Record results for Geodrill

WEST African drilling company Geodrill has reported an 88% jump in net income in 2021 to US$14.1 million.
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Staff reporter

Geodrill hopes that a strong gold price and new contracts will see the good results continue through 2022. 

Fourth quarter net income stood at $2.8 million.

For 2021, the company's revenue was $115.2 million, up 40% year-on-year, while EBITDA was $29.5 million, up 55% year-on-year. 

The drilling company ended the year with net cash of $2.4 million and delivered dividends of C2c per share.

"We entered 2022 with the highest rig count in the company's history and expanded our geographical footprint, and in less than two months have announced over US$130 million in new drilling contracts, all with top-tier gold producers, Perseus, Centamin, and Endeavour," Geodrill CEO Dave Harper said. 

He said the contracts signalled Geodrill's expansion beyond West Africa. The company operates in other African jurisdictions, including Mali and Egypt, and is expanding its presence in South America. 

"This accelerated growth is all against a backdrop of the global economy, increasing investor interest in gold and driving exploration budgets," Harper said. 

Geodrill shares rose 3.7% overnight in Toronto to $2.80 per share, not far off the 52-week high of $2.92 set in June last year. The company has a market capitalisation of $127 million.