a 29% increase compared to Q3-2021;
  • Achieved EBITDA of $9.3M or 26% of revenue, a 96% increase compared to Q3-2021;
  • Achieved net income of $3.6M or $0.08 per Ordinary Share, a 100% increase compared to Q3-2021;
  • Continued to strengthen the balance sheet, achieving Total Equity of $103.6M up from $84.7M or 22% compared to Q3-2021;
  • Generated Return on Capital Employed (ROCE) of 26% and Return on Equity (ROE) of 18%; and
  • Ended the quarter with net cash (excluding right of use liabilities) of $5.7M.

Operational and Strategic Highlights Q3-2022:

  • Expanded into new geographic location by securing a contract in Chile; the contract is a minimum of $3M for a deep directional drilling program in line with the Company's strategic goal to diversify into South America;
  • Awarded two additional surface drilling contracts in Egypt totalling $3M;
  • Maintained rig utilization of 75% on the increased rig fleet;
  • Achieved 8.9M LTI free hours at the end of Q3 2022; and
  • Completed listing on the OTCQX with the goal of increasing shareholder visibility.


  • Intermediate and senior mining companies generating cash continues to drive demand for drilling; and
  • Bidding market remains robust, with strong demand for drilling in all geographic locations.

Financial Summary

US$ 000s

(except earnings per
share and percentages)

For the three

months ended

Sept 30, 2022

For the three

months ended

Sept 30, 2021

For the nine
months ended
Sept 30, 2022

For the nine
months ended
Sept 30, 2021






Gross profit





Gross profit margin

31 %

21 %

31 %

27 %






EBITDA margin

26 %

17 %

29 %

25 %

Net Income





Earnings per share –





Return on Equity (ROE)

18 %

16 %

16 %

16 %

Return on Capital
Employed (ROCE)

26 %

21 %

23 %

21 %

Total Equity







EBITDA = earnings before interest, taxes, depreciation and amortization


Please see "Non-IFRS Measures" below for additional discussion

"Geodrill experienced growth in each and every financial metric for what is our best third quarter ever; record revenue, EBITDA, and net income on the back of continued strong demand in all geographical locations for our drilling services," said Greg Borsk, Chief Financial Officer of Geodrill. "With this continued momentum in the third quarter, we remain on track for an unmatched year in terms of Geodrill's financial historical performance."

"Our strategic decision to diversify geographically has been critical to Geodrill's growth trajectory. New long-term contracts with major exploration partners not only provides future revenue streams but has also extended and solidified our reputation as a leading drilling service provider beyond the borders of West Africa," said Dave Harper, Chief Executive Officer of Geodrill. "Now, Geodrill is better positioned than it has ever been, both financially and operationally. At the same time, the demand for commodities continues unabated. This set of circumstances, against a backdrop of global uncertainty that has roiled markets, creates a unique investment opportunity. With an established business and impressive financial performance, we believe Geodrilll is strategically positioned to create higher returns for investors than other industry players".

Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three month period ended September 30, 2022, are available via Geodrill's website at and will be available on SEDAR at Management of the Company will host a conference call at 10:00 am EDT to discuss the financial results.

You can join the call by dialing 1-888-664-6392 or local 416-764-8659. A live audio webcast of
the conference call will also be available through:

About Geodrill Limited

Geodrill has been successful in establishing a leading market position in Ghana, Burkina Faso and Cote d'Ivoire. The Company also operates in other African jurisdictions including Mali and Egypt and is expanding its geographic presence in South America. With the largest fleet of multi-purpose rigs, Geodrill provides a broad selection of diverse drilling services, including exploration, delineation, underground and grade control drilling, to meet the specific needs of its clients. The Company's client mix is made up of senior mining, intermediate and junior exploration companies.

Forward Looking Information

This press release may contain "forward-looking information" which may include, but is not limited to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the Management's Discussion & Analysis for the year ended September 30, 2022 and the Company's Annual Information Form dated March 28, 2022 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Geodrill Limited

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