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Geodrill (TSE:GEO)
TSX:GEO
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Geodrill
(TSX:GEO)
71Outperform
Geodrill (GEO) vs. S&P 500 (SPY)
Market Cap
C$133.00M
Dividend YieldN/A
Average Volume (3M)22.16K
Price to Earnings (P/E)10.5
Beta (1Y)-0.15
Revenue Growth11.18%
EPS Growth137.62%
CountryCA
Employees1,635
SectorBasic Materials
Sector Strength63
IndustryMining
Share Statistics
EPS (TTM)0.27
Shares Outstanding47,163,170
10 Day Avg. Volume27,294
30 Day Avg. Volume22,162
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)2.70
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Geodrill Business Overview & Revenue Model
Company DescriptionGeodrill (GEO) is a leading exploration drilling company that primarily operates in the mining sector. The company specializes in providing a range of drilling services, including reverse circulation, diamond core, deep directional drilling, as well as geotechnical and water borehole drilling. Geodrill serves major, intermediate, and junior mining companies across West Africa and South America, with a strong focus on delivering high-quality and cost-effective drilling solutions to its clients.
How the Company Makes MoneyGeodrill generates revenue through the provision of drilling services to mining companies. The company charges its clients based on the type and depth of drilling, the duration of the project, and the specific requirements of each contract. Key revenue streams include fees from exploratory drilling contracts, which are typically long-term engagements with fixed and variable components, including mobilization fees, drilling rates per meter, and additional service charges for specialized equipment or personnel. Geodrill's earnings are also influenced by its ability to maintain high utilization rates of its drilling rigs, manage operational costs effectively, and expand its client base through strategic partnerships and market penetration in emerging mining regions.
Geodrill Financial Statement Overview
Summary
Geodrill's strong financial performance is highlighted by significant revenue growth and improved profit margins. The company maintains a healthy balance sheet with low leverage and a solid equity base. While cash flow management has improved, high capital expenditures indicate the need for careful capital allocation. Overall, Geodrill exhibits robust growth prospects in the mining sector.Income Statement
Geodrill has demonstrated strong revenue growth, increasing from $130.5M in 2023 to $143.1M in 2024, a growth rate of 9.6%. The gross profit margin improved to 24.2% in 2024 from 23.4% in 2023. EBIT and EBITDA margins were noteworthy at 12.8% and 21.8%, respectively, indicating efficient operations. Net profit margin also improved to 6.5% in 2024 from 3.0% in 2023. Overall, the company shows robust profitability and growth in the mining sector.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.03, reflecting low leverage and financial prudence. The equity ratio stands at 74.2%, indicating a strong equity base. Return on equity is modest at 7.7%, showing room for improvement in profitability relative to equity. Geodrill's financial stability is supported by a solid asset base and limited liabilities.78
Positive
Cash Flow
Geodrill's free cash flow turned positive in 2024 at $372K after a negative $4.3M in 2023, indicating improved cash management. The operating cash flow to net income ratio is 2.27, reflecting strong cash generation relative to net income. However, the free cash flow to net income ratio remains low due to significant capital expenditures, suggesting a need for careful capital allocation.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 143.05M | 130.54M | 138.63M | 115.21M | 82.44M | Gross Profit |
| 34.68M | 30.59M | 40.58M | 30.10M | 20.91M | EBIT |
| 18.28M | 9.45M | 28.32M | 20.45M | 10.81M | EBITDA |
| 31.16M | 20.56M | 38.35M | 27.86M | 18.95M | Net Income Common Stockholders |
| 9.26M | 3.90M | 18.92M | 14.14M | 7.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.52M | 15.81M | 15.11M | 13.53M | 8.63M | Total Assets |
| 161.49M | 148.61M | 141.23M | 116.56M | 98.34M | Total Debt |
| 3.45M | 978.29K | 5.82M | 7.61M | 3.75M | Net Debt |
| -9.60M | -14.66M | -8.57M | -1.67M | -2.82M | Total Liabilities |
| 41.97M | 38.65M | 34.17M | 29.03M | 25.28M | Stockholders Equity |
| 119.88M | 110.12M | 107.07M | 87.55M | 73.06M |
| Cash Flow | Free Cash Flow | |||
| 372.49K | -4.28M | 8.40M | 150.12K | -2.69M | Operating Cash Flow |
| 21.05M | 11.00M | 25.29M | 14.78M | 4.84M | Investing Cash Flow |
| -20.68M | -15.28M | -16.88M | -14.63M | -7.52M | Financing Cash Flow |
| -2.35M | 5.39M | -2.85M | 2.83M | -1.11M |
Geodrill Technical Analysis
Negative
2.89
Price Trends
3.09
Negative
2.99
Negative
2.70
Positive
Market Momentum
-0.05
Positive
29.82
Positive
25.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEO, the sentiment is Negative. The current price of 2.89 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.09, and above the 200-day MA of 2.70, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 29.82 is Positive, neither overbought nor oversold. The STOCH value of 25.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GEO.
Geodrill Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Performance Comparison
TSE:GEO
Geodrill
2.82
0.99
54.10%
TSE:DNG
Dynacor Gold Mines
5.15
1.18
29.66%
TSE:RDS
Radisson Mining Resources
0.30
0.12
66.67%
Geodrill Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -6.77% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Geodrill had a strong fiscal year with record revenues and profit margins, successful strategic expansions, and a bullish outlook on future growth driven by high gold prices. However, the need to pull out from high-risk jurisdictions and the high level of capital expenditure highlight some challenges. Overall, the positive aspects significantly outweigh the challenges.Highlights
Record Revenue and Profit Margins
Geodrill achieved record revenues of $143.1 million in 2024, marking a 10% increase from the previous year. The gross profit margin improved to 24% from 23%, and EBITDA increased significantly to $31.1 million or 22% of revenue.
Successful Strategic Expansion
The company strategically expanded into new markets including Egypt and South America, and secured multi-rig contracts in these regions and West Africa, boosting revenue visibility for the next three to five years.
Strong Cash Flow and Investment in Growth
Geodrill generated $21 million in cash flow from operations and reinvested almost the entire amount into property, plant, and equipment, preparing for an extremely busy 2025.
Bullish Outlook on Gold and Market Position
With gold prices near record highs and increased demand, Geodrill is well-positioned for future growth and considers the next four years to be the most promising in the company's history.
Lowlights
Challenges in High-Risk Jurisdictions
Geodrill pulled out of high-risk countries Burkina Faso and Mali, which required redeploying rigs to its primary countries, though it did not result in a revenue loss.
High Capital Expenditure
Geodrill's entire $21 million cash flow from operations was reinvested into capital expenditure, indicating a continued high demand for financial resources to support growth.
Company Guidance
In the fiscal 2024 results conference call for Geodrill, the company reported a 10% increase in revenue, reaching $143.1 million, up from $130.5 million in 2023. Greg Borsk, CFO, noted a gross profit of $34.7 million, comprising 24% of revenue, compared to 23% in the previous year. EBITDA was $31.1 million, accounting for 22% of revenue, up significantly from $20.6 million or 16% of revenue in 2023. Net income soared to $9.1 million or $0.20 per share, compared to $3.8 million or $0.08 per share last year. The company invested nearly $21 million, mainly in property, plant, and equipment, reflecting its focus on growth, with 95 drill rigs by year-end. Geodrill's strategic pivot into safer jurisdictions and securing multi-rig contracts in West Africa, Egypt, and South America bolstered revenue visibility for the next three to five years. Looking forward, the management expressed optimism for 2025, aiming for a 10-15% growth rate, driven by robust gold prices and strong demand in their core markets.Geodrill Corporate Events
Business Operations and StrategyFinancial Disclosures
Geodrill Achieves Record Revenue and Expands Operations in 2024
Positive
Mar 3, 2025
Geodrill Limited reported record-breaking financial results for the fiscal year 2024, with revenue reaching $143.1 million, a 10% increase from the previous year. The company achieved significant growth in net income and EBITDA, driven by new multi-year contracts in West Africa and Chile, and maintained a robust presence in Egypt. The expansion of its rig fleet from 83 to 95 rigs further supported its operations. Looking ahead to 2025, Geodrill is strategically positioned for growth, leveraging rising gold prices and expanding its operations into Saudi Arabia and South America, while continuing to respond to increased demand with fleet expansion.
Business Operations and StrategyFinancial Disclosures
Geodrill Achieves Record Revenue and Expands Global Footprint
Positive
Mar 3, 2025
Geodrill Limited reported record-breaking financial results for the fiscal year 2024, with revenue reaching $143.1 million, a 10% increase from the previous year. The company achieved a significant increase in net income and EBITDA, driven by new multi-year contracts in West Africa and Chile. Geodrill ended the year with a fleet of 95 rigs and a strong cash position, despite operating in a challenging inflationary environment. Looking ahead to 2025, Geodrill is strategically positioned for growth, leveraging rising gold prices and expanding its presence in the Middle East and South America.
Financial Disclosures
Geodrill to Announce Q4 and Year-End 2024 Financial Results on March 3, 2025
Neutral
Feb 3, 2025
Geodrill Limited announced that it will release its financial results for the fourth quarter and full year ended December 31, 2024, on March 3, 2025, before the market opens. The announcement is significant as it offers stakeholders insight into the company’s financial performance and strategic positioning in the industry, particularly its expansion efforts in South America.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.