TORONTO, Nov. 13, 2023 /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, 2023. 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 Logo (CNW Group/Geodrill Limited)

Financial Overview Q3-2023:
  • Recorded revenue of $30.3M, a 14% decrease compared to Q3-2022;
  • Recorded EBITDA of $0.6M or 2% of revenue which includes a $3.6M non-cash expected credit loss provision related to the aging of trade receivables – (excluding this provision EBITDA would have been $4.2M or 14% of revenue for Q3-2023);
  • Net loss for Q3-2023 was $(3.0)M – (excluding the $3.6M non-cash expected credit loss provision related to the aging of a trade receivable, the net income would have been $0.6M for Q3-2023); and
  • Ended the quarter with net cash (excluding right of use liabilities) of $3.6M.
Operational and Strategic Highlights Q3-2023:
  • In the primary countries in which Geodrill operates being Ghana, Cote d'Ivoire and Egypt, revenue increased on a quarter to quarter basis;
  • Added 4 new drilling contracts in the quarter, two in South America, one in Ivory Coast and one in Egypt totalling approximately $10M;
  • Achieved new milestone 14M LTI free hours at end Q3 2023;
  • The Company due to security concerns wound-up its drill programs in Burkina Faso, and redeployed the rigs to other countries;
  • The Company during the quarter had minimal activity in Peru and did not drill in Chile as a result of inclement weather conditions and is now drilling in both Peru and Chile in Q4 2023;
  • The Company had certain drill programs end in Mali during the quarter; and
  • Further diversified its presence in West Africa with a new drilling contract in Senegal.
  • Intermediate and senior mining companies generating cash continues to drive demand for drilling;
  • Capital markets continue to be challenging impacting junior and intermediate exploration companies needing to raise capital; 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, 2023

For the three
months ended
Sept 30, 2022

For the nine
months ended
Sept 30, 2023

For the nine
months ended
Sept 30, 2022






Gross profit





Gross profit margin

19 %

31 %

26 %

31 %






EBITDA margin

2 %

26 %

17 %

29 %

Net (Loss)/Income





(Loss)/Earnings per share
– basic





Total Equity







EBITDA = earnings before interest, taxes, depreciation and amortization


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


"Revenue was adversely impacted by certain drilling programs that came to an end and certain programs were only able to start drilling very late in the quarter. We made a prudent decision to keep staff employed in certain regions in anticipation of the fourth quarter drilling. In parallel, we saw the aging of our greater than 90 day receivables increase and booked a large non-cash expected credit loss provision in the quarter, which further impacted net income and EBITDA, resulting in a net loss. While the challenging capital markets have affected exploration drilling for junior companies, we are focused on meeting demand from our senior mining customers and continue to navigate these tough market conditions," said Greg Borsk, Chief Financial Officer.

"Geodrill's long-term outlook remains positive. We will continue to rely upon our decades of experience and operational efficiency as we adjust to the market conditions and challenges for the remainder of 2023. We take a long-term approach that is flexible enough to adjust to the day-to-day realities of the business while maintaining a focus on our core values. We remain confident in our ability to recapture momentum and return traditional value to shareholders," said Dave Harper, President and CEO of Geodrill.

Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three month and nine period ended September 30, 2023, 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 ET to discuss the financial results.

Q3 2023 Conference Call Information

Date & Time:

Monday, November 13, 2023 at 10:00 a.m. ET


Toll Free (North America) 1-888-664-6392

International 1-416-764-8659

Conference ID:  

899095 #


Conference Call Replay


Toll Free Replay (North America) 1-888-390-0541

International Replay 1-416-764-8677

Entry Code

899095 #

The conference call replay will be available from 12:00 p.m. ET on November 20, 2023 until 11:59 p.m. ET.

About Geodrill Limited

Geodrill has been successful in establishing a leading market position in Ghana and Cote d'Ivoire. The Company also operates in other African jurisdictions including Egypt, Mali, Senegal and is expanding its geographic presence in the South American countries of Chile and Peru.  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, 2023 and the Company's Annual Information Form dated March 28, 2023 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

Copyright 2023 Canada NewsWire

Geodrill (TSX:GEO)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Geodrill Charts.
Geodrill (TSX:GEO)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Geodrill Charts.