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Investors are always on the lookout for unique opportunities — whether it’s companies that are exploring or drilling — and Geodrill Ltd. (TSX.GEO, OTCQX: GEODF, Forum) is one such company currently on the ground and drilling in Ghana, West Africa.

Headquartered out of Toronto, Ontario, Geodrill is an exploration drilling company that operates a fleet of multi-purpose, core, air-core and grade control drill rigs. In line with this, the company also provides these services and reverse circulation, diamond core, grade control, geo-tech and water bore drilling services to junior, intermediate and major mining companies.

With under two months until the end of 2022, Geodrill released its Q3 2022 in November, highlighting that it was the company’s best third quarter ever.

Geodrill Q3 2022 highlights

In a press release, the company said that it increased its revenue to $35.2 million, representing a 29 per cent increase from the same period last year, and achieved EBITDA of $9.3 million, which is a 96 per cent increase from Q3 2021.

Operational and strategic highlights include:

  • Expanding into a new location by landing a contract in Chile as it continues to diversify into South America;
  • Being awarded two additional surface drilling contracts in Egypt totalling $3 million;
  • Maintained rig utilization of 75 per cent  on the increased rig fleet;
  • Achieved 8.9M LTI free hours at the end of Q3 2022; and
  • Officially listing on OTCQX in the United States

“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,”  Greg Borsk, CEO of Geodrill, said in a press release. “With this continued momentum in the third quarter, we remain on track for an unmatched year in terms of Geodrill’s financial historical performance.”

The company also said its strategic decision to continue diversifying around the world has been instrumental in its growth trajectory. As Geodrill continues doing so — and landing new contracts with major exploration partners — the company said it believes it is in a strong position to create higher returns for its investors.

Future outlook

Moving forward, the company said intermediate and senior mining companies generating cash will continue to drive demand for drilling and that there is strong demand for drilling in all geographic locations.

About Geodrill

Geodrill is an exploration drilling company with operations in two continents and five countries, including Burkina Faso, Côte d’Ivoire, Mail in West Africa; Egypt in North Africa; and Peru in South America.

The company also has a fleet of 75 surface and underground drill rigs and also invests in modern equipment and world-class operations so that it can provide its clients with a “one-stop” drilling solution.

In other words, Geodrill’s multi-purpose rigs provide the versatility of both reverse circulation and diamond core drilling that can be switched midway through with minimal effort or downtime.

Investment summary

Geodrill presents itself as a unique investment opportunity for investors interested in the boots-on-the-ground side of the business instead of the actual drilling.

Because of this, the company is in a strong position to benefit from exploration spending from mining companies — including Tier 1 mining companies.

Additionally, while 2022 has been a difficult year for the stock market all across the board, Geodrill has managed to stay afloat with a 22.22 per cent share price increase year to date.

With the company’s best third quarter in its history, Geodrill will be a company to watch for as the year comes to a close and well into 2023 and beyond.

DISCLOSURE: This is a paid article by The Market Herald.


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