Geodrill (GEO) Q3 2024 earnings summary

Executive summary

• Revenue increased 13% year-over-year in Q3 2024 to $34.1 million, driven by new multi-rig, multi-year contracts and expansion into new markets.

• EBITDA rose 22% year-over-year to $7.6 million (22% margin), with net income of $2.6 million ($0.06 per share) compared to a net loss in Q3 2023.

• Strategic focus on long-term contracts with Tier one miners and expansion into South America has stabilized revenue and improved profitability.

• Secured over $150 million in contracts for 2024, with an additional $49–50 million in Chile post-quarter, supporting future revenue.

• Achieved 21 million LTI free hours, reflecting operational safety.

Financial highlights

• Q3 2024 revenue was $34.1 million, up from $30.3 million in Q3 2023; nine-month revenue reached $109.9 million.

• Gross profit for Q3 was $8.4 million (24% margin), up from $5.8 million (19%) in Q3 2023; nine-month margin steady at 26%.

• EBITDA for Q3 was $7.6 million (22% margin), up from $600,000 (2%) in Q3 2023; nine-month EBITDA was $25.0 million (23% margin).

• Net cash position at quarter-end was $3.5 million, excluding right-of-use liabilities.

• EPS was $0.06 in Q3 2024 versus $(0.06) in Q3 2023; $0.21 for nine months versus $0.11 prior year.

Outlook and guidance

• Multi-year contracts totaling $150 million in core jurisdictions and $49–50 million in Chile are expected to contribute to revenue and profitability over the next three to five years.

• Robust gold prices are supporting strong global exploration spending and continued demand for drilling services.

• Ongoing expansion into South America and diversification of commodity portfolio.

• Management is confident in delivering continued growth and shareholder value.