Geodrill Q4 2024 Update - $GEO.to

Quick update after Q4 2024

*Disclosure: I own shares in GEO. I am not a professional. Please do your own due diligence.

Price: $3.10 CAD / $2.10 USD

MC: 100 million USD

EV: 92 million USD

1 year performance: +83%

GEO.to reported this morning and held a call. Results were ahead of my expectations and the stock was up/down %

*all numbers in USD unless stated otherwise

Quarter Recap

• Revenue for Q4 came in at 33.1 million vs 30.7 million last year.

• EBITDA came in at 6.1 million vs 3.3 last year.

• Full year revenue at 143.1 million or 10% higher than 2023.

• Full year EBITDA was 31.1 or 22% of revenue.

• Established a company in Saudi Arabia to expand into new geographies.

Call Notes

• Both core and new markets were strong.

• They are expecting growth in 2025 in all regions.

• Spent just over 20 million this year. Have been focused on growing the rig count to meet demand.

• Fully exited Mali Burkina.

• Noted that the junior market is improving.

• Sounds like they may reinstate a small dividend in the back half of the year.

• 2025 looks to be very busy and should see strong growth.

• The receivable situation has improved quite a bit. They are comfortable with the reserves taken from here. See below for the last 7 quarters.

Valuation

I have them at around 3x EV/EBITDA on a ttm basis. Using my 2025 numbers, I have them closer to 2.5x. If the market really takes note, I would expect the multiple to improve from here.

Closing Thoughts

I am quite surprised that GEO has not performed better so far this year. The business is running well and the macro backdrop for gold is very strong. They have already pivoted the business and the comments were very bullish.

Thanks for reading my work.

Dean

* long GEO.to