Overview

* Geodrill ( GEODF ) Q2 revenue grows 22% yr/yr, beating analyst expectations, per LSEG data

* West African based drilling company achieved record EBITDA of $13.9 mln, up 31% yr/yr

* Geodrill ( GEODF ) net income rises to $5.3 mln, driven by strong demand for drilling services

Outlook

* Robust gold and copper prices to drive drilling service demand

* Company's bidding pipeline remains highly active

Result Drivers

* STRONG DEMAND - Robust demand for drilling services, strong demand in West Africa and Egypt drove revenue growth

* GOLD PRICES - Elevated gold prices supported increased demand for exploration drilling

* SOUTH AMERICA EXPANSION - Addition of rigs in Chile ahead of a multi-phase contract enhanced regional presence

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $50.35 $48.20

Revenue mln mln (1

Analyst)

Q2 Net $5.33

Income mln

Q2 Gross 24.0%

Margin

Q2 Basic $0.11

EPS

Q2 $13.94

EBITDA mln

Q2 28.0%

EBITDA

Margin

Q2 Gross $11.95

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the mining support services & equipment peer group is "buy"

* Wall Street's median 12-month price target for Geodrill Ltd ( GEODF ) is C$4.00, about 1.5% above its August 8 closing price of C$3.94

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)